6-K 1 ing6k20.htm 6-K ing6k20
 
 
UNITED
 
STATES
SECURITIES
 
AND
 
EXCHANGE
 
COMMISSION
Washington,
 
D.C.
 
20549
 
 
FORM
 
6-K
 
Report
 
of
 
Foreign
 
Private
 
Issuer
 
Pursuant
 
to
 
Rule
 
13a-16
 
or
 
15d-16
under
 
the
 
Securities
 
Exchange
 
Act
 
of
 
1934
 
For
 
the
 
period
 
ended
 
30
 
June
 
2020
Commission
 
File
 
Number
 
1-14642
 
 
ING
 
Groep
 
N.V.
 
Bijlmerdreef
 
106
1102
 
CT
 
Amsterdam
The
 
Netherlands
 
Indicate
 
by
 
check
 
mark
 
whether
 
the
 
registrant
 
files
 
or
 
will
 
file
 
annual
 
reports
 
under
 
cover
 
of
 
Form
 
20-F
 
or
Form
 
40-F.
 
Form
 
20-F
 
[x]
 
Form
 
40-F
 
[
 
]
 
Indicate
 
by
 
check
 
mark
 
if
 
the
 
registrant
 
is
 
submitting
 
the
 
Form
 
6-K
 
in
 
paper
 
as
 
permitted
 
by
 
Regulation
 
S-T
Rule
 
101(b)(1):
[
 
]
Indicate
 
by
 
check
 
mark
 
if
 
the
 
registrant
 
is
 
submitting
 
the
 
Form
 
6-K
 
in
 
paper
 
as
 
permitted
 
by
 
Regulation
 
S-T
Rule
 
101(b)(7):
[
 
]
 
This
 
Report
 
on
 
Form
 
6-K
 
is
 
hereby
 
incorporated
 
by
 
reference
 
into
 
the
 
Registration
 
Statements
 
on
 
Form
 
S-8
(Files
 
Nos.
 
333-215535,
 
333-172921,
 
333-172920,
 
333-172919,
 
333-168020,
 
333-165591,
 
333-158155,
 
333-
158154,
 
333-149631,
 
333-137354,
 
333-125075,
 
333-108833,
 
333-81564
 
and
 
333-92220)
 
of
 
ING
 
Groep
 
N.V.
and
 
shall
 
be
 
a
 
part
 
thereof
 
from
 
the
 
date
 
on
 
which
 
this
 
Report
 
is
 
furnished,
 
to
 
the
 
extent
 
not
 
superseded
 
by
documents
 
or
 
reports
 
subsequently
 
filed
 
or
 
furnished.
 
 
 
Presentation
 
of
 
information
 
The
 
condensed
 
consolidated
 
inte
 
rim
 
financial
 
statements
 
included
 
in
 
this
 
report
 
on
 
Form
 
6-K
 
are
 
prepared
 
in
accordance
 
with
 
International
 
Accounting
 
Standard
 
34
 
‘Interim
 
Financial
 
Reporting’
 
as
 
adopted
 
by
 
the
International
 
Accounting
 
Standards
 
Board
 
(‘IFRS
 
-IASB’).
 
In
 
preparing
 
the
 
financial
 
statements
 
in
 
this
document,
 
except
 
as
 
described
 
otherwise,
 
the
 
same
 
accounting
 
principles
 
are
 
applied
 
as
 
in
 
ING
 
Groep
 
N.V.’s
Annual
 
Report
 
on
 
Form
 
20-F
 
for
 
the
 
year
 
ended
 
31
 
December
 
2019
 
(the
 
“2019
 
Form
 
20-F”).
 
 
In
 
this
 
document,
 
references
 
to
 
“ING
 
Groep
 
N.V.”,
 
“ING
 
Groep”
 
and
 
“ING
 
Group”
 
refer
 
to
 
ING
 
Groep
 
N.V.
 
and
references
 
to
 
“ING”,
 
the
 
“Company”,
 
the
 
“Group”,
 
“we”
 
and
 
“us”
 
refer
 
to
 
ING
 
Groep
 
N.V.
 
and
 
its
consolidated
 
subsidiaries.
 
 
All
 
references
 
to
 
IFRS-IASB
 
in
 
this
 
document
 
refer
 
to
 
International
 
Financial
 
Reporting
 
Standards
 
(“IFRS”)
 
as
issued
 
by
 
the
 
International
 
Accounting
 
Standards
 
Board
 
(“IASB”).
 
ING
 
prepares
 
financial
 
information
 
in
accordance
 
with
 
IFRS
 
as
 
issued
 
by
 
the
 
IASB
 
for
 
purposes
 
of
 
reporting
 
with
 
the
 
SEC,
 
including
 
financial
information
 
contained
 
in
 
the
 
2019
 
Form
 
20-F.
 
ING
 
Group’s
 
accounting
 
policies
 
under
 
IFRS
 
-IASB
 
are
 
described
under
 
“Basis
 
of
 
preparation
 
and
 
accounting
 
policies”
 
beginning
 
on
 
page
 
F-13
 
in
 
the
 
consolidated
 
financial
statements
 
contained
 
in
 
the
 
2019
 
Form
 
20-F.
 
All
 
references
 
to
 
IFRS-EU
 
in
 
this
 
document
 
refer
 
to
 
IFRS
 
as
 
adopted
 
by
 
the
 
European
 
Union
 
(“EU”),
 
including
the
 
decisions
 
made
 
by
 
ING
 
Group
 
with
 
respect
 
to
 
the
 
options
 
available
 
under
 
IFRS
 
as
 
adopted
 
by
 
the
 
EU.
 
ING
also
 
prepares
 
financial
 
information
 
in
 
accordance
 
with
 
IFRS
 
-EU,
 
including
 
the
 
decisions
 
ING
 
made
 
with
 
regard
to
 
the
 
options
 
available
 
under
 
IFRS
 
-EU.
 
Unless
 
otherwise
 
indicated,
 
financial
 
information
 
included
 
in
 
this
document
 
has
 
been
 
prepared
 
in
 
accordance
 
with
 
IFRS
 
-EU.
 
Other
 
than
 
for
 
the
 
purpose
 
of
 
SEC
 
reporting,
 
ING
Group
 
intends
 
to
 
continue
 
to
 
prepare
 
its
 
annual
 
accounts
 
under
 
IFRS
 
-EU.
 
