ING posts 4Q2023 net result of €1,558 million and full-year 2023
net result of €7,287 million
ING posts 4Q2023 net result of €1,558 million and full-year 2023
net result of €7,287 million
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Quarterly profit before tax increases 31% year-on-year to
€2,247 million; CET1 ratio remains strong at 14.7% |
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Income up 11%
year-on-year and net interest income holds up well in the
quarter |
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Increase of
236,000 primary retail customers in the fourth quarter, combined
with stable deposits and growth in lending |
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Low risk costs,
reflecting strong asset quality and disciplined risk
management |
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Full-year result before tax of €10,492 million, with strong
contributions from both Retail and Wholesale Banking |
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Exceptional
results in a year that was characterised by a rapid increase of
interest rates and a benign economic environment |
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Retail Banking
results supported by growth in primary customers, customer lending
and deposits, and higher liability margins |
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Strong performance
of Wholesale Banking with higher income and disciplined approach in
de-risking and capital optimisation |
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Full-year return
on equity rises to 14.8%; proposed final dividend of €0.756 per
share, bringing total distribution to €7.8 billion1) |
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CEO statement“In many respects 2023 was a challenging year, as
geopolitical and economic shocks affected many of our clients and
the societies we operate in. At the same time, most economies
proved resilient with low unemployment, inflation coming down, and
rates turning positive at an unprecedented pace. In that context,
we were able to continue the successful execution of our strategy
by increasing the number of customers, working to provide them with
a superior customer experience, further improving our digital
offerings and helping our clients in their sustainable
transitions,” said CEO Steven van Rijswijk. “We’re pleased
to see that both Retail and Wholesale Banking contributed to our
strong results, with net profit almost doubling to €7.3 billion and
a full-year RoE of 14.8%. This was driven by higher net interest
income and our continued low risk costs, reflecting our strong
asset quality. "In Retail Banking, we added 750,000 primary
customers to reach a total of 15.3 million. Especially Germany,
Spain and the Netherlands contributed to this growth. It’s
rewarding to know our customers value our services, as evidenced by
our number one position in net promoter score (NPS) in five of our
10 Retail markets. In a challenging housing market in many
countries, we were able to grow our mortgage portfolio by €8
billion in 2023. And in a competitive savings market, our retail
customer deposit base grew by more than €18 billion over the year.
“Our corporate clients continued to benefit from the global
reach, knowledge and sector expertise of ING Wholesale Banking. We
achieved an all-time high NPS score of 72, reflecting the high
satisfaction of our clients across the globe. Our continued support
of our clients resulted in double-digit income growth. Our focus on
capital efficiency is also bearing fruit, reflected in a
significant increase of income over capital deployed. “As
society transitions to a low-carbon economy, so do our clients and
so does ING. Building on the outcome of COP28 and the most recent
scientific insights and scenarios, we announced in December that we
will speed up the phasing out of the financing of exploration and
production of oil and gas, gradually bringing our portfolio to zero
by 2040. We also aim to triple the financing of renewable energy to
€7.5 billion annually by 2025, up from €2.5 billion in 2022.
