By Mateusz Rabiega and Jakob Van Calster
(Reuters) -ING will return 1.6 billion euros ($1.9 billion) to investors through share buybacks and dividends, the Netherlands’ largest bank said on Thursday, as strong growth in fee income and lending volumes helped it beat quarterly profit forecasts.
The international lender, which serves around 40 million consumers, corporate clients and financial institutions, said it planned to buy back 1.1 billion euros worth of its own shares, starting immediately, and pay out 500 million euros in dividends in January.
ING’s quarterly net profit fell 5% to 1.79 billion euros as lower interest rates turned down income streams. It still beat analysts’ median forecast of 1.66 billion euros, sending its shares 5% higher by early afternoon.
As European central banks continue to ease their key rates, ING has needed to adjust its business approach to offset the slow but certain decline of interest revenues. That included boosting its fee income and offering more attractive loan terms to drive up demand.
POSSIBLE JOB CUTS
ING CEO Steven van Rijswijk confirmed to Reuters that the bank may cut 950 jobs in its home turf by the end of 2026, partly due to the increased use of AI, as reported by Dutch media earlier this week.
Artificial intelligence is having an impact on staffing all over the world, but only in the Netherlands do companies have to report such estimates, van Rijswijk said in an interview.
“Undoubtedly, digitalisation and AI will have a further impact on the shape of the (distribution of workforce) in ING,” he added.
FEE INCOME DRIVES OUTLOOK HIKE
ING also raised its financial targets for 2025, expecting its fee income, one of the key drivers of its continued strong run, to grow by more than 10% this year, exceeding the previously expected range of 5% to 10%.
The bank also expects its total income to rise to roughly 22.8 billion euros, versus the previously guided 22.6 billion euros.
ING’s France-based peers Societe Generale and Credit Agricole also beat market forecasts on Thursday.
($1 = 0.8575 euros)
(Reporting by Mateusz Rabiega and Jakob Van Calster in Gdansk, editing by Milla Nissi-Prussak and Matt Scuffham)
