ING

Analysis of ING share price

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Financial companies listed on the European market can be invested in by individuals who wish to speculate on the stock market. Among the most popular stocks, the ING Group share is interesting to study. We will therefore present here in detail the activity of this group, as well as a historical analysis of its share price to help you trade effectively.

Elements that can influence the price of this asset:

Analysis N°1

Firstly, we will of course follow all the operations of the ING Group as part of its international expansion strategy. This usually involves the creation of joint ventures with local companies, but can also result in the takeover of foreign banks.

Analysis N°2

The diversification of the portfolio of banking products and services offered by this group will also be closely monitored. Indeed, by adding new services to the existing ones, ING could conquer new segments of the population and thus gain new customers.

Analysis N°3

Of course, as with all companies in the banking sector, it is important to monitor any changes in government regulations or the ECB that will have a direct impact on ING's activities.

Analysis N°4

The economic situation in Europe, which remains ING's main market, is also an element to be monitored as it directly influences consumers' needs for banking products (mainly loans and savings).

Analysis N°5

Finally, it is important to know that the insurance sector that ING Direct is trying to develop is subject to the same hazards as other companies in this sector. Natural disasters can also be the source of major losses for this group and, depending on the extent of the disaster and the area affected, can have a sufficient impact on the group's profitability to have a negative impact on its share price.

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General presentation of ING

ING Group is currently the leading financial services company in the Benelux. However, its activities can be divided into three main areas, mainly retail banking, but also private banking and corporate and investment banking.

The group makes the vast majority of its profits in the Netherlands and Belgium, but also in Europe.

Analysis of ING share price
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The major competitors of ING

Let's now take a moment to look at ING Group's main rivals with a presentation of its most important competitors in the banking and insurance sectors.

ABN AMRO

In the Dutch banking sector, ING's most important competitor is the Dutch commercial and investment bank ABN AMRO. It is included in the AEX stock index. It should be noted that the company was subsequently acquired by a consortium of several banks including Fortis, RBS and Santander in 2007, which represents the largest acquisition ever made in the banking sector with an amount of over 70 million euros.

BPCE

Another banking group in direct competition with ING is BPCE, which is the joint central body of the Banque Populaire and the Caisse d'Epargne in France. Remember that this group was formed by the merger in 2009 of the Caisse Nationale des Caisses d'Epargne and the Banque Fédérale des Banques Populaires. The BPCE group is thus the second largest cooperative banking institution in the world, just after Crédit Agricole, and includes all the companies that formerly made up the two banking groups, as well as their own or joint subsidiaries.

Crédit Agricole 

Another giant of the European banking industry, Crédit Agricole was once specialised in services to the agricultural world and is still today the largest network of cooperative and mutual banks in the world. In France, its network includes 39 Crédit Agricole regional banks and its holding company Crédit Agricole SA is listed on the Euronext Paris market and is part of the CAC 40 stock market index.

Santander 

The Spanish banking group Santander is also a serious competitor in this sector and is one of the largest banks in Europe. Of course, the company is listed on the Madrid stock exchange but also in London, Milan and New York and employs more than 182,000 people with more than 90 million customers and has 13,390 branches worldwide. The banking group focuses on several main markets with Spain, Portugal, Germany, the UK, Brazil, Mexico, Chile, Argentina and the USA.

AEGON 

Let's move on to the second sector in which ING Group is active, namely the insurance sector. Here, one of its main competitors is the AEGON group, which is currently the second largest insurer in the Netherlands. But it is also active in the United States and is also a shareholder of ING with a 6.3% stake.

Ageas 

Finally, the last competitor in the insurance sector is the Ageas Group, formerly known as Fortis, which is a Belgian insurance group listed on the Euronext market. It was created by the merger in 1990 of AMEV, a Dutch insurer, VSB Groep, a Dutch banking group, and AG Group, a Belgian insurer, and has subsequently made several acquisitions, particularly in the Benelux countries.


The major partners of ING

AXA 

In 2018, ING and AXA announced an exclusive long-term, multi-country bancassurance partnership that aims to provide insurance products and related services through a centralized digital insurance platform. ING will contribute its expertise in online banking and AXA will contribute its expertise in modular and innovative insurance products and services. AXA will offer property and casualty, health and life insurance products to ING customers in more than 6 different countries including France, Germany, Italy, Czech Republic, Austria and Australia.

