(ABM FN-Dow Jones) ING Group is likely to still distribute dividend for 2019, but at a later date. Analysts at Bank of America expect this on Tuesday.
ING announced earlier this week that it would cancel the dividend due to the corona crisis and does not expect to pay an interim dividend for 2020 either. The decision is valid until at least 1 October, as the ECB also advised all European banks.
According to Bank of America analysts, ING is in a solid position, strong enough to pay a high dividend in turbulent times. But the ECB’s call to eurozone banks not to pay dividends for the time being as long as the corona crisis continues is currently making discussions about dividend payments complex, analysts say.
ING’s CET 1 ratio is “superior,” Bank of America analysts stressed, “which gives us confidence that the 2019 dividend will be postponed but not canceled.”
When ING will pay out, according to the American bank, is guessing. The dividend may be paid at the same time as that for 2020.
Bank of America expects ING to adjust the payout ratio from progressive to 50 to 60 percent. With 50 percent, the analysts expect a dividend yield of 10 to 13 percent in the coming years.
Bank of America maintained the buying advice on ING with a price target of 9.00 euros. The ING Group share fell by 3.7 percent to 4.81 euros on Tuesday.
ABM Financial News; [email protected]; Editors: +31 (0) 20 26 28 999.
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