ING sets €1.9bn payout and restructuring

ING has unveiled a new shareholder distribution programme of up to €1.9 billion, combining a share buyback of €1.65 billion with a cash payment of €0.25 billion. The bank stated that the distribution is intended to keep its common equity Tier 1 (CET1) ratio in line with a target of around 13%, after reporting a CET1 ratio of 13.3%.

The share buyback programme is scheduled to commence on 29 October 2026 and is expected to conclude no later than 26 April 2027. ING has arranged for the buyback to be carried out under a non-discretionary agreement with a financial intermediary, operating within an existing shareholder mandate to repurchase up to 20% of issued shares.

In addition to the buyback, ING plans to make a cash distribution of €0.25 billion on 14 January 2027. This cash payout follows the announcement of a €250 million distribution for January 2027 linked to the new buyback, bringing the total programme to €1.9 billion.

The distribution has received approval from the European Central Bank, allowing ING to proceed with the capital return. Execution of the share repurchase will comply with the Market Abuse Regulation and the limits set by the authority granted at the general meeting of shareholders on 14 April 2026.

The €1.65 billion buyback was announced shortly after ING completed a previous repurchase programme. The new operation underscores the bank’s decision to return surplus capital to shareholders while managing its capital ratios through measures such as significant risk transfers that reduced risk-weighted assets.

The announcement of the buyback and cash payout comes after ING reported third-quarter net profit of €1.85 billion, a 3.5% increase from a year earlier. This result was below an analyst consensus forecast of €1.97 billion, with higher loan-loss charges weighing on earnings.

Loan-loss provisions rose to €403 million compared with expectations of €343 million, while net interest income and fee income were reported as broadly in line with market estimates. Despite the profit miss, the CET1 ratio of 13.3% provided sufficient headroom for the new distribution while maintaining the bank’s stated capital target.

Alongside the capital return, ING plans to reorganise its wholesale banking activities. The restructuring is expected to result in about 400 job cuts within the wholesale banking unit.

The planned changes highlight an effort to control costs and adapt the wholesale banking business as lending conditions evolve. The restructuring is presented in parallel with the sizeable shareholder payouts, positioning the bank to balance cost discipline with ongoing returns to investors.