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

Financial Data and Key Metrics Changes - The return on equity for 2025 was 13.2%, exceeding initial guidance [5] - Total sustainable volume mobilized reached EUR 166 billion, a 28% year-on-year increase [5] - Commercial net interest income (NII) remained strong at EUR 15.3 billion despite lower interest rates [5][6] - Total income reached a record level for the third consecutive year [6] Business Line Data and Key Metrics Changes - The loan book grew by 8.3% in 2025, primarily driven by residential mortgages [4] - The deposit book increased by 5.5%, mainly in retail banking from private individuals [4] - Fee income grew by 15% year-on-year, with investment products seeing a 21% increase in fee income [5][6] Market Data and Key Metrics Changes - Customer deposit growth was 4.5% in 2025, supported by customer acquisition and promotional campaigns [19] - The company maintained its number one position in five out of ten markets in retail banking [7] Company Strategy and Development Direction - The company aims for continued volume growth, projecting total income to reach around EUR 24 billion in 2026 [9] - A focus on cost discipline and operational efficiency is emphasized, with operating expenses projected to be around EUR 12.6 billion to EUR 12.8 billion [9] - The company plans to issue between EUR 6 billion and EUR 8 billion of Holdco Senior in 2026 [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength and quality of the loan book despite a slight increase in the Stage Three ratio [11] - The company anticipates a 5%-10% increase in fee income for 2026, building on strong performance in 2025 [10] - Management highlighted the importance of being self-sufficient and not relying on central bank operations, although they remain open to utilizing MROs or LTROs if necessary [25] Other Important Information - The CET1 ratio decreased to 13.1% due to an additional distribution of EUR 1.6 billion [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 they prefer to be self-sufficient but may consider drawing on MROs or LTROs if necessary, particularly for economic reasons [25][26]