- In Q2 2021, ING achieved an 11.2% ROE, driven by negative cost of risk (-6bps) and fee growth (+18% Y/Y).
- ING's current CET1 ratio of 15.7% represents a 520-basis point buffer over MDA requirements or a 320-basis point buffer over management's 12.5% CET1 target (Basel IV).
- Bringing the CET1 ratio to the 12.5% target would allow up to 2.5 EUR/share of shareholder distributions, not accounting for RWA growth or additional Basel IV impact.
- 1.87B EUR is set to be distributed with the 12 October 2021 dividend (48 euro cents), leaving 1.744B EUR for near-term dividends and buybacks (45 euro cents), subject to approvals.
- I present a model for ING share price total returns over the next 4 years.
For further details see:
ING: Some Upside Potential Left Even After A 54% YTD Rally