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ING exhibited a mixed Q2 with positive surprises on both revenue and cost of risk, but a miss on costs, mostly on incidentals and regulatory costs. The capital position remained solid and the distribution of excess capital continued. 2025 targets set during the investor day (June) were maintained while the short-term outlook may be uncertain due to the current macro-environment.
Companies: ING Groep NV
ING held its Investor Day this Monday, the first one since the pandemic began. The financial targets unveiled were, for the most part, a confirmation of the previous long-term financial ambitions: 5-10% annual fee income growth, a 50-52% C/I ratio and a 12.5% CET1 ratio by 2025. Still, the group upgraded its profitability target, aiming for 12% RoE (vs 10-12%), made possible in part through higher NII, as indicated by the new 3% total income CAGR between 2022 and 2025.
ING realised a mixed Q1 as earnings were hit by provisions made in relation to its Russian exposure, to which net exposure declined to €4.6bn. Total income also saw a slight decline as the group’s NII suffered from a lower TLTRO impact as well as an impairment on its stake in its Thai subsidiary. The distribution policy in response to the excess capital situation looks undisturbed by the group’s heightened cost of risk, as an additional €1.25bn will be distributed through dividends and buy-backs
ING Group presented its Q4 21 earnings today. The results showed considerable growth in revenue thanks to a jump in net commission income. NII contributed only a bit despite growing volumes, with a one-off reclassification deteriorating the net interest margin. Expenses displayed slow growth but were still higher than expected and LLPs increased unexpectedly due to scenario updates. The excess capital situation strengthened as capitalisation improved. Long-term financial targets were maintained.
ING Group released yesterday its numbers for Q3 21. Net income was above expectations driven by a strong beat at the top line. The latter was driven by all businesses (including net interest income). The CET1 ratio at 15.8% was well above requirements (in line with the consensus) as management does not expect a material increase in RWA (Basel IV implementation) from here. We will revise upwards our EPS for ING Group but keep our Sell/Reduce recommendation (we prefer ABN Amro).
ING Group released this morning its numbers for Q2 21. The numbers were mostly in line with expectations, except for loan losses which were well below expectations. This was, however, expected given the recent publications from other global banks. Our expectations being below consensus’ forecasts, we will revise upwards our EPSs for 2021 and 2022.
The CET1 ratio is at 15.7% and 15.4% under Basel IV. Management has a 12.5% CET1 ratio target and will pay therefore some dividends/SBB at the end of
ING Group released this morning its numbers for Q1 21. Net profit was 31% above expectations, driven by lower loan losses (expected) and higher net interest income (only driven by a higher contribution from TLTRO). The underlying numbers were rather below expectations even if the investment case remains intact with a high amount of capital to be paid back to shareholders in the next quarters as well as a decreasing cost/income ratio.
ING Group released this morning its numbers for Q4 20. These were better across-the-board. Net interest income (under pressure at ABN Amro or KBC) was above expectations, while the generous capital distribution policy (2019, 2020 and interim 2021 dividends expected to be paid at the end of 2021) supported by a high level of capital should support the share. A normalisation of the cost of risk in 2021 at 25bp (vs consensus at 40bp) should be supportive as well.
ING Group released its Q3 20 numbers this morning. The share price is down more than 6% due to a disappointing set of results, especially at the top line and net interest income more precisely. Total expenses were also above expectations, leading to a gross operating income roughly 10% below expectations. Loan losses were the only bright spot in the end but these were mostly expected following ING Group’s European peers earnings releases.
ING Group Q220. Adjusted (for goodwill impairment) the gross result was above expectations, again driven mostly by other income. Loan losses were above expectations (management expects lower provisioning in H2 vs H1 which would be coherent with expectations).
At 15bps, the CET1 ratio was 100bps above our expectations and management will update its capital policy during Q320 (possible change in the dividend policy and buy-backs).
Ingenico published as a surprise its H1 figures yesterday, a week ahead of the official date, releasing a set of results which was in line with expectations. The FY20 guidance is maintained and the ongoing Worldline offer is on track, expecting the green light from the European Commission to be between 15 and 30 September. We still recommend participating in the offer.
Ingenico published its Q1 sales figures, which came in 13% below consensus, impacted by the COVID-19 pandemic. More downside is expected in Q2, pushing management to review its FY guidance.
Ingenico reported its preliminary FY19 results and FY20 guidance, which were both in line with estimates, in order to match the announcement of the proposed acquisition by Worldline. We believe that the transaction values Ingenico activities fairly, offering the opportunity for Ingenico’s shareholders to participate in the payment service European consolidation as well as a good exit point on B&A.
