ING – Bank Outlook, 2025

ING's "Bank Outlook 2025" report provides a comprehensive analysis of the challenges and opportunities facing financial institutions in the coming year. The report discusses the impact of the European Central Bank's (ECB) rate cuts on loan quality, noting that while the strong tailwind from higher interest rates has ended, banks focusing more on fee-based income rather than solely on net interest income are better positioned for 2025. It also highlights the increased scrutiny of non-bank financial institutions (NBFIs) due to their growth, emphasizing the need to monitor private markets closely. Additionally, the report forecasts that EUR bank bond supply will remain active in 2025, with a full-year supply of €400bn, slightly below the 2024 total.