ING posts 1Q2022 net result of €429 million and strong pre-provision profit
1Q2022 profit before tax of €668 million; CET1 ratio remains robust at 14.9%
• Income strong with robust net interest income and continued increase in fee income
• Operating expenses under control, lower than a year ago and sequentially
• Retail Banking result 20% higher than in 1Q2021 on lower expenses and risk costs, despite impairment on TTB
• Wholesale Banking results impacted by €834 million risk costs linked to Russia-related exposure
• Additional capital distribution of €1.25 billion
CEO statement
“The first quarter of 2022 was marked by the terrible invasion of Ukraine, which is having a devastating impact on people’s lives and is threatening international stability and security,” said ING CEO Steven van Rijswijk. “Our first priority is to support our colleagues and their families, our clients and the humanitarian efforts in Ukraine and surrounding countries. Global and local ING initiatives have raised more than €12 million to date for humanitarian aid in Ukraine and for those who have fled to other countries. We’re waiving fees for personal transactions to Ukraine so customers can send money to their loved ones for free. I’m inspired by our Ukrainian employees and the colleagues across ING who are supporting them in various ways. In addition, we stopped doing new business with Russian companies. We continue to monitor the situation closely, managing and controlling risks while assisting our colleagues and clients wherever possible.
“The geopolitical situation has also impacted our financial results, as the increased risk on our Russia-related exposure led us to book additional provisions in Wholesale Banking. Income was strong this quarter, supported by resilient net interest income and continued fee growth. We also maintained good cost control despite pressure from inflation. As our capital position remains strong, we announce an additional capital distribution to our shareholders of €1.25 billion.
“ING aims to be a banking leader when it comes to sustainability and the transition to a low-carbon economy. We worked hard over the years to build a power generation lending book that’s 60% renewables, outperforming by far the most ambitious climate goal of the Paris Agreement. We went a step further in March and announced that we aim to grow new financing of renewable energy by 50% by year-end 2025 from 2021 and will no longer provide dedicated finance to new oil & gas fields. These steps are aligned with the International Energy Agency’s Net-Zero Emissions by 2050 Roadmap.
“Delivering value through a superior customer experience remains important. An example from this quarter is how we became the first bank in Spain to offer instant lending for new clients, with tailor-made pricing based on our analysis of the applicant’s data. And as we digitalise our product offering, we launched Self Invest via mobile in Belgium, expanding the possibilities for our customers when it comes to online trading. Customers continue to choose for investment products, as total number of investment accounts globally rose nearly 13% year-on-year.
“The global uncertainty and supply chain disruptions are impacting the price of energy and other goods and services. This has caused inflation to rise strongly, impacting economic growth at least in the short term. In line with our strategy, we continue to focus on providing our customers with a superior experience, helped by our technology foundations, and facilitating the transition to a low carbon economy, supported by our prudent risk approach.”
