Business Context and Reporting Period
Company: ING Groep NV
Filing Type: Form 6-K (Report of Foreign Private Issuer)
Reporting Period: Six months ended 30 June 2026 (Unaudited)
Accounting Standards: Prepared in accordance with IFRS-IASB for SEC reporting, with reconciliations to IFRS-EU (the standard used for internal management and EU reporting). A key distinction involves the "IAS 39 carve-out" for fair value hedge accounting on mortgage and savings portfolios, which is permitted under IFRS-EU but not IFRS-IASB.
Key Financial Metrics
| Metric (EUR Million) | 6M 2026 | 6M 2025 | Change |
|---|---|---|---|
| Total Income | 12,107 | 11,339 | +7% |
| Net Interest Income | 8,181 | 7,159 | +14% |
| Net Fee and Commission Income | 2,514 | 2,216 | +13% |
| Investment and Other Income | 1,412 | 1,965 | -28% |
| Operating Expenses | 6,305 | 6,234 | +1% |
| Result Before Tax | 5,177 | 4,493 | +15% |
| Net Result (IFRS-EU) | 3,503 | 3,130 | +12% |
| Net Result (IFRS-IASB) | 3,184 | 3,915 | -19% |
| Loan Loss Provisions | 625 | 612 | +2% |
| CET1 Ratio | 13.1% | 13.1% | Stable |
Liquidity and Balance Sheet:
- Total Assets: EUR 1,166.4 billion (up from EUR 1,060.3 billion in Dec 2025).
- Customer Deposits: EUR 773.3 billion.
- Loans and Advances to Customers: EUR 761.3 billion.
- Net Core Lending Growth: EUR 30.2 billion.
- Net Core Deposits Growth: EUR 23.1 billion.
Material Changes vs. Prior Period
- Accounting Adjustment Impact: The IFRS-IASB net result decreased by 19% to EUR 3,184 million, primarily due to a negative adjustment of EUR -319 million related to the reversal of the EU "IAS 39 carve-out." This contrasts with a positive adjustment of EUR 786 million in 2025. The negative adjustment stems from fair value changes on derivatives related to asset-liability management due to declining long-term interest rates, which are not offset by hedge items under IFRS-IASB.
- Revenue Growth: Total income rose 7% driven by a 14% increase in net interest income (due to higher volumes and liability margins) and a 13% increase in fee income. Investment and other income fell 28% due to accounting asymmetry and market volatility.
- Cost Management: Operating expenses remained broadly stable (+1%) despite investments in growth, as wage inflation was offset by savings from prior restructurings. Regulatory costs decreased by 8% to EUR 402 million.
- Risk Costs: Risk costs remained low at 17 basis points of average customer lending, below the through-the-cycle average of 20 basis points. This included a new overlay of EUR 74 million to address uncertainties from the war in the Middle East.
Guidance, Outlook, Risks, and Unusual Items
- Geopolitical Risks: Elevated risks persist due to the war in Ukraine and the conflict in the Middle East. The Middle East conflict has led to higher energy prices, inflationary pressure, and a specific credit risk overlay. ING has terminated the agreement to sell its Russian business (ING Bank Eurasia) due to lack of regulatory approval prospects.
- Regulatory and Legal: Ongoing litigation includes investor claims regarding historic AML shortcomings (currently in appeal), mortgage expense claims in Spain, and Swiss franc mortgage disputes in Poland (recent CJEU rulings were favorable to banks). AML findings in Luxembourg are proceeding to trial.
- Capital and Dividends: The CET1 ratio remains at 13.1%, above the target of ~13%. An interim dividend of EUR 0.40 per share is declared for payment in August 2026. A share buyback program of EUR 1,000 million is ongoing.
- Unusual Items: The period included a EUR 25 million gain from the acquisition of the remaining 55% stake in Goldman Sachs TFI in Poland. There were also EUR 76 million of incidental cost items.
Investor Verification Checklist
- Accounting Reconciliation: Verify the impact of the IFRS-EU vs. IFRS-IASB reconciliation, specifically the EUR -319 million adjustment, to understand the divergence between management's internal view (IFRS-EU) and the reported SEC result (IFRS-IASB).
- Geopolitical Exposure: Review the specific credit overlays applied for the Middle East conflict and the status of the Russian business exit strategy.
- Legal Provisions: Monitor the status of the Luxembourg AML criminal proceedings and the Polish Swiss franc mortgage litigation outcomes.
- Capital Efficiency: Confirm the sustainability of the CET1 ratio at 13.1% given the ongoing share buyback programs and dividend policy.
- Interest Rate Sensitivity: Assess the impact of declining long-term interest rates on the fair value of derivatives and the resulting volatility in the "Valuation results and net trading income" line item.