ING Groep N.V. (ING): BCG Matrix [Dec-2025 Updated]

You're looking for a clear-eyed view of ING Groep N.V.'s portfolio, and honestly, the BCG Matrix maps their 2025 strategy defintely well. We see their Stars, like digital customer growth at 8% year-on-year and sustainable finance mobilization hitting €110 billion in 9M 2025, clearly leading the charge. Meanwhile, the reliable Cash Cows, anchored by the Dutch/Belgian core banking generating 67% of Q2 revenues, keep the lights on, even as we manage legacy Dogs like the high-cost branch infrastructure. The real question lies with the Question Marks, such as the projected 40% revenue jump in Corporate Finance against volatile market recovery, demanding a sharp look at where ING invests next.

Background of ING Groep N.V. (ING)

You're looking at one of the major players in European finance, ING Groep N.V. (ING). This is a Dutch multinational banking and financial services corporation, with its main headquarters firmly planted in Amsterdam, Netherlands. Fundamentally, ING's business is split across several key areas: retail banking, direct banking, commercial banking, investment banking, and wholesale banking. They've been a consistent fixture in the global financial landscape for decades, even though the current entity was formed in 1991 through a merger. Anyway, after the 2008 crisis forced them to divest insurance, ING reverted to being solely a bank, which is what we see today.

When you look at the sheer size of ING Groep N.V., it's impressive; as of the third quarter of 2025, the bank reported total assets hitting €1.1 trillion. That kind of scale definitely keeps them ranked among the largest banks globally, and they are recognized as a member of the list of global systemically important banks. To give you a snapshot of their recent operational strength, for the first half of 2025, ING posted a consolidated net result of €3,130 million, achieving a Return on Equity based on IFRS-EU equity of 13.0%.

Let's drill down into the second quarter of 2025, because that's where you see the momentum. The Q2 2025 net result came in at €1,675 million, with a profit before tax of €2,369 million. Critically, their capital position looks solid; the CET1 ratio was 13.3% at that time, and by the end of Q3 2025, it had ticked up to 13.4%. Honestly, the focus on fee income is paying off; it grew 12% year-on-year in Q2 2025, which helps offset the pressure on net interest income from normalizing liability margins. This robust performance is defintely what management points to when discussing their 'Growing the Difference' strategy.

The digital-first approach is a huge driver for ING. By Q2 2025, they had 14.9 million mobile primary customers, and they kept adding to that base, gaining almost 200,000 in Q3 2025 alone. This customer engagement supports their revenue diversification goals, as they are targeting €5 billion in fee income by 2027. Strategically, ING has been active; for instance, in July 2025, they finalized the acquisition of a 17.6% stake in private bank Van Lanschot Kempen, bringing their total holding to 20.3%. This shows they aren't just managing the existing book; they're making targeted moves to enhance their portfolio.

ING Groep N.V. (ING) - BCG Matrix: Stars

Stars represent business units or products within ING Groep N.V. (ING) operating in high-growth markets with a leading market share. These areas demand significant investment to maintain growth and market position, often resulting in cash flow that is reinvested back into the unit.

The digital transformation efforts are clearly positioning certain segments as Stars, characterized by high adoption and growth rates across key European markets.

• Digital primary customer base growth: 8% year-on-year.
• Growth in mobile primary customers led by Germany and Spain.
• Total mobile primary customers now stand at 37% of over 40 million customers.

Sustainable finance mobilization is another area demonstrating Star characteristics, reflecting high market growth and ING Groep N.V. (ING)'s strong commitment and execution in this strategic area.

Fee-generating services are showing robust performance, indicating strong market share capture in growing service lines. Retail Banking fee income is a key indicator of success in attracting and monetizing the growing digital customer base.

The Wholesale Banking segment is also delivering Star-like performance through its fee-based services, driven by increased client financing needs.

• Retail fee income surged 14% year-on-year in Q3 2025.
• Growth in Retail fee income was primarily driven by investment products.
• Wholesale Banking fee income saw a strong 19% growth in Q3 2025.
• Wholesale Banking fee income reached €383 million in Q3 2025.
• Wholesale growth was supported by lending and trade finance activity.

