ING Groep stock trades steady as earnings and capital ratios support valuation
Published on 07/21/2026 at 13:22 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS
ING Groep N.V. (ISIN NL0011794037) stock sits on a foundation of steady profitability and solid capital ratios, with recent financial results and regulatory metrics providing the key signals for investors assessing the Dutch banking group's valuation within the broader European banking sector.
Net profit and revenue trends in 2024
In its results for the first half of 2024, ING Groep reported a net profit of around EUR 3.7 billion, illustrating the continued earnings power of its core retail and wholesale banking operations in Europe and beyond. Revenue for the same period reached approximately EUR 10.3 billion, reflecting relatively stable income from interest, fees, and commissions across its major markets. Compared with the first half of 2023, net profit edged higher by a mid single-digit percentage, underlining that while growth is not spectacular, the earnings base remains resilient in a mixed macroeconomic environment of moderating interest rates and uneven loan demand.
Within this revenue base, net interest income, which captures the spread between lending and deposit rates, remained the largest contributor. The gradual normalization of interest-rate margins and competitive pressure in deposits tempered some of the benefits ING had enjoyed in the earlier phase of the rate cycle, but the bank still managed to hold its net interest income close to the prior-year level. Non-interest income, including fees from payments, investment products, and lending arrangements, added diversification and helped offset areas where margins tightened.
Margin resilience and cost discipline
Operational efficiency continues to be a focus for ING Groep, with management aiming to protect profitability through cost discipline and selective digitization investments. In the first half of 2024, the bank reported an underlying cost-income ratio in the low to mid 50 percent range, broadly in line with the previous year and signaling that operating costs are being managed relative to income. This ratio, comparing operating expenses to total income, remains a key indicator for investors tracking the bank's ability to convert revenue into profit while investing in technology, compliance, and customer service.
The underlying return on equity during the period stayed in double-digit territory, supported by both solid net profit and a prudent capital base. For investors, this level of return on equity, even if slightly below the peak levels seen during the most accommodative interest-rate environment, suggests that ING Groep can continue to fund dividends and potential share buybacks without eroding its regulatory buffers. The profitability metrics are particularly relevant given heightened regulatory scrutiny and the need to comply with evolving Basel capital requirements.
Capital adequacy and buffers above requirements
ING Groep's capital position remains one of its central strengths. As of the latest reported quarter in 2024, the bank's Common Equity Tier 1 (CET1) ratio stood around 15 percent, comfortably above the regulatory minimum requirement that typically falls in the low double-digit range when including buffers. This surplus capital provides management with flexibility to absorb potential credit losses, comply with future regulatory changes, and maintain shareholder remuneration policies through the cycle. For comparison, the CET1 ratio was marginally lower in the prior year, suggesting that ING Groep has modestly strengthened its capital base despite ongoing distributions to shareholders.
In addition to CET1 capital, the bank maintains other regulatory ratios, such as the Tier 1 and total capital ratios, as well as leverage and liquidity measures that support its ability to withstand market stress. Liquidity coverage and net stable funding ratios comfortably exceed minimum requirements, underpinning the stability of funding sources and the capacity to meet short and medium-term obligations. This structured capital and liquidity framework is critical for a large cross-border banking group, particularly in periods of market volatility or macroeconomic uncertainty.
Dividend policy and shareholder returns
ING Groep has historically offered an attractive dividend profile, balancing cash returns with reinvestment needs. For the 2023 fiscal year, the group distributed a total dividend per share in the range of EUR 0.85 to EUR 0.90, combining interim and final payments. This payout corresponded to a payout ratio in the vicinity of 40 to 50 percent of net profit, consistent with management's medium-term guidance. The 2023 dividend represented a meaningful increase compared with the prior-year distribution of roughly EUR 0.70 per share, indicating that the rise in earnings and confidence in capital buffers translated directly into higher cash distributions.
For 2024, investors look closely at guidance that suggests continued dividends aligned with earnings progression, subject to regulatory approval and macroeconomic conditions. The interplay between dividend payments, potential share repurchases, and retained earnings is central to the bank's capital management strategy. In a low to moderate growth environment, preserving a robust CET1 ratio while delivering reliable income remains a balancing act, and the incremental changes in dividend per share illustrate how ING Groep adjusts shareholder returns as profitability evolves.
Loan book, risk profile, and credit quality
The overall risk profile of ING Groep is heavily influenced by the composition and quality of its loan book. As of mid 2024, total customer lending stood in the range of EUR 650 billion to EUR 700 billion, covering mortgages, consumer and small business loans, and corporate exposures. Compared with mid 2023, this represented a modest increase in outstanding loans, driven primarily by growth in mortgage portfolios and selective corporate lending. The bank continues to use conservative underwriting standards and risk-based pricing to maintain credit quality.
Non-performing loans remained contained, with the non-performing loan ratio hovering around 1.5 to 2 percent of total loans. This level is broadly consistent with the prior-year ratio and underscores that, despite economic headwinds in some markets, the overall credit environment for ING Groep has not deteriorated substantially. Loan-loss provisions, or risk costs, were slightly higher than the unusually low levels of the previous period but remained modest relative to total income, reinforcing the narrative that the bank is not experiencing a broad-based credit downturn.
Cost of risk and macro environment
The cost of risk, expressed as loan-loss provisions relative to average outstanding loans, is a crucial metric for investors seeking to understand how macroeconomic trends translate into credit costs. In the first half of 2024, ING Groep's cost of risk remained at a low level, around 25 to 30 basis points, indicating limited credit deterioration across its portfolio. This compares with a lower base in 2023, where the cost of risk was closer to 20 basis points, reflecting an exceptionally benign credit environment. The slight increase aligns with more cautious macroeconomic assumptions related to inflation, interest rates, and growth, but does not signal a major stress scenario.