 
For
 
an
 
explanation
 
of
 
the
 
differences
 
between
 
IFRS
 
-IASB
 
and
 
IFRS
 
-EU,
 
see
 
page
 
F-14
 
of
 
the
 
2019
 
Form
 
20-F.
 
For
 
a
 
reconciliation
 
between
 
IFRS
 
-EU
 
and
 
IFRS
 
-IASB
 
as
 
of
 
and
 
for
 
the
 
years
 
ended
 
31
 
December
 
2019,
 
2018
and
 
2017,
 
see
 
Note
 
1.3.2
 
to
 
the
 
consolidated
 
financial
 
statements
 
contained
 
in
 
the
 
2019
 
Form
 
20-F.
 
For
 
a
reconciliation
 
between
 
IFRS
 
-EU
 
and
 
IFRS
 
-IASB
 
as
 
of
 
and
 
for
 
the
 
six
 
months
 
ended
 
30
 
June
 
2020,
 
see
 
Note
“Basis
 
of
 
preparation
 
and
 
accounting
 
policies”
 
of
 
this
 
document.
 
Capital
 
measures
 
included
 
in
 
this
 
document
 
are
 
based
 
on
 
IFRS
 
-EU,
 
as
 
this
 
is
 
the
 
primary
 
accounting
 
basis
 
for
statutory
 
and
 
regulatory
 
reporting
 
used
 
by
 
ING
 
Group.
 
Certain
 
amounts
 
set
 
forth
 
herein,
 
such
 
as
 
percentages,
 
may
 
not
 
sum
 
due
 
to
 
rounding.
 
This
 
document
 
contains
 
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
 
filing
 
of
 
this
 
document.
 
Many
 
of
 
those
 
factors
 
are
 
beyond
 
ING’s
 
control.
 
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.
Forward
-
looking
 
statements
 
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
 
comp
 
ensation
 
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
 
cyber-attacks
 
and
 
changes
 
in
legislation
 
and
 
regulation
 
related
 
to
 
cybersecurity
 
and
 
data
 
privacy,
 
(18)
 
changes
 
in
 
general
 
competitive
 
factors,
 
(19)
 
the
 
inability
 
to
 
protect
 
our
 
intell
 
ectual
 
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
 
personne
 
l,
(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
 
on
 
Form
 
20-F
 
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.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
|
 
|
 
statements
|
 
 
 
statements
|
 
 
|
 
 
 
statements
 
ING
 
Group
 
Interim
 
financial
 
report
 
on
 
form
 
6-K
 
for
 
the
 
period
 
ended
 
30
 
June
 
2020
 
-
 
Unaudited
4
 
Contents
Interim
 
report
5
12
Condensed
 
consolidated
 
interim
 
financial
 
statements
25
26
28
29
31
Notes
 
to
 
the
 
Condensed
 
consolidated
 
interim
 
financial
statements
1
33
2
36
3
36
4
38
5
39
6
39
7
41
8
42
9
43
10
43
11
44
12
44
13
46
14
47
15
47
16
48
17
49
Segment
 
reporting
18
49
Additional
 
notes
 
to
 
the
 
Condensed
 
consolidated
 
interim
 
financial
statements
19
56
20
65
21
67
22
67
23
67
 
 
 
 
 
 
 
 
 
 
 
|
 
 
|
 
statements
|
 
 
 
statements
|
 
 
|
 
 
 
statements
 
ING
 
Group
 
Interim
 
financial
 
report
 
on
 
form
 
6-K
 
for
 
the
 
period
 
ended
 
30
 
June
 
2020
 
-
 
Unaudited
5
 
Introduction
 
ING
 
is
 
a
 
global
 
financial
 
institution
 
with
 
a
 
strong
 
European
 
base,
 
offering
 
banking
 
services
 
through
 
its
operating
 
company
 
ING
 
Bank.
 
ING
 
Bank’s
 
more
 
than
 
55,000
 
employees
 
offer
 
retail
 
and
 
wholesale
 
banking
services
 
to
 
customers
 
in
 
over
 
40
 
countries.
 
 
Steven
 
van
 
Rijswijk,
 
previously
 
member
 
of
 
the
 
Executive
 
Board
 
and
 
chief
 
risk
 
officer
 
of
 
ING,
 
has
 
succeeded
Ralph
 
Hamers
 
as
 
CEO
 
and
 
chairman
 
of
 
the
 
Executive
 
Board.
 
The
 
Supervisory
 
Board
 
has
 
appointed
 
Steven
 
van
Rijswijk
 
effective
 
1
 
July
 
2020.
Covid
-
19
 
pandemic
 
The
 
spread
 
of
 
Covid-19
 
in
 
the
 
first
 
half
 
of
 
2020
 
and
 
its
 
development
 
into
 
a
 
global
 
pandemic
 
affected
 
ING
 
in
 
a
number
 
of
 
ways,
 
impacting
 
our
 
customers,
 
operations
 
and
 
employees
 
and
 
the
 
communities
 
where
 
we
operate.
 
Supported
 
by
 
ING’s
 
digital
 
focus,
 
most
 
of
 
our
 
employees
 
worldwide
 
continue
 
to
 
work
 
from
 
home,
providing
 
an
 
uninterrupted,
 
high
 
standard
 
of
 
service
 
to
 
our
 
customers.
 
ING
 
put
 
measures
 
in
 
place
 
to
 
help
 
customers
 
deal
 
with
 
the
 
impact
 
of
 
the
 
pandemic
 
on
 
their
 
finances.
 
This
included
 
extensions
 
of
 
loan
 
repayments
 
for
 
SME
 
and
 
retail
 
customers
 
in
 
various
 
countries.
 
ING
 
also
 
works
with
 
larger
 
corporate
 
clients
 
to
 
deliver
 
solutions
 
tailored
 
to
 
their
 
specific
 
needs.
 
 
The
 
economic
 
impact
 
of
 
the
 
Covid-19
 
pandemic
 
and
 
the
 
impact
 
of
 
IFRS
 
-9
 
methodology
 
have
 
resulted
 
in
significantly
 
higher
 
Expected
 
Credit
 
Losses,
 
which
 
have
 
impacted
 
ING’s
 
net
 
profit
 
for
 
the
 
first
 
half
 
of
 
2020.
 
