ING Groep Q2 2025 Earnings Call Highlights: Customer Growth, Sustainability Focus Amid Economic Challenges

ING Groep NV (ING) reported strong growth in its mobile primary customer base and loan book, with fee income increasing by 11% in H1 2024. Sustainable finance volumes rose 19% to €68 billion, and the company has consistently delivered a yield of over 15% in recent quarters. However, demand for long-term corporate loans remains subdued, and expenses rose by 4.5% YoY, driven by wage inflation and investments in business growth.

ING Groep NV (ING) has announced its second-quarter 2025 financial results, showcasing robust performance across various segments. The bank reported a net result of €1,675 million, driven by strong growth in lending volumes and fee income [1].

Key highlights include a 300,000 increase in mobile primary customers to 14.9 million, with significant growth in Germany, Spain, Italy, and Romania. The mortgage portfolio recorded a quarterly record of €11.3 billion, mainly in the Netherlands, Australia, and Germany, while business banking saw €3.2 billion in growth. Retail fee income rose 12% year-on-year, primarily due to higher investment activity [1].

In Wholesale Banking, net core lending growth was €4.1 billion, driven by Working Capital Solutions and short-term trade-related financing. Fee income increased 12% year-on-year, with growth in Lending, Global Capital Markets, and Payments & Cash Management. Despite subdued demand for long-term corporate loans due to economic uncertainty, the bank's total income remained stable [1].

The bank's CET1 ratio was 13.3%, including the impact of a share buyback program. Prudent expense management, offsetting inflation and investments, resulted in a 4.5% year-on-year increase in costs. The bank continues to invest in KYC processes and restructure its Wholesale Banking workforce to enhance commercial and product capabilities [1].

ING's commitment to sustainability is evident in its €67.8 billion sustainable finance volume for the first half of 2025, a 19% increase from the previous year. The bank has introduced a new mortgage pricing model tied to energy labels to support customers' net-zero journeys [1].

CEO Steven van Rijswijk expressed confidence in the bank's strategy, stating, "We are pleased with our results during a volatile first half of 2025. Although macroeconomic conditions remain challenging, we are confident that our strategy sets us on course to become the best European bank and deliver on our targets." [1]

References:
[1] https://via.ritzau.dk/pressemeddelelse/14508263/ing-group?lang=en&publisherId=90446