SKN | ING Delivers Strong Q1 Momentum, Boosts NII Outlook and Capital Returns

Key Takeaways:

• ING Groep reports strong Q1 with 13.6% ROTE and solid loan growth.
• Full-year NII guidance raised to €16.5–€16.7 billion.
• Capital strength supports continued share buybacks and shareholder returns.

Strong Start to 2026 Driven by Core Growth

ING Groep delivered what management described as a “very strong” first quarter, supported by broad-based commercial momentum across its retail and wholesale banking operations.

The bank added 125,000 mobile primary customers during the quarter, reinforcing its digital growth strategy and keeping it on track toward its annual target.

Loan Growth and Fee Income Support Performance

Loan growth remained a key driver, expanding at an annualized pace above 8%, with retail lending growing even faster at 9.4%.

At the same time, fee income increased 13% year over year, reflecting stronger client activity and diversification beyond interest-based revenue streams.

This combination of lending expansion and fee growth contributed to a return on tangible equity (ROTE) of 13.6%, highlighting solid profitability.

Net Interest Income Outlook Strengthens

ING Groep now expects full-year net interest income (NII) in the range of €16.5 to €16.7 billion, signaling confidence in its earnings trajectory despite a complex macroeconomic environment.

The outlook reflects continued balance sheet growth and stable interest margins.

Capital Generation and Shareholder Returns

Strong capital generation enabled ING Groep to return capital to shareholders, including launching a new €1 billion share buyback after completing a €1.1 billion program.

The bank continues to manage its Common Equity Tier 1 (CET1) ratio around its 13% target, maintaining a balance between growth, regulatory requirements, and shareholder distributions.

Managing Volatility and Risk Costs

While core performance remained strong, volatility impacted “other income,” with full-year expectations set between €2.5 billion and €2.7 billion.

Risk costs totaled €346 million, including a €94 million overlay to account for geopolitical tensions and energy-related risks, reflecting a cautious approach to credit quality.

Market Interpretation

The results reinforce ING Groep’s position as a well-capitalized and resilient European bank.

Investors are likely to view the combination of strong operating momentum, improving guidance, and continued capital returns as a positive signal, even as macro uncertainty persists.

Outlook

Looking ahead, ING Groep is positioned to maintain steady growth, supported by digital expansion, loan growth, and disciplined capital management.

Execution on these fronts, along with macro stability, will be key to sustaining profitability and shareholder returns through 2026.

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