As
a
 
result
 
of
 
the
 
impairment
 
test
 
triggered
 
by
 
the
 
Covid-19
 
pandemic,
 
ING
 
also
 
recognised
 
€310
 
million
 
as
 
an
impairment
 
of
 
goodwill
 
on
 
its
 
balance
 
sheet
 
in
 
the
 
reporting
 
period.
 
More
 
information
 
on
 
the
 
impact
 
of
 
Covid-19
 
on
 
ING
 
as
 
well
 
on
 
the
 
related
 
risk
 
measures
 
taken
 
to
 
address
 
the
impact
 
can
 
be
 
found
 
in
 
the
 
section
 
“Risk
 
Management”.
 
The
 
financial
 
impact
 
on
 
the
 
Covid
 
-19
 
related
 
crisis
can
 
be
 
found
 
in
 
the
 
section
 
“ING
 
Group
 
consolidated
 
results”
 
and
 
throughout
 
the
 
financial
 
statements
section
 
of
 
this
 
report.
 
As
 
a
 
reaction
 
to
 
the
 
ongoing
 
global
 
pandemic,
 
regulators
 
have
 
introduced
 
a
 
number
 
of
 
changes
 
to
 
regulatory
capital
 
requirement
 
reliefs
 
that
 
are
 
also
 
applicable
 
to
 
ING.
 
More
 
information
 
on
 
this
 
can
 
be
 
found
 
in
 
the
section
 
“business
 
environment”
 
of
 
this
 
report
 
and
 
note
 
“Capital
 
Management”
 
of
 
the
 
interim
 
financial
statements.
 
 
 
 
Interim
 
report
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
|
 
 
|
 
statements
|
 
 
 
statements
|
 
 
|
 
 
 
statements
 
ING
 
Group
 
Interim
 
financial
 
report
 
on
 
form
 
6-K
 
for
 
the
 
period
 
ended
 
30
 
June
 
2020
 
-
 
Unaudited
6
 
ING
 
Group
 
consolidated
 
results
 
 
ING
 
Group:
 
Consolidated
 
profit
 
or
 
loss
 
account
in
 
 
million
6
 
month
 
period
 
(1
 
January
 
to
 
30
 
June)
Total
 
ING
 
Group
of
 
which:
 
adjustment
 
of
the
 
IFRS
 
-EU
 
'IAS
 
39
 
carve
out'
of
 
which:
 
Total
 
ING
 
Group
IFRS
 
-EU
2020
2019
2020
2019
2020
2019
Net
 
interest
 
income
6,877
6,896
–54
–57
6,931
6,953
Net
 
fee
 
and
 
commission
 
income
1,506
1,386
1,506
1,386
Total
 
investment
 
and
 
other
 
income
305
–134
–439
–1,036
745
902
Total
 
income
8,688
8,148
–493
–1,093
9,182
9,241
Expenses
 
excl.
 
Regulatory
 
costs
4,963
4,626
4,963
4,626
Regulatory
 
costs
663
612
663
612
Operating
 
expenses
5,626
5,238
5,626
5,238
Gross
 
result
3,062
2,910
–493
–1,093
3,556
4,003
Addition
 
to
 
loan
 
loss
 
provisions
1,998
416
1,998
416
Result
 
before
 
tax
1,065
2,493
–493
–1,093
1,558
3,586
Taxation
438
740
–115
–243
553
983
Non-controlling
 
interests
36
47
36
47
Net
 
result
 
ING
 
Group
591
1,707
–379
–850
969
2,556
ING
 
Group
 
monitors
 
and
 
evaluates
 
the
 
performance
 
of
 
ING
 
Group
 
at
 
a
 
consolidated
 
level
 
and
 
by
 
segment
using
 
results
 
based
 
on
 
figures
 
according
 
to
 
IFRS
 
as
 
adopted
 
by
 
the
 
European
 
Union
 
(IFRS
 
-EU).
 
The
 
Executive
Board
 
and
 
the
 
Management
 
Board
 
Banking
 
consider
 
this
 
measure
 
to
 
be
 
relevant
 
to
 
an
 
understanding
 
of
 
the
Group’s
 
financial
 
performance,
 
because
 
it
 
allows
 
investors
 
to
 
understand
 
the
 
primary
 
method
 
used
 
by
management
 
to
 
evaluate
 
the
 
Group’s
 
operating
 
performance
 
and
 
make
 
decisions
 
about
 
allocating
 
resources.
In
 
addition,
 
ING
 
Group
 
believes
 
that
 
the
 
presentation
 
of
 
results
 
in
 
accordance
 
with
 
IFRS
 
-EU
 
helps
 
investors
compare
 
its
 
segment
 
performance
 
on
 
a
 
meaningful
 
basis
 
by
 
highlighting
 
result
 
before
 
tax
 
attributable
 
to
ongoing
 
operations
 
and
 
the
 
profitability
 
of
 
the
 
segment
 
businesses.
 
IFRS
 
-EU
 
result
 
is
 
derived
 
by
 
excluding
from
 
IFRS
 
-IASB
 
the
 
impact
 
of
 
the
 
IFRS
 
-EU
 
‘IAS
 
39
 
carve
 
out’
 
adjustment.
 
The
 
IFRS-EU
 
‘IAS
 
39
 
carve-out’
 
adjustment
 
relates
 
to
 
fair
 
value
 
portfolio
 
hedge
 
accounting
 
strategies
 
for
 
the
mortgage
 
and
 
savings
 
portfolios
 
in
 
the
 
Benelux,
 
Germany
 
and
 
Other
 
Challengers
 
that
 
are
 
not
 
eligible
 
under
 
IFRS-
IASB.
 
As
 
no
 
hedge
 
accounting
 
is
 
applied
 
to
 
these
 
mortgage
 
and
 
savings
 
portfolios
 
under
 
IFRS-IASB,
 
the
 
fair
 
value
changes
 
of
 
the
 
derivatives
 
are
 
not
 
offset
 
by
 
fair
 
value
 
changes
 
of
 
the
 
hedge
 
items
 
(mortgages
 
and
 
savings).
 
