ING Group (NYSE:ING) Announces Quarterly Earnings Results, Beats Expectations By $0.04 EPS

by · The Markets Daily

ING Group (NYSE:ING – Get Free Report) released its quarterly earnings data on Thursday. The financial services provider reported $0.79 earnings per share for the quarter, topping the consensus estimate of $0.75 by $0.04, Zacks reports. The firm had revenue of $4.76 billion for the quarter, compared to the consensus estimate of $6.99 billion. ING Group had a net margin of 28.15% and a return on equity of 12.84%.

Here are the key takeaways from ING Group’s conference call:

  • Strong commercial momentum: ING added 377,000 mobile primary customers in the quarter, while lending and deposits grew at annualized rates above 8% and fee income increased 14% year over year.
  • Outlook upgraded: ING now expects 2026 total income above €24.5 billion and 2027 total income above €26 billion, with ROTE guidance raised to above 15% in 2026 and above 16% in 2027.
  • Operating leverage improved as income grew more than 5% over the past 12 months while costs rose about 2% and headcount declined over 1%; second-quarter ROTE reached 17%.
  • Capital efficiency and shareholder returns remain strong: Wholesale Banking reduced risk-weighted assets by €5.3 billion in the quarter through optimization measures and SRTs, helping lift CET1 to 13.1% while supporting dividends and share buybacks.
  • Risk costs were €279 million, or 15 basis points of lending, below ING’s through-the-cycle average of 20 basis points; however, management noted that Stage 3 provisions accounted for most of the charge, while the lending margin declined modestly because growth favored lower-risk loans.

ING Group Trading Up 0.1%

Shares of ING stock traded up $0.04 on Friday, hitting $34.98. 2,536,145 shares of the company’s stock traded hands, compared to its average volume of 2,204,646. The stock has a market capitalization of $100.03 billion, a price-to-earnings ratio of 13.05, a P/E/G ratio of 0.87 and a beta of 0.85. The company’s fifty day simple moving average is $31.67 and its 200 day simple moving average is $29.53. ING Group has a one year low of $22.53 and a one year high of $35.06. The company has a debt-to-equity ratio of 2.73, a quick ratio of 1.11 and a current ratio of 1.11.

ING Group Cuts Dividend

The firm also recently announced a dividend, which will be paid on Monday, August 17th. Investors of record on Monday, August 10th will be issued a dividend of $0.458 per share. The ex-dividend date of this dividend is Monday, August 10th. This represents a dividend yield of 262.0%. ING Group’s dividend payout ratio (DPR) is currently 57.71%.

ING Group News Summary

Here are the key news stories impacting ING Group this week:

  • Positive Sentiment: Quarterly profit beat expectations. ING reported a second-quarter net result of €1.947 billion and EPS of $0.79, exceeding the $0.75 consensus estimate. The bank also cited accelerated growth in its customer base and customer balances. ING second-quarter results
  • Positive Sentiment: ING raised its outlook for 2026 and 2027. Following the earnings beat, management lifted full-year total-income guidance to more than €24.5 billion. Higher guidance signals confidence in revenue generation and profitability and is likely the main catalyst for investor optimism. ING raises full-year guidance
  • Positive Sentiment: Defense-related lending could expand. Chief Executive Steven van Rijswijk said ING’s defense loan book could double over the next several years, potentially creating additional loan growth and fee opportunities as European defense spending increases. ING defense loan book outlook
  • Positive Sentiment: Dividend reinforces shareholder returns. ING declared a €0.458-per-share dividend for shareholders of record on August 10, payable August 17. The payment provides a near-term income catalyst, although the reported 262% yield appears inconsistent with the dividend amount and share price.
  • Neutral Sentiment: Risk-management leadership was approved. Shareholders approved Andrea Cesaroni as ING’s new chief risk officer. The appointment supports governance continuity but is unlikely to materially change near-term earnings expectations. ING chief risk officer appointment
  • Negative Sentiment: Revenue was below the reported consensus estimate. ING posted quarterly revenue of $4.76 billion versus the cited $6.99 billion expectation, which could limit the upside if investors focus on top-line performance rather than the profit beat and upgraded outlook.

Institutional Investors Weigh In On ING Group

Institutional investors have recently added to or reduced their stakes in the company. Compound Planning Inc. lifted its holdings in ING Group by 11.1% in the 4th quarter. Compound Planning Inc. now owns 58,377 shares of the financial services provider’s stock worth $1,635,000 after buying an additional 5,815 shares during the period. Invesco Ltd. raised its position in shares of ING Group by 21.4% in the 4th quarter. Invesco Ltd. now owns 54,220 shares of the financial services provider’s stock worth $1,518,000 after acquiring an additional 9,542 shares in the last quarter. Mercer Global Advisors Inc. ADV lifted its stake in shares of ING Group by 10.3% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 110,516 shares of the financial services provider’s stock valued at $3,094,000 after purchasing an additional 10,335 shares during the period. Beacon Pointe Advisors LLC purchased a new stake in ING Group in the fourth quarter worth $213,000. Finally, EP Wealth Advisors LLC bought a new position in ING Group in the fourth quarter worth $423,000. Hedge funds and other institutional investors own 4.49% of the company’s stock.

Analyst Upgrades and Downgrades

A number of equities analysts have recently weighed in on the company. Zacks Research upgraded ING Group from a “strong sell” rating to a “hold” rating in a research note on Monday, July 27th. Weiss Ratings raised ING Group from a “buy (b)” rating to a “buy (a-)” rating in a research report on Thursday. Two equities research analysts have rated the stock with a Strong Buy rating, two have issued a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy”.

Get Our Latest Report on ING Group

About ING Group

(Get Free Report)

ING Group N.V. is a Dutch multinational financial services company headquartered in Amsterdam. Formed through the consolidation of Dutch financial businesses, ING operates as a banking and financial services group that serves retail, small and medium-sized enterprises, large corporates and institutional clients. The company is organized under a two-tier governance model common in the Netherlands, with an Executive Board responsible for day-to-day management and a Supervisory Board providing oversight.

ING’s principal activities include retail and direct banking, commercial and wholesale banking, corporate lending, transaction services and cash management, and a range of investment and savings products.

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