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

Key Points

• ING Group beat earnings expectations: Quarterly EPS was $0.79, exceeding the $0.75 consensus, although revenue of $4.76 billion fell well short of analysts’ $6.99 billion estimate.
• Management raised its outlook: ING now expects total income above €24.5 billion in 2026 and €26 billion in 2027, with ROTE projected above 15% and 16%, respectively.
• Business momentum and shareholder returns remained strong: Mobile primary customers, lending, deposits and fee income all grew, while second-quarter ROTE reached 17%; the bank also maintained capital strength and declared a €0.458-per-share dividend.

ING Group (NYSE:ING - Get Free Report) issued its quarterly earnings results on Thursday. The financial services provider reported $0.79 EPS for the quarter, topping analysts' consensus estimates of $0.75 by $0.04, Zacks reports. ING Group had a return on equity of 12.27% and a net margin of 27.68%.The company had revenue of $4.76 billion for the quarter, compared to analysts' expectations of $6.99 billion.

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 Price Performance

NYSE ING traded up $0.04 on Friday, reaching $34.98. 1,749,766 shares of the company's stock traded hands, compared to its average volume of 3,065,852. The stock has a market cap of $100.03 billion, a PE ratio of 13.82, a P/E/G ratio of 0.81 and a beta of 0.85. ING Group has a 12 month low of $22.53 and a 12 month high of $35.06. The stock has a 50-day simple moving average of $31.58 and a 200 day simple moving average of $29.49. The company has a debt-to-equity ratio of 2.73, a current ratio of 1.11 and a quick ratio of 1.11.

ING Group Cuts Dividend

The firm also recently declared a dividend, which will be paid on Monday, August 17th. Shareholders of record on Monday, August 10th will be given a dividend of $0.458 per share. This represents a yield of 262.0%. The ex-dividend date is Monday, August 10th. ING Group's dividend payout ratio (DPR) is presently 57.71%.

ING Group News Summary

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

• Positive Sentiment: Raised outlook: ING increased its full-year total-income guidance to more than €24.5 billion and lifted its 2026 and 2027 guidance after a quarterly profit beat expectations. This signals stronger revenue momentum and improved confidence in future profitability. ING hikes full year guidance after quarterly profit beat expectations
• Positive Sentiment: Quarterly earnings beat: ING reported second-quarter net profit of €1.947 billion and earnings of $0.79 per share, exceeding the $0.75 analyst consensus. The bank also cited accelerated growth in its customer base and customer balances, supporting the investment case. ING posts 2Q2026 net result of €1,947 million
• Positive Sentiment: Defense-financing opportunity: Chief Executive Steven van Rijswijk said ING’s defense loan book could double over the next few years. Growth in this sector could expand lending volumes and interest income, although it may also increase concentration and credit risks. ING's Defense Loan Book Could Double in Next Couple of Years
• Positive Sentiment: Dividend announced: ING declared a €0.458-per-share dividend, payable August 17 to shareholders of record August 10. The ex-dividend date is August 10, providing an additional shareholder-return catalyst before the stock begins trading without the dividend.
• Neutral Sentiment: Risk leadership transition: Shareholders approved Andrea Cesaroni as ING’s new chief risk officer. The appointment supports continuity in risk oversight, but its immediate financial impact is likely limited. ING approves Andrea Cesaroni as new chief risk officer
• Negative Sentiment: Revenue shortfall: Reported revenue of $4.76 billion was below the $6.99 billion consensus estimate, partially offsetting the earnings beat and creating a point of investor scrutiny despite the upgraded outlook.

Institutional Investors Weigh In On ING Group

A number of institutional investors have recently made changes to their positions in ING. Wells Fargo & Company MN grew its holdings in shares of ING Group by 61.9% during the 4th quarter. Wells Fargo & Company MN now owns 2,700,573 shares of the financial services provider's stock valued at $75,616,000 after purchasing an additional 1,032,177 shares during the last quarter. Bank of America Corp DE lifted its stake in ING Group by 7.3% in the second quarter. Bank of America Corp DE now owns 8,764,562 shares of the financial services provider's stock worth $191,681,000 after purchasing an additional 593,424 shares during the last quarter. UMB Bank n.a. lifted its stake in ING Group by 33,683.0% in the fourth quarter. UMB Bank n.a. now owns 309,114 shares of the financial services provider's stock worth $8,655,000 after purchasing an additional 308,199 shares during the last quarter. Laird Norton Wetherby Trust Company LLC purchased a new stake in ING Group during the fourth quarter valued at about $5,568,000. Finally, First Trust Advisors LP grew its stake in shares of ING Group by 80.3% during the second quarter. First Trust Advisors LP now owns 332,350 shares of the financial services provider's stock valued at $7,268,000 after buying an additional 148,062 shares during the last quarter. Hedge funds and other institutional investors own 4.49% of the company's stock.

Analysts Set New Price Targets

ING has been the subject of a number of research analyst reports. Weiss Ratings reiterated a "buy (b)" rating on shares of ING Group in a report on Friday, May 29th. Zacks Research upgraded ING Group from a "strong sell" rating to a "hold" rating in a report on Monday. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and four have given a Hold rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy".

About ING Group

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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