As
 
from
 
the
 
financial
 
year
 
2020
 
the
 
information
 
presented
 
to
 
the
 
Executive
 
Board
 
is
 
no
 
longer
 
based
 
on
underlying
 
results
 
but
 
on
 
IFRS
 
as
 
endorsed
 
by
 
the
 
European
 
Union.
 
Previously
 
monitoring
 
and
 
evaluation
 
of
ING
 
Group’s
 
segments
 
was
 
based
 
a
 
non-GAAP
 
financial
 
performance
 
measure
 
called
 
underlying.
 
Underlying
result
 
was
 
derived
 
by
 
excluding
 
from
 
IFRS
 
the
 
following:
 
special
 
items,
 
the
 
impact
 
of
 
divestments
 
and
 
results
from
 
former
 
insurance
 
related
 
activities.
 
In
 
2020
 
and
 
2019
 
no
 
special
 
items,
 
divestments
 
or
 
former
 
insurance
related
 
results
 
were
 
recorded
 
anymore.
 
The
 
breakdown
 
of
 
net
 
result
 
by
 
segment
 
is
 
included
 
in
 
Note
 
18
 
‘Segments’.
 
ING
 
Group:
 
reconciliation
 
from
 
IFRS
 
-IASB
 
to
 
IFRS-EU
6
 
month
 
period
 
(1
 
January
 
to
 
30
 
June)
2020
2019
Net
 
result
 
ING
 
Group
 
IFRS-IASB
591
1,707
-/-
 
Adjustment
 
of
 
the
 
EU
 
'IAS
 
39
 
carve
 
out'
–379
–850
Net
 
result
 
ING
 
Group
 
IFRS-EU
969
2,556
 
Consolidated
 
results
 
of
 
operations
ING’s
 
net
 
result
 
in
 
the
 
first
 
half
 
of
 
2020
 
decreased
 
to
 
€591
 
million,
 
or
 
65.4%,
 
compared
 
with
 
€1,707
 
million
 
in
the
 
same
 
period
 
of
 
2019.
 
This
 
decrease
 
in
 
result
 
was
 
affected
 
by
 
€471
 
million
 
less
 
negative
 
fair
 
value
 
changes
on
 
derivatives
 
(including
 
a
 
negative
 
impact
 
under
 
net
 
interest
 
income
 
of
 
ending
 
some
 
hedge
 
relationships)
related
 
to
 
hedging
 
mortgage
 
and
 
savings
 
portfolios
 
in
 
the
 
Benelux,
 
Germany,
 
France
 
and
 
Czech
 
Republic.
These
 
negative
 
fair
 
value
 
changes
 
are
 
mainly
 
caused
 
by
 
changes
 
in
 
markets
 
interest
 
rates.
 
No
 
fair
 
value
 
hedge
accounting
 
is
 
applied
 
to
 
these
 
mortgage
 
and
 
savings
 
portfolios
 
under
 
IFRS
 
-IASB.
 
Including
 
the
 
compensating
positive
 
hedge
 
adjustment
 
on
 
those
 
portfolios
 
as
 
applied
 
under
 
IFRS
 
-EU,
 
the
 
net
 
result
 
decreased
 
62.1%
 
to
€969
 
million,
 
compared
 
with
 
€2,556
 
million
 
in
 
the
 
same
 
period
 
of
 
2019.
 
The
 
decline
 
was
 
primarily
 
caused
 
by
elevated
 
risk
 
costs
 
reflecting
 
the
 
(expected)
 
economic
 
impact
 
of
 
the
 
Covid-19
 
pandemic,
 
including
 
higher
Individual
 
Stage
 
3
 
provisions,
 
and
 
€310
 
million
 
of
 
impairments
 
on
 
goodwill.
 
Including
 
the
 
aforementioned
compensating
 
hedge
 
adjustment,
 
the
 
effective
 
tax
 
rate
 
was
 
35.5%
 
compared
 
with
 
27.4%
 
in
 
the
 
first
 
half
 
of
2019.
 
 
 
 
 
 
 
 
 
 
 
|
 
 
|
 
statements
|
 
 
 
statements
|
 
 
|
 
 
 
statements
 
ING
 
Group
 
Interim
 
financial
 
report
 
on
 
form
 
6-K
 
for
 
the
 
period
 
ended
 
30
 
June
 
2020
 
-
 
Unaudited
7
 
 
The
 
result
 
before
 
tax
 
declined
 
57.3%
 
to
 
€1,065
 
million
 
from
 
€2,493
 
million
 
in
 
the
 
first
 
six
 
months
 
of
 
2019.
Including
 
the
 
aforementioned
 
compensating
 
hedge
 
adjustment,
 
the
 
result
 
before
 
tax
 
fell
 
56.6%
 
to
 
€1,558
million
 
from
 
€3,586
 
million
 
in
 
the
 
first
 
half
 
of
 
2019,
 
predominantly
 
due
 
to
 
€1,582
 
million
 
higher
 
risk
 
costs,
 
but
also
 
due
 
to
 
higher
 
expenses
 
and
 
lower
 
income.
 
Income
 
decreased
 
0.6%
 
as
 
the
 
first
 
half
 
of
 
2019
 
had
 
included
a
 
€119
 
million
 
one-off
 
gain
 
related
 
to
 
the
 
release
 
of
 
a
 
currency
 
translation
 
reserve
 
and
 
a
 
€79
 
million
receivable
 
related
 
to
 
the
 
insolvency
 
of
 
a
 
financial
 
institution.
 
Excluding
 
these
 
one-off
 
items,
 
income
 
was
 
1.5%
higher,
 
mainly
 
due
 
to
 
higher
 
fee
 
income
 
on
 
investment
 
products
 
and
 
higher
 
income
 
from
 
Financial
 
Markets,
which
 
more
 
than
 
offset
 
the
 
impact
 
of
 
lower
 
interest
 
margins
 
on
 
customer
 
deposits.
 
Operating
 
expenses
 
rose
by
 
€388
 
million,
 
or
 
7.4%,
 
on
 
the
 
first
 
six
 
months
 
of
 
2019,
 
mainly
 
due
 
to
 
€310
 
million
 
of
 
goodwill
 
impairments.
 
