ING Groep N.V. (ING): History, Ownership, Mission, How It Works & Makes Money

What makes ING Groep N.V. a formidable force in global finance, boasting total assets exceeding €1.11 trillion and achieving a robust net profit of €7.78 billion for the 2024 fiscal year?

This Dutch multinational banking giant stands out not just for its sheer scale, serving nearly 40 million retail and wholesale clients across the globe, but also for its distinctive digital-first banking model, a strategy that continues to shape its operations and customer interactions.

Are you wondering how this institution navigated market shifts to maintain its strong position and consistently deliver value?

Explore further to uncover the rich history, the intricacies of its ownership, its guiding mission, and precisely how ING generates revenue and sustains profitability in today's competitive financial landscape.

ING Groep N.V. (ING) History

ING's Founding Timeline

The entity we know today as ING Groep N.V. wasn't founded in the traditional startup sense but emerged from a landmark merger.

Year established

1991 marked the official creation of Internationale Nederlanden Groep through the merger of Nationale-Nederlanden, a major Dutch insurance company, and NMB Postbank Groep, a prominent Dutch bank formed from earlier mergers itself. This combined entity leveraged the strengths of both banking and insurance, a concept known as bancassurance.

Original location

Amsterdam, the Netherlands, has served as the headquarters since its inception.

Founding team members

Rather than individual founders, the formation was driven by the leadership teams of the merging entities, Nationale-Nederlanden and NMB Postbank Groep, aiming to create a stronger financial institution with international reach.

Initial capital/funding

As a merger of two substantial, established companies, ING began with a significant combined asset base derived from its predecessors, not with initial venture funding. The goal was synergy and scale from day one.

ING's Evolution Milestones

ING's journey reflects adaptation and strategic shifts within the global financial landscape.

ING's Transformative Moments

The 1991 Merger: Birth of a Bancassurer

The fusion of Nationale-Nederlanden and NMB Postbank Group was groundbreaking in the Netherlands, creating a financial powerhouse built on the bancassurance model. This synergy defined ING's initial strategy and fueled its early international expansion ambitions.

The 2008 Crisis and Forced Restructuring

The global financial crisis necessitated state intervention and led to a fundamental reshaping mandated by the European Commission. Divesting the insurance and investment management businesses was a pivotal moment, forcing ING to streamline its operations and concentrate primarily on banking, significantly altering its structure and strategic direction. Understanding who holds stakes now is crucial; Exploring ING Groep N.V. (ING) Investor Profile: Who’s Buying and Why? provides insights into the current ownership landscape shaped by these past events.

The Digital-First Pivot ('Think Forward')

Launching the 'Think Forward' strategy around 2014 marked a definitive shift towards becoming a digital leader in banking. This wasn't just about technology adoption but fundamentally changing how ING interacted with customers, organized operations, and competed in the market, prioritizing mobile accessibility and platform-based services across its footprint.

ING Groep N.V. (ING) Ownership Structure

ING Groep N.V. operates as a publicly listed company, meaning its shares are owned by a diverse group of institutional and individual investors rather than private entities. This structure influences its governance and strategic decisions, aligning them broadly with shareholder interests and market expectations.

ING Groep N.V.'s Current Status

As of the end of 2024, ING Groep N.V. is a publicly traded company. Its shares are listed on Euronext Amsterdam (INGA) and the New York Stock Exchange (ING), making ownership accessible to investors worldwide.

ING Groep N.V.'s Ownership Breakdown

The ownership is dispersed, with institutional investors holding the significant majority of shares. This reflects confidence from large financial entities in the company's performance and strategy.

ING Groep N.V.'s Leadership

The strategic direction and day-to-day operations are guided by an experienced Executive Board and overseen by a Supervisory Board. As of late 2024, the key leadership included:

• Steven van Rijswijk, serving as the Chief Executive Officer (CEO) and Chairman of the Executive Board.
• Karl Guha, acting as the Chairman of the Supervisory Board.

This leadership team is responsible for navigating the complex financial landscape and driving the company towards its strategic objectives, which are further detailed in the Mission Statement, Vision, & Core Values of ING Groep N.V. (ING). Their decisions shape the bank's approach to innovation, customer service, and sustainable finance.

ING Groep N.V. (ING) Mission and Values

ING Groep N.V. seeks to operate beyond mere financial transactions, guided by a clear purpose and foundational values that shape its interactions with customers and the broader community. Understanding these elements offers insight into the bank's strategic direction and operational philosophy, complementing analyses like the Breaking Down ING Groep N.V. (ING) Financial Health: Key Insights for Investors.

ING's Core Purpose

The bank defines its core reason for being, which essentially functions as its mission and guiding principle in a rapidly evolving financial landscape.

Official mission statement

ING's stated purpose is: Empowering people to stay a step ahead in life and in business. This drives their efforts to simplify banking and provide tools that help customers make smarter financial decisions.

Vision statement

While not always explicitly separated from its purpose, ING's vision centers on being a leading digital bank, offering a superior customer experience through innovation and technology. They aim to create a differentiating experience, particularly in the digital realm, meeting changing customer needs effectively. This aligns with their significant investments in digital platforms, aiming for efficiency and accessibility.

Company slogan

The customer-facing slogan often used in marketing campaigns is do your thing. This tagline reflects the bank's aim to support individual customer ambitions and activities by making banking seamless and supportive.

