ING actively supporting customers, employees and society
during Covid-19 pandemic |
• |
With most staff
still working from home, ING is actively supporting customers,
employees and communities and continues to engage with governments
and regulators to support recovery |
• |
Our digital model
enabled continued growth in primary customers by 156,000 |
|
ING 2Q2020 result before tax of €542 million |
• |
Net interest
income and fee income remained resilient; income furthermore
supported by positive valuation adjustments.Continued good
operational cost control |
• |
CET1 ratio
improved to 15.0%, reflecting higher capital and a decline in RWA,
including capital management actions andlower lending volumes.
Four-quarter rolling ROE was 6.1% |
• |
Result reflects
higher collective provisioning triggered by a worsened
macro-economic outlook due to the impact of theCovid-19 pandemic
and higher individual Stage 3 provisions, as well as impairments on
goodwill |
CEO statement“The Covid-19 pandemic continued in the second
quarter to strongly impact the economies where we operate and how
we conducted our own business,” said Steven van Rijswijk, CEO of
ING Group. “Against this backdrop we saw continued strong net
interest income. Fee income from brokerage services in our German
retail operation was higher, and in Wholesale Banking income was up
due to increased client demand for Financial Markets services. We
maintained good operational cost control and primary customer
relationships grew, demonstrating the strength of our digital
business model, which enhances customer experience and supports a
better cost infrastructure. This led to a resilient pre-provision
result. The impact of Covid-19 was reflected in the higher risk
provisioning and goodwill impairments we booked in the second
quarter. We remain strongly capitalised with a CET1 ratio of
15%. “At the same time, we supported customers and employees
in dealing with the disruption from the crisis, played a positive
role in the communities where we’re active and further enhanced our
digital and mobile-first banking proposition. I’m very proud of the
way our people and organisation are supporting our customers. I’m
honoured to be ING’s new CEO and excited to lead this committed
organisation. “Our digitisation strategy is showing its worth.
We continued to make banking easier and safer for customers and
enabled our employees to work more effectively from home. In Poland,
for example, customers requesting a bank card can immediately start
using a digital card for mobile payments. In the Netherlands and
Belgium, we’re successfully using new channels like video calls to
advise customers as an alternative to face-to-face contact. Around
three-quarters of ING’s employees worldwide continue to work from
home. We support them with tools and guidance to create an optimal
remote working environment. "To provide customers everywhere
with the same easy, smart and personal customer experience, we
welcomed Belgian customers to the OneWeb banking environment shared
with our Dutch customers, and we’re also introducing our award-
winning OneApp mobile environment used in the Netherlands and
Germany. ING is the first bank in Germany to offer loans to
businesses who sell through Amazon’s seller portal. And SME clients
can now also access the digital lending solution of fintech Lendico
via our German banking platform. “In the second quarter we
continued our work to become even more effective gatekeepers of the
financial system. We set up a special Covid-19 taskforce to monitor
transactions to protect customers from fraud. In our ongoing Know
Your Customer (KYC) efforts we continued to improve customer due
diligence files and rolled out enhanced tools in various countries
to improve pre- transaction screening and transaction
monitoring. “We also assisted communities through the many
actions of our local businesses, such as donations of materials and
funds. And ING will help fund UNICEF’s efforts to aid the world’s
most vulnerable children and their caregivers. In keeping with our
commitment to finance a low-carbon society, we grew our sustainable
finance franchise in the second quarter. This included a US$1
billion green bond issued by ING to fund loans for renewable energy
and green buildings. “I’m confident about ING’s strength and
resilience in these challenging times, and I believe that our
strategic direction is the right one to guide us in the
future.” |
|
Further information All publications related to ING’s 2Q 2020
results can be found at www.ing.com/2q20, including a video with
Steven van Rijswijk. The video is also available on YouTube.
Additional financial information is available at
www.ing.com/qr: • Full ING Group 2Q2020 press release (PDF) •
ING Group analyst presentation (PDF, also available via SlideShare)
• ING Group historical trend data (PDF, XLS) 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 webcasts Steven
van Rijswijk and Tanate Phutrakul will discuss the results in an
Investor conference call on 6 August 2020 at 8:30 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 and Tanate Phutrakul will
also discuss the results in a Media conference call on 6 August
2020 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 enquiries T: +31 20 576 6396 E:
investor.relations@ing.com Press enquiries T: +31 20 576 5000
E: media.relations@ing.com |
|
ING Profile ING 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 55,000 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. |
|
IMPORTANT LEGAL INFORMATION
Elements 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 2019 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, 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) changes in the fiscal position and the
future economic performance of the United States, including
potential consequences of a downgrade of the sovereign credit
rating of the US government, (7) consequences of the United
Kingdom’s withdrawal from the European Union, (8) changes in or
discontinuation of ‘benchmark’ indices, (9) inflation and deflation
in our principal markets, (10) changes in conditions in the credit
and capital markets generally, including changes in borrower and
counterparty creditworthiness, (11) failures of banks falling under
the scope of state compensation schemes, (12) non-compliance with
or changes in laws and regulations, including those financial
services and tax laws, and the interpretation and application
thereof, (13) geopolitical risks, political instabilities and
policies and actions of governmental and regulatory authorities,
(14) ING’s ability to meet minimum capital and other prudential
regulatory requirements, (15) outcome of current and future
litigation, enforcement proceedings, investigations or other
regulatory actions, including claims by customers, (16) 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, (17) risks and challenges
related to cybercrime including the effects of cyber- attacks and
changes in legislation and regulation related to cybersecurity and
data privacy, (18) changes in general competitive factors, (19) the
inability to protect our intellectual property and infringement
claims by third parties, (20) changes in credit ratings, (21)
business, operational, regulatory, reputation and other risks and
challenges in connection with climate change, (22) inability to
attract and retain key personnel, (23) future liabilities under
defined benefit retirement plans, (24) failure to manage business
risks, including in connection with use of models, use of
derivatives, or maintaining appropriate policies and guidelines,
(25) 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, (26) 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. |