ING Q2 2026 Earnings Call Summary

1Key Financial Results and Metrics

Net Profit: EUR 6.7 billion over the past 12 months, with a 16% year-on-year increase in EPS.

Return on Tangible Equity (ROTE): Reached 17% in Q2, with a rolling ROTE improvement of 1.5 percentage points year-on-year.

Total Income: Increased by 10% year-on-year, driven by strong commercial NII and fee income growth.

Loan Growth: Annualized growth of over 8%, with net core lending increasing by EUR 15.2 billion.

Deposit Growth: Net core deposits rose by EUR 15.9 billion, supported by successful deposit campaigns.

Fee Income: Grew by 14% year-on-year, with expectations to reach EUR 5 billion in fees for 2026, one year ahead of plan.

2Strategic Updates and Business Highlights

Growing the Difference Strategy: Continued execution has led to increased customer engagement and profitability, with over 1 million mobile primary customers added in the past year.

AI Integration: Launched Agentic mortgages to streamline approval processes, enhancing customer experience and operational efficiency.

Private Banking Expansion: Acquired a 40% stake in Singular Bank to enhance wealth management offerings in Spain, with a focus on growing assets under management.

Wholesale Banking: Improved income diversification with fees up 11% year-on-year, and a focus on optimizing capital allocation.

3Forward Guidance and Outlook

Upgraded Outlook: Expecting more than EUR 24.5 billion in total income for 2026 and over EUR 26 billion for 2027. ROTE outlook upgraded to over 15% for 2026 and over 16% for 2027.

Liability Margin: Anticipated to remain above 110 basis points in 2027 and 2028, driven by the structure of the replication portfolio and competitive dynamics.

4Bad News, Challenges, or Points of Concern

Lending Margin Pressure: Slight decrease in lending margins due to a shift towards lower-risk, lower-margin loans, particularly in mortgages and investment-grade loans.

Competitive Pressures: Increasing competition in deposit markets, particularly in Germany and Belgium, could impact future deposit growth.

Cost Management: While expenses are contained, there is a need to monitor the impact of increased marketing costs and incidental items on overall profitability.

5Notable Q&A Insights

Deposit Strategy: Management emphasized the importance of tailored campaigns for existing customers and new customer acquisition, with a focus on maintaining a superior customer experience.

Capital Allocation: Clarified that the priority for capital is profitable growth, followed by M&A opportunities, and then shareholder returns for excess capital.

SRT Utilization: Management confirmed that while SRTs are becoming more structural, they do not intend to change their risk appetite or underwriting standards significantly. Overall, ING's Q2 2026 results reflect strong operational performance and strategic execution, with positive growth trends and an optimistic outlook, despite some challenges related to competitive pressures and margin management.