Ingenico has released Q3 revenue that was quite reassuring regarding the ability of the company to achieve its FY19 guidance. Overall, the performance was in line with expectations, apart from a slightly better performance at B&A. However, despite this positive development, the EBITDA guidance has been left unchanged.
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Duke have released their annual results for the FY22A year ending 31 March 2022 and are in-line with both their prior trading update and our own expectations. FY22A was a behemoth year for the business as it transitioned from a more defensive positioning during the outset of the pandemic to an expansionary phase as things began to settle. We have released forecasts for FY24E for the first time and is a useful gauge for what a normalised year looks like post-deployment of available funds during F
Companies: Duke Royalty Limited
Trident Royalties Plc (AIM: TRR), has released its interim financial statement this morning. These come after the release of a comprehensive Q2 update.
Companies: Trident Royalties Plc
Companies: Plus500 Ltd.
CLIG’s annual report & accounts is precisely in line with its pre-close update of 19 July, which revealed $102m of net inflows, Sterling value of Group Funds under Management “FUM” of £7.6 billion and recommendation of a final DPS of 22p (2021 final: 22p).
Companies: City of London Investment Group PLC
Results are consistent with August’s update and confirm a breakout FY22, as Made Tech materially scaled its business – growing revenue 120% y/y (organic) to £29.3m, an exceptional result, which in turn drove a return to profitability, AOP: £2.3m (PY:£-0.8m). This was achieved by Made Tech more than doubling its headcount and alongside this, also delivered sales bookings of £51.1m (+115% y/y) which includes Made Tech’s largest ever win. Made Tech’s y/e backlog is also up sharply at £38.2m (+133%
Companies: Made Tech Group PLC
Singer Capital Markets
Companies: Aquis Exchange Plc
Argentex has announced that it has been granted its Electronic Money Institution (“EMI”) licence by the Dutch National Bank, representing another milestone as part of its International expansion strategy. The license allows the Group to fully operate within the Dutch market and enables further expansion into other EU territories going forward. We do not make any changes to our forecasts but highlight that this is another positive step as part of Argentex’s International growth strategy providing
Companies: Argentex Group Plc
Companies: Gore Street Energy Storage Fund PLC
Facilities by ADF have released interim results for the period ending 30 June 2022 and in-line with their prior trading update. ADF achieved record revenues in H1/22A and has continued to grow their fleet to support future growth. The current trading and outlook remain in-line with our expectations, and we leave forecasts unchanged. The valuation remains attractive with an FY23E P/E ratio of 10.1x and a normalised FCF yield of c15%.
Companies: Facilities by ADF PLC
Companies: FNX JOG PCIP
Inflation has now persisted beyond most people's 2021 expectations for a “short term blip” following the COVID crisis, and investors are increasingly under pressure to generate positive real returns in the first highly inflationary (i.e., >5%) environment since 1991. We expect a degree of asset price volatility to continue across all asset classes for quite some time.
In this note we look at the factors behind the current inflationary environment, evaluate which ones are likely to persist and
Companies: AEWU BERI HICL HHI ADIG PCFT PHP TRIG RICA SERE SEIT
Capital Access Group
Time Finance released their FY22 annual results ending 31 May 2022 in-line with the trading update in July. It has also released a Q1/23A update which provides colour on the success of its new strategy focused on the core business. We leave forecasts unchanged and believe the company remains on track to hit our FY23E forecasts. Time looks significantly undervalued given it trades on a P/TNAV of 0.5x, an FY24E PE of 4.1x and over 65% growth forecasted in Adj PBT over the next two years.
Companies: Time Finance plc
We note Friday's RNS from JIM announcing that part of their business is subject to a Section 166 review and that there are restrictions in relation to certain of its Model “B" clients. JIM provides an efficient and cost-effective trading product together with an outsourced settlements and administration operation. The latter, intended largely for wealth managers, including IHT and pension schemes, fund managers and stockbrokers, is the Model “B” business stream alluded to in the announcement.
Companies: Jarvis Securities (JIM:LON)Jarvis Securities plc (JIM:LON)
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Streaks Gaming plc, a UK-based provider of conversational gaming products intends to join the Standard Segment of the Main Market this autumn. The flotation is expected to value Streaks at approximately £10.2m (pre-money) and will make it the first LSE-listed "pure-play" conversational gaming co
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