05. ING Groep N.V. (NYSE:ING)
Number of Hedge Fund Holders: 12
ING Groep N.V. (NYSE:ING) engages in the provision of banking, investments, life and non-life insurance, and retirement and asset management services. The company was founded on March 4, 1991 and is based in Amsterdam, the Netherlands. ING Groep N.V. (NYSE:ING) continues to demonstrate resilience and strategic growth, making it an attractive investment in the European banking sector. Despite facing challenges from shifting interest rate environments, ING Groep N.V. (NYSE:ING) fundamentals remain strong, and its strategic initiatives are bearing fruit.
In Q2 2024, ING Groep N.V. (NYSE:ING) delivered robust commercial performance, with significant growth in both lending and deposits. The bank saw a notable increase in mobile primary customers, adding nearly 250,000 new customers this quarter alone, reflecting the success of its customer-centric approach. Over the past 12 months, the bank has grown its mobile customer base by over 900,000, keeping it on track to meet its annual growth target of one million.
The bank’s mortgage lending has also shown solid growth across all its markets, complemented by a strategic focus on optimizing capital usage in wholesale banking. With a strong inflow of EUR 15 billion in deposits this quarter, ING Groep N.V. (NYSE:ING) customer-balanced growth has exceeded expectations, achieving an impressive annualized growth rate of 6.2% in the first half of the year. Furthermore, ING Groep N.V. (NYSE:ING) continues to generate value for shareholders, evidenced by the announcement of an interim dividend of EUR 0.35 per share, contributing to a year-to-date yield exceeding 13%.
The bank’s ability to maintain a resilient net interest income and achieve double-digit fee income growth underscores its strong operational performance. Despite the potential headwinds from a declining interest rate environment, ING Groep N.V. (NYSE:ING) strategic initiatives, particularly its focus on digitalization and customer engagement, position it well for sustained profitability. With a healthy CET1 ratio and a return on equity of 14%, ING is well-positioned to continue delivering strong financial results, making it a compelling investment in the banking sector.
In the second quarter of 2024, there were 12 hedge funds holding positions in ING Groep N.V. (NYSE:ING), as compared to 15 in the previous quarter according to Insider Monkey’s database. The total value of these holdings is approximately $1.17 billion. Ken Fisher’s Fisher Asset Management held the largest stake among these hedge funds during this period.
Artisan Global Equity Fund made the following comment about ING Groep N.V. (NYSE:ING) in its Q4 2022 investor letter:
“Our financial services theme has performed well this year due to the tailwinds provided by rising interest rates. Banks, in particular, have used their strong balance sheets to generate robust earnings on solid loan growth and widening net interest income (the spread between the interest earned and paid on accounts). Our positions in BNP Paribas and ING Groep N.V. (NYSE:ING) increased relative returns this quarter and are beneficiaries of these tailwinds. This year, the European Central Bank increased short-term rates at its fastest pace ever, topping off 2022 with a 50bps increase to its key interest rate to bring the deposit facility to 2%, the refinancing rate to 2.5% and the marginal lending to 2.75%, a level not seen in 14 years. Policymakers also said that rates are expected to rise further to combat lingering high inflation. In addition to net interest income, both BNP Paribas and ING have supported a robust stock buyback program providing additional support to valuations. This quarter, for example, ING is winding up another €1.5 billion in share buybacks. Overall, we believe these companies are competitively advantaged given the support that rising rates can provide going forward. As always, the investment team will continue to closely monitor economic conditions as we move into 2023.”
