The financial world loves a good mystery, and ING Groep N.V. (INGVF) might just be serving one up on a silver platter. While most analysts are focused on ING's consistent profitability and steady dividend payouts, a more intriguing story is unfolding beneath the surface, hidden within the seemingly mundane realm of share counts.

A closer examination of INGVF's financial data reveals a fascinating trend: a steady decline in outstanding shares over the past two decades. Since 2005, the number of outstanding shares has dropped by almost a third, from approximately 3.9 billion to 3.3 billion in the current quarter. This trend, largely overlooked amidst the company's solid performance, could be a whisper of something much larger brewing within ING Groep.

The conventional wisdom surrounding share buybacks often points towards a company attempting to boost earnings per share and return value to shareholders. While ING Groep has been returning value through dividends, their declining share count may signal a bolder strategy. What if this steady repurchase of shares is not just a reward to existing shareholders, but a strategic maneuver designed to position the company for a future of explosive growth?

Consider this: a lower share count concentrates ownership, strengthens voting power, and reduces the amount of future profits that need to be distributed amongst shareholders. This tightens the reins, allowing management greater flexibility in pursuing aggressive growth strategies without the pressure of immediate shareholder returns.

Share Count and Net Income Over Time

The numbers themselves paint a compelling picture. Since 2010, ING Groep's net income has fluctuated, even dipping into negative territory in 2014. However, despite this inconsistency, the company has consistently repurchased shares, signaling a long-term commitment to this strategy. This suggests that ING is not simply reacting to short-term market fluctuations, but is laying the groundwork for a future where profits, potentially fueled by a new venture or expansion, will be distributed amongst a smaller pool of shareholders, amplifying the returns for those who remain.

This hypothesis is further bolstered by ING Groep's recent forays into innovative fintech solutions. The company has been investing heavily in digital banking platforms, targeting a younger, tech-savvy demographic. This strategic shift indicates that ING is not content to rest on its laurels as a traditional banking giant, but is actively seeking new avenues for growth. By concentrating ownership through share repurchases, ING Groep may be creating the financial runway it needs to fully capitalize on these emerging opportunities.

Imagine, for a moment, that ING Groep is on the cusp of a groundbreaking development in the fintech space. A new platform, a revolutionary product, something that disrupts the industry and propels the company to unprecedented heights. With a smaller pool of shareholders, the impact of this success on earnings per share would be significantly magnified, potentially attracting a new wave of investors eager to be part of this growth story.

Of course, this is just a hypothesis. Only time will tell whether ING Groep's declining share count truly foreshadows a future of exponential growth. However, it's a compelling narrative, one that whispers of a company with a vision beyond immediate returns, a company quietly positioning itself to become a force to be reckoned with in the ever-evolving world of finance.

"Fun Fact: Did you know that ING Groep's iconic orange lion logo, symbolizing strength and protection, was inspired by the coat of arms of the Dutch royal family? Perhaps this regal connection hints at the company's own ambitions for a dominant future."