He thinks they shares are worth double their current price. He has paired back European banks. He likes ING in isolation. He moved to North American banks. Look at other banks that have a sustainable dividend that can grow. You need to get yield if you are in banks. ING is one of Europe's strongest banks that will remain profitable. Solid balance sheet.
All Euro banks suspended dividends. ING had a light payout ratio. After this crisis, the dividends should return. Hang on and ride this out. Narrative on banks generally is a poor one, because interest rate margins are coming down.
Problematic for European banks. If you have a long-term view of years, you may want to look at insurers. ING trades below book value and pays a solid 6. European banks are on sale. You can buy here--it's come off the bottom--but be patient. And with growth returning, we maintain our ambition and very much intend to continue to provide an attractive total return.
As for distribution, we currently have an amount just over 2. To wrap up with the highlights of the quarter, climate change is on top of our agenda. As with an urgency to accelerate actions to transition to a low-carbon society, we support this acceleration, also where we can have the most impact as a bank by supporting our clients in their transition. Our performance was strong. This quarter, we managed to realize another record quarter in fees, to grow our mortgage book and to manage the pressure on NII while we kept expenses under control.
We have released part of the management overlays applied in the previous sectors quarters, reflecting robust GDP forecasts and improved risk indicators on our loan book. The quality of our loan book was again evidenced with very limited risk costs on individual files and the lowest Stage 3 ratio of 1. We continue close monitoring, though, also with the challenges related to supply chain issues and rising prices.
This concludes the presentation, and we are now happy to take your questions. Thank you. Benoit Petrarque, Kepler Cheuvreux. Go ahead please, sir. So we have seen some repayment of short term facilities in the wholesale banking segment. I wanted to try to get a kind of underlying view on the current loan growth in the wholesale banking.
So could you help us on that one? So just wanted to have your view on, well, lending growth also beyond Q3? And then second question is on NII. Looking at the two main moving parts, and I will be the first one, the drag from the replicating portfolio. I think you guided for front book, back book gap of 25 bps on the yield. Just wondering where you are today. And at the current interest rate level, do you expect, let's say, the drag to be offset by loan growth? Or we still have still kind of at a still decent level in terms of pressure from low rates.
So I just wondering where you are now. And then maybe on NII, just sub question on that. On the negative charging of EU, I think you guided for an incremental of million in I was wondering if that's still the kind of overall guidance for ?
OK, thank you very much. Yes, we are rising frantically because, I mean, the operator said, too, and you came with five questions. So I had to sort of rise quickly. So let me take the -- most of the questions. And then on NII and the gap yield and the drag that we still experience, I will give that question to Tanate.
So first of all, Benoit, on your question on the net interest rate charging. So the guidance for the next year, we have up to million. That was initially 20 million believe, and that is now up to million. So that has gone up. If I look at loan growth in wholesale banking, for this quarter, we had a growth in trade commodity finance, we see already growth in syndicated loans that also came out in our fees because they are also-part of the growth in fees came from syndicated loan fees.
These are not only yet booked, but we do see an increase in those fees, and that shows that the syndicated loan market is coming back again, at least for now. And on the flip side, we do see that the number of short-term facilities have been decreased and being repaid.
So we still do see a mixed picture. And like we said, if we were helped, of course, by the economic developments and by the growth in GDP in and that growth will need to continue and it's currently being expected to continue in And that will also help to resume loan growth in wholesale banking. If you look at the lending fees, I mean, like I said, the question is, am I optimistic in one of my presentations that there is more-that there can be more to come.
And we believe so. And why do we believe so? We believe so because we see a growth in our primary customers and our prime-that was 95, this quarter. And the primary customers is the first indication because as long as we can grow our number of clients, but also with clients who take more than one product from us, it automatically means that we're able to grow our fees. Because with those clients, we have more quantitative but also more qualitative interactions, more smart, more easy, more personal.
The second lever is the fact that we're still active in a number of markets where we are big, but also others are big, whereby fees are relatively low. And we have seen that in the pressure of the interest rate environment that fees are increasing and competitors are either starting or following each other. And in other markets, especially in chosen growth markets, we still are on a number of products are levying fees that are still quite a bit below what others are charging and I need to be specific for exactly the same products.
And the third lever is the fact that we are developing a number of new digital propositions because we have been a low fee bank that we are rolling out, such as the digital investment proposition that we have in Germany, and we also start to roll out elsewhere. So those are the three elements on the base of which that we're confident.
And then last but not least, what we also do see that the payment levels are back to pre-corona crisis levels. However, not the international payment levels and the international payment levels are important for us to make our fees on payments and that needs to resume to get back there. And also lending fees are still below the levels that we typically saw before corona.
