ING Group completed two risk‑sharing (SRT) transactions that provide first‑loss protection on €10.5 billion of diversified corporate loan portfolios. The deals, the first of their kind for ING Wholesale Banking, reduced the group’s risk‑weighted assets by €3.4 billion and lifted the Common Equity Tier 1 (CET1) ratio by 14 basis points for the third quarter of 2025.
The SRTs transfer credit risk to institutional investors, freeing capital that ING can redeploy to new corporate lending and growth initiatives. By lowering risk‑weighted assets, the bank improves its capital cushion, enhances resilience to economic shocks, and positions itself to expand fee‑income and digital lending platforms that have become a strategic focus for the group.
Andrew Bester, head of Wholesale Banking, said the transactions demonstrate ING’s commitment to a capital‑velocity strategy and its support for European economic growth. He added that the bank plans to extend the SRT model to other portfolios, signalling a broader shift toward sophisticated risk‑transfer techniques.
These transactions fit into ING’s broader capital‑efficiency strategy that followed a strong Q3 2025 earnings beat. The group’s earnings exceeded expectations by $0.06 per share and revenue beat by €0.276 billion, a performance that reinforced investor confidence in the bank’s capital management and strategic direction.
The inaugural SRTs mark a new era for ING Wholesale Banking. By leveraging risk‑transfer mechanisms, the bank can deploy capital more efficiently, support corporate clients, and pursue growth opportunities while maintaining a robust capital position.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.