ING Groep (ING) gains in shares as it exits retail banking in France
This story originally appeared on Zacks
Shares of ING Group SA ING gained 2.8% following the announcement of their exit from the retail banking market in France. In this context, the company should establish a provision for restructuring in the fourth quarter of 2021.
ING Groep’s decision to withdraw from retail banking in France follows the strategic review announced last June. According to the review, ING Groep will continue its wholesale banking activities in France, while focusing on strengthening its position and becoming the reference bank for sustainable finance.
A social plan has been agreed with the local union, according to which nearly 460 employees will be affected. The plan is however subject to the approval of the French Ministry of Labour.
Aris Bogdaneris, Member of the Bank’s Board of Directors and Head of Retail Banking and Challenger and Growth Markets, said: “We continuously evaluate our businesses, including assessing whether they are likely to achieve preferred scale in their market within a reasonable time. In this context, we have decided to leave the French retail market, concentrating our business portfolio where we can best evolve. »
As an online bank, ING Groep has remained active in the retail banking markets in France since 2000. ING France currently serves 1 million customers, offering current accounts, mortgages, consumer loans and investment products. It has around 700 employees in total, two-thirds of whom work in retail banking.
The company has been working to explore the feasibility of an agreement for its client portfolio with third parties. But as discussions are still ongoing, no details have yet been shared.
ING Groep said it would ensure its customers were fully supported by continuing to provide them with all banking services.
Over the past year, ING Groep shares have gained 44%, compared to 9.1% growth in the industry.
Image source: Zacks Investment Research
Currently, ING Groep carries a Zacks Rank #3 (Hold).
A few higher-ranked stocks from the same space are Santander Bank, SA SAN, Credit Suisse Group AG CS and The Bank of Nova Scotia SNB. Each of these companies currently carries a Zacks rank #2 (buy). You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Banco Santander’s earnings estimates for the current year have been revised up 6% in the past 60 days. Its shares have gained 4% so far this year.
The Zacks consensus estimate for Credit Suisse’s 2021 earnings has been revised up 15.9% in the past 60 days. Its shares have depreciated 25.6% since the start of the year.
The Bank of Nova Scotia’s current-year earnings estimates have been revised up 7.1% in the past 60 days. Its shares have gained 27.8% so far this year.
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