ING Groep: Premium Valuation Justifies Profit Taking Following Q2 Earnings (Downgrade)

Labutes IR 4.36K Followers Follow Summary ING Groep has delivered strong operating momentum, with Q2 2026 revenues up 10% YoY and profitability at sector-leading levels. ING raised its 2026 and 2027 revenue outlooks, now expecting €24.5B and €26B, respectively, driven by robust NII, fee income, and lending growth. Cost discipline and credit quality remain strong, with a 49% cost-to-income ratio, low provisions, and RoTE at 17% in Q2 2026. ING trades at 1.75x book value, limiting upside after a significant share price rally; dividend yield has declined, suggesting shares are no longer undervalued. Benito Juncal/iStock Editorial via Getty Images As I’ve covered in a previous article , I turned more bullish on ING Groep ( ING ) some months ago due to a more favorable interest rate environment in Europe that benefits the This article was written by Labutes IR 4.36K Followers Follow Labutes IR is a Fund Manager/Analyst specialized in the financial sector, with more than 18 years of experience in the financial markets. I have worked at several type of institutions in the industry, always at the buy side and related to portfolio management. Associated with the existing author The Outsider. Analyst’s Disclosure: I/we have a beneficial long position in the shares of ING either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.