Stardekk

This company, which develops online reservation systems for accommodation and restaurants and is one of the main players in the cloud software market, has also set up a strategic partnership with the ING Group. The aim is to strengthen the company's international positions through a financial participation of ING Belgium in this company. Thanks to this financing, Stardekk will be able to expand its international network, broaden and deepen its product range and give a real boost to its organisation.

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The factors in favour of a rise in the ING share price:

First of all, ING Group has a strong advantage in terms of its brand name, which is very popular with the general public. If you look at the various bank comparison sites, you will see that this bank is often ranked among the best, which of course helps it to win new customers.

Stock market investors also appreciate the group's healthy financial situation. In the banking sector, few companies manage to post stable and reassuring results and ING is one of them. Again, this can lead to greater shareholder interest in this share than in the shares of competing banking groups.

Although ING is primarily a bank known on the French market, it is also an international company. For many years now, ING has been implementing a real expansion strategy in the rest of the world and has created joint ventures in certain foreign countries. This of course gives it a head start on some of its competitors, particularly in Europe, and enables it to protect itself more against the risks associated with the French economy alone.

Another undeniable advantage of ING Bank is its advantageous positioning in certain specific segments. This is particularly the case with asset management services, where the bank ranks among the leaders in the sector. This helps to strengthen its image among investors and makes its share price more attractive.

Among the various assets of the ING Group, we can of course also mention its very large workforce. Indeed, through its various branches spread throughout the world, ING Group employs more than 100,000 people. These employees enable it to offer its banking products and services in an efficient manner with a quality of customer relations that is often praised by critics.

Finally, it is also important to mention among the advantages of this group and its stock market action the fact that the ING group already has a very strong customer base at the moment with an increase in the number of customers recorded every year. Today, ING offers its services to more than 85 million customers in over 40 countries around the world. This very large customer base is also easily retained and enables it to gain even more additional customers thanks, among other things, to strategies based on sponsorship offers.

The factors in favour of a drop in the ING share price:

First of all, if you are interested in the banking sector in general, you are probably aware that this sector is extremely competitive. In addition to the major French and European historical players in this field who have a large market share, ING is increasingly confronted with certain new generation and 100% online banks. The ING Group has also set up its own online banking offer to counter these pure players. Competition is particularly strong in the insurance market, where ING is having difficulty positioning itself despite numerous efforts in this area over the past few years. The threat therefore comes from various segments and not only from the banking segments.

Another weak point of the ING group likely to have negative consequences on its share price concerns the profits made by this bank, which show little regularity. Indeed, if the overall financial situation of this company is good as we mentioned above among the assets of this group, the profits are very fluctuating from one year to another.

Finally, another downside for ING's stock is the frozen funds controversy that has affected it and other European banks and is still weighing on overall investor confidence.

You should therefore compare the advantages and disadvantages of this bank before taking a long-term position in this ING share and make sure that you anticipate as well as possible how this share will be perceived by the markets in the long term.

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions.

Frequently Asked Questions

How does the ING share dividend evolve?

Regarding the evolution of the dividend of the ING Group share, we note that this dividend was €0.69 net per share for the year 2019, i.e. a yield of 11.88%. For 2020, forecasts indicate a net dividend per share of €0.34, i.e. a yield of 5.82%, and for the year 2021, forecasts indicate a net dividend per share of €0.45, i.e. a yield of 7.75%.

What are the main financial objectives of ING Group?

ING Group regularly communicates its financial targets. It recently published a target for 2020 of a turnover of 17,764 million euros, i.e. an EBITDA of -3%. As for its longer-term forecasts, we also note a turnover target of 17,970 million euros for 2021 with an EBITDA of 1% equivalent to that achieved in 2019.

When is the best time to buy ING shares?

If you want to buy the ING share online or trade up on its price, you need to find the best time to do so. It is therefore recommended that you closely follow news that could influence this stock upwards, such as the publication of optimistic results or forecasts or any other important operation, remembering to systematically check that the technical analysis is moving in the same direction as these signals.

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