AMSTERDAM: Dutch banking giant ING Group is preparing to eliminate approximately 400 jobs globally as part of a major restructuring programme aimed at simplifying its wholesale banking operations and improving long-term efficiency.

The announcement comes after the bank reported third-quarter profits below analysts’ expectations, highlighting growing pressure on European financial institutions to control operating expenses while adapting to changing market conditions.

ING reported a net profit of €1.85 billion for the third quarter of 2026, representing a 3.5% increase compared with the same period last year. However, the result fell short of analysts’ expectations of approximately €1.97 billion.

Higher loan-loss charges, weaker treasury income and slightly increased operating costs contributed to the disappointing earnings performance.

Wholesale Banking Division Faces Major Changes

The planned workforce reduction forms part of ING’s wider strategy to reorganise its wholesale banking business.

The bank intends to restructure the division and operate it under the name Corporate and Institutional Banking, with a stronger focus on serving large corporations and institutional investors.

The new organisational structure is designed to simplify decision-making, improve customer relationships and bring different financial services closer together.

The job reductions are expected to begin in March 2027, with approximately 400 positions affected worldwide.

Higher Restructuring Costs Expected

ING expects to incur approximately €175 million in redundancy expenses associated with the restructuring programme.

However, management believes the changes will deliver long-term financial benefits by creating a more efficient operating structure and reducing recurring expenses.

The bank is also combining its financing and dealmaking activities into a new Global Finance and Advisory division.

This move is intended to strengthen its ability to provide corporate financing, investment banking and advisory services to international clients.

Rising Costs Weigh on Quarterly Earnings

Although ING achieved year-on-year profit growth, its performance was affected by several financial pressures.

Higher loan-loss provisions contributed to increased expenses, while fluctuations in interest rates reduced income from certain treasury activities.

The bank also faces uncertainty surrounding European mortgage demand as borrowing costs continue to influence household and business decisions.

Despite these challenges, ING maintained a relatively strong capital position, reporting a Common Equity Tier 1 capital ratio of 13.3%.

Shareholder Returns Remain a Priority

Alongside its restructuring announcement, ING introduced a new €1.65 billion share buyback programme.

The bank also announced an additional €250 million cash distribution to shareholders scheduled for January 2027.

These measures demonstrate that ING intends to continue returning capital to investors while making operational changes to improve efficiency.

Banking Industry Faces a New Era of Transformation

ING’s restructuring reflects a broader transformation taking place across the European banking industry.

Financial institutions are increasingly investing in digital services, automation and more specialised business models to remain competitive.

At the same time, banks are under pressure to manage operating costs, improve customer experiences and maintain profitability in an uncertain economic environment.

For ING, the success of its restructuring programme will depend on whether it can reduce expenses, strengthen its corporate banking business and maintain sustainable earnings without weakening its ability to serve customers.