Net
 
interest
 
income
 
decreased
 
by
 
€19
 
million,
 
or
 
0.3%,
 
to
 
€6,877
 
million
 
in
 
the
 
first
 
six
 
months
 
of
 
2020,
 
but
when
 
including
 
the
 
aforementioned
 
compensating
 
hedge
 
adjustment,
 
net
 
interest
 
income
 
income
 
decreased
by
 
€22
 
million,
 
or
 
0.3%,
 
to
 
€6,931
 
million
 
in
 
the
 
first
 
six
 
months
 
of
 
2020.
 
The
 
interest
 
result
 
on
 
customer
deposits
 
declined
 
due
 
to
 
lower
 
interest
 
margins
 
on
 
both
 
savings
 
and
 
current
 
accounts
 
caused
 
by
 
lower
reinvestment
 
yields,
 
while
 
average
 
current
 
account
 
volumes
 
increased.
 
The
 
interest
 
result
 
on
 
customer
lending
 
was
 
higher
 
compared
 
with
 
the
 
same
 
period
 
a
 
year
 
ago,
 
due
 
to
 
improved
 
interest
 
margins
 
on
residential
 
mortgages
 
combined
 
with
 
higher
 
lending
 
volumes.
 
Higher
 
interest
 
results
 
at
 
Treasury
 
(supported
by
 
the
 
introduction
 
of
 
the
 
ECB’s
 
two-tiering
 
system
 
at
 
the
 
end
 
of
 
October
 
2019)
 
and
 
Financial
 
Markets
 
(which
can
 
be
 
volatile),
 
were
 
offset
 
by
 
lower
 
net
 
interest
 
income
 
in
 
the
 
Corporate
 
Line.
 
ING’s
 
overall
 
net
 
interest
margin,
 
which
 
is
 
defined
 
as
 
net
 
interest
 
income
 
divided
 
by
 
the
 
average
 
balance
 
sheet
 
total,
 
decreased
 
by
 
7
basis
 
points
 
to
 
1.47%,
 
from
 
1.54%
 
in
 
the
 
first
 
half
 
of
 
2019.
 
Net
 
fee
 
and
 
commission
 
income
 
increased
 
8.7%
 
to
 
€1,506
 
million
 
from
 
€1,386
 
million
 
one
 
year
 
ago.
 
In
 
Retail
Banking,
 
net
 
fee
 
and
 
commission
 
income
 
rose
 
by
 
€94
 
million.
 
This
 
was
 
mainly
 
driven
 
by
 
higher
 
fee
 
income
 
on
investment
 
products,
 
predominantly
 
in
 
Germany,
 
while
 
fee
 
income
 
on
 
daily
 
banking
 
products
 
was
 
lower
reflecting
 
a
 
reduction
 
of
 
(international)
 
payment
 
transactions
 
following
 
the
 
lockdown
 
measures
 
related
 
to
the
 
Covid-19
 
pandemic.
 
Total
 
fee
 
income
 
in
 
Wholesale
 
Banking
 
increased
 
by
 
€23
 
million,
 
predominantly
 
in
Financial
 
Markets,
 
mainly
 
due
 
to
 
higher
 
deal
 
activity
 
in
 
Global
 
Capital
 
Markets,
 
partly
 
offset
 
by
 
lower
 
fees
 
in
Trade
 
&
 
Commodity
 
Finance
 
as
 
a
 
result
 
of
 
lower
 
average
 
oil
 
prices.
 
Total
 
investment
 
and
 
other
 
income
 
rose
 
to
 
€305
 
million
 
in
 
the
 
first
 
six
 
months
 
of
 
2020
 
from
 
€-134
 
million
 
in
 
the
same
 
period
 
of
 
last
 
year.
 
Including
 
the
 
aforementioned
 
compensating
 
hedge
 
adjustment,
 
total
 
investment
 
and
other
 
income
 
fell
 
to
 
€745
 
million
 
from
 
€902
 
million
 
in
 
the
 
first
 
half
 
of
 
2019,
 
which
 
had
 
included
 
a
 
€119
 
million
one-off
 
gain
 
from
 
the
 
release
 
of
 
a
 
currency
 
translation
 
reserve
 
related
 
to
 
the
 
sale
 
of
 
ING’s
 
stake
 
in
 
Kotak
Mahindra
 
Bank
 
and
 
a
 
€79
 
million
 
receivable
 
related
 
to
 
the
 
insolvency
 
of
 
a
 
financial
 
institution.
 
Excluding
 
these
items,
 
investment
 
and
 
other
 
income
 
rose
 
by
 
€41
 
million,
 
or
 
5.8%,
 
primarily
 
in
 
Financial
 
Markets.
 
Operating
 
expenses
 
increased
 
by
 
€388
 
million,
 
or
 
7.4%,
 
to
 
€5,626
 
million.
 
Expenses
 
in
 
the
 
first
 
six
 
months
 
of
2020
 
included
 
€663
 
million
 
of
 
regulatory
 
costs,
 
while
 
the
 
same
 
period
 
of
 
2019
 
included
 
€612
 
million
 
of
regulatory
 
costs.
 
Expenses
 
excluding
 
regulatory
 
costs
 
rose
 
by
 
€337
 
million,
 
or
 
7.3%,
 
to
 
€4,963
 
million.
 
The
increase
 
was
 
mainly
 
caused
 
by
 
€310
 
million
 
of
 
goodwill
 
impairments
 
related
 
to
 
a
 
number
 
of
 
acquisitions
 
in
the
 
past.
 
Also
 
excluding
 
this
 
goodwill
 
impairment,
 
expenses
 
increased
 
by
 
0.6%,
 
mainly
 
due
 
to
 
the
 
impact
 
of
collective
 
-labour-agreement
 
salary
 
increases
 
and
 
higher
 
KYC
 
-related
 
expenses.
 
These
 
increases
 
were
 
largely
offset
 
by
 
a
 
value
 
added
 
tax
 
(VAT)
 
refund
 
and
 
the
 
impact
 
of
 
cost
 
savings
 
(including
 
lower
 
marketing
 
and
 
travel
costs
 
as
 
a
 
result
 
of
 
the
 
Covid
 
-19
 
restrictions),
 
while
 
the
 
first
 
half
 
of
 
2019
 
included
 
a
 
restructuring
 
provision
 
in
Retail
 
Germany.
 
The
 
cost/income
 
ratio
 
increased
 
to
 
61.3%
 
from
 
56.7%
 
in
 
the
 
first
 
half
 
of
 
2019.
 