These high-growth, high-share areas are where ING Groep N.V. (ING) is currently deploying capital to secure future Cash Cow status as market growth matures.

ING Groep N.V. (ING) - BCG Matrix: Cash Cows

Cash cows for ING Groep N.V. are business units or product lines that command a high market share within mature segments, consistently generating cash flow that exceeds the investment required to maintain their position. These units fund the enterprise's broader strategic initiatives.

Commercial Net Interest Income (NII) for the first six months of 2025 was €7,566 million, a decrease of 3% year-on-year, though lending NII remained broadly stable. For the second quarter of 2025, Commercial NII was €3,772 million, remaining broadly stable quarter-on-quarter.

The Core Retail Banking segment in the Netherlands and Belgium shows strong market presence, evidenced by the fact that Retail Banking achieved net core lending growth of €8.6 billion in Q3 2025. The residential mortgage portfolio is a key driver here, delivering a quarterly record net core lending growth of €7.2 billion in Q2 2025. For the first half of 2025, residential mortgages accounted for €13.2 billion of the total net core lending growth of €22.2 billion.

The Payments and Cash Management business within Wholesale Banking provides stable inflows. In the third quarter of 2025, Wholesale Banking posted a strong net deposit inflow of €6.9 billion, reflecting growth in volumes in Payments & Cash Management, Financial Markets, and the cash pooling business. Furthermore, fee income in Wholesale Banking rose 12% year-on-year in Q3 2025, with Payments & Cash Management being a contributing factor. ING was ranked number one in Europe in the Euromoney Cash Management Survey 2025 for corporates.

Here are some supporting financial metrics from the first half of 2025:

Operational highlights that support the Cash Cow status include:

• Mobile primary customers reached 14.9 million as of Q2 2025.
• Fee income growth was 12% year-on-year in Q2 2025 across Retail and Wholesale Banking.
• The company is targeting €5 billion in fee income by 2027.
• Risk costs remained below the through-the-cycle average in 3Q2025.
• The CET1 ratio was 13.3% at the end of Q2 2025.

ING Groep N.V. (ING) - BCG Matrix: Dogs

DOGS are units or products with a low market share and low growth rates. They frequently break even, neither earning nor consuming much cash. Dogs are generally considered cash traps because businesses have money tied up in them, even though they bring back almost nothing in return. These business units are prime candidates for divestiture.

Dogs should be avoided and minimized. Expensive turn-around plans usually do not help.

The following areas within ING Groep N.V. exhibit characteristics aligning with the Dogs quadrant:

• Legacy branch infrastructure in mature markets, which is a high-cost base in a low-growth channel.
• Business Banking lending in Belgium, which saw a decline in lending volumes in Q3 2025.
• Certain non-core geographic operations, which are being streamlined following the strategic focus on core European markets.
• Traditional, low-margin deposit products in core markets, facing pressure from liability margin normalization.

Legacy branch infrastructure in mature markets represents a significant fixed cost burden. While ING Groep N.V. is actively working to digitize services and infrastructure to increase operating leverage, the physical footprint remains a drag on efficiency. Operating expenses for the first half of 2025 amounted to €6,234 million, including regulatory costs, highlighting the ongoing pressure to control the cost base. Management commentary in Q2 2025 emphasized the need to compensate for cost increases through operating efficiencies.

Business Banking lending in Belgium is explicitly flagged as an area of contraction. ING Groep N.V.'s Q3 2025 results indicated that while lending volumes increased in the Netherlands and Poland, they experienced a decline in Belgium. This specific market contraction within a segment suggests low growth and potentially eroding market share, fitting the Dog profile.

The strategic direction points toward exiting or reducing exposure in certain non-core geographic operations. The overarching strategy involves streamlining operations and focusing on core European markets, implying that operations outside this core focus are candidates for divestiture or significant reduction, as they do not align with the primary growth vectors.

Traditional, low-margin deposit products are suffering from liability margin normalization. In the first half of 2025, Commercial Net Interest Income (NII) was €7,566 million, representing a 3.2% decline year-on-year, primarily due to lower liability NII. The positive impact from higher deposit volumes was more than offset by this margin normalization. This directly reflects the cash-consuming or break-even nature of products where the return on liabilities is compressing.

