Profit before tax increases significantly to €3,035 million in 2Q2023; CET1 ratio rises to 14.9%
Good interest income after a long period of negative rates
Operating expenses excluding regulatory costs slightly lower quarter-on-quarter
Low risk costs, reflecting strong asset quality
Growth of 227,000 primary customers and an increase in net core deposits of €17 billion
Four-quarter rolling RoE increased to 11.7%; ING will pay an interim cash dividend of €0.35 per ordinary share
CEO statement
“The second quarter of 2023 was characterised by ongoing challenges, as economic sentiment weakened, geopolitical uncertainties persisted and inflation remained elevated - albeit less pronounced than in previous quarters,” said Steven van Rijswijk, CEO of ING. “In these circumstances, we continued to deliver strong results. The current interest rate environment drove income growth in both Retail and Wholesale Banking, with continued deposit inflows across our retail markets. Despite cooling economies, we had another quarter with lending growth and higher fee income.

“I’m pleased with the significant customer growth that we recorded this quarter, which is an important driver for future value creation. Our primary customer base grew by 227,000 to 14.9 million. The number of mobile payment transactions increased by 18% in the quarter and was 37% higher than in the second quarter of 2022. The share of mobile-only customers is now 60%. They only do business with us through their mobile, our main channel.

“In Retail Banking, we realised good results across our markets. Deposit growth continued, with a significant inflow of €17 billion in Germany, while in the Netherlands and Spain, growth was driven by seasonal inflows as well as by the introduction of a savings product for our Business Banking clients in the Netherlands. Our mortgage portfolio grew as well, driven by increases in Australia, the Netherlands and Germany.

“Wholesale Banking recorded another strong quarter with disciplined capital management and higher income over riskweighted assets. Daily Banking and Trade Finance benefited from the current interest rate environment. Fee income rose, both in Global Capital Markets and in Lending. We continued to support the activities and initiatives of our clients, although growth in Lending was offset by lower volumes in Trade and Commodity Finance and in Working Capital Solutions, reflecting lower commodity prices and lower economic activity.

“Expenses came down slightly compared to the previous quarter, despite inflationary effects on staff costs and continued investments in the future growth of our business. Risk costs were limited in the second quarter, underlining the quality of our loan book. Despite low risk costs and no identifiable trends in provisioning we remain vigilant, as the cost of living and of doing business rises for our customers. Strong capital generation resulted in an increased CET1 ratio of 14.9%, despite our share buyback programme.

“We aim to put sustainability at the heart of what we do. As a global bank we're financing today's society, which is not yet green enough. However, we're determined to use our strength and capabilities to help our clients transition to a low-carbon economy, by providing them with the necessary products and advice. A good example during this quarter is the introduction of an ‘eco-renovation loan’ for our Business Banking clients in Belgium, which enables them to make their real estate more sustainable. We continued to support our Wholesale Banking clients in their transitions, achieving a volume mobilised of €25 billion in the second quarter.

“In a challenging macro environment, our business model allowed us to achieve strong results as we continued to execute our strategy, enabled by our digital foundations. I’m confident in our efforts and ability to continue to make the difference for people and the planet and deliver value to all our stakeholders. I want to thank all our colleagues for their dedication, our customers for their loyalty, and our shareholders and other stakeholders for their trust in us.”

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