1Q2023 Comparative Quarters Note
ING Investor Relations
11 April 2023
General market developments
• Central bank rates further increased in the first quarter.
• In our Retail markets, mortgage demand remained subdued as a result of higher interest rates.
• In Wholesale Banking, economic uncertainty continued to impact loan demand.
• Inflation continues to be high.
• Unemployment rates remained benign in our core markets, while bankruptcy levels remained
well below historical levels.
Net Interest Income: the 1Q2022 NII was €3,415 mln (including €82 million net TLTRO impact). In
4Q2022 it was €3,545 mln (including €-315 mln of net TLTRO impact).
• Policy rates continued to increase this quarter, including two ECB deposit facility rate hikes of 50
bps each on 8 February and 22 March, which will further support our total income growth.
• Deposit betas remained lower than expected this quarter.
• Note that core savings rates in the eurozone were on average close to zero during 4Q2022, while
during 1Q2023 we gradually increased the core savings rates:
o In the Netherlands, from (up to) 25 bps to (up to) 50 bps as of 1 March.
o In Belgium, we increased the core savings rate on most volumes from 11 bps to 50 bps
(including fidelity premiums) as of 9 January.
o In Germany, from 30 bps to 60 bps as of 8 March.
o In Spain, from 30 bps to 50 bps for non-primary customers and to 70 bps for primary
customers, as per 1 February.
• We announced two further core savings rate increases during the quarter, both effective from 1
April. An increase to 70 bps for non-primary customers and 100 bps for primary customers in
Spain; and an increase from 0.1 bps to 50 bps in Italy.
• Asset repricing continues to trail market interest rate increases in some of our geographies.
• The interest rate differential between eurozone and foreign currencies continued to decrease
during the first quarter, which is likely to have affected NII.
Net fee and commission income: the 1Q2022 fee income amounted to €933 mln. In 4Q2022 it was
€888 mln.
• In Retail Banking, we implemented an increase of daily banking fees for retail clients in the
Netherlands as per 1 January 2023.
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• In investment products, the volume of trades is unlikely to have recovered to the high levels
observed in 2020/2021.
• In Wholesale Banking, fee income is mainly driven by lending activity.
Investment income: 1Q2022 investment income was €29 mln and it was €15 mln in 4Q2022.
Other income: in 1Q2022 other income was €222 mln, including a €-150 mln impairment on our equity
stake in TTB. In 4Q2022 other income was €420 mln, including a €67 mln gain from a legacy entity in
Retail Belgium and a final payment of €14 mln from the transfer of our investment business in France
to Boursorama.
• Continued impact from IAS 29 may be expected as it pertains to the development of Turkish CPI
since 4Q2022. As a reminder, IAS 29 has no meaningful effect on CET1.
• As a reminder, Financial Markets is usually able to benefit from higher volatility in the market.
Expenses excluding regulatory costs were €2,296 mln in 1Q2022 and €2,596 mln in 4Q2022. Note
that 4Q2022 included €82 mln of incidental items.
• Headline inflation affects salary expenses and procured services with some delay. Contrary to the
first quarter of 2022, expenses in 1Q2023 will have been impacted by inflationary effects.
Regulatory costs were €649 mln in 1Q2022 and €291 mln in 4Q2022.
• Regulatory costs are seasonally high in the first quarter due to the annual contribution to the
European Single Resolution Fund, the Belgian Deposit Guarantee Scheme, and the annual Belgian
bank tax.
• 4Q2022 contained the annual Dutch bank tax which amounted to €179 mln.
Risk costs
• On asset quality, as a result of a proven risk management framework, we have a strong and welldiversified loan book and a low Stage 3 ratio.
• ING Poland announced that it increased the provision for FX mortgage loans, impacting the
1Q2023 risk costs at ING Group level by PLN 230 mln (approximately €49 mln).
Tax
• We have guided the effective tax rate for 2023 and beyond to be between 28-30%.
• The effective tax rate in 2022 was 31.4%, mainly due to the non-deductible impact of Turkey
hyperinflation accounting, impairments on TTB and interest expenses in various countries.
CET1 ratio of the Group was 14.5% at the end of 4Q2022.
• We continue to reserve 50% of resilient net profit for future distribution as per our policy. This will
be held outside of CET1 capital.
Corporate Line
• The Corporate Line represents certain P&L elements not allocated to the units. The Corporate Line
delivers a negative result before tax of approximately €-100 mln per quarter, which can however
be affected by exceptional items.
Please note that ING Investor Relations will be in closed period as of close of business on 12 April 2023.