ING Groep N.V. (ING) Q4 2025 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call highlights strong financial performance with increased fee income, a significant lending book, and growth in deposits. The company shows robust product development and market strategy, notably in digital and sustainable initiatives. While risk costs and competition are concerns, the positive guidance and shareholder returns, including a share buyback and dividend, suggest a favorable outlook. The Q&A session indicates management's proactive approach to emerging risks and opportunities, further supporting a positive sentiment.
Key Financial Performance
Primary Customers Over 1 million primary customers in 2025, with 350,000 added in the fourth quarter. This represents growth compared to the previous year.
Lending Book Grew by EUR 57 billion in 2025, an 8% increase compared to the previous year. This growth was double the lending growth achieved in 2024.
Mortgages EUR 376 billion in mortgages, positioning the company as a top 3 mortgage provider in Europe.
Deposits Total deposits, including savings and current accounts, grew by EUR 38 billion in 2025, a 6% increase compared to the previous year.
Assets Under Management and E-Brokerage EUR 270 million, a 60% increase compared to the previous year, driven by growth from a relatively small base.
Fee Income Grew 15% to EUR 4.6 billion, driven by investment products, wholesale banking, and capital market activities.
Expenses Increased by 4% for the full year, attributed to CLA effects and investments, but partially offset by operational efficiencies. Fourth-quarter expenses were flat.
Risk Costs Fourth-quarter risk costs were about the cycle average, while the full year was slightly below at 90 basis points, compared to the cycle average of 20 basis points.
Net Profit EUR 3 billion, with a return on equity of 3.2% and a capital ratio of 13.1%.
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Operating Highlights
Assets under management and e-brokerage: Grew to EUR 270 million, a 60% increase compared to before, indicating rapid growth from a small base.
Primary customers: Grew to over 15 million out of 41 million total customers, with 350,000 added in Q4 2025.
Lending book: Increased by EUR 57 billion (8% growth) in 2025, double the growth of 2024.
Deposits: Grew by EUR 38 billion (6% growth) in 2025.
Mortgage market: EUR 376 billion in mortgages, making the company a top 3 mortgage provider in Europe.
Fee income: Increased by 15% to EUR 4.6 billion, driven by investment products, wholesale banking, and capital market activities.
Expenses: Increased by 4% for the full year, but remained flat in Q4 due to operational efficiencies offsetting cost increases.
Diversification: Focused on diversifying income streams by increasing investment customers and capital market activities.
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Risk or Challenges
Liability Income Headwinds: The company faced headwinds from a lower replication volume on the liability side, which impacted liability income. Although the company is coming out of the trough, this remains a challenge.
Expense Growth: Expenses increased by 4% for the full year, driven by factors such as CLA effects and investments. While operational efficiencies partially offset this, managing costs remains a challenge.
Risk Costs: Risk costs were about 90 basis points for the year, slightly below the cycle average of 20 basis points. This indicates potential risks in maintaining risk costs at manageable levels.
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Guidance & Outlook
Commercial and Financial Results: Good commercial and financial results in '25 with over 1 million primary customers and 350,000 in the fourth quarter. Total number of primary customers is over 15 million out of 41 million. Lending book in 2025 grew by EUR 57 billion, 8% compared to the previous year, double the growth of 2024. EUR 376 billion in mortgages, EUR 266 billion in wholesale banking. Total deposits grew by EUR 38 billion, 6%. Total balance grew on average about 7%, 8% lending, 6% deposits. Assets under management and e-brokerage at about EUR 270 million, a 60% increase. Interest income held up well despite headwinds from lower replication volume. Fee income grew 15% to EUR 4.6 billion. Expenses were under control, 4% higher for the full year, flat in the fourth quarter. Risk costs were about 90 basis points, below the cycle average of 20 basis points. Net profit of EUR 3 billion, return on equity 3.2%, capital ratio of 13.1%.
