ING Q2 Earnings Rise, Revenue Falls Amid Interest Income Growth Expectations

ING Groep reported Q2 earnings that rose while revenue fell. The bank expects interest income to stabilize in Q3 and rise in Q4. Fee income is expected to be at the higher end of the 5%-10% range for 2025. The bank's CFO, Tanate Phutrakul, plans to step down in April 2026. ING has completed the acquisition of a 17.6% stake in Van Lanschot Kempen NV.

ING Groep N.V. (ING) reported its Q2 2025 financial results, showcasing a net result of €1,675 million and a profit before tax of €2,369 million. Despite the challenging macroeconomic and geopolitical environment, the bank demonstrated resilience with strong growth in lending volumes and fee income. The company's CET1 ratio stood at 13.3%, indicating a robust capital position.

Key Financial Highlights:

- Net Result: €1,675 million
- Profit Before Tax: €2,369 million
- CET1 Ratio: 13.3%
- Mobile Primary Customers: 14.9 million (up by over 300,000 from the previous quarter)
- Total Income: €12.5 billion (stable year-on-year)
- Fee Income: €1.2 billion (up 12% year-on-year)

Retail Banking Performance:

ING's Retail Banking division achieved significant growth, with a quarterly record of €11.3 billion in net core lending, driven by a strong mortgage portfolio. The bank gained over 300,000 mobile primary customers, with Germany, Spain, Italy, and Romania leading this growth. Retail fee income rose by 12% year-on-year, primarily due to higher investment activity.

Wholesale Banking Performance:

Wholesale Banking also showed robust performance, with net core lending growth of €4.1 billion, driven by strong momentum in Working Capital Solutions and short-term trade-related financing. Fee income increased by 12% year-on-year, supported by Lending, Global Capital Markets, and Payments & Cash Management.

Dividends and Management Changes:

ING will pay an interim cash dividend of €0.35 per ordinary share. CEO Steven van Rijswijk expressed confidence in the bank's strategy and the resilience of its customer base. The bank also announced that its CFO, Tanate Phutrakul, will step down in April 2026.

Acquisition and Sustainability:

ING completed the acquisition of a 17.6% stake in Van Lanschot Kempen NV, further expanding its portfolio. The bank continues to prioritize sustainability, with sustainable volume mobilized reaching €67.8 billion for the first half of 2025, a 19% increase compared to the previous year.

Outlook:

ING expects interest income to stabilize in Q3 and rise in Q4. Fee income is expected to be at the higher end of the 5%-10% range for 2025. Despite the volatile market conditions, the bank remains optimistic about its financial targets for 2027.

References:

[1] https://www.ing.com/Newsroom/News/Press-releases/2Q2025-ING-press-release.htm