- ING's fourth quarter included a modest pre-provision profit beat on an adjusted basis, though lower provisioning drove the large majority of the beat.
- Loans declined in 2020 and the recovery back to ING's former loan growth rate of around 4% is likely to take a couple of years.
- Spreads will remain a headwind in 2021, but credit is improving and the worst is likely behind the bank; there will be charge-offs from here, but provisioning should normalize.
- ING shares remain meaningfully undervalued even if the company only generates long-term profit growth in the low single-digits.
For further details see:
ING Signals The Worst Is Over, And The Shares Remain Undervalued