2Q2021 result before tax of €2,065 million; capital
position strengthens to 15.7% |
• |
Growth in fee
income of 18.3% year-on-year, especially in daily banking and
investment products. Net interest incomedeclined due to liability
margin pressure. |
• |
Net release of
risk costs following an update of macroeconomic indicators.
Expenses remained under control. |
• |
Shareholder
distribution of €3,618 million after 30 September 2021. |
|
More customers choose ING as their primary bank; lending
decreases |
• |
Primary customer
base rose by 281,000 in 2Q2021 to 14.0 million. |
• |
Net core lending
growth of €-3.7 billion in 2Q2021 due to repayments; improvement in
lending margin. Net core depositsgrowth of €4.9 billion. |
CEO statement“I’m pleased with another set of resilient results in
the second quarter,” said ING CEO Steven van Rijswijk. “Fee income
of €855 million was in line with the strong result in the first
quarter, while net interest income and in particular our liability
margin remained under pressure. The improving economic environment
meant that risk costs were significantly reduced, and expenses are
developing in the right direction, which I will continue to monitor
closely. “I’m encouraged by the growth in primary customers,
and we continue to see high demand from retail customers for
digital investment products, which complement our savings product
offering. An example is ‘Komfort-Anlage’ (‘Comfort Investing’),
launched in Germany during the second quarter. ‘Komfort-Anlage’
empowers customers to invest online in one of seven funds that best
matches their risk appetite, and features enhanced digital and
video interaction capabilities to provide customers with advice
when needed. “In addition to diversifying income, we
continued to take steps to future-proof our business and optimise
capital allocation by making decisions on where and how we serve
customers. We’ve reached an agreement to transfer our retail
banking operations in Austria to bank99, the digital banking arm of
the national postal service Österreichische Post. And the transfer
of our retail customers in the Czech Republic is proceeding
smoothly, with around half of customers and 60% of client balances
migrated to Raiffeisenbank. We’re also conducting a strategic
review of our retail banking business in France. I know these
changes cause uncertainty for our colleagues and I’m grateful for
their continued commitment. “The effects of climate change
are increasingly apparent, and taking action becomes more urgent by
the day. I believe that for climate action to be successful, with
the goal of net zero emissions by 2050, a concerted collaborative
eff ort is needed from all sectors of society. That’s why ING has
committed to the Net-Zero Banking Alliance. The pathway to net zero
brings many opportunities for financing and investing in the
necessary transition, and in the first half of 2021 we supported
133 sustainability deals. An example is the US$401 million
Infrastructure Asset-Backed Securitised (IABS) issuance by
Singapore based Bayfront Infrastructure Management. This was the
first public securitisation with a sustainability tranche, for
which ING acted as Joint Global Coordinator and Sole Sustainability
Structuring Advisor. “We will distribute €3,618 million
after 30 September 2021. We will pay an amount of €0.48 per share
in October 2021 and make an additional distribution of €1,744
million related to the amount reserved over 2019. The latter will
be in the form of cash and/or a share buyback, subject to relevant
approvals. “With the pandemic continuing to affect life and
business, I want to once again thank all ING colleagues, more than
80% of whom are still working from home, as they continue to help
customers through these challenging times.” |
|
Further informationAll publications related to ING’s 2Q 2021
results can be found at www.ing.com/2q21. Additional
financial information is available at www.ing.com/qr: • Full ING
Group 2Q 2021 press release (PDF) • ING Group analyst presentation
(PDF, also available via SlideShare)• ING Group historical trend
data (PDF,and XLS)• ING Group Interim Accounts for the period ended
30 June 2021 (PDF) A short ING ON AIR video with CEO Steven
van Rijswijk discussing 2Q 2021 results is available on Youtube. A
longer conversation is available on the ING ON AIR podcast channel
on Spotify. 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.
ING presentations are available at SlideShare. |
|
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 6 August 2021 at
9:00 a.m. CET. Members of the investment community can join the
conference call at +31 20 341 8221 (NL),
+44 203 365 3209 (UK) or
+1 866 349 6092 (US) 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 6 August 2021 at 11:00 a.m. CET. Journalists are
welcome to join the conference call via +31 20 531 5855 (NL) or +44
203 365 3210 (UK). 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 57,000
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
forms an integral part of ING’s strategy, evidenced by ING’s
leading position in sector benchmarks by Sustainalytics and MSCI
and our ‘A-list’ rating by CDP. ING Group shares are included in
major sustainability and Environmental, Social and Governance (ESG)
index products of leading providers STOXX, Morningstar and FTSE
Russell. In January 2021, ING received an ESG evaluation score of
83 ('strong') from S&P Global Ratings. |
|
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
2020 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 orimplied 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 (2) the effects of the Covid-19 pandemic and
related response measures, including lockdowns and travel
restrictions, on economic conditions in countries in which ING
operates, on ING’s business and operations and on ING’s employees,
customers and counterparties (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) political
instability and 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 (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) regulatory consequences of the United Kingdom’s withdrawal
from the European Union, including authorizations and equivalence
decisions (16) ING’s ability to meet minimum capital and other
prudential regulatory requirements (17) changes in regulation of US
commodities and derivatives businesses of ING and its customers
(18) application of bank recovery and resolution regimes, including
write-down and conversion powers in relation to our securities (19)
outcome of current and future litigation, enforcement proceedings,
investigations or other regulatory actions, including claims by
customers who feel mislead and other conduct issues (20) changes in
tax laws and regulations and risks of non-compliance or
investigation in connection with tax laws, including FATCA (21)
operational 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 (22) risks and challenges related
to cybercrime including the effects of cyber-attacks and changes in
legislation and regulation related to cybersecurity and data
privacy (23) changes in general competitive factors, including
ability to increase or maintain market share (24) the inability to
protect our intellectual property and infringement claims by third
parties (25) inability of counterparties to meet financial
obligations or ability to enforce rights against such
counterparties (26) changes in credit ratings (27) business,
operational, regulatory, reputation and other risks and challenges
in connection with climate change (28) inability to attract and
retain key personnel (29) future liabilities under defined benefit
retirement plans (30) failure to manage business risks, including
in connection with use of models, use of derivatives, or
maintaining appropriate policies and guidelines (31) 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 (32) 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. |