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Shareholder activist Pieter Lakeman is frustrated as the Dutch public prosecutor's office appears unlikely to charge Ralph Hamers, the former UBS CEO, in a money laundering case linked to ING. Despite Lakeman's efforts to prompt action, the Justice and Security Committee has rebuffed his requests for intervention. With a decision due by year-end, it seems the investigation may conclude without charges, leaving Hamers to continue his role as a senior advisor at Arta Finance.
UBS has maintained a 'Buy' rating for ING, setting a target price of 20.60 euros. Analyst Jason Napier anticipates a strong year for European bank shares, highlighting ING's resilience to short-term interest rate fluctuations, positioning it as a top pick in the sector.
Europe faces the risk of a recession in 2025 due to proposed tariffs by President-elect Trump, according to analysts at ING. The eurozone, already experiencing sluggish growth, could be pushed into a full-blown recession as tariffs on imports, particularly affecting the automotive sector, threaten economic stability. Additionally, uncertainty regarding US military support for Ukraine may further undermine confidence in the European economy.
UBS has revised its 2025 GDP growth forecast for China to around 4%, down from 4.5%, citing potential US tariffs under President-elect Trump and ongoing weakness in the property market. Other banks like Goldman Sachs and HSBC maintain slightly more optimistic projections between 4% and 5%. As external pressures mount, China is expected to enhance domestic demand through stimulus measures, although concrete actions have yet to be implemented.
Currency traders are increasingly bearish on the euro following Donald Trump's presidential victory, which has heightened expectations for aggressive interest-rate cuts in Europe. ABN Amro and ING predict the euro could reach parity with the dollar, while Mizuho and Deutsche Bank have adjusted their forecasts to 1.03 and 1.05, respectively, by year-end.
The U.S. dollar remained stable as the presidential election concluded, with minor fluctuations against major currencies. Traders anticipate that a strong performance by Donald Trump and Republicans could bolster the dollar, while a Democratic win might lead to a decline. The dollar has generally strengthened leading up to the election, despite recent dips.
UBS is under pressure to bolster its equity capital, with discussions around increasing it by 15 to 25 billion francs. While UBS argues against excessive capital requirements, it lags behind several European competitors in capital ratios, prompting calls from regulators for a stronger balance sheet. The Swiss Finance Institute is hosting an event to debate the future of banking capital requirements, highlighting the need for UBS to reassess its capital strategy.
UBS has adjusted its price target for ING to €20.6, reflecting a potential upside of 32%, while maintaining a Buy recommendation. Despite lower net interest income, ING's growth strategy is yielding positive results, with retail volumes and commissions exceeding expectations. The Group reported net income of €1,880 million, down from €1,982 million in Q3 but up from €1,780 million in the previous quarter.
UBS has adjusted its price target for ING to €20.6, reflecting a potential upside of 32%, while maintaining a Buy recommendation. Despite net interest income falling short of expectations, ING's growth strategy is yielding positive results, with net income reported at €1,880 million.
UBS has adjusted its price target for ING to €20.6, reflecting a potential upside of 32%, while maintaining a Buy recommendation. Despite falling interest rates and net interest income below expectations, ING's growth strategy is yielding positive results, with retail volumes and commissions exceeding forecasts. The Group reported a net income of €1,880 million, down from €1,982 million in Q3 but up from €1,780 million in the previous quarter.
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