ING Groep N.V. (ING) Q2 2023 Earnings Call Transcript

For the period ending June 30, 2023

August 3, 2023 3:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good morning. This is Marion, welcoming you to ING's 2Q 2023 Conference Call. This conference is being recorded.

Before handing this conference call over to Steven van Rijswijk, Chief Executive Officer of ING Group, let me first say that today's comments may include forward-looking statements, such as statements regarding future developments in our business, expectations for our future financial performance and any statement not involving a historical fact. Actual results may differ materially from those projected in any forward-looking statements.

A discussion of factors that may cause actual results to differ from those in any forward-looking statement is contained in our public filings, including our most recent annual report on Form 20-F filed with the United States Securities and Exchange Commission and our earnings press release is posted on our website today. Furthermore, nothing in today's comments constitutes an offer to sell or a solicitation on an offer to buy any securities.

Good morning, Steven, over to you.

Steven van Rijswijk

Good morning, and welcome to our second quarter '23 results call. I hope you're all well. As usual, I'm joined by our CRO, Ljiljana Cortan; and our CFO, Tanate Phutrakul. And I'm pleased to take you through today's presentation. After that, we will take your questions.

The second quarter was another strong quarter for ING, and we delivered good results, especially in an environment characterized by ongoing macroeconomic and geopolitical challenges. Our continued focus on our offering of superior customer experience resulted in good organic growth. We added customers with many customers in Germany, the Netherlands and Spain selecting ING as a primary bank. The share of mobile-only customers increased further and 60% of our retail customers only do business with us through their mobile, our main channel.

In Wholesale Banking, we're fully mobilized to help our clients' position to more sustainable business models, reached €47 billion in the first half '23, a growth of 17% compared with the first six months of 2022.

We continue to benefit from the positive rate environment and our total income grew by 23% year-on-year, mainly driven by higher interest income on liabilities. Our four-quarter rolling average return on equity increased to 11.7%, and we have achieved this while operating on a very healthy CET1 ratio of 14.9%. On August 14, we will pay an interim cash dividend over the first on August 14, we will pay an interim cash dividend over the first half of '23, amounting to €0.35 per share, which brings our total year-to-date distribution to shareholders to around €4.5 billion.