Net
 
additions
 
to
 
loan
 
loss
 
provisions
 
were
 
€1,998
 
million
 
compared
 
with
 
€416
 
million
 
in
 
the
 
first
 
half
 
of
 
2019.
Risk
 
costs
 
in
 
the
 
first
 
six
 
months
 
of
 
2020
 
were
 
severely
 
impacted
 
by
 
a
 
combination
 
of
 
increased
 
collective
provisioning
 
reflecting
 
the
 
worsened
 
macro
 
-economic
 
indicators
 
due
 
to
 
the
 
Covid-19
 
pandemic,
 
higher
Individual
 
Stage
 
3
 
provisions
 
and
 
negative
 
rating
 
migration.
 
Risk
 
costs
 
in
 
the
 
first
 
half
 
of
 
2020
 
included
 
€627
million
 
of
 
collective
 
provision
 
related
 
to
 
the
 
worsened
 
macro
 
-economic
 
indicators.
 
Risk
 
costs
 
were
 
annualised
64
 
basis
 
points
 
of
 
average
 
customer
 
lending
 
compared
 
with
 
14
 
basis
 
points
 
in
 
the
 
first
 
half
 
of
 
2019.
 
For
 
the
 
followin
 
g
 
information
 
per
 
business
 
line
 
the
 
IFRS
 
-EU
 
measures
 
are
 
in
 
place,
 
in
 
line
 
with
 
management
reporting.
 
 
 
 
 
 
 
 
 
 
 
|
 
 
|
 
statements
|
 
 
 
statements
|
 
 
|
 
 
 
statements
 
ING
 
Group
 
Interim
 
financial
 
report
 
on
 
form
 
6-K
 
for
 
the
 
period
 
ended
 
30
 
June
 
2020
 
-
 
Unaudited
8
 
Retail
 
Netherlands
Retail
 
Netherlands
 
posted
 
a
 
result
 
before
 
tax
 
of
 
€1,043
 
million,
 
compared
 
with
 
€1,132
 
million
 
in
 
the
 
first
 
six
months
 
of
 
2019.
 
This
 
decline
 
was
 
mainly
 
attributable
 
to
 
higher
 
risk
 
costs
 
reflecting
 
the
 
worsened
 
macro-
economic
 
environment,
 
as
 
well
 
as
 
lower
 
margins
 
on
 
savings
 
and
 
current
 
accounts.
 
The
 
impact
 
of
 
these
factors
 
was
 
partly
 
offset
 
by
 
higher
 
Treasury
 
-related
 
revenues.
 
Total
 
income
 
increased
 
by
 
€9
 
million,
 
or
 
0.4%,
 
to
 
€2,269
 
million,
 
compared
 
with
 
€2,260
 
million
 
in
 
the
 
first
half
 
of
 
2019.
 
Net
 
interest
 
income
 
rose
 
1.3%,
 
mainly
 
due
 
to
 
higher
 
treasury
 
related
 
revenues,
 
which
 
was
largely
 
offset
 
by
 
lower
 
net
 
interest
 
results
 
on
 
savings
 
and
 
current
 
accounts
 
due
 
to
 
lower
 
margins,
 
while
average
 
volumes
 
continued
 
to
 
increase.
 
Net
 
interest
 
results
 
on
 
customer
 
lending
 
were
 
stable,
 
as
 
lower
average
 
volumes
 
were
 
compensated
 
by
 
slightly
 
higher
 
margins.
 
Customer
 
lending
 
increased
 
by
 
€2.4
 
billion
 
in
the
 
first
 
half
 
of
 
2020.
 
Net
 
core
 
lending
 
(which
 
excludes
 
Treasury
 
products
 
and
 
a
 
€0.6
 
billion
 
decline
 
in
 
the
WUB
 
run-off
 
portfolio)
 
decreased
 
by
 
€0.9
 
billion,
 
of
 
which
 
€0.4
 
billion
 
was
 
in
 
residential
 
mortgages
 
and
 
€0.5
billion
 
in
 
other
 
lending.
 
In
 
the
 
first
 
half
 
of
 
2020
 
net
 
customer
 
deposits
 
(excluding
 
Treasury)
 
grew
 
by
 
€11.1
billion,
 
mainly
 
in
 
current
 
accounts.
 
Net
 
fee
 
and
 
commission
 
income
 
increased
 
by
 
€3
 
million,
 
or
 
0.9%,
 
while
investment
 
and
 
other
 
income
 
was
 
€15
 
million
 
lower.
 
Operating
 
expenses
 
decreased
 
by
 
€7
 
million,
 
or
 
0.6%,
 
to
 
€1,088
 
million
 
from
 
€1,095
 
million
 
in
 
the
 
first
 
six
months
 
of
 
2019.
 
The
 
decrease
 
was
 
mainly
 
due
 
to
 
lower
 
expenses
 
related
 
to
 
staff,
 
marketing
 
and
 
travel,
 
which
were
 
largely
 
offset
 
by
 
higher
 
regulatory
 
costs
 
and
 
IT
 
expenses.
 
The
 
net
 
addition
 
to
 
loan
 
loss
 
provisions
 
was
 
€139
 
million,
 
or
 
17
 
basis
 
points
 
of
 
average
 
customer
 
lending,
 
in
the
 
first
 
six
 
months
 
of
 
2020,
 
compared
 
with
 
€33
 
million,
 
or
 
4
 
basis
 
points,
 
in
 
the
 
same
 
period
 
of
 
last
 
year.
 
Risk
costs
 
in
 
the
 
first
 
half
 
of
 
2020
 
included
 
€90
 
million
 
of
 
collective
 
provisions
 
related
 
to
 
the
 
worsened
 
macro-
economic
 
indicators,
 
including
 
provisioning
 
related
 
to
 
loans
 
subject
 
to
 
a
 
payment
 
holiday.
Retail
 
Belgium
Retail
 
Belgium,
 
which
 
includes
 
Luxembourg,
 
posted
 
a
 
result
 
before
 
tax
 
of
 
€-36
 
million
 
in
 
the
 
first
 
half
 
of
 
2020,
compared
 
with
 
€328
 
million
 
in
 
the
 
same
 
period
 
of
 
2019.
 
