ING Launches Buyback But Flags Job Cuts and Unit Restructuring — 2nd Update

By Michael Hennessey

ING Groep launched a stock buyback of 1.65 billion euros, equivalent to $1.84 billion, as it set out plans to restructure its wholesale banking unit and make 400 redundancies.

The Dutch bank's buyback program was larger than the 1.25 billion-euro plan analysts expected. ING said a further 250 million euros will be paid out in cash to shareholders in January.

ING said it is creating a more streamlined structure for its wholesale banking business, which serves large corporates and financial institutions. The changes--which will become effective in March--will lead to around 400 redundancies, ING said. The bank has more than 60,000 employees, according to its website.

It will also change the unit's name to corporate and institutional banking to better reflect its focus.

"As a reliable banking partner, we aim to create greater value for our clients and all our stakeholders. We will create a more streamlined structure which supports closer relationships with clients, to serve them with more impact and relevance," the bank said.

ING anticipates the measures to result in a cost reduction of around 75 million euros a year, fully effective from 2028 onward.

It expects to book a 175 million-euro pretax redundancy provision in the fourth quarter.

ING joins a swathe of banks that have downsized as part of structural reorganizations, resulting in thousands of job cuts worldwide. Last week, Barclays said it will cut around 5,000 roles, or 5% of its workforce, as it adopts artificial intelligence across the bank.

Germany's Commerzbank and Norway's DNB have also outlined plans to shed jobs this year.

Artificial intelligence is in the mix to help efficiency at ING, Chief Executive Steven van Rijswijk noted in an interview Thursday, "not only to save on costs, also to be able to enlarge the scalability of the growth."

Van Rijswijk said the Dutch bank should also be prepared to seize merger opportunities in the European banking sector.

"We will always look at whether there are bigger consolidation moves," Van Rijswijk said. "And if then at some point there would be a consolidation game to start in Europe at least we need to be ready for it."

ING has prioritized investing in expanding its own operations and making smaller acquisitions, its CEO said. The goal, according to Van Rijswijk, is to fill in blanks in ING's portfolio to become a "more universal bank in more markets."

ING on Thursday posted net profit of 1.85 billion euros for the third quarter, up from 1.79 billion euros a year ago. The print was below analysts' expectations of 1.97 billion euros, according to a consensus of estimates provided by the bank.

Total income came in 5.6% higher at 6.23 billion euros but was lower than the consensus estimate of 6.31 billion euros.

ING said lower other income due to increased interest rate volatility partly offset commercial interest income and fee income growth.

"We enter the remainder of this year with good momentum and continued customer growth," said the CEO.

The bank reaffirmed its outlook for both 2026 and 2027. It expects total income to exceed 24.5 billion euros this year, and to grow to more than 26 billion euros next year.

Write to Michael Hennessey at michael.hennessey@wsj.com

(END) Dow Jones Newswires

October 29, 2026 10:37 ET (14:37 GMT)