ING Groep (INGA) Q1 2025 earnings summary

Executive summary

• Achieved strong commercial growth in Q1 2025, with net result of €1,455 million, record deposit and mortgage growth, and a customer base exceeding 40 million, including 174,000 new mobile primary customers.

• Fee income rose 10% year-over-year to €1,094 million, mainly from Retail Banking, and sustainability finance volume increased 23%.

• Strategy and diversified presence enabled resilience amid geopolitical and macroeconomic uncertainty, supporting continued growth and confidence in 2025 and 2027 targets.

• Announced a €2 billion share buyback, with over €28 billion distributed to shareholders since 2021.

• Mobile primary customers now represent over 36% of the total customer base.

Financial highlights

• Total income for Q1 2025 was €5,637 million, with commercial net interest income at €3,794 million and fee income at €1,094 million.

• Net core lending grew by €6.8 billion, mainly from residential mortgages, with additional growth in consumer and business lending.

• Operating expenses (excluding regulatory/incidental items) rose just over 6% year-over-year, mainly due to inflation and investment in growth.

• Risk costs were €313 million (18 bps of average lending), below through-the-cycle average, with improved asset quality and lower stage three ratios.

• Return on equity was 12.0% for the quarter and 12.8% on a four-quarter rolling average.

Outlook and guidance

• Reconfirmed 2025 outlook and 2027 targets, expecting continued growth in line with strategic goals, including fee income growth of 5-10% in 2025 and a target of €5 billion by 2027.

• CET1 ratio target remains at 12.5% long-term, steering for 12.8%-13.0% by end-2025 due to macro uncertainty.

• Expenses (excluding incidentals) projected at €12.5-€12.7 billion for 2025.

• Return on equity expected to exceed 12% in 2025.

• Outlook excludes impact from the planned sale of the Russia business, which is expected to have a €0.7 billion post-tax loss.