ING posts Q3 profit below estimates, announces €1.9 bln payout

 ING Groep NV reported third-quarter net profit that missed analyst estimates as loan loss provisions and operating expenses climbed, but the Dutch lender softened the blow by announcing a €1.9 billion capital distribution package and reaffirming its full-year guidance.

The Amsterdam-based bank posted a net result of €1.85 billion for the quarter ended September 30, falling short of the €1.97 billion median analyst estimate. Total income reached €6.23 billion, trailing the median consensus forecast of €6.31 billion.

The bottom-line shortfall was driven by higher-than-expected costs and risk provisions. Operating expenses rose to €3.12 billion, topping the median consensus estimate of €3.08 billion. 

Additions to loan loss provisions climbed to €403 million, exceeding the top end of the analyst consensus range of €400 million. 

Meanwhile, commercial net interest income rose 13.4% to €4.34 billion, closely aligning with the €4.34 billion median consensus. Fee and commission income reached €1.27 billion, matching the €1.28 billion median estimate.

To reassure markets, ING announced a €1.9 billion distribution plan comprising a share buyback program of up to €1.65 billion and a €250 million cash dividend payout. 

The move follows the completion of a €1 billion share buyback program. The bank’s common equity Tier 1 ratio stood at 13.3%, remaining comfortably above its target of around 13%.

Separately, ING announced a structural overhaul of its wholesale banking unit, renaming it Corporate and Institutional Banking, which will result in approximately 400 redundancies globally. 

The bank will book a €175 million pre-tax redundancy provision in the fourth quarter of 2026, targeting annual cost savings of €75 million by 2028.

Management confirmed its full-year 2026 outlook, projecting total income to exceed €24.5 billion, operating expenses between €12.6 billion and €12.8 billion, and a return on tangible equity exceeding 15%.