1Q2021 result before tax of €1,463 million; capital
position remains strong at 15.5% |
• |
Net interest
income up on 4Q2020, supported by the benefit from TLTRO III, which
more than offset liability margin pressure. |
• |
Robust growth in
fee income of 9.1% year-on-year, especially on investment
products. |
• |
1Q2021 had a low
level of risk costs. Expenses were under control, but included some
incidental costs due to restructuring. |
|
Lending and customer deposits increase |
• |
Net core lending
growth of €17.8 billion in 1Q2021 as TLTRO funds were applied to
support the economy; net customer deposits grew by €8.1 billion,
reflecting ongoing impacts of Covid-19 pandemic and lockdowns. |
• |
Primary customer
base was stable at 13.8 million in 1Q2021, reflecting impacts of
the pandemic. |
CEO statement“ING delivered a strong performance in the first
quarter of 2021. The sharp rebound in net profit compared to the
year-earlier period was driven by a good increase in fee income and
lower risk costs,” said ING CEO Steven van Rijswijk. “Our
fee-generating business was boosted by the growth of investment
products, particularly in Germany and Belgium. ING’s lending
franchise demonstrated its strength in the first quarter, including
through our success in converting European Central Bank TLTRO
financing into lending to benefit our customers as they continue to
deal with the effects of the Covid-19 pandemic, thereby supporting
the recovery. On risk costs, we remain cautious and are taking into
account expected delays in credit losses. “We continued to
adapt our business to serve customers better and to ensure we’re
focusing on the best growth opportunities for the future. We’re
advancing our digital and mobile-first strategy in response to the
strong rise in the use of digital channels by our customers. In the
Netherlands, this is resulting in a reduction in the number of
branches and an increase in the number of service points, for which
we’ve taken a restructuring provision. We also announced that we’ll
discontinue retail banking activities in Austria and the Czech
Republic in order to focus on markets where we can achieve better
scale and profitability. “During the quarter, ING closed a
record of more than 50 green deals in a growing number of sectors
as clients increasingly focus on making their businesses
sustainable and linking their efforts in this area to their
financing. With our strong ESG profile, we’re well positioned to
support them in these endeavours. This is exemplified by the €10.1
billion revolving credit facility we helped to arrange for AB
InBev, the largest-ever sustainability-linked loan. “Also,
to strengthen our focus on becoming a data-driven digital leader in
banking, we separated the technology and operations roles at the
management board level, appointing a chief technology officer. We
also recently welcomed our new ING Group chief risk officer (CRO) and
new head of Wholesale Banking (WB) who bring fresh perspectives and
diverse backgrounds to our executive and management boards.
“I’d particularly like to thank our employees for their continued
commitment, flexibility and hard work to support our customers in
these challenging times.” |
|
Further informationAll publications related to ING’s 1Q 2021
results can be found at www.ing.com/1q21. Additional financial
information is available at www.ing.com/qr: • Full ING Group
1Q 2021 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 webcastsSteven
van Rijswijk, Tanate Phutrakul and Ljiljana Čortan will discuss the
results in an Investor conference call on 6 May 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 May 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 enquiriesT: +31 20 576 6396E: 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. |