ING Groep(ING) - 2025 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company achieved a return on equity of 13.2% for 2025, exceeding initial guidance [5] - Total income reached a record level for the third consecutive year, driven by strong net interest income (NII) of EUR 15.3 billion despite lower interest rates [5][6] - Net profit for the year was over EUR 6.3 billion, contributing almost two percentage points to the CET1 ratio [8] Business Line Data and Key Metrics Changes - The loan book grew by 8.3% in 2025, primarily due to residential mortgages, while the deposit book increased by 5.5% [4] - Fee income rose by 15% year-on-year, with investment products seeing a 21% increase in fee income [6] - The number of Mobile Primary Customers increased by over 350,000 in Q4, totaling over 1 million for the year [4] Market Data and Key Metrics Changes - Customer deposit growth was 4.5% in 2025, supported by successful promotional campaigns [19] - The company maintained its number one position in retail banking in 5 out of 10 markets and ranked in the top three in all markets [7] Company Strategy and Development Direction - The company remains committed to supporting clients in sustainability transitions, with a total sustainable volume mobilized reaching EUR 166 billion, a 28% increase year-on-year [5] - The outlook for 2026 includes expected total income growth to around EUR 24 billion, supported by continued volume growth and a projected 5%-10% increase in fee income [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength and quality of the loan book, with total risk costs in line with the through-the-cycle average [12] - The company plans to issue between EUR 6 billion and EUR 8 billion of Holdco Senior in 2026, indicating a proactive approach to capital management [16] Other Important Information - The CET1 ratio decreased to 13.1% due to an additional distribution of EUR 1.6 billion, with ongoing share buyback progressing well [14] - The company has a stable liquidity profile, with over two-thirds of the balance sheet funded by customer deposits [19] Q&A Session Summary Question: Plans for tapping the ECB, MROs, and LTROs - Management stated that while the company prefers self-sufficiency, it may consider drawing on MROs or LTROs if necessary, but currently sees no need due to excess cash in the system [24][25][26]