ING posts 1Q2023 net result of €1,591 million with strong income
growth and modest risk costs
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Profit before tax increases strongly to €2,344 million in
1Q2023; CET1 ratio strengthens to 14.8% |
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Significant income
growth, with rising interest rates having a positive impact on
liability margins |
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Modest risk costs,
reflecting strong asset quality |
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Growth of 106,000
in primary customers and increase in net core deposits of €1.3
billion |
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Additional
distribution to shareholders of €1.5 billion |
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CEO statement“The year 2023 got off to a good start, as we recorded
a strong first quarter,” said ING CEO Steven van Rijswijk. “Our
results confirm the strength of our diversified business model with
a growing client franchise. Our solid capital position, diversified
funding profile and sound risk management enabled us to continue
supporting our customers and the broader economy. “During
this quarter, marked by turbulent market conditions, clients
continued to put their trust in us. This was evidenced by our
stable and diversified deposit base, which grew by €1.3 billion in
the quarter. Another key element for future value creation is
increasing the number of primary customers, as this provides us
with opportunities to deepen our client relationships. I’m pleased
that our primary customer base grew by 106,000 to 14.7 million
during this quarter, with a strong contribution from our franchise
in Germany. “Financially, we benefited from the current
interest rate environment. Our income was 21 percent higher than a
year ago, supported by improved margins on liabilities. Wholesale
Banking had a particularly good quarter, with a strong income
contribution from daily banking and good results in Financial
Markets. Expenses increased on the back of salary raises and higher
marketing expenses to support the growth of our business.
Quarter-on-quarter, the inflationary effects were less pronounced,
but we will keep a close eye on expenses to stay competitive. Risk
costs were modest, reflecting the quality of our loan book and
including some releases from earlier provisions. “Offering
customers a superior experience is a pillar of our ‘making the
difference’ strategy. An example of how we’re making our services
more accessible is a voice functionality on our app in the
Netherlands that allows visually impaired people to carry out
mobile payments independently and safely. And in Germany the online
identity card function is making onboarding faster and more
convenient. Already used by up to 20 percent of new customers to
identify themselves, it is scalable and efficient due to its fully
digital nature. In terms of key performance indicators, we retain a
leading NPS position in five of our 10 Retail markets, we rate
above 4.5 stars in iOS and Android App stores in eight and five
countries respectively, and more than 72 percent of customer
communications were personalised in the first quarter. “The
other pillar of our ‘making the difference’ strategy is to put
sustainability at the heart of what we do. We aim to facilitate and
finance society’s shift to a low-carbon future by supporting our
clients in their transitions. In the first quarter of 2023, we
closed 98 sustainability transactions and achieved a volume of
sustainable finance mobilised of €21.9 billion year-to-date.
“Last year we became the first global bank to restrict project
financing of new ‘upstream’ projects for the exploration and
extraction of new oil and gas fields. In March this year, we
announced that we will further expand this approach to ‘midstream’
(oil & gas infrastructure) activities. We also aim to reduce
the volumes of the traded oil and gas that we finance. At the same
time, we aim to increase the annual amount that we lend to
renewables. I’m pleased that ING was ranked in the top-10 of
leading global lenders in clean energy in 2022. “Overall,
our first-quarter results reflect the outstanding work of our
employees worldwide, who bring our strategy into action each day.
I’m proud of how our people have supported our customers and each
other in times of need, as we saw after the devastating earthquakes
in Turkey and Syria and as we continue to see in Ukraine. I’m
confident we will continue to deliver value for all our
stakeholders.” |
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Further informationAll publications related to ING’s 1Q 2023
results can be found at www.ing.com/1q23. Additional
financial information is available at www.ing.com/qr: • Full ING
Group 1Q 2023 press release (PDF) • ING Group Historical Trend Data
(PDF and XLS)• ING Group Results presentation (PDF)• ING Group
Credit Update presentation (PDF) A short ING ON AIR video
with CEO Steven van Rijswijk discussing our 1Q2023 results is
available on Youtube. For further information on ING, please
visit www.ing.com. Frequent news updates can be found in the
Newsroom or via the @ING_news Twitter feed. Photos of ING
operations, buildings and its executives are available for download
at Flickr. |
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Investor conference call, Media conference call and
webcastsSteven van Rijswijk, Tanate Phutrakul and Ljiljana Čortan
will discuss the results in an Investor conference call on 11 May
2023 at 9:00 a.m. CET. Members of the investment community can join
the conference call at +31 20 794 8428 (NL), PIN code: 0533254# or
+44 330 551 0202 (UK), PIN code: 0533254# (registration required
via invitation) and via live audio webcast at www.ing.com.
Steven van Rijswijk, Tanate Phutrakul and Ljiljana Čortan will also
discuss the results in a media conference call on 11 May
2023 at 11:00 a.m. CET. Journalists are welcome to join the
call via +31 20 708 5073 (NL) or +44 330 551 0200 (UK), (Quote ING
Media Call 1Q2023 when prompted by the operator). The meeting can
also be followed via live audio webcast at www.ing.com. |
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Investor enquiriesE: investor.relations@ing.com Press
enquiriesT: +31 20 576 5000E: media.relations@ing.com |
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| ING
ProfileING is a global financial institution with a strong European
base, offering banking services through its operating company ING
Bank. The purpose of ING Bank is: empowering people to stay a step
ahead in life and in business. ING Bank’s more than 58,000
employees offer retail and wholesale banking services to customers
in over 40 countries. ING Group shares are listed on the
exchanges of Amsterdam (INGA NA, INGA.AS), Brussels and on the New
York Stock Exchange (ADRs: ING US, ING.N). Sustainability is
an integral part of ING’s strategy, evidenced by ING’s leading
position in sector benchmarks. ING's Environmental, Social and
Governance (ESG) rating by MSCI was affirmed 'AA' in September 2022.
