ING (ENXTAM:INGA) Q3 Earnings Sharpen Focus On Fees And Costs

ING Groep walked into its Q3 2026 release with a stock that had drifted lower, down about 10% over the past month and weaker over three months as well. Then came a clean headline. Quarterly net income landed at €1.85b and basic earnings per share printed at €0.65, while the cost to income ratio held at 52.9%.

The share price move now reflects a tug of war. Short term traders are reacting to recent price weakness. Fundamental investors are eyeing a bank that just reported solid profitability and are questioning whether the latest swing in sentiment has gone too far.

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Q3 2026 Earnings Summary

• Total Revenue (Q3 2026 vs Q3 2025): €5,824m vs. €5,572m (up 4.5%)
• Net Income Excl. Extra Items (Q3 2026 vs Q3 2025): €1,850m vs. €1,787m (up 3.5%)
• Basic EPS (Q3 2026 vs Q3 2025): €0.65 vs. €0.60 (up 7.8%)
• Cost to Income Ratio (Q3 2026 vs Q3 2025): 52.9% vs. 51.1% (indicating higher cost intensity)

ING raised payouts while CET1 rose to 13.3%. Ask Charlie what ING left unsaid on that €1.9bn payout.

ING fee pivot: bullish case under the microscope

Fans of ING Groep argue that the real story is a shift away from rate sensitive income toward steadier fees and infrastructure linked lending.

"Additionally, ING is among the sector leaders when it comes to try and pivot away from NII as the predominant factor of profits. Instead, the industry in general and the Dutch bankers in particular aim to reap an ever higher share of income from fees for various services, be it client wealth management, M&A activities, debt underwriting etc."

Q3 income shows progress. Fee revenue rose faster than total income and retail fees grew double digit. Strong AUM inflows and 5.4m investment users point to structural traction, and management now targets €5b fee income already in 2026.

Macro, rates and ING downside fears tested

Sceptics focus on rate cuts, trade disputes and war risk feeding through to weaker lending economics and higher required returns.

"Now, you might expect that this wouldn't be a good time to buy bank shares, with interest rates way below their post-covid peak and the ECB set, if anything, to lower rates further if the impact from the Trump tariffs, say, or an escalating spat with China or both factors combined subdue European economies more than anticipated. And you would be right."

Commercial NII guidance for 2026 is reaffirmed at €16.8–17.0b and liability margins are guided at about 110 bps. CET1 held at 13.3% despite a fresh €1.9b distribution, and risk costs excluding model effects stayed below through cycle levels, so this quarter does not yet show those macro fears biting.

That disagreement has a full argument behind it. → Uncover the higher Fair Value this Narrative argues for.

Hunt Quiet Disconnects In Earnings

ING Groep shows how a solid profit story can sit beside a volatile share price. The real opportunity is finding stocks that could be undervalued before the market adjusts their pricing.

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