ING Groep NV Earnings - Q3 2025 Analysis & Highlights
Key Takeaways
ING Groep NV's Q3 2025 earnings call highlighted strong commercial momentum, capital generation, and an updated CET1 ratio target, alongside improved financial outlook for 2025. Key topics included growth in mobile primary customers, loan book expansion, fee income increases, and capital distribution strategies.
Key Financial Results
Total income increased, nearly reaching the record level from the previous year.
Commercial NII rose due to strong performance in Wholesale Banking Lending and the conclusion of a savings campaign in Retail Banking Germany.
Fee income grew by 15% year-on-year.
Customer balances grew at an annualized rate of 7% in the first nine months of 2025.
The four-quarter rolling average ROE stands at 12.6%.
Net profit over the past four quarters was €6 billion.
Business Segment Results
Retail saw €8.6 billion in net quarter earnings growth, mainly from residential mortgages.
Wholesale Banking delivered a strong quarter, supported by Trade Finance Services and Lending.
Wholesale Banking posted strong deposit inflows, particularly in Payments & Cash Management, Financial Markets, and cash pooling.
Wholesale Banking delivered a quarterly record fee income of €383 million.
Capital Allocation
An additional €1.6 billion in distribution was announced.
€1.1 billion will be returned via a new share buyback.
Cash dividends of €500 million will be paid in January 2026.
The company has delivered €6 billion of net profit over the past four quarters.
Additional distributions amounted to €4.5 billion over the last 12 months, and €12.5 billion over the last three years.
Industry Trends and Dynamics
Increased client financing needs are reflected in Wholesale Banking.
The company is supporting clients in their sustainability transitions, with sustainable finance volumes up 29% compared to the same period last year.
Increased deposit volume in payment and cash management area, financial market in other, and the cash pooling business.
Macroeconomic Environment
Macroeconomic and geopolitical uncertainty remains prevalent.
Supporting clients through volatile market conditions, mostly with FX and interest rate management.
Growth Opportunities and Strategies
The company aims to accelerate growth, increase impact, and deliver customer value.
Investments will help accelerate growth and enhance earnings potential.
Continued investment in customer acquisition and product development, including expanding offers for new customer segments.
Focus on enhancing and strengthening the tech platform.
Actively integrating generative AI capabilities throughout the organization.
Financial Guidance and Outlook
Fee growth outlook raised to more than 10% higher than last year.
Total income is expected to reach around €22.8 billion this year.
Total costs are guided towards the lower end of the €12.5 billion to €12.7 billion range.
The CET1 ratio target has been updated to around 13%.
ROE expectation for this year raised to more than 12.5%.
Commercial NII to come in between €15.2 billion and €15.3 billion.
Expects to grow fee income by more than 10% in 2025.
