ING beats estimates as fee income offsets interest margin pressure

ING Groep (NYSE:ING) reported fourth-quarter net income of $1.64 billion (€1.41 billion), surpassing the €1.34 billion consensus estimate as the bank successfully diversified its revenue streams.

The Amsterdam-based financial giant posted earnings of 56 cents per share on total revenue of $6.75 billion.

The results were bolstered by a 15% surge in annual fee income, which reached €4.6 billion, and the addition of over one million new mobile primary customers throughout 2025.

For the full year, the company reported a record profit of $7.16 billion (€6.3 billion) on revenue of $26.06 billion.

Despite a challenging macroeconomic backdrop in Europe, ING’s return on equity climbed to 13.2%, comfortably exceeding its 12.5% target.

The bank’s "replicating portfolio"—a strategy used to hedge against interest rate fluctuations—provided a tailwind that helped maintain stable net interest income even as central banks began to shift policy.

Meanwhile, management signaled continued confidence in its capital position, proposing a final 2025 dividend of €0.736 per share to be paid in April.

Looking ahead to 2026, CEO Steven van Rijswijk projected total income to rise to approximately €24 billion, supported by 5% to 10% growth in fee income.

The bank also updated its long-term guidance, now targeting a return on equity of over 15% by 2027, underpinned by ongoing share buybacks and a disciplined cost-to-income ratio.