ING Group Reports €1.46B Q1 Profit Amid Record Deposits and Fee Growth

ING Group (AS:INGA) reported a net profit of €1.46 billion for Q1, driven by record deposit inflows and strong fee income growth, despite narrowing interest margins and high regulatory costs. The Dutch banking giant posted a pre-tax profit of €2.12 billion, down 7.4% year-over-year but up 19.9% from the previous quarter.

Total income rose 1% to €5.64 billion, supported by increased deposits, mortgage activity, and gains in financial markets. Fee and commission income surged 9.6% to €1.09 billion, led by an 18% rise in Retail Banking. However, net interest income dropped 5.3% to €3.62 billion due to declining liability margins.

Net core lending expanded by €6.8 billion, primarily from €8.6 billion in residential mortgages in the Netherlands and Germany. Wholesale Banking lending fell €1.8 billion due to seasonal trends and postponed client investments. Net core deposits jumped €22.6 billion, ING’s highest-ever quarterly growth, fueled by inflows in Germany and increased cash pooling in Wholesale Banking.

Operating expenses totaled €3.2 billion, including €361 million in front-loaded regulatory costs. Excluding these, expenses fell 1.6% quarter-over-quarter. Loan loss provisions stood at €313 million, or 18 basis points, below historical norms. Return on equity was 12%, down from 12.8% a year earlier, with earnings per share at €0.47.

ING’s Common Equity Tier 1 ratio held steady at 13.6%, above the 12.5% target. The bank set aside €727 million for shareholder returns and announced a €2 billion share buyback. Total assets grew by €58 billion to €1.08 trillion, driven by a €42 billion rise in customer deposits. The loan-to-deposit ratio improved to 0.93. ING added 174,000 mobile customers and mobilized €30.3 billion in sustainable finance, a 23% year-over-year increase.