ING posts 3Q2023 net result of €1,982 million, driven by strong
income in both Retail and Wholesale Banking
ING posts 3Q2023 net result of €1,982 million, drivenby strong
income in both Retail and Wholesale Banking
Profit before tax increases significantly year-on-year to
€2,866 million; CET1 ratio rises to 15.2% |
• |
Strong performance
in both Retail and Wholesale Banking and 4-quarter rolling RoE
improves to 13.8% |
• |
Increase of
181,000 primary customers in the third quarter, with growth in
almost all markets |
• |
Strong interest
income combined with higher fee income |
• |
Operating expenses
remain under control and risk costs are low, reflecting strong
asset quality |
• |
Announcement of
€2.5 billion share buyback programme as we continue to align our
capital to our target level |
CEO statement“ING recorded another strong set of results in the
third quarter of 2023, with net result more than doubling on the
prior year“, said Steven van Rijswijk, CEO of ING. “Notwithstanding
the cooling economy and amid polarising geopolitical developments,
which impacted business and consumer confidence, both our Retail
and Wholesale Banking businesses posted strong results. Their
interest income benefited from the positive rate environment and
fee income also increased, especially in Retail Banking, driven by
daily banking and investment products. “I’m proud that we
gained another 181,000 primary customers to reach a total of 15.1
million. This growth occurred across almost all of our 10 retail
markets, especially in Germany, Australia and Türkiye, further
supporting our future value creation. Customers value our services,
as shown in our net promoter scores, where we maintained our number
one position in five of our 10 Retail Banking markets. A superior
customer experience is a pillar of our ‘making the difference’
strategy. An example is digital onboarding. In many markets we now
onboard most of our new retail customers fully digitally: 75% in
the Netherlands, 72% in Australia and 63% in Germany – percentages
that are all growing. “The cycle of recent central bank rate
hikes, which helped the recovery of our profitability after a
prolonged period of negative rates, appears to have paused. We are
conscious of the public discussions on saving rates and, depending
on developments in the competitive landscape, our liability margins
may reduce somewhat from current levels. Overall income will be
supported by our strong and diversified businesses, especially when
loan demand recovers. “Wholesale Banking showed solid income
growth as continued rates increases resulted in improved margins
for Payments & Cash Management, and Financial Markets benefited
from strong trading results. We focused on further optimising our
capital usage and margins while decreasing risk weights,
prioritising own origination of high-quality loans.
“Expenses remained under control with year-on-year cost growth
(excluding incidentals) below 5%. Risk costs were again low – a
testament to the quality of our loan book and our prudent credit
risk management. We remain vigilant, given global economic growth
is slowing down. “In October, we published our Climate
Report, setting out our progress on the path to net zero, including
how we engage with clients. We also explain our work to assess
climate risks and how we take action to mitigate them. One of the
key challenges we face is balancing the world’s need for urgent
action with helping drive economic progress and supporting the
transition. We are proud of how we are using our financing to help
our clients in this, but we can’t do it alone. Next to detailed
transition plans for the nine most carbon-intensive sectors in our
loan portfolio, the report includes specific calls to action on
governments and regulators to guide the transition more firmly.
“We continue to take steps to converge our capital ratios to
our target level of around 12.5%, today announcing another share
buyback programme. We do this from a position of strength,
convinced that operating at the right level of capital is in the
best interest of all stakeholders and allows us to support the
economy and our more than 38 million customers in over 40
countries. “These are uncertain times and it is hard to
predict the impact of geopolitical conflicts. However, I’m
confident that we are well positioned to withstand adverse
challenges and continue to make a difference. I would like to thank
everyone who contributed to our performance during the third
quarter.“ |
|
Further informationAll publications related to ING’s 3Q 2023
results can be found at www.ing.com/3q23. Additional
financial information is available at www.ing.com/qr: • Full ING
Group 3Q 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 3Q 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. |
|
Investor conference call, Media meeting and webcastsSteven van
Rijswijk, Tanate Phutrakul and Ljiljana Čortan will discuss the
results in an Investor conference call on 2 November 2023 at
9:00 a.m. CET. Members of the investment community can join the
conference call at +31 20 708 5074 (NL), PIN code: 8734585# or +44
330 551 0202 (UK), PIN code: 8734585# (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 2 November 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
3Q2023 when prompted by the operator). The meeting can also be
followed via live audio webcast at www.ing.com. |
|
Investor enquiriesE: investor.relations@ing.com Press
enquiriesT: +31 20 576 5000E: media.relations@ing.com |
|
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 60,000
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. 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, including data gathering and reporting (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 ESG-related material that has been prepared by ING on
the basis of publicly available information, internally developed
data and other third-party sources believed to be reliable. ING has
not sought to independently verify information obtained from public
and third-party sources and makes no representations or warranties
as to accuracy, completeness, reasonableness or reliability of such
information. 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. |