ING's improving earnings story is increasingly about winning customer relationships rather than simply collecting the benefit of higher policy rates. Its second quarter brought faster growth in deposits, mortgages and investment accounts, alongside a higher full-year income outlook. Net core lending expanded by €15.2 billion during the quarter, while net core deposits increased by €15.9 billion. The close alignment matters: commercial expansion did not depend on an equivalent surge in wholesale borrowing. More customer money now supports a larger lending franchise, and investment services create an additional route to monetising those relationships. The investment question is whether this operating progress can justify a share price that already recognises a substantial improvement in sustainable profitability. Quarterly results provide the latest operating evidence.
Reported earnings require an accounting distinction before any conclusion about momentum. First-half profit attributable to shareholders under IFRS as issued by the IASB was €3.184 billion, a decline from €3.915 billion. Management's IFRS-EU measure instead increased to €3.503 billion from €3.130 billion. These are different hedge-accounting treatments of the same bank, not conflicting reporting units or different business perimeters. The operating interpretation is that customer economics improved even as the accounting adjustment changed direction. Neither series should be combined indiscriminately with the other in a valuation denominator. The interim reconciliation is therefore central to understanding the quarter, not an optional technical footnote.
Capital returns strengthen the per-share case but do not eliminate valuation risk. The latest repurchase update shows €736 million spent against the current €1.0 billion programme. That supports a shrinking share base, although buying stock at a higher price retires fewer shares for each euro committed. At the September sixteenth NYSE close, the ADS traded at $36.36. The corresponding valuation is no longer a distressed-bank proposition; it is a judgement about the durability of attractive returns. The balance of evidence supports a constructive view of the franchise and a more selective view of the entry price. The next results announcement, scheduled for October twenty-ninth, provides the next test of deposit pricing, fee growth and capital generation. Repurchase progress and the market quote anchor that distinction.