ING Announces Distribution of Up to €1.9 Billion, Keeping Capital Near 13%
Key Facts
On October 29, 2026, ING announced a distribution to shareholders of up to €1.9 billion, comprising a share buyback of up to €1.65 billion and a cash payment of €0.25 billion. The bank said the distribution is intended to keep its Common Equity Tier 1 (CET1) ratio in line with a target level of about 13%. The ratio stood at 13.3% at the end of the third quarter of 2026, above the prevailing capital requirement of 11.10%. ING said the distribution’s implied impact of 56 basis points is already reflected in the reported quarterly ratio. The European Central Bank approved the distribution, according to ING’s statement.
The announcement reflects the bank’s policy of returning capital above its target to shareholders, after Chief Executive Steven van Rijswijk said in the first quarter of 2026 that ING continued to return capital in excess of its CET1 target of about 13%. In October 2025, the bank announced a distribution of €1.6 billion and said it had adjusted its capital target to about 13% to account for higher expected capital requirements. The distribution policy calls for paying 50% of underlying net profit, excluding exceptional items, in cash or through a combination of cash and share buybacks. The policy requires the larger portion to be paid in cash and the CET1 ratio after the distribution to remain above the prevailing maximum distributable amount threshold. In the current announcement, the bank said the additional distribution would be funded from its profit reserve.
The decision coincided with quarterly results in which ING reported net result of €1,850 million, up 3.5% year on year, and a return on tangible equity of 16.3%. Pretax profit rose 5.7% to €2,705 million in the third quarter of 2026. Total income also increased 5.6% year on year, the bank said. ING said growth in its customer base and higher customer balances contributed to double-digit growth in commercial interest income and an increase in fee income. Fee income was €1,273 million, up 9.3% year on year.
The bank added 259,000 primary mobile customers during the quarter, while net core lending grew by €11.0 billion and net core deposits increased by €12.1 billion. ING said higher customer balances supported banking activity, but also noted that other income declined because of the effects of increased interest-rate volatility. The bank said those effects are expected to reverse over time. In corporate banking, lending rose by €2.5 billion during the quarter, which the bank attributed to continued customer demand. The unit’s deposits increased by €9.4 billion, and its fee income rose 9.4% year on year.
Alongside the distribution, ING announced a reorganization of its corporate banking unit, shifting customer coverage from an industry-focused model to a country-focused one while retaining specialist expertise. The bank will also bring expertise together in global product teams and rename the unit Corporate and Institutional Banking. The job changes are due to take effect on March 1, 2027, and the bank expects about 400 global redundancies. ING said the pretax restructuring charge of about €175 million is expected in the fourth quarter of 2026. The measures are expected to reduce costs by about €75 million annually, with their full impact from 2028 onward.
The share buyback program begins on October 29, 2026, and ING expects it to end no later than April 26, 2027. The cash payment of €0.25 billion is scheduled for January 14, 2027. The distribution comes as the CET1 ratio exceeds the prevailing requirement, while the bank said the distribution’s calculated impact is 56 basis points. Upcoming dates include the publication of fourth-quarter and full-year 2026 results on January 28, 2027. The chief executive also plans to provide an update on the bank’s strategy at the Capital Markets Day scheduled for June 14, 2027.