ING Group (NYSE:ING) Issues Quarterly Earnings Results, Misses Estimates By $0.05 EPS

Key Points

• ING Group missed quarterly earnings estimates: EPS was $0.74 versus the $0.79 consensus, while revenue of $7.05 billion was essentially in line with expectations. Shares fell 2.0% following the results.
• Underlying business momentum remained strong: ING added 259,000 mobile primary customers, achieved 6% annualized loan and deposit growth, and delivered a 16% third-quarter return on tangible equity. Management raised its long-term outlook, including expectations for more than 16% return on tangible equity in 2027.
• Capital returns and restructuring were both announced: ING plans up to €1.9 billion in shareholder distributions, including a €1.65 billion buyback, but will also cut about 400 Wholesale Banking jobs and record a €175 million restructuring charge in the fourth quarter.

ING Group (NYSE:ING - Get Free Report) released its earnings results on Thursday. The financial services provider reported $0.74 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.79 by ($0.05), FiscalAI reports. ING Group had a net margin of 28.15% and a return on equity of 12.59%. The firm had revenue of $7.05 billion during the quarter, compared to analysts' expectations of $7.06 billion.

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

• Strong customer growth and operating leverage continued, with 259,000 new mobile primary customers in the quarter, 6% annualized loan and deposit growth, and 9% year-on-year fee-income growth. Total income rose 6.6% while costs increased about 2%, supporting a 16% third-quarter return on tangible equity.
• ING raised its outlook relative to its 2027 Capital Markets Day targets, expecting fee income to reach €5 billion in 2026, total income to exceed the original 2027 target by at least €1 billion, and expenses to come in roughly €300 million below that target. Return on tangible equity is now expected to exceed 16% in 2027.
• Capital generation enabled ING to announce an additional €1.9 billion shareholder distribution, comprising a €1.65 billion share buyback and €250 million cash payout, while increasing its CET1 ratio to 13.3%. Securitizations and other capital-efficiency measures provided €3 billion of third-quarter risk-weighted-asset relief.
• ING will simplify and rename Wholesale Banking as Corporate and Institutional Banking, resulting in about 400 global redundancies and an expected €175 million restructuring provision in the fourth quarter. Management anticipates approximately €75 million of annual cost savings from 2028 onward, but the near-term charge will weigh on results.
• Third-quarter risk costs were €403 million, including a €111 million IFRS model update and €239 million of Stage 3 additions, although management characterized underlying risk costs as below its through-cycle average and maintained confidence in loan-book quality. Commercial net interest income guidance remains €16.8 billion–€17 billion for 2026, with competitive deposit pricing still a consideration.

ING Group Stock Down 2.0%

Shares of ING stock traded down $0.65 on Thursday, reaching $32.24. 2,499,190 shares of the stock were exchanged, compared to its average volume of 2,714,022. The stock has a market cap of $92.22 billion, a P/E ratio of 12.27, a price-to-earnings-growth ratio of 0.90 and a beta of 0.87. The firm has a 50 day moving average of $34.96 and a two-hundred day moving average of $31.27. ING Group has a 1-year low of $24.35 and a 1-year high of $37.52.

Key ING Group News

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

• Positive Sentiment: ING announced a new share-repurchase program of up to €1.65 billion, alongside a broader distribution program of up to €1.9 billion. The buyback should reduce the share count and increase per-share returns, signaling confidence in the bank’s capital position. ING unveils €1.65 billion buyback despite profit miss ING announces new distribution programme of up to €1.9 billion
• Positive Sentiment: Management reported continued commercial momentum in the third quarter and said ING remains on track to meet its 2026 outlook. This suggests customer activity and underlying business performance remain resilient despite the quarterly earnings shortfall. ING shows continued commercial momentum in 3Q2026
• Neutral Sentiment: ING completed its 2026 Supervisory Review and Evaluation Process, an important regulatory milestone. The announcement provides no major new catalyst but helps clarify the bank’s regulatory standing. ING Group 2026 SREP process completed
• Negative Sentiment: Third-quarter EPS was $0.74, below the $0.79 analyst consensus, while revenue of $7.05 billion was approximately in line with expectations. The profit miss likely outweighed the buyback’s benefit in the immediate reaction. ING Group quarterly earnings report
• Negative Sentiment: The bank also disclosed job cuts and a restructuring of its wholesale-banking unit. While these actions could reduce costs over time, they introduce execution risk and suggest management is responding to pressure in part of the business. ING launches buyback but flags job cuts and unit restructuring

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on ING. Morgan Stanley raised shares of ING Group from an "equal weight" rating to an "overweight" rating in a research report on Wednesday, September 2nd. Weiss Ratings upgraded shares of ING Group from a "buy (b-)" rating to a "buy (b)" rating in a research report on Thursday, October 8th. Zacks Research raised shares of ING Group from a "strong sell" rating to a "hold" rating in a research note on Monday, July 27th. JPMorgan Chase & Co. reiterated a "buy" rating on shares of ING Group in a report on Thursday, October 1st. Finally, UBS Group reissued a "buy" rating on shares of ING Group in a research note on Friday, July 31st. One analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and four have issued a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $34.50.

About ING Group

ING Groep N.V. is a Netherlands-based international banking group headquartered in Amsterdam. Through its principal banking operations, ING provides retail and commercial banking services to individuals, businesses and institutions, with a strong emphasis on digital banking and mobile financial services.

The company's products and services include current and savings accounts, consumer and residential lending, business loans, payments, investment services, and wholesale banking. Its wholesale banking operations serve corporate and institutional clients with services such as lending, transaction banking, financial markets, and corporate finance.

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