ING actively supporting customers, employees and society
during Covid-19 pandemic |
• |
With most staff
working from home, ING is actively supporting customers, employees
and communities and engaging with governments and regulators to
support recovery |
• |
Net core lending
increased by €12.3 billion in 1Q2020, largely reflecting liquidity
provided in late March; net customer deposit inflow amounted to
€9.2 billion |
|
ING 1Q2020 result before tax of €1,017 million, 35.7% lower
than in 1Q2019 |
• |
Result reflects
higher risk costs and negative valuation adjustments as a result of
market volatility and the expected future economic impact of the
Covid-19 pandemic |
• |
Net interest
income remained resilient; net fee and commission income increased
on higher brokerage trades |
• |
Four-quarter
rolling ROE was 8.4% and CET1 ratio stood at 14.0%, reflecting
impacts on capital caused by volatility at the end of March and
includes the impact of the new Definition of Default on RWA |
CEO statement“The Covid-19 pandemic is profoundly affecting
society and the economy throughout the world, and it will continue
to do so for some time,” said Ralph Hamers, CEO of ING Group. “As a
globally operating bank, ING is affected in a number of ways,
including through the impact the pandemic has on our customers,
employees and the communities where we operate. "In line with
our purpose to empower customers, we’re taking actions to do our
part in supporting retail and wholesale banking customers to adapt
to this new situation. That includes offering payment holidays in a
number of countries, which allow our customers to postpone loan
repayments. We’re also working with our corporate clients to
deliver tailor-made solutions for their particular challenges. But
it’s also about the basics of ensuring the availability of banking
services through our mobile and digital channels. And this also
involves things like making it easier to perform contactless
payments by increasing limits and providing information and help
for customers so they can learn how to do more of their banking
through mobile and digital channels. "The health and safety of
our employees is a top priority. We have smoothly transitioned to a
situation where around 80 percent of staff are now working from
home. We support them with tools to enable them to work from home
and offer guidance to help them deal effectively with the
challenges that this can bring. And we’ve limited the number of
employees in branches by keeping fewer branches open at this time
and by reducing hours, while maintaining access to this
channel. "The Covid-19 pandemic also requires us to take
actions to responsibly manage our business so we can deal with its
impact. ING's commercial performance in the first quarter was
broadly in line with the year-earlier period, and we showed stable
net interest income and strong improvement in fee income. Our
operational performance demonstrated the strength of our business
model. However, we also saw substantially increased loan loss
provisioning, including provisioning for the impact of the
deteriorating macro-economic environment. This, together with fair
value movements reflecting market volatility, resulted in a lower
net result for the quarter. "Given the uncertainty in the
current environment we will need to look closely at our cost base
to ensure that our expenses optimally support our strategic
priorities and other areas of high importance, such as our ongoing
know your customer (KYC) efforts. At the same time, ING is well
capitalised and has a very stable funding base. This gives us the
flexibility to support our customers and society during this crisis
and work together with governments and regulators towards a
recovery. Following the recommendation of the ECB, we have
suspended dividend payments until at least 1 October. "While
we now find ourselves in a period of great uncertainty, I remain
confident about ING’s future. Since launching our Think Forward
strategy in 2014, we’ve been among the leaders in digital banking
and we offer a differentiating customer experience, as shown by our
growing number of customers and the increasing amount of business
they do with us. Our ability to grow and diversify income, our
large and stable deposit base and our well-diversified loan book
are a strong combination supporting our balance sheet and future
profitability. This provides a solid and sustainable foundation on
which to continue to support our customers and play our role in
society, now and in the future.” |
|
Further information All publications related to ING’s 1Q 2020
results can be found at www.ing.com/1q2020, including a video with
Ralph Hamers. The video is also available on YouTube. Additional
financial information is available at www.ing.com/qr: • Full
ING Group 1Q2020 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 Ralph
Hamers, Tanate Phutrakul and Steven van Rijswijk will discuss the
results in an Investor conference call on 8 May 2020 at 9:00 a.m.
CET. Members of the investment community can join the conference
call at +31 20 341 8223 (NL), +44 203 365 3209 (UK)
or +1 866 349 6092 (US) and via live audio webcast
at www.ing.com. Ralph Hamers, Tanate Phutrakul and Steven van
Rijswijk will also discuss the results in a media conference call
on 8 May 2020 at 11:00 a.m. CET. Journalists are welcome to join
the conference call via +31 20 531 5843 (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. |