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A growing number of customers choose ING as their primary
bank |
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Primary customer
base rose by 578,000 in FY2020 to 13.9 million; total retail
customer base reached 39.3 million. |
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The effects of the
Covid-19 pandemic and lockdowns were visible in a softening of
lending demand, which affected net core lending, and in an increase
in net customer deposits. Net core lending fell by €0.9 billion in
4Q2020 and by €2.5 billion in 2020; net customer deposits grew by
€7.8 billion in 4Q2020 and by €41.4 billion in 2020. |
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4Q2020 result before tax of €1,046 million; full-year 2020
result before tax of €3,809 million |
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Net interest
income was up on 3Q2020, impact compared to 4Q2019 was mainly due
to liability margin pressure and lower lending volumes; diversified
fee income showed healthy growth, compensating some of the effects
of the Covid-19 pandemic. |
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4Q2020 had lower
risk costs and included some incidental costs, mainly due to
restructuring and related impairments. |
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Our capital
position strengthened further to 15.5%. In alignment with the ECB
recommendation on distribution, we propose to pay a cash dividend
of €0.12 per share as interim after 4Q2020 results with intended
further distributions after 30 September 2021 subject to prevailing
ECB recommendations. |
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CEO statement“I’m proud of ING’s resilient results over 2020 and
that more people continued to choose us as their primary bank, even
as the year was defined by the unprecedented challenges of Covid-19
and its impact on our customers, business clients and society,”
said CEO Steven van Rijswijk. “This shows that our mobile- and
digital-first capabilities, coupled with our strong network, are
delivering value to customers and meeting their needs. “We
continue to see a healthy demand for mortgages. We also observed
people spending less in lockdown, which resulted in an increase in
savings. The demand for business and consumer loans has declined,
given the lower economic activity and increased uncertainty.
Considerably more customers are choosing ING as their bank for
investment products, which has resulted in healthy growth of fee
and commission income. Risk costs, though higher for the full year,
dropped 51% in the fourth quarter compared to the year-earlier
period, while operational expenses remained under control. Our
capital position strengthened further to 15.5% and we propose a
dividend payout in line with recommendations by the European
Central Bank. “Throughout the pandemic, we’ve been talking
to thousands of customers a week and have granted €19.4 billion in
payment holidays. We’ve been making sure employees are supported
technically, physically and mentally to work from home, and we
continued providing community support by making donations and
funding social projects. “In addition to providing payment
relief, we’re also working to support the economy where needed. For
example, we joined the European Investment Bank to lend nearly €800
million on favourable terms to Dutch small and medium-sized
enterprises that are affected by the economic impact of Covid-19.
“In 2021, we’ll continue to make sure that our bank is safe,
secure and compliant. We’ll continue to work on cost efficiency and
providing a good return for our shareholders. We’ll keep decisively
executing our strategy so we continue to build on our position as a
digital leader in banking. Our customers continue to be our
priority, giving them a differentiating experience while supporting
them where we can to weather the effects of the pandemic on their
lives, their finances and their businesses.” |
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Further information All publications related to ING’s 4Q and FY
2020 results can be found at www.ing.com/4q20.The ‘ING on Air with
Steven van Rijkswijk’ video interview can be found at
www.youtube.com/ING. Additional financial information is available
at www.ing.com/qr: • Full ING Group 4Q/FY 2020 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. |
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Investor conference call, Media conference call and webcasts Steven
van Rijswijk, Tanate Phutrakul and Ljiljana Cortan will discuss the
results in an Investor conference call on 12 February 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 Cortan will also discuss the results in a Media conference
call on 12 February 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. |
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Investor enquiries T: +31 20 576 6396 E: investor.relations@ing.com
Press enquiries T: +31 20 576 5000 E:
media.relations@ing.com |
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| 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 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. |
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| 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 (‘IFRSEU’). 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. The Financial statements for 2020 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 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 cyberattacks 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 fi ling 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. |