ING hikes 2026, 2027 guidance after quarterly profit beat

By Jakob Van Calster and Mateusz Rabiega

July 30 (Reuters) - ING raised its targets for the next two years on Thursday, including total income, after the Dutch banking group's second-quarter profit beat market expectations.

The lender reported a net result of €1.95 billion ($2.23 billion), which beat a company-compiled consensus of €1.83 billion, lifted in part by a 14% rise in fee income to €1.28 billion.

CEO Steven van Rijswijk attributed the performance mainly to more customers making greater use of the bank's products and services, boosting both interest and fee income.

ING shares rose around 2.5% in early Amsterdam trading, with one trader saying the "across the board" guidance change was the key positive of the release.

HIGHER INCOME OVER NEXT TWO YEARS

ING hiked its 2026 total income target to more than €24.5 billion, from over €24 billion previously, and lifted its 2027 outlook by more than €1 billion to above €26 billion.

Return on tangible equity targets were lifted to over 15% and over 16%, respectively, while operating expenses are expected to hit €13 billion by the end of 2027, the bank said.

Quarterly net interest income was broadly in line with market expectations, with van Rijswijk saying higher interest rates helped support earnings. ING raised its full-year NII guidance to up to €17 billion.

Interest rates are back in focus for lenders, with the outlook for the European Central Bank's policy among the key questions for the upcoming quarters.

Van Rijswijk had said in April that while higher rates would boost NII, the benefit would be largely offset by lower income elsewhere, including hedging-related revenues.

However, he told journalists on Thursday that customer activity had remained resilient even as bombings continue in the Middle East, citing a steady flow of new deals and continued investment by the bank's clients.

($1 = 0.8744 euros)

(Reporting by Jakob Van Calster and Mateusz Rabiega, editing by Matt Scuffham and Milla Nissi-Prussak)