As of August 2022, Sustainalytics considers ING’s management of ESG
material risk to be ‘strong’, and in June 2022 ING received an ESG
rating of 'strong' from S&P Global Ratings. ING Group shares
are also included in major sustainability and ESG index products of
leading providers Euronext, STOXX, Morningstar and FTSE
Russell. |
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Important legal informationElements of this press release contain
or may contain information about ING Groep N.V. and / or ING Bank
N.V. within the meaning of Article 7(1) to (4) of EU Regulation No
596/2014. ING Group’s annual accounts are prepared in
accordance with International Financial Reporting Standards as
adopted by the European Union (‘IFRS- EU’). In preparing the
financial information in this document, except as described
otherwise, the same accounting principles are applied as in the
2022 ING Group consolidated annual accounts. All figures in this
document are unaudited. Small differences are possible in the tables
due to rounding. Certain of the statements contained herein
are not historical facts, including, without limitation, certain
statements made of future expectations and other forward-looking
statements that are based on management’s current views and
assumptions and involve known and unknown risks and uncertainties
that could cause actual results, performance or events to differ
materially from those expressed or implied in such statements.
Actual results, performance or events may differ materially from
those in such statements due to a number of factors, including,
without limitation: (1) changes in general economic conditions and
customer behaviour, in particular economic conditions in ING’s core
markets, including changes affecting currency exchange rates and the
regional and global economic impact of the invasion of Russia into
Ukraine and related international response measures (2) ongoing and
residual effects of the Covid-19 pandemic and related response
measures on economic conditions in countries in which ING operates
(3) changes affecting interest rate levels (4) any default of a
major market participant and related market disruption (5) changes
in performance of financial markets, including in Europe and
developing markets (6) fiscal uncertainty in Europe and the United
States (7) discontinuation of or changes in ‘benchmark’ indices (8)
inflation and deflation in our principal markets (9) changes in
conditions in the credit and capital markets generally, including
changes in borrower and counterparty creditworthiness (10) failures
of banks falling under the scope of state compensation
schemes (11) non-compliance with or changes in laws and
regulations, including those concerning financial services,
financial economic crimes and tax laws, and the interpretation and
application thereof (12) geopolitical risks, political
instabilities and policies and actions of governmental and
regulatory authorities, including in connection with the invasion
of Russia into Ukraine and the related international response
measures (13) legal and regulatory risks in certain countries with
less developed legal and regulatory frameworks (14) prudential
supervision and regulations, including in relation to stress tests
and regulatory restrictions on dividends and distributions (also
among members of the group) (15) ING’s ability to meet minimum
capital and other prudential regulatory requirements (16) changes
in regulation of US commodities and derivatives businesses of ING
and its customers (17) application of bank recovery and resolution
regimes, including write down and conversion powers in relation to
our securities (18) outcome of current and future litigation,
enforcement proceedings, investigations or other regulatory
actions, including claims by customers or stakeholders who feel
misled or treated unfairly, and other conduct issues (19) changes
in tax laws and regulations and risks of non-compliance or
investigation in connection with tax laws, including FATCA (20)
operational and IT risks, such as system disruptions or failures,
breaches of security, cyber-attacks, human error, changes in
operational practices or inadequate controls including in respect
of third parties with which we do business (21) risks and
challenges related to cybercrime including the effects of
cyberattacks and changes in legislation and regulation related to
cybersecurity and data privacy (22) changes in general competitive
factors, including ability to increase or maintain market share
(23) inability to protect our intellectual property and
infringement claims by third parties (24) inability of
counterparties to meet financial obligations or ability to enforce
rights against such counterparties (25) changes in credit ratings
(26) business, operational, regulatory, reputation, transition and
other risks and challenges in connection with climate change and
ESG-related matters (27) inability to attract and retain key
personnel (28) future liabilities under defined benefit
retirement plans (29) failure to manage business risks, including
in connection with use of models, use of derivatives, or
maintaining appropriate policies and guidelines (30) changes in
capital and credit markets, including interbank funding, as well as
customer deposits, which provide the liquidity and capital required
to fund our operations, and (31) the other risks and uncertainties
detailed in the most recent annual report of ING Groep N.V.
(including the Risk Factors contained therein) and ING’s more
recent disclosures, including press releases, which are available
on www.ING.com. This document may contain inactive textual
addresses to internet websites operated by us and third parties.
Reference to such websites is made for information purposes only,
and information found at such websites is not incorporated by
reference into this document. ING does not make any representation
or warranty with respect to the accuracy or completeness of, or
take any responsibility for, any information found at any websites
operated by third parties. ING specifically disclaims any liability
with respect to any information found at websites operated by third
parties. ING cannot guarantee that websites operated by third
parties remain available following the publication of this
document, or that any information found at such websites will not
change following the filing of this document.Many of those factors
are beyond ING’s control. Any forward looking statements
made by or on behalf of ING speak only as of the date they are
made, and ING assumes no obligation to publicly update or revise
any forward-looking statements, whether as a result of new
information or for any other reason. This document does not
constitute an offer to sell, or a solicitation of an offer to
purchase, any securities in the United States or any other
jurisdiction. |