Dutch Banks: ING and ABN AMRO in Rude Health
On the WHITEFRIARS team’s recent trip to the Netherlands, we had the opportunity to meet with Dutch banks, ING and ABN AMRO at their headquarters in Amsterdam. The meetings provided valuable insights into the Dutch banking sectors, as well as the wider Dutch economy.
Dutch Economy
Dutch GDP growth has been strong, expanding by 0.4% in Q2 2026, a 1.3% year on year growth. Growth was facilitated by increased household consumption and investment with both components rising 0.5% compared to Q1 2026[1]. The unemployment rate in the Netherlands has stayed relatively flat in the last year, sitting at 4% as of August 2026[2]. The Dutch housing market over the last several years has been marked by steep price increases, but conflict in the Middle East has contributed to rising interest rates and introduced greater uncertainty which has dampened price rises and led to a cooling of the housing market[3].
Geographic Footprint
Geographically, ING and ABN AMRO are strategically different, with ABN AMRO focused on the Netherlands and Western Europe with limited selective exposure outside of Europe, in the Americas and Asia, specifically in retail and wealth banking. This is compared to ING which operates in over 40 countries globally, spread out across EMEA, the Americas and Asia. EMEA is ING’s largest region with over 41mn clients spread across nine European markets. ING, have around a 20% market share in retail banking in the Netherlands with over 8mn clients, 10mn clients in Germany, representing a 5% market share and around 3mn clients in Belgium, which represents their largest markets in Europe. ING is also targeting Central and Eastern Europe, specifically Poland, Ukraine and the Czech Republic. However, within Europe ING have exited Luxembourg to pivot towards wholesale and private banking in the region away from retail and SME banking.
Business Models
ABN AMRO is focused on its retail and wealth banking, with reduced exposure to wholesale banking in favour of specialised corporate banking for institutional clients. To consolidate their positions in retail, wealth management and private banking ABN AMRO have turned to M&A, acquiring NIBC in 2025, adding to their list of separate brands which already operate within retail banking and mortgages. Furthermore, ABN acquired Hauck Aufhauser Lampe (HAL) in 2026, bolting it on their pre–existing German private banking subsidiary Bethmann, propelling ABN AMRO into one of the top three wealth managers in Germany with over €70bn in assets under management. ABN AMRO is committed to transforming the bank away from capital intensive income streams towards more capital light ones, demonstrated by the bank’s acquisitions, bolstering their wealth management business.
In comparison, ING have taken a different approach, focused on retail and wholesale banking using a low-cost digital banking model incorporating AI throughout their business. A good example of this is through ING’s agentic mortgage model, which uses AI to improve customer experience and cut down approval times to around four days (in the Netherlands), compared to an average time of 30 days in Germany. This is a significant development, when considering the fact that over 80% of people in the Netherlands use a mortgage broker, this presents a capital light way to boost their market share in the Dutch mortgage market and potentially further afield in the future. ING is also expanding into Spain through their Spanish branch, ING Spain, where they are focused on business banking, however Sabadell is a prominent player in business banking in Spain, which will be difficult and costly for ING to gain a foothold. Although ING have a strategy focused on gaining retail customers first and then cross selling products where possible.
Financials[4]
Source: Koyfin
ING and ABN AMRO have had strong performance over the last 5 years, with both banks having enjoyed a share price re - rating. The CAGR over the 5-year period is strong for both banks, with ABN having a 38.72% growth rate and ING having a rate of 28.82%. Both banks outperforming the AEX where 5-year annualised returns sat at 7.63%. In Q2 2026, ABN AMRO posted net profits of €781mn, up 29% YoY, fee income is growing at 6.8%, excluding M&A. The CET1 ratio improved to 15.9%, providing excess capital for further growth whilst maintaining a robust buffer against any downturns. ING posted net profits of €1.95bn, a 16% YoY increase. Fee income also rose 14% YoY to €1.278bn. The CET1 ratio stayed stable at 13.1%. ABN AMRO pay a dividend twice a year, and occasionally a special at a yield of 3.6%.
