ING Groep N.V. - ADR

Strong Q2 performance + “self-reinforcing” strategy execution - ING says its Growing the difference strategy is driving a virtuous cycle: more customers → deeper relationships → higher income + better operating leverage → more capital → shareholder returns. - Customer activity remained strong and translated into upward profitability momentum. - Income growth: >5% over the past 12 months; Q2 total income +10% YoY (and +8% QoQ). - Operating leverage: Headcount -1% YoY, cost growth ~2%; positive operating jaws >3pp. - ROTE: reached 17% in Q2, and 4-quarter rolling ROTE +1.5pp YoY.

Material commercial momentum (loans, deposits, fees) - Mobile primary customers: +377k in Q2; >1m net growth over last 12 months, ahead of the June 2024 target. - Loan growth: annualized >8% (solid demand across markets); net core lending increased EUR 15.2bn in the quarter. - Deposit growth: annualized 8.5%; net core deposit growth EUR 15.9bn in the quarter (retail EUR 16.7bn, wholesale deposits slightly down). - Fee income: +14% YoY in Q2; driven by Retail and Wholesale engagement and expanding investment products (retail fee +16% YoY).

Guidance upgrades and full-year expectations (key forecasts) - Fees: expects to reach EUR 5bn fees in 2026 (1 year ahead of plan)—upgrade implied by Citi/J.P. Morgan-style messaging in the call. - ROTE outlook upgraded by 1pp for both 2026 and 2027: - >15% ROTE in 2026 - >16% ROTE in 2027 - Total outcome (broader earnings metric): - >EUR 24.5bn in 2026 - >EUR 26bn in 2027 - Commercial NII outlook raised: now expects FY commercial NII EUR 16.8–17.0bn (up from prior guidance). - Management targets: ~1m mobile primary customers per year; fees target EUR 5bn reached early; expenses tracking in line with outlook (supports stronger operating leverage).