So Benoit, thanks for your question. And so far, with some patches here and there, we're confident that, that loan growth at that pace will resume.
The second thing that we rely upon is the fact that our origination margin on loans remains robust and that is the case during the course of Q3. We also rely on to a certain degree of negative interest rate charging and as Steven has mentioned, basically this year we made million from negative rate charging, which will rise to million base on action already taken this year.
So those are key components. And then the last component is really about how the financial markets are moving at the moment and how the yield curve is affecting us. So while it has taken time for the replicated impact to come down, it will also take somewhat a certain amount of time for the replicated benefits to come up as well.
So it will be a gradual process. The only caveat I would make is, of course, if short-term rates were to move fast and it could have a more immediate impact in our results. And to give you a couple of moves that we already saw in October. Poland has, for example, today, increased their rates. And then Romania has increased rates. These are small markets for us. But that, for example, would have immediate beneficial impacts on our results in a sooner period than what I just described.
Yes, hi. My first question is on costs. So I believe that ING wants to lower the underlying cost base, excluding the greater cost, excluding one-off, excluding business access. However, the wage market and the labor market in the Netherlands and the core European market is going pretty strong, and we see inflation basically everywhere.
So what are you seeing in terms of cost inflation? And how do you expect that to develop next year? So that's my first question. And then in terms of the deployment of capital, I just want to confirm that I understood it correctly. So I think you said that you intend to return excess capital via specials.
Was that specifically point into special dividends rather than buybacks or the excess capital can be returned with a mix of special -- sorry, of special dividends and buybacks? Thank you very much, Giulia. On costs, and look, we will-I will continue to be disciplined on costs. We do reinvest part of the savings that we got from the actions that we have taken, but the discipline will continue. And therefore, we also continue to monitor the right direction of our cost trajectory. We still intend to bring the cost down.
And in the past, we have been able also this year to absorb inflation also in the Netherlands, but also in other jurisdictions. And we are -- we'll take that on the chin and we'll continue to see in how we will be able to compensate that. On capital, there, you ask whether that is probably means of dividend or by a share buyback or capital distribution, we don't know it yet. Is the 8 billion from the mortgage floors going to be offset by a release of some of the RWA top-ups you took this quarter?
If you can just kind of explain the moving parts there. And also to confirm that based on the European Commission draft legislative proposal of Basel III that was published at the end of October, based on that proposal, you're not seeing any sort of incremental impact. So that's on capital. And a second question on Turkey. Can you update us on the intragroup funding into Turkey as of 3Q, please?
Thank you very much, Stefan. On the inter group funding, that has come down from last quarter, million to now million. So that has come down with million.
And then on Basel IV, so what I meant to say was that we still have the mortgage floor that will kick in, in , in the Netherlands that we estimated 8 billion currently. And that is what we call a prelude to Basel IV. So when Basel is introduced, it will have the same effect as the 8 billion.
So it is not being taken off the table, but Basel IV will not add anything else because basically, by means of this floor that measure then already is taken for our mortgage portfolio in this country. Just to confirm, when you made the comment that the regulatory impacts have been mostly absorbed, you meant except for the 8 billion?
Hi, there. And just firstly, just a couple of clarifications on numbers. How much was the prepayment penalty amount in mortgages in the Netherlands roughly? And then -- sorry if I've missed this, but what was the Q-on-Q increase negative charging benefit in the quarter?
And then on-in the similar kind of numbers question, but just on the restructuring costs announced so far for the businesses in runoff Czech Republic and Austria. Is that largely complete and all that's pending is France, basically? And then ex the numbers, my question would just be on fees and commissions.
Could you let us know specifically by geography, what is left now in terms of pricing changes on daily banking fees? I think in the last quarter, you readily mentioned Southern Europe. But I guess it's just hard because if one looks at advertised prices, it's a bit unclear where you differ from incumbents locally now. So is it a case of kind of new customer versus existing customer pricing? Or if you could just give us some specific geographies and products where there's still a material difference.
That would be very helpful. Thank you, Omar. And I'll take the questions on restructuring costs and fees on prepayment and near quarter on quarter, I will leave it to today. So first of all, on the fees, I mean what I can be specific on is that we already announced further payment package increases in the Netherlands, which will start as of the first of January There are also some small ATM increases in Australia that we will be going through.
ING Groep NV, the largest Dutch financial services company, said on Friday it had sold part of its Payvision payments business, including cutting ties with online pornography and gambling customers. Quote and financial data from Refinitiv. Fund performance data provided by Lipper. All quotes delayed a minimum of 15 minutes. Latest Trade Change Volume 10,, Today's Range Pricing Previous Close.
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