The
 
decline
 
was
 
mainly
 
attributable
 
to
 
higher
 
risk
costs
 
reflecting
 
the
 
worsened
 
macro
 
-economic
 
environment,
 
combined
 
with
 
lower
 
income
 
and
 
higher
expenses.
 
Total
 
income
 
declined
 
by
 
€44
 
million,
 
or
 
3.5%,
 
to
 
€1,215
 
million.
 
Net
 
interest
 
result
 
decreased
 
by
 
€22
 
million,
or
 
2.3%,
 
mainly
 
reflecting
 
lower
 
margins
 
on
 
savings
 
and
 
current
 
accounts,
 
partly
 
offset
 
by
 
higher
 
net
 
interest
income
 
from
 
mortgages
 
due
 
to
 
improved
 
margins
 
and
 
higher
 
volumes.
 
Net
 
core
 
lending
 
(excluding
 
Treasury)
decreased
 
by
 
€0.3
 
billion
 
in
 
the
 
first
 
half
 
of
 
2020,
 
fully
 
in
 
residential
 
mortgages.
 
Net
 
customer
 
deposits
(excluding
 
Treasury)
 
grew
 
by
 
€3.3
 
billion,
 
predominantly
 
in
 
current
 
accounts.
 
Net
 
fee
 
and
 
commission
 
income
rose
 
by
 
€19
 
million,
 
or
 
10.1%,
 
mainly
 
due
 
to
 
higher
 
fee
 
income
 
on
 
investment
 
products.
 
Investment
 
and
other
 
income
 
declined
 
by
 
€41
 
million,
 
mainly
 
due
 
to
 
lower
 
Treasury
 
-related
 
revenues,
 
including
 
negative
marked
 
-to-market
 
movements
 
of
 
derivatives
 
which
 
are
 
not
 
in
 
hedge
 
accounting.
 
Operating
 
expenses
 
rose
 
by
 
€96
 
million,
 
of
 
which
 
€43
 
million
 
was
 
caused
 
by
 
a
 
goodwill
 
impairment
 
related
 
to
an
 
acquisition
 
in
 
the
 
past
 
by
 
ING
 
Belgium.
 
The
 
remaining
 
increase
 
was
 
mainly
 
due
 
to
 
higher
 
regulatory
 
costs
and
 
KYC
 
-related
 
expenses.
 
The
 
net
 
addition
 
to
 
the
 
provision
 
for
 
loan
 
losses
 
increased
 
to
 
€282
 
million,
 
or
 
annualised
 
62
 
basis
 
points
 
of
average
 
customer
 
lending,
 
from
 
€58
 
million
 
in
 
the
 
first
 
half
 
of
 
2019.
 
The
 
increase
 
in
 
risk
 
costs
 
was
 
mainly
 
in
business
 
lending.
 
Risk
 
costs
 
in
 
the
 
first
 
half
 
of
 
2020
 
included
 
€65
 
million
 
of
 
collective
 
provisions
 
related
 
to
 
the
worsened
 
macro
 
-economic
 
indicators,
 
including
 
provisioning
 
related
 
to
 
loans
 
subject
 
to
 
a
 
payment
 
holiday.
The
 
remaining
 
risk
 
costs
 
we
 
re
 
mainly
 
related
 
to
 
Stage
 
3
 
provisioning
 
on
 
a
 
number
 
of
 
individual
 
files.
Retail
 
Germany
Retail
 
Germany,
 
which
 
includes
 
Austria,
 
recorded
 
a
 
first
 
-half
 
2020
 
result
 
before
 
tax
 
of
 
€494
 
million,
 
up
 
10.0%
from
 
€449
 
million
 
in
 
the
 
same
 
period
 
of
 
2019.
 
The
 
increase
 
was
 
primarily
 
due
 
to
 
higher
 
income,
 
partly
 
offset
by
 
higher
 
risk
 
costs
 
after
 
a
 
net
 
release
 
in
 
the
 
first
 
half
 
of
 
2019.
 
 
 
 
 
 
 
 
 
 
 
 
|
 
 
|
 
statements
|
 
 
 
statements
|
 
 
|
 
 
 
statements
 
ING
 
Group
 
Interim
 
financial
 
report
 
on
 
form
 
6-K
 
for
 
the
 
period
 
ended
 
30
 
June
 
2020
 
-
 
Unaudited
9
 
Total
 
income
 
increased
 
to
 
€1,075
 
million,
 
up
 
7.0%
 
from
 
€1,005
 
million
 
in
 
the
 
first
 
six
 
months
 
of
 
2019.
 
The
increase
 
was
 
driven
 
by
 
€92
 
million
 
higher
 
fee
 
income,
 
predominantly
 
on
 
investment
 
products
 
due
 
to
 
a
 
higher
number
 
of
 
brokerage
 
trades
 
on
 
the
 
back
 
of
 
market
 
volatility.
 
Net
 
interest
 
income
 
increased
 
0.6%
 
to
 
€801
million,
 
due
 
to
 
accounting
 
asymmetry
 
in
 
Treasury
 
(with
 
an
 
offset
 
in
 
other
 
income)
 
and
 
higher
 
margins
 
on
mortgages,
 
largely
 
offset
 
by
 
margin
 
pressure
 
on
 
savings.
 
In
 
the
 
first
 
six
 
months
 
of
 
2020,
 
net
 
core
 
lending
(which
 
excludes
 
Treasury
 
products)
 
increased
 
by
 
€1.5
 
billion,
 
of
 
which
 
€1.3
 
billion
 
was
 
in
 
residential
mortgages
 
and
 
€0.2
 
billion
 
in
 
consumer
 
lending.
 
Net
 
customer
 
deposits
 
(excluding
 
Treasury)
 
increased
 
by
€1.2
 
billion,
 
fully
 
in
 
current
 
accounts
 
while
 
savings
 
showed
 
an
 
outflow.
 
Investment
 
and
 
other
 
income
declined
 
by
 
€27
 
million,
 
mainly
 
in
 
Treasury
 
due
 
to
 
the
 
aforementioned
 
accounting
 
asymmetry
 
and
 
lower
capital
 
gains.
 
Operating
 
expenses
 
decreased
 
by
 
€12
 
million,
 
or
 
2.1%,
 
to
 
€567
 
million
 
from
 
€579
 
million
 
in
 
the
 
first
 
half
 
of
2019.
 