Since 2025, ABN have updated their capital allocation policy aiming for distribution up to 100% of reported net profit, with at least 50% of that being in the form of a cash dividend. ABN have also since completed a €250mn share buy back programme. ING’s capital allocation policy also includes a semi – annual cash dividend, alongside share buy backs. Their current policy outlines a pay out of 50% of net profit, in both share buy backs and dividend. Currently ING’s yield is 4.3%, with the business running a €1bn share buyback programme which started in April this year, and is expected to end in late October.
Sustainability
The Dutch banks have recovered well from recent traumas and penalties, and ING in particular has continued a satisfying period of only minimal regulatory infringements. Events noted were generally "legacy" or "localised" compliance issues, rather than systemic failures. We were able to discuss their ongoing resourcing of regulatory compliance, and interestingly ING now feels the time is right to reverse some of the growth in compliance headcount and move to a more structured AI assisted model. This could prove precipitous, and is clearly a situation to watch.
ING's digital strategy has seen the bank swiftly decarbonise, reporting a 75% reduction in direct (Scope I & II) emissions compared to a 2014 baseline. Its 2030 targets are accredited as science-based. and include fossil fuel financing portfolios. ING has heavily invested in its "Terra" methodology and broader ESG governance frameworks to mitigate transition risks and ensure regulatory compliance, which remains a primary focus for management in response to pressures for more robust sustainability reporting and ethical conduct.
ING was one of the first movers in setting targets to decarbonise wholesale financing, with power generation, oil & gas, automotive, steel and cement all targeted. More 'problematic' sectors such as aviation, shipping and residential real estate are also being looked at. This is all fully reported, as is the bank's strategic roadmap. ING is increasingly using its risk-weighted capital framework to incentivise clients with credible transition plans, effectively linking its balance sheet growth to its climate commitments. This portfolio-centric approach remains the cornerstone of its strategy to mitigate long-term "asset stranding" risks within its loan book.
In our discussions with ABN-Amro we focused on ongoing regulatory infringements resulting in some significant fines and penalties since 2024. Although much of the legacy issues are now resolved, the bank continues to incur penalties for AML and similar financial and regulatory failures. Unlike ING, ABN has no plans, immediately, to reduce compliance headcount and move to more automated structures, which we view as prudent.
The bank is in the process of refreshing its portfolio decarbonisation strategy, with an aim of setting a 'well below two degrees' target. Although the detail is still to be announced, this would suggest a strengthening of its approach to transition risk and financed emissions. As with other banks in the sector, ABN is focusing attention on high emitting sectors such as power generation and real estate portfolios, whilst also scoping how actively to decarbonise 'problem' sectors such as aviation and shipping.
One area we like is ABN's increasing attention paid to nature related impacts and risks by building in biodiversity value-add models linked to the agricultural, real-estate and natural resources portfolios.
The bank continues to be a key player in sustainable finance, particularly green bonds. At the end of 2025, ABN had €12.7bn in outstanding green bonds, allocated to green residential buildings and renewable energy projects. The proceeds from these bonds have been reported to avoid 865,457 tonnes of CO2 annually, contributing to a cumulative avoided emissions of approximately 21.6 million tonnes over the project’s lifetime. This aligns with their commitment to sustainability and the EU Green Bond Standard.
Outlook
The outlook for both banks look strong, with the Dutch economy showing positive signs and the ECB hiking rates, this creates a positive environment for both banks to create growth in their respective markets and increase net interest income, especially ING generating approximately 2/3rds of its revenue from its retail arm. ABN, with its activity in the M&A market, consolidating their wealth and private banking arms, is poised to continue the focus on increasing fee income. Furthermore, as both banks offer more sustainable financing solutions there is a key opportunity for growth in the future as demand for such solutions pick up, coming from top-down regulatory pressure within key markets. However, when considering both banks expansion plans, ING into Spain and Central Europe, and ABN in Western European wealth and private banking, time will tell if both banks are able to replicate the success of the last 5 years, whilst retaining capital discipline.
