ING Groep: Russia Exposure Manageable Thanks To Strong Capital Ratio

Aug. 07, 2022 11:40 AM ETING Groep N.V. (ING) StockING2 Comments

Summary

  • ING Groep's capital ratios remain strong despite a dividend payment and a share buyback program.
  • The H1 results were light due to some non-recurring items. The underlying EPS was 0.50 EUR (including 1.2B EUR in loan loss provisions).
  • The exposure to Russia is slowly walked down. I do not see this as a major issue, given the strong capital position.
  • The CET1 ratio of 14.7% is comfortably above the internal target and regulatory minimum of 12.5% and 10.5%, respectively.
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ING Direct brand bank in Luxembourg

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Introduction

I started building an initially small long position in the Dutch bank ING (NYSE:ING) after the correction in February and March. The bank had exposure to both Ukraine and Russia and caution

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Analyst’s Disclosure:I/we have a beneficial long position in the shares of ING either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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