(Finance) – S&P Global Ratings confirmed the long- and short-term issuer credit rating “A-/A-2” about the Dutch banking group ING Groep. L’outlook remains stablereflecting the expectation that ING will deliver on its updated strategic plan and that its creditworthiness will remain strong over the next two years.
The ratings agency expects ING to stay well capitalized but will operate with less capital in the coming years. It expects the RAC ratio to fall to 9.5%-10.0% over the next 12-18 months from 10.5% at end-2023. The forecast incorporates risk-weighted asset growth of 2%-3%, a , of 50% and an additional capital distribution of €5 billion, as ING aims to converge its CET1 ratio towards its target of around 12.5% (under Basel IV) by the end of 2025.
“The sstrong digital capabilities of ING, the international diversification and the strong strategic execution support good profit generation capacity and our ratings – we read in a note – Strategic focus and consistent execution have enabled the group to record strong and sustainable performance. We believe ING’s revised but still sizable geographic footprint (with a retail presence in 10 countries and a global wholesale banking network), as well as core digital capabilities, support earnings stability across different market conditions and support the future growth potential”.