“The backdrop to ING’s performance in the second quarter of 2022 was one of ongoing geopolitical uncertainty and pressure on the global economy,” said ING CEO Steven van Rijswijk. “Despite these difficult operating conditions, I’m pleased with our results. I believe resilience and adaptability are two of ING’s core strengths, and we showed these qualities once again by growing our primary customer base by 228,000 since the first quarter and continuing to diversify our revenues, with fee income up 4% year-on-year. Our resilience is underpinned by our strong capital position and risk management framework, with limited risk costs in the second quarter. There was a small quarter-on-quarter rise in underlying expenses, but that was well below inflation.
“At our Investor Update in June, I was proud that we were able to show how well ING has performed on many key financial metrics over the past few years, including during the pandemic. Looking ahead, we aim to reinforce our position as the leading universal bank in Europe by focusing on delivering value through our Retail Banking and Wholesale Banking businesses. The strength of our Wholesale Bank is in its blend of global reach, local knowledge and sector expertise, and during this quarter Wholesale Banking increased its income contribution by €338 million compared with the second quarter of last year. In Retail Banking we’re focusing our capital, cost and efforts on where we can build sufficient local scale. In this way we can offer truly superior customer propositions, attract and retain the right talent, and achieve good returns.
“Our strong commercial performance in this quarter flows from our overarching strategic priorities: to provide a superior customer experience and put sustainability at the heart of what we do. This is how we aim to make a difference for people and the planet. We continue to invest in a customer experience that’s relevant, easy, personal and instant, tailored to the needs of our customer segments. Our strong, scalable technology and operations foundation facilitates digital innovation, which in turn leads to impactful improvements for customers. Examples from the second quarter include a more digital mortgage application process in Romania and Belgium, new easy payment possibilities in the Dutch app, and account aggregation in Spain. When it comes to sustainability, we have committed to aligning with climate goals limiting the rise in global temperatures to 1.5 degrees Celsius. We've therefore set intermediate sector-specific goals for 2030 that match a global emissions decrease of 45% compared to 2010 levels.
2Q2022 profit before tax of €1,743 million; capital position remains strong with a 14.7% CET1 ratio
- Higher net interest income, supported by an increase in liability margins
- Increases in both customer lending and customer deposits highlight the strength of our universal banking model
- Risk costs in the quarter were modest as book quality remains strong
- Hyperinflationary conditions in Turkey require application of IAS 29, which combined with a goodwill impairment had an impact of €-277 million on net profit, but the impact on CET1 was slightly positive
- ING declares interim cash dividend of €0.17 per ordinary share