Here's a quick look at the financial context surrounding margin pressure:

You're looking at units where the capital tied up is not generating sufficient returns. The focus here must be on minimizing cash consumption, not on expensive growth initiatives.

• Avoid significant new capital allocation.
• Prioritize cost reduction over revenue expansion.
• Assess divestiture feasibility for non-core assets.
• These units frequently break even, neither earning nor consuming much cash.

ING Groep N.V. (ING) - BCG Matrix: Question Marks

You're looking at the business units that are burning cash now but could be the big winners later. These are the Question Marks in the Boston Consulting Group framework for ING Groep N.V. (ING)-high market growth, but your current slice of that market is small. They demand capital to fight for share, and if they don't win soon, they risk becoming Dogs.

The strategy here is clear: either pour in the resources to make them Stars, or cut them loose. For ING Groep N.V., this quadrant captures several areas where high potential meets high uncertainty.

Corporate Finance/M&A Advisory Growth Ambitions

The advisory arm, especially within Corporate Finance, is positioned for a significant upswing, though the environment remains tricky. ING Groep N.V. expects its global corporate finance revenue to increase by a substantial 40% in 2025, banking on a recovery in dealmaking and equity capital markets (ECM) activity. This projection suggests management sees this as a high-growth area needing support to capture market share. However, the backdrop is one of increased uncertainty stemming from tariff announcements and geopolitical tensions, which means that 40% growth is contingent on market recovery remaining volatile. This unit is consuming cash now to build presence for when the M&A pipeline fully materializes.

Key indicators for this growth segment include:

• Projected revenue growth for 2025: 40%.
• Dealmaking pipeline is described as healthy.
• Active private equity investors are keen to exit assets.

Strategic Expansion in Italy and Spain

ING Groep N.V.'s CEO has signaled clear intent to grow in larger markets, specifically naming Germany, Italy and Spain as targets for M&A activity to boost size and market share. This geographical push requires significant capital deployment, whether through organic growth or, more likely, strategic acquisitions. Entering or deepening presence in these markets means competing against established local players, which inherently means high initial investment and low initial market share-the textbook definition of a Question Mark. Andrea Diamanti was appointed as CEO of ING in Italy as of November 2025, signaling active management in that region. You're definitely seeing cash flow directed here to build the necessary footprint.

New Digital Product Launches and Unproven Returns

The push into advanced digital services, such as the development of generative AI-powered chatbots and 24/7 Voice Agents, represents a major capital drain with an unproven long-term revenue impact. While ING Groep N.V. has shifted its AI strategy from broad experimentation to focusing on tangible customer outcomes, the financial return on these large-scale technology investments is still being determined. Executives realize that the intuitive feel of GenAI masks the discipline and hard work required for implementation, and productivity growth must eventually match investment to recoup costs. This is a classic Question Mark scenario: high investment in a high-growth technology area where market share (in terms of adoption and monetization) is yet to be secured.

Consider the investment dilemma:

• Focus is now on solving real client problems, not just hype.
• Initial tests covered KYC, AML, contact centres, and wholesale banking.
• The bank is developing intelligent voice agents for round-the-clock service.

Wholesale Banking Lending Volume

The overall lending volume within Wholesale Banking illustrates the cash-consuming nature of this quadrant, driven by strategic choices rather than market failure. For the first half of 2025, net core lending growth in Wholesale Banking was €2.3 billion, largely from Working Capital Solutions. However, volumes in the core Lending segment were explicitly described as subdued due to volatile market conditions and ING Groep N.V.'s ongoing capital optimisation efforts. This optimization means actively reducing capital allocated to lower-return assets, which depresses immediate lending volume figures even as the bank seeks higher-quality, higher-growth opportunities elsewhere. The segment's result before tax was €1,324 million in H1 2025, down from €1,623 million the prior year, showing the immediate financial drag from capital management and market softness.

Here's a quick look at the H1 2025 context for Wholesale Banking and overall performance: