ING posts 2Q2022 net result of €1,178 million, supported by
increased income and modest risk costs
ING posts 2Q2022 net result of €1,178 million, supported by
increased income and modest risk costs
2Q2022 profit before tax of €1,743 million; capital
position remains strong with a 14.7% CET1 ratio |
• |
Higher net
interest income, supported by an increase in liability margins |
• |
Increases in both
customer lending and customer deposits highlight the strength of
our universal banking model |
• |
Risk costs in the
quarter were modest as book quality remains strong |
• |
Hyperinflationary
conditions in Turkey require application of IAS 29, which combined
with a goodwill impairment had an impact of €-277 million on net
profit, but the impact on CET1 was slightly positive |
• |
ING declares
interim cash dividend of €0.17 per ordinary share |
CEO statement“The backdrop to ING’s performance in the second
quarter of 2022 was one of ongoing geopolitical uncertainty and
pressure on the global economy,” said ING CEO Steven van Rijswijk.
“Despite these difficult operating conditions, I’m pleased with our
results. I believe resilience and adaptability are two of ING’s
core strengths, and we showed these qualities once again by growing
our primary customer base by 228,000 since the first quarter and
continuing to diversify our revenues, with fee income up 4%
year-on-year. Our resilience is underpinned by our strong capital
position and risk management framework, with limited risk costs in
the second quarter. There was a small quarter-on-quarter rise in
underlying expenses, but that was well below inflation. “At
our Investor Update in June, I was proud that we were able to show
how well ING has performed on many key financial metrics over the
past few years, including during the pandemic. Looking ahead, we
aim to reinforce our position as the leading universal bank in
Europe by focusing on delivering value through our Retail Banking
and Wholesale Banking businesses. The strength of our Wholesale
Bank is in its blend of global reach, local knowledge and sector
expertise, and during this quarter Wholesale Banking increased its
income contribution by €338 million compared with the second
quarter of last year. In Retail Banking we’re focusing our capital,
cost and efforts on where we can build sufficient local scale. In this
way we can offer truly superior customer propositions, attract and
retain the right talent, and achieve good returns. “Our
strong commercial performance in this quarter flows from our
overarching strategic priorities: to provide a superior customer
experience and put sustainability at the heart of what we do. This
is how we aim to make a difference for people and the planet. We
continue to invest in a customer experience that’s relevant, easy,
personal and instant, tailored to the needs of our customer
segments. Our strong, scalable technology and operations foundation
facilitates digital innovation, which in turn leads to impactful
improvements for customers. Examples from the second quarter
include a more digital mortgage application process in Romania and
Belgium, new easy payment possibilities in the Dutch app, and
account aggregation in Spain. When it comes to sustainability, we
have committed to aligning with climate goals limiting the rise
inglobal temperatures to 1.5 degrees Celsius. We've therefore set
intermediate sector-specific goals for 2030 that match a global
emissions decrease of 45% compared to 2010 levels. “The
economic and political challenges the world is facing will likely
persist for the foreseeable future. Despite this unsettling
outlook, I’m confident in ING’s ability to provide the necessary
support to our customers and to continue to create value for all
stakeholders, while intensifying our efforts in the fight against
climate change." |
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Further informationAll publications related to ING’s 2Q 2022
results can be found at www.ing.com/2q22. Additional
financial information is available at www.ing.com/qr: • Full ING
Group 2Q 2022 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 2022 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. |
|
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 4 August 2022 at
9:00 a.m. CET. Members of the investment community can join the
conference call +31 20 709 5189 (NL), PIN code: 92872479# or +44
333 300 0804 (UK), PIN code: 92872479# (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 4 August
2022 at 11:00 a.m. CET. Journalists are welcome to join the
conference call via +31 20 709 5189 (NL), PIN code: 30465557# or
+44 333 300 0804 (UK), PIN code: 30465557#. 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 |
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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 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 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 December 2021.
As of September 2021, 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 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
2021 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) 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) 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 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)
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 or stakeholders who feel misled or treated
unfairly, 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 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 (22) risks and challenges related
to cybercrime including the effects of cyberattacks 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) 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, transition and other risks and
challenges in connection with climate change and ESG-related
matters (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. |