ING to Sell €230 Million Soured Loans in Spain Amid Risk-Reduction Strategy

ING Groep NV is selling about €230 million ($273 million) in soured loans at its Spanish unit. The portfolio includes both secured and unsecured loans that have gone unpaid. This is part of a broader strategy to reduce risk on the bank's balance sheet according to Bloomberg.

The lender is in talks with investors, with Alantra Partners SA serving as the sale adviser under the Project Ignis initiative. ING aims to finalize the transaction by April. Representatives for both ING and Alantra declined to comment on the deal.

Spain is one of ING's largest retail banking markets, with around 4.6 million clients and €30 billion in customer lending. The bank has previously indicated its interest in expanding its presence in the country.

Why the Move Happened

ING is following a broader trend among European banks to reduce risk-weighted assets and free up capital. This strategy is becoming increasingly important amid regulatory pressures and the need for greater financial flexibility.

Similar moves are being seen across the industry. For instance, Santander is leveraging securitization and other capital relief tools to shift between €40 billion and €45 billion in risk-weighted assets this year.

What Analysts Are Watching

Analysts are closely following how ING and other European banks manage their capital stacks and risk profiles. ING's CEO Steven van Rijswijk has highlighted that 2026 is likely to see more domestic bank mergers as high valuations encourage consolidation.

ING is also actively repurchasing shares as part of its capital return strategy. As of February 6, 2026, the bank had repurchased 27.08 million shares for a total of €632.5 million under a €1.1 billion buyback program.

How Markets Responded

Markets are watching for signs of stability in ING's capital position. The bank's recent leadership changes may also impact its risk appetite and capital allocation decisions.

ING currently trades at a price-to-earnings ratio of about 11.6, close to the sector average of 11.9. However, risks such as a relatively low 46% allowance for bad loans and an unstable dividend history remain points of caution.

ING is not the only bank making strategic moves in the capital and risk space. The European securitization market is undergoing reforms expected to boost issuance and investor demand. The changes aim to simplify transparency and reduce reporting burdens, while also lowering risk weights for senior tranches.

These reforms are expected to make securitization a more viable tool for capital relief, though not at the expense of covered bonds, which remain a key funding source for many European banks.

The European Central Bank is also considering changes to the rules governing Additional Tier 1 (AT1) instruments, which are widely used by European banks. The ECB has proposed either enhancing the loss-absorption features of AT1 instruments or, in a more radical move, abolishing them from capital stacks.

Such changes could have significant implications for European banks, particularly larger institutions that rely heavily on AT1 instruments to meet capital requirements.

For now, ING is focused on executing its current risk and capital management initiatives, with the soured loan sale in Spain being a key part of that plan.