ING Groep's 2025 Q1 Earnings Call: Unpacking Contradictions in Liability Margins and Deposit Strategies

Liability margin guidance, deposit strategy in Germany, liability margin expectations, deposit strategy and impact on NII, and deposit strategy and management are the key contradictions discussed in ING Groep N.V.'s latest 2025Q1 earnings call.



Strong Commercial Growth:
- ING Group N.V. reported significant growth in the first quarter of 2025, with the number of private individual customers increasing to more than 40 million, and the number of customers choosing ING as their primary bank also rising.
- This growth was driven by a relentless focus on providing superior value for customers and a strong digital and flexible operating strategy.

Mortgage and Deposit Growth:
- Net core lending grew by €8.6 billion, primarily driven by mortgages, while the number of mortgages grew by €6 billion.
- ING's mortgage volumes increased due to a combination of a strong promotional campaign in Germany and a positive market outlook, supported by low unemployment rates and sustained house price increases.

Fee Income and Diversification:
- Fee income grew by 10% year-on-year, supported by strong performance in investment products, higher daily banking fees, and an increase in insurance-related fees.
- The growth in fee income is part of a strategic focus on diversifying revenue streams, including expanding into digital and mass affluent segments.

Capital and Shareholder Returns:
- The CET1 ratio came in at 13.6% at the end of the first quarter, with a share buyback program of €2 billion announced.
- This reflects a commitment to returning value to shareholders, with over €28 billion distributed since 2021, and a cautious macroeconomic outlook influencing the target range for capital ratios.