01:55 AM EDT, 05/03/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our 12-month target price to USD18 (USD12), reflecting a P/B of 1.06x, above peer average P/B of 0.8x, justified in our view by ING's higher forward ROE. We raise our EPS forecast to EUR1.90 (EUR1.80) for 2024. ING's Q1 2024 net profit fell 1.8% to EUR1.58 bln but was higher than S&P Capital IQ consensus estimate of EUR1.47 bln. The result was dragged by lower net interest income (-4.7%) on higher funding costs and increase in loan loss provisions by 69.7% to EUR258 mln. Despite the higher cost of risk (16 bps vs. 9 bps), this is still considered low, in our opinion. The strong growth in net fee and commission income (+11.4%), driven by higher activity and growth in assets under management, bodes well for ING in an environment where interest rates are expected to decline, in our view. We welcome the announcement of EUR2.5 bln share buyback and we see more room for shareholder remuneration, given its strong capital position. Given the positive developments, we raise our call to Hold.