ING Earnings: Net Interest Margin Holding Up Better Than Expected; Upside Surprise From Fees

Narrow-moat ING reported earnings per share of EUR 0.43 for the first quarter, 10% ahead of company-compiled consensus expectations. Net income was broadly stable year on year and sequentially; the 8% year-on-year growth in EPS was solely due to share buybacks. Net interest margin shrank another 3 basis points over the quarter to 151 basis points, contributing to a 5% decrease in net interest income compared with the comparable period of 2023. Stronger-than-expected fee income growth of 11% year over year, complemented by a solid 1% improvement in the cost/income ratio, partially offset the NIM contraction. Lending and volume growth surprised on the upside. Stronger-than-expected volume growth and slower increases in the cost of deposits led ING to slightly increase its guidance for net interest income and overall profitability.