Financial Statement and Investment Analysis - ING Bank Performance

This report provides a comprehensive financial analysis of ING Bank, a Dutch multinational banking and financial services company. It examines the core business segments, including retail, direct, and commercial banking, and investment banking. The analysis delves into major changes in financial performance, highlighting a 5% increase in net profits and a 10.2% return on equity. The report then explores various financial ratios, such as current, debt management, and profitability ratios, revealing trends and insights into the company's liquidity, debt levels, and asset utilization. The analysis also touches upon the company's strategic initiatives, including international expansion, capital injection, and investments in financial technology start-ups. Furthermore, the report assesses the company's overall performance, future prospects, and commitment to sustainability, corporate governance, and employee development, ultimately concluding that ING Bank demonstrates strong growth and potential for future success.

Financial Statement and
Investment Analysis – ING
Bank

CONTENTS
 INTRODUCTION – CORE BUSINESS AND SEGMENTS
 DISCUSSION AND ANALYSIS
 MAJOR CHANGES IN THE FINANCIAL PERFORMANCE
 RATIO ANALYSIS OF THE COMPANY
 TREND OF THE COMPANY
 CONCLUSION – OVERALL ASSESSMENT AND FUTURE
PROSPECTS

INTRODUCTION – CORE BUSINESS AND SEGMENTS
 Dutch multinational banking financial services
 Based out of Amsterdam
 Core business activities: direct and retail banking,
commercial banking and investment banking, asset
management activities and insurance services.
 Retail banking has the largest share scaling up to
40% business, followed by direct banking and
commercial banking

INTRODUCTION – CORE BUSINESS AND SEGMENTS
– CONTD.
 Has served more than 37.4 million customers in over
40 nations over the world.
 Part of Euro Stoxx 50 stock market index
 Operating in major economies like those of United
States, India, China, United Kingdom, Spain, Brazil,
Hungary, Malaysia, Luxembourg, Monaco,
Netherlands, Columbia, etc.

DISCUSSION AND ANALYSIS
MAJOR CHANGES IN THE FINANCIAL PERFORMANCE
 Major focus on the international expansion and capital
injection
 Group’s net profits have increased by more than 5% over
the past year
 Group’s return on equity was 10.2%, higher than the
normal industry trend
 Fully loaded CET 1 ratio ING Group was 14.7%, shows
minimal risk.

DISCUSSION AND ANALYSIS
MAJOR CHANGES IN THE FINANCIAL PERFORMANCE – CONTD.
 Company coming up with innovation techniques to compete
with giants like Google and Amazon
 Venturing and investing in the start-ups - 300 Million Euro
planned to be invested in the financial technology based ups.
 Company started with the online wealth management
services in Germany.
 Amongst non financial measures, the company started the
Think Forward Leadership Experience to train 5000+
managers.

DISCUSSION AND ANALYSIS
RATIO ANALYSIS OF THE COMPANY
 Current Ratio and liquid ratio:
 Current ratio of the company is 1.23 in 2017 and it has
declined from 1.26 in 2016, indicates liquidity pressure,
company needs to increase proportion of current assets
to pay off liabilities.

DISCUSSION AND ANALYSIS
RATIO ANALYSIS OF THE COMPANY – CONTD.
 Debt Management Ratios:
 Debt ratio has declined from 18% in 2016 to 16% in
2017, positive indicator, company not relying on debt,
the ownership of the shareholders is not diluted.

DISCUSSION AND ANALYSIS
RATIO ANALYSIS OF THE COMPANY – CONTD.
 Profitability Ratios:
 Net margin, operating margin
of the bank has grown by
nearly 4% and 8% respectively.
 Return on assets increased
from 0.51% to 0.60%,
indicating better asset
utilisation.
 Net interest margin also
increased by 0.08% from
1.87% in 2016 to 1.95% in
2017.

DISCUSSION AND ANALYSIS
TREND OF THE COMPANY
 Growth in net income over the years
 The efficiency of the employees has gone up as the headcount
has reduced over the years
 Assets being more or less constant over the past 3 years.

CONCLUSION – OVERALL ASSESSMENT AND
FUTURE PROSPECTS
 Company has been a growing one in terms of
shareholder’s expectations.
 It has been increasing profit continuously over the
past couple of years.
 Company has met all the sustainability reporting
measures.
 Also working in the area of corporate governance
and employee development.

CONCLUSION – OVERALL ASSESSMENT AND
FUTURE PROSPECTS – CONTD.
 Future prospects of the company:
 Further expansion and venturing into new markets
 Starting several online asset management services
 Planned investment in the technology based start-
ups