ING to return €2.5bn to shareholders

The bank, the Netherlands’ biggest by assets, said total income was largely flat in the three months to March end, edging up 0.3% year-on-year to €5.58bn.

Within that, net fee and commission income jumped 11% to €998m, but net interest income fell nearly 5% to €3.83bn. The fall in NII was, however, largely in line with expectations for €3.84bn.

Net profits edged down to €1.58bn from €1.59bn a year previously.

Steven van Rijswijk, chief executive, said: "We had a very strong start to 2024, with good financial and commercial results as we executed on our strategy.

"We have delivered very good results despite ongoing challenges in the geopolitical landscape."

Announcing the €2.5bn share buyback, van Rijswijk added: "We continue to align our capital to our target level.

"Our results confirm that we are a well-capitalised bank with strong earnings power, enabling us to navigate our global operating landscape confidently."

Looking to the rest of the year, ING said that total income was expected to remain "strong" in a positive rate environment, "albeit somewhat lower than in 2023. Our aim is to increase fee income by 5% to 10%."

The common equity tier 1 ratio, a key measure of financial strength for banks, is expected to move towards ING’s target of 12.5% by 2025. The CET1 was 14.8% in the first quarter.

Shares in ING, which has 15.4m primary customers, were trading 5% higher as at 1115 BST.

Banks around the world have seen income soar in recent years, as central banks hiked interest rates to counter surging inflation. However, they are now facing tough comparatives as the rate-hiking cycle looks to have largely peaked.