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Shareholder Return Plan
Dividend Proposal: A dividend has been proposed for the year-end.
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Key Q&A
Q:What can we expect this year regarding [indiscernible] sizes or [indiscernible]?
A:The company expects to release 15 to 20 basis points (0.15% to 0.20%) in '26 through trades. They are gradually developing their capabilities in this area, focusing on balancing risk and return, especially in retail. The Dutch banks are transitioning to more data-driven models, which took years to develop.
Q:Are Dutch banks as advanced as other European banks in changing the risk model from expert-based to data-driven?
A:Dutch banks, along with other Northern European banks, were more expert-based compared to Southern European banks, which were more data-driven. The ECB's supervision has pushed for a transition to data-driven models, requiring Dutch banks to converge with the ECB's standards.
Q:What do you think about the market risk for the financial sector with increasing SRTs?
A:The executive emphasized diversification and cautioned against over-reliance on SRTs. While SRTs transfer risk, they do not transfer loans, and market capacity must be considered to avoid dependency on a single instrument. ING is just starting with SRTs, so the risk is currently minimal for them.
Q:Could you provide insights into the investment product offering in different countries?
A:ING started as a digital savings bank and expanded into investment products. The approach varies by country, with Germany, Belgium, and Spain being key markets. ING is moving towards more scalable and bespoke investment solutions, including advice for different customer segments. They aim to improve scalability and diversify offerings.
Q:Do you notice competition from neobanks like Revolut, especially among Gen Z?
A:Yes, ING competes with both incumbents and neobanks. While ING has depth and trust, it aims to retain agility and improve digital journeys. They are focusing on subsegments and introducing subscription packages to cater to specific customer needs.
Q:How is ING addressing the SME market in Germany?
A:ING is developing a digital SME bank in Germany, focusing initially on self-employed individuals and payments. Growth is from a small base, with high growth in customer numbers and deposits. Lending will follow as businesses grow.
Q:What is ING's approach to sustainability and renewable energy?
A:ING is committed to sustainability, with EUR 166 billion in sustainable loans and bonds. They aim to grow renewable energy financing from EUR 2.5 billion to EUR 7.5 billion annually by 2025, focusing on economically viable projects.
Q:How is ING addressing talent acquisition and remuneration?
A:ING is focusing on flexibility in remuneration to attract top talent, especially in technology and operations. They aim to compete effectively in the market by offering competitive packages and variable pay options.
Q:Is ING increasing its defense exposure?
A:Yes, ING is growing its defense exposure, particularly in Europe, with 40-50 projects in the pipeline. They focus on adhering to UN limitations and supporting European defense capabilities.
Q:Review of Unclear Management Responses
A:Management avoided providing specific details on the exact size of the SME bank in Germany and the breakdown of sustainable loans versus bonds. Additionally, responses on societal obligations and AML efforts were broad and lacked actionable specifics.
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ING Transcript
ING Groep N.V. (ING) Q1 2026 Earnings Call Transcript
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ING Groep N.V. (ING) Q4 2025 Earnings Call Transcript
Positive1-30
The earnings call highlights strong financial performance with increased fee income, a significant lending book, and growth in deposits. The company shows robust product development and market strategy, notably in digital and sustainable initiatives. While risk costs and competition are concerns, the positive guidance and shareholder returns, including a share buyback and dividend, suggest a favorable outlook. The Q&A session indicates management's proactive approach to emerging risks and opportunities, further supporting a positive sentiment.
Calix, Inc. (CALX) Q4 2025 Earnings Call Transcript
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The earnings call summary and Q&A session indicate positive sentiment. The company has raised fee growth and total income expectations, maintained cost management, and announced substantial shareholder returns. Despite not including international expansion in 2026 numbers, confidence in growth and AI capabilities is high. Strong appliance margins and expected software margin improvements further support positive sentiment. The lack of specific guidance on certain revenue contributions is a minor concern but doesn't overshadow the overall optimistic outlook.
ING Report
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