The macro context for ING Groep spans both the euro area and other regions where it operates, including Central and Eastern Europe and parts of Asia. Economic growth has moderated relative to the post-pandemic rebound, and inflation has receded from its peak but remains above historical averages. Central banks have shifted from rapid rate increases to a more balanced stance, which affects both lending demand and deposit dynamics. ING Groep's earnings sensitivity to interest rates and credit spreads remains an important factor in modeling its future profitability and valuation.
Digital banking platform and operational leverage
Beyond pure financial metrics, ING Groep's strategic focus on digital banking continues to shape its cost and revenue structure. The group operates one of the more widely recognized digital banking platforms in Europe, aiming to reduce branch-based costs while enhancing customer engagement through mobile and online channels. Investment in technology and automation has contributed to efficiency gains, although these investments also require ongoing capital expenditure.
Digital customer penetration, measured as the percentage of active customers using online or mobile channels, has climbed steadily, exceeding 80 percent in core markets by 2024. This level is higher than a few years earlier, when digital penetration was closer to 70 percent, and underscores the shift in customer behavior. For investors, higher digital usage can translate into lower marginal operating costs per customer and new opportunities for cross-selling of financial products, even as competition from other banks and fintech providers intensifies.
Comparative valuation versus European peers
On valuation, ING Groep stock is commonly compared with other major European banks, using metrics such as price-to-earnings (P/E) and price-to-book (P/B) ratios. As of a recent trading date in mid 2024, the shares traded on a trailing P/E multiple in the high single digits, around 8 to 9 times earnings, and a price-to-book ratio near 1 times reported equity. These levels are broadly in line with, or slightly above, some European peers, reflecting a market perception that ING Groep's combination of profitability, capital strength, and digital strategy warrants at least a median valuation within the sector.
Relative to a period two or three years ago, when many European banks traded at deep discounts to book value, the current P/B ratio closer to parity signals an improved investor view of the sector's sustainability and near-term earnings prospects. For ING Groep, the key question is whether it can maintain or improve this valuation by delivering on profitability targets, managing risks, and continuing to refine its digital and cross-border business model.
Revenue up 5 percent year on year
In terms of growth, one of the more tangible metrics is the year-on-year change in revenue. In the first half of 2024, ING Groep's total income expanded by around 5 percent compared with the same period in 2023, driven by steady net interest income and increases in fee and commission income. This growth rate, while not particularly high, is notable against a backdrop of moderating economic momentum and increased regulatory and compliance costs. It suggests that the bank is still able to grow its top line in a relatively mature market environment.
The 5 percent revenue growth offers a benchmark for investors evaluating whether the bank's strategies around digitalization, product mix, and risk management are producing incremental gains. If revenue can continue to rise at a rate above inflation and cost growth, ING Groep could potentially sustain or gradually improve its operating leverage, reinforcing the case for ongoing dividends and maintained capital buffers without eroding returns.
Product focus: retail banking and online savings
A representative product area for ING Groep is its retail banking and online savings offering, which serves millions of customers across the Netherlands, Germany, and other markets. The bank's online savings accounts and current accounts form the backbone of its funding base, with customers attracted by user-friendly interfaces, transparent pricing, and mobile app functionality. Savings balances in key markets have expanded steadily, contributing to a stable and relatively low-cost source of funding for the bank's lending activities.
Retail banking revenue, encompassing interest income on mortgages and consumer loans plus fees on payment services, remains a major contributor to the group's overall income. In recent periods, retail banking has also seen increased competition, both from traditional banks and digital-only entrants, but ING Groep's established digital platform and brand recognition provide a competitive advantage. Continued enhancements to the mobile app, including budgeting tools and integrated investment options, aim to deepen customer engagement and create additional fee-based revenue streams.
ING Groep stock and market performance
ING Groep stock is listed on Euronext Amsterdam and is a component of major indices tracking European equities. The shares represent a claim on the bank's earnings, capital, and dividend payments, and their performance reflects both company-specific and sector-wide factors. As of a recent trading date in mid 2024, ING Groep shares traded at a price in the low to mid teens in euro terms, for example in a range around EUR 13 to EUR 14, in line with a market capitalization in the tens of billions of euros. Over the prior twelve months, the stock's performance has been shaped by evolving interest-rate expectations, regulatory developments, and investor appetite for financials relative to other sectors.
For investors, the combination of steady net profit, a CET1 ratio around 15 percent, and a dividend per share close to EUR 0.90 for 2023 helps underpin the investment case in ING Groep stock. The bank's ability to sustain revenue growth of around 5 percent year on year, maintain a cost-income ratio in the low to mid 50 percent range, and keep non-performing loan ratios near 2 percent offers a picture of controlled risk and measured growth. While future returns will depend on macroeconomic conditions and management execution, the current metrics suggest a stable platform for incremental value creation rather than a high-risk turnaround story.
ING Groep stock fact box
- Company: ING Groep N.V.
- ISIN: NL0011794037
- Ticker: EURONEXT: INGA
- Trading venue: Euronext Amsterdam
- Price (as of 30 June 2024, 16:30 CET): 13.50 EUR
- Market capitalization: 50,000,000,000 EUR (as of 30 June 2024)
- Sector / Industry: Financials / Banks
- Index membership: EURO STOXX 50
- Next earnings date: 1 August 2024
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