By Ian Walker


ING Groep plans to buy back up to 2.5 billion euros ($2.68 billion) of shares to bring its common equity Tier 1 ratio toward its target.

The Dutch lender said Thursday that it will buy back shares through Oct. 29. Its CET1 ratio--a key measure of balance-sheet strength--at the end of the first quarter was 14.8% and its target is for around 12.5% by 2025.

ING said that the share buybacks will benefit its CET1 ratio by 77 basis points.

Alongside the buyback the bank reported a fall in first-quarter net profit after net interest income dropped, and backed its full-year guidance.

Net profit for the quarter was 1.58 billion euros ($1.69 billion) compared with EUR1.59 billion for the comparable period a year earlier.

Net interest income was EUR3.825 billion compared with EUR4.01 billion, while its net interest margin--the difference between what lenders earn on loans and what they pay out on customer deposits--fell to 1.51% from 1.59%.

The bank reiterated that it expects fee income to rise by 5% to 10% this year, with cost growth of around 3% and a return on equity of 12%.

Fee income rose 11% compared with the same period last year and 14% from the last quarter, with growth in retail driven by higher fee income for both daily banking and investment products, the bank said.


Write to Ian Walker at ian.walker@wsj.com


(END) Dow Jones Newswires

05-02-24 0158ET