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Introduction & Market Context
ING Groep (AMS:INGA) presented its third quarter 2025 results on October 30, highlighting strong commercial momentum and an improved outlook for the full year. The Dutch banking giant continues to focus on mobile banking growth, fee income expansion, and capital returns to shareholders while navigating an evolving regulatory landscape.
The presentation comes as ING reported a rolling average return on equity (ROE) of 12.6%, exceeding its previous target, and announced significant capital distributions to shareholders through both dividends and share buybacks.
Quarterly Performance Highlights
ING demonstrated solid commercial momentum in the third quarter of 2025, with several key performance indicators showing positive trends.
As shown in the following performance summary:
The bank added 197,000 new mobile primary customers in the quarter, with 37% of its more than 40 million customers now classified as mobile primary. Net core lending grew by €14.2 billion, representing a 7% annualized growth rate for the first nine months of 2025. While deposits showed a slight decline of €0.2 billion in the quarter, the bank still achieved 6% annualized net core deposits growth in the first nine months of the year.
Fee income reached €1,165 million, showing impressive 12% growth compared to the same period in 2024, aligning with the bank’s strategic focus on non-interest income streams.
Total income for Q3 2025 reached €5,898 million, with commercial net interest income contributing €3,823 million and fee income adding €910 million. The remainder came from other income sources, including strong results from Financial Markets and Treasury operations, plus a final dividend from ING’s stake in the Bank of Beijing.
As illustrated in the following income breakdown:
Capital Management and Shareholder Returns
ING continues to generate strong capital, adding more than 2 percentage points annually to its CET1 ratio on average over the past three years. The bank’s capital waterfall chart shows the movement from a 14.3% CET1 ratio in Q3 2024 to 13.4% in Q3 2025, reflecting €6.1 billion in capital generation offset by distributions and growth investments.
The following capital generation chart illustrates this movement:
The bank has maintained its policy of distributing 50% of net profit to shareholders while deploying remaining capital into profitable growth opportunities. Over the past four quarters, ING has returned €4 billion through share buybacks and €500 million in cash dividends from excess capital.
This capital return strategy has contributed to a steady increase in ING’s share price, which rose from €14.7 in Q3 2024 to €18.0 in Q3 2025, delivering shareholder returns between 13.9% and 17.4% over the five most recent quarters.
Improved 2025 Outlook
A significant highlight of the presentation was ING’s improved outlook for 2025, with several key metrics revised upward compared to previous guidance.
The following comparison shows the upgraded outlook:
Total income for 2025 is now expected to reach approximately €22.8 billion, while fee income growth has been upgraded from the "higher end of 5-10% growth" to ">10% growth." The bank maintained its expense guidance at the lower end of the €12.5-12.7 billion range.
ING also adjusted its CET1 ratio target to approximately 13%, reflecting higher regulatory requirements, including increases in countercyclical buffers in Poland and Spain, along with expected higher Pillar 2 requirements for Dutch interest-only mortgages.
Despite these regulatory pressures, ING upgraded its return on equity outlook from "~12.5%" to ">12.5%" for 2025, demonstrating confidence in its underlying business performance.
Strategic Initiatives
ING’s presentation emphasized several strategic priorities, including its focus on mobile banking, fee income growth, and sustainable finance. The bank reported €110 billion in sustainable volume mobilized, representing a 29% increase compared to the same period in 2024.
According to the earnings call transcript, ING has also launched a new AI chatbot across six markets, highlighting its commitment to digital innovation, though this initiative received limited attention in the presentation materials.
The bank’s capital allocation strategy focuses on deploying capital into profitable growth opportunities, investing in capital-light income streams for further diversification, and considering M&A opportunities based on stringent criteria. ING reiterated its commitment to returning structural excess capital to shareholders.
As the bank looks ahead, it expects earnings and dividends per share to grow further, supported by its well-diversified business mix and low-risk profile that generates predictable cash flow. With its improved outlook and strong commercial momentum, ING appears well-positioned to deliver on its strategic objectives through the remainder of 2025 and beyond.
Full presentation:
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