ING posts 2Q2023 net result of €2,155 million with strong income
growth and low risk costs
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Profit before tax increases significantly to €3,035 million
in 2Q2023; CET1 ratio rises to 14.9% |
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Good interest
income after a long period of negative rates |
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Operating expenses
excluding regulatory costs slightly lower quarter-on-quarter |
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Low risk costs,
reflecting strong asset quality |
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Growth of 227,000
primary customers and an increase in net core deposits of €17
billion |
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Four-quarter
rolling RoE increased to 11.7%; ING will pay an interim cash
dividend of €0.35 per ordinary share |
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CEO statement“The second quarter of 2023 was characterised by
ongoing challenges, as economic sentiment weakened, geopolitical
uncertainties persisted and inflation remained elevated - albeit
less pronounced than in previous quarters,” said Steven van
Rijswijk, CEO of ING. “In these circumstances, we continued to
deliver strong results. The current interest rate environment drove
income growth in both Retail and Wholesale Banking, with continued
deposit inflows across our retail markets. Despite cooling
economies, we had another quarter with lending growth and higher
fee income. “I’m pleased with the significant customer
growth that we recorded this quarter, which is an important driver
for future value creation. Our primary customer base grew by
227,000 to 14.9 million. The number of mobile payment transactions
increased by 18% in the quarter and was 37% higher than in the
second quarter of 2022. The share of mobile-only customers is now
60%. They only do business with us through their mobile, our main
channel. “In Retail Banking, we realised good results across
our markets. Deposit growth continued, with a significant inflow of
€17 billion in Germany, while in the Netherlands and Spain, growth
was driven by seasonal inflows as well as by the introduction of a
savings product for our Business Banking clients in the
Netherlands. Our mortgage portfolio grew as well, driven by
increases in Australia, the Netherlands and Germany.
“Wholesale Banking recorded another strong quarter with disciplined
capital management and higher income over risk- weighted assets.
Daily Banking and Trade Finance benefited from the current interest
rate environment. Fee income rose, both in Global Capital Markets
and in Lending. We continued to support the activities and
initiatives of our clients, although growth in Lending was offset
by lower volumes in Trade and Commodity Finance and in Working
Capital Solutions, reflecting lower commodity prices and lower
economic activity. “Expenses came down slightly compared to
the previous quarter, despite inflationary effects on staff costs
and continued investments in the future growth of our business.
Risk costs were limited in the second quarter, underlining the
quality of our loan book. Despite low risk costs and no
identifiable trends in provisioning we remain vigilant, as the cost
of living and of doing business rises for our customers. Strong
capital generation resulted in an increased CET1 ratio of 14.9%,
despite our share buyback programme. “We aim to put
sustainability at the heart of what we do. As a global bank we're
financing today's society, which is not yet green enough. However,
we're determined to use our strength and capabilities to help our
clients transition to a low-carbon economy, by providing them with
the necessary products and advice. A good example during this
quarter is the introduction of an ‘eco-renovation loan’ for our
Business Banking clients in Belgium, which enables them to make
their real estate more sustainable. We continued to support our
Wholesale Banking clients in their transitions, achieving a volume
mobilised of €25 billion in the second quarter. “In a
challenging macro environment, our business model allowed us to
achieve strong results as we continued to execute our strategy,
enabled by our digital foundations. I’m confident in our efforts
and ability to continue to make the difference for people and the
planet and deliver value to all our stakeholders. I want to thank
all our colleagues for their dedication, our customers for their
loyalty, and our shareholders and other stakeholders for their
trust in us.” |
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Further informationAll publications related to ING’s 2Q 2023
results can be found at www.ing.com/2q23. Additional
financial information is available at www.ing.com/qr: • Full ING
Group 2Q 2023 press release (PDF) • ING Group Results presentation
(PDF)• ING Group Credit Update presentation (PDF)• ING Group
Historical Trend Data (PDF and XLS) A short ING ON AIR video
with CEO Steven van Rijswijk discussing our 2Q 2023 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 X/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
3 August 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: 5380367# or +44 330 551 0202 (UK), PIN code: 5380367#
(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 call on
3 August 2023 February 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 2Q2023 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 59,000
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
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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. |