Core Values

Underpinning the purpose and daily operations are ING's core values, often referred to as the Orange Code behaviours:

• You help others to be successful
• You take it on and make it happen
• You are always a step ahead

These behaviours are intended to guide employee actions and reinforce the bank's commitment to its customers and stakeholders, fostering a culture of proactivity and collaboration.

ING Groep N.V. (ING) How It Works

ING Groep operates primarily as a global financial institution with a strong European base, offering a wide range of banking services through a digital-first approach complemented by a targeted physical presence. It generates revenue mainly through net interest income from lending activities and fees from financial services provided to millions of customers globally.

ING Groep N.V. (ING)'s Product/Service Portfolio

ING Groep N.V. (ING)'s Operational Framework

ING's value creation hinges on its highly digitized operational framework, prioritizing mobile and online channels for customer engagement and transactions. This digital-first strategy aims to deliver a superior customer experience while driving efficiency. Key operational processes involve managing a large loan book through sophisticated credit risk models, attracting and retaining a substantial customer deposit base (estimated around €650 billion towards the end of 2024) which forms a stable funding source, and processing vast numbers of payments efficiently. Continuous investment in technology underpins these operations, focusing on automation, cybersecurity, data analytics for personalization, and maintaining a lean cost structure, targeting a cost/income ratio near 52% for the 2024 fiscal year. The bank's stakeholder structure is also relevant to its operations. Exploring ING Groep N.V. (ING) Investor Profile: Who’s Buying and Why?

ING Groep N.V. (ING)'s Strategic Advantages

As of late 2024, ING leverages several core strengths to compete effectively in the financial services landscape.

• Advanced Digital Platform: Its early and continued investment in digital banking provides a significant edge in customer acquisition and service efficiency, catering to its approximately 37 million retail clients.
• Strong Benelux Base: Dominant market positions in the Netherlands and Belgium provide substantial scale, brand loyalty, and profitability.
• Growth Market Presence: Strategic positions in 'Challenger' markets like Germany, Australia, and Spain offer diversification and growth potential beyond its home base.
• Operational Efficiency: A relentless focus on streamlining processes and leveraging technology helps manage costs effectively, supporting competitive pricing and profitability metrics.
• Solid Capital Foundation: A robust capital position, with a Common Equity Tier 1 (CET1) ratio consistently maintained above regulatory minimums (expected to be comfortably over 14.5% at year-end 2024), ensures resilience and capacity for investment or shareholder returns.

ING Groep N.V. (ING) How It Makes Money

ING Groep N.V. primarily generates revenue through the interest rate spread on loans and investments, alongside fees charged for various banking and financial services. Its diverse operations across retail and wholesale banking form the core of its earnings engine.

ING Groep N.V.'s Revenue Breakdown

Understanding the sources of ING's income is crucial. For the fiscal year 2024, the breakdown highlights the dominance of traditional banking activities.

ING Groep N.V.'s Business Economics

The bank's profitability hinges significantly on net interest margin (NIM), which is the difference between the interest income generated and the interest paid out to lenders. Favourable interest rate environments generally boost NIM. Volume growth in lending across mortgages, consumer loans, and wholesale banking also directly impacts NII. Fee income depends on customer activity levels, transaction volumes, and assets under management. Efficient cost management is paramount, reflected in the Cost/Income ratio, a key performance indicator for banks striving to align with their strategic goals, which you can explore further in the Mission Statement, Vision, & Core Values of ING Groep N.V. (ING).

• Interest Rate Sensitivity: Earnings are influenced by central bank policies and market interest rate fluctuations.
• Credit Quality: Loan portfolio health directly affects profitability through provisions for loan losses.
• Regulatory Landscape: Capital requirements and banking regulations shape operational constraints and costs.

ING Groep N.V.'s Financial Performance

Key metrics for 2024 indicate ING's financial health and operational efficiency. The bank reported strong underlying performance driven by continued NII growth, although moderated compared to the previous year, and resilient fee income. Based on performance through the first three quarters, the projected net profit for FY2024 is estimated around €7.1 billion. The Return on Equity (ROE) is anticipated to be robust, potentially reaching near 12.5% for the year. Furthermore, disciplined cost control efforts aimed to keep the Cost/Income ratio below 54%, reflecting ongoing efficiency improvements across the group's operations.

ING Groep N.V. (ING) Market Position & Future Outlook

ING Groep N.V. maintains a strong position, particularly in the Benelux region, leveraging its digital-first banking model for future growth across Europe. The outlook hinges on continued digital transformation success and navigating evolving macroeconomic conditions prevalent as of the 2024 fiscal year end.

Competitive Landscape

Opportunities & Challenges

Industry Position

Within the European banking sector, ING is recognized as a leader in digital banking, consistently ranking high in customer satisfaction for its mobile and online platforms. Its primary strength lies in retail and SME banking within the Benelux countries and Germany, complemented by a selective wholesale banking presence globally. The bank's strategy emphasizes scalable technology and a customer-centric approach to maintain its competitive edge. Understanding its financial underpinnings is crucial; you can explore more details here: Breaking Down ING Groep N.V. (ING) Financial Health: Key Insights for Investors. ING's standing is solid, particularly among digitally-focused universal banks, though it faces pressure from both large diversified competitors and agile fintech disruptors as observed throughout 2024.