“Engaging with corporates in their transition to more sustainable
businesses is key to our climate approach. We developed a digital
tool to collect public information on the transition plans of our
clients, helping us see where we can or need to support them. In
2023, we already applied the tool for over 2,000 of our largest and
most relevant Wholesale Banking clients. We're progressing well
with introducing sustainable alternatives for key products in most
of our Retail Banking markets. “Looking ahead, we remain
vigilant given the ongoing geopolitical uncertainties and remain
focused on delivering value for all our stakeholders. We're
confident that we’ll be able to continue to deliver a sustained
return on equity of 12% as economic indicators further stabilise by
building on our strong and growing customer base and our good
performance. I would like to thank our clients for their trust and
loyalty, our employees for their ongoing engagement and hard work
in servicing our customers and our shareholders for continuing to
support our strategy.” “ 1) Total distribution announced in
2023 consists of a total cash dividend of €3.8 billion and €4
billion of share buybacks |
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Further informationAll publications related to ING’s 4Q 2023
results can be found at the quarterly results publications page on
ING.comFor more on investor information, go to the investor
relations section on this site. A short ING ON AIR video with CEO
Steven van Rijswijk discussing our FY/4Q2023 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 X/Twitter feed. Photos of ING operations,
buildings and its executives are available for download at
Flickr. |
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Investor conference call, Media meeting and webcastsSteven van
Rijswijk, Tanate Phutrakul and Ljiljana Čortan will discuss the
results in an Investor conference call on 1 February 2024 at
9:00 a.m. CET. Members of the investment community can join the
conference call at +31 20 708 5074 (NL), or +44 330 551 0202 (UK)
(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 meeting on
1 February 2024 at 11:00 a.m. CET. Journalists are welcome at ING’s
Cedar office, Bijlmerdreef 106, Amsterdam. Alternatively, they can
dial-in in listen-only mode via +31 20 708 5073 (NL), or +44 330
551 0200 (UK) - quote ING Media Call 4Q2023 when prompted by the
operator. The meeting can also be followed via live audio webcast
at www.ing.com. |
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Investor enquiriesE: investor.relations@ing.com Press
enquiriesT: +31 20 576 5000E: media.relations@ing.com |
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| ING
ProfileNG 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 60,000
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 July 2023. As
of December 2023, Sustainalytics considers ING’s management of ESG
material risk to be ‘strong’. ING Group shares are also included in
major sustainability and ESG index products of leading providers
Euronext, STOXX, Morningstar and FTSE Russell. 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 (‘Market Abuse Regulation’).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 2022 ING Group consolidated annual accounts. The financial
statements for 2023 are in progress and may be subject to
adjustments from subsequent events. All figures in this document
are unaudited. Small differences are possible in the tables due to
rounding. Certain of the statements contained herein
(including the statements contained in the section entitled ‘2024
Outlook’ in this document) 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) ongoing and residual effects of the Covid-19
pandemic and related response measures on economic conditions in
countries in which ING operates (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 the 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) ING’s ability
to meet minimum capital and other prudential regulatory
requirements (16) changes in regulation of US commodities and
derivatives businesses of ING and its customers (17) application of
bank recovery and resolution regimes, including write down and
conversion powers in relation to our securities (18) 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 (19) changes in tax laws and regulations and
risks of non-compliance or investigation in connection with tax
laws, including FATCA (20) 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
(21) risks and challenges related to cybercrime including the
effects of cyberattacks and changes in legislation and regulation
related to cybersecurity and data privacy (22) changes in general
competitive factors, including ability to increase or maintain
market share (23) inability to protect our intellectual property
and infringement claims by third parties (24) inability of
counterparties to meet financial obligations or ability to enforce
rights against such counterparties (25) changes in credit ratings
(26) business, operational, regulatory, reputation, transition and
other risks and challenges in connection with climate change and
ESG-related matters, including data gathering and reporting (27)
inability to attract and retain key personnel (28) future
liabilities under defined benefit retirement plans (29) failure to
manage business risks, including in connection with use of models,
use of derivatives, or maintaining appropriate policies and
guidelines (30) 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 (31) 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 ESG-related material that has been prepared by ING on
the basis of publicly available information, internally developed
data and other third-party sources believed to be reliable. ING has
not sought to independently verify information obtained from public
and third-party sources and makes no representations or warranties
as to accuracy, completeness, reasonableness or reliability of such
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distinct from, and should not be confused with, such term as
defined in the Market Abuse Regulation or as defined for Securities
and Exchange Commission (‘SEC’) reporting purposes. Any issues
identified as material for purposes of ESG in this document are
therefore not necessarily material as defined in the Market Abuse
Regulation or for SEC reporting purposes. In addition, there is
currently no single, globally recognized set of accepted
definitions in assessing whether activities are “green” or
“sustainable.” Without limiting any of the statements contained
herein, we make no representation or warranty as to whether any of
our securities constitutes a green or sustainable security or
conforms to present or future investor expectations or objectives
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characteristics of a security, use of proceeds, a description of
applicable project(s) and/or any other relevant information, please
reference the offering documents for such security. This
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