When
 
adjusted
 
for
 
a
 
€36
 
million
 
restructuring
 
provision
 
recorded
 
in
 
the
 
first
 
half
 
of
 
last
 
year,
 
expenses
increased
 
by
 
€24
 
million.
 
The
 
increase
 
was
 
mainly
 
due
 
to
 
investments
 
to
 
support
 
business
 
growth
 
as
 
well
 
as
the
 
consolidation
 
of
 
a
 
subsidiary
 
as
 
from
 
the
 
first
 
half
 
of
 
2020,
 
partly
 
offset
 
by
 
lower
 
regulatory
 
costs.
 
The
 
net
 
addition
 
to
 
the
 
provision
 
for
 
loan
 
losses
 
was
 
€14
 
million,
 
or
 
3
 
basis
 
points
 
of
 
average
 
customer
lending,
 
in
 
the
 
first
 
half
 
of
 
2020,
 
compared
 
with
 
a
 
net
 
release
 
of
 
€23
 
million
 
in
 
the
 
same
 
period
 
of
 
last
 
year,
which
 
had
 
included
 
model
 
updates
 
on
 
mortgages.
 
Risk
 
costs
 
in
 
the
 
first
 
half
 
of
 
2020
 
included
 
€3
 
million
 
of
collective
 
provisions
 
related
 
to
 
the
 
worsened
 
macro
 
-economic
 
indicators.
Retail
 
Other
 
Challengers
 
&
 
Growth
 
Markets
Retail
 
Other
 
Challengers
 
&
 
Growth
 
markets’
 
result
 
before
 
tax
 
declined
 
to
 
€295
 
million
 
from
 
€438
 
million
 
in
the
 
first
 
six
 
months
 
of
 
2019,
 
reflecting
 
higher
 
risk
 
costs
 
and
 
operating
 
expenses,
 
partly
 
offset
 
by
 
higher
income.
 
Total
 
income
 
rose
 
by
 
€33
 
million,
 
or
 
2.0%,
 
to
 
€1,720
 
million
 
from
 
€1,687
 
million
 
in
 
the
 
first
 
six
 
months
 
of
 
last
year,
 
driven
 
by
 
higher
 
net
 
interest
 
income
 
consistent
 
with
 
higher
 
volumes,
 
and
 
higher
 
Treasury
 
-related
revenues.
 
The
 
increase
 
was
 
partially
 
offset
 
by
 
lower
 
net
 
fee
 
and
 
commission
 
income
 
as
 
lockdown
 
measures
due
 
to
 
the
 
Covid-19
 
pandemic
 
reduced
 
the
 
number
 
of
 
daily
 
banking
 
transactions.
 
The
 
net
 
production
 
in
customer
 
lending
 
(adjusted
 
for
 
currency
 
effects
 
and
 
Treasury)
 
was
 
€1.3
 
billion
 
in
 
the
 
first
 
half
 
of
 
2020,
 
with
growth
 
in
 
all
 
countries,
 
except
 
in
 
Italy.
 
The
 
net
 
inflow
 
in
 
customer
 
deposits,
 
also
 
adjusted
 
for
 
currency
impacts
 
and
 
Treasury,
 
was
 
€8.1
 
billion,
 
with
 
the
 
largest
 
increases
 
in
 
Poland
 
and
 
Spain.
 
Operating
 
expenses
 
increased
 
by
 
€59
 
million,
 
or
 
5.6%,
 
to
 
€1,120
 
million
 
from
 
€1,061
 
million
 
in
 
the
 
first
 
half
 
of
2019,
 
of
 
which
 
€17
 
million
 
was
 
due
 
to
 
higher
 
regulatory
 
costs.
 
The
 
remaining
 
increase
 
was
 
mainly
 
due
 
to
strategic
 
initiatives
 
and
 
the
 
execution
 
of
 
bank-wide
 
regulatory
 
programmes,
 
including
 
KYC,
 
partly
 
offset
 
by
lower
 
marketing
 
expenses.
 
The
 
net
 
addition
 
to
 
loan
 
loss
 
provisions
 
increased
 
by
 
€117
 
million
 
on
 
the
 
first
 
half
 
of
 
2019
 
to
 
€304
 
million,
 
or
annualised
 
63
 
basis
 
points
 
of
 
average
 
customer
 
lending.
 
Risk
 
costs
 
in
 
the
 
first
 
half
 
of
 
2020
 
included
 
€104
million
 
of
 
collective
 
provisions
 
related
 
to
 
the
 
worsened
 
macro
 
-economic
 
indicators.
 
The
 
increase
 
versus
 
the
first
 
half
 
of
 
last
 
year
 
was
 
mainly
 
visible
 
in
 
Poland,
 
Italy
 
and
 
Spain,
 
whereas
 
risk
 
costs
 
in
 
Turkey
 
declined.
Wholesale
 
Banking
In
 
the
 
first
 
six
 
months
 
of
 
2020,
 
the
 
result
 
before
 
tax
 
turned
 
to
 
a
 
loss
 
of
 
€204
 
million
 
from
 
€1,018
 
million
 
in
 
the
same
 
period
 
last
 
year.
 
The
 
decline
 
was
 
predominantly
 
due
 
to
 
elevated
 
risk
 
costs
 
as
 
well
 
as
 
higher
 
expenses
(including
 
a
 
€260
 
million
 
goodwill
 
impairment
 
as
 
a
 
result
 
of
 
the
 
impairment
 
test
 
triggered
 
by
 
the
 
Covid-19
pandemic),
 
partly
 
offset
 
by
 
higher
 
income.
 
Total
 
income
 
increased
 
by
 
€162
 
million,
 
or
 
6.2%,
 
to
 
€2,780
 
million
 
in
 
the
 
first
 
half
 
of
 
2020,
 
mainly
 
due
 
to
higher
 
income
 
in
 
Financial
 
Markets
 
and
 
Treasury
 
&
 
Other.
 
This
 
was
 
partly
 
offset
 
by
 
lower
 
income
 
in
 
Daily
Banking
 
&
 
Trade
 
Finance
 
and
 
negative
 
marked
 
-to-market
 
adjustments
 
in
 
Lending.
 
The
 
increase
 
in
 
Financial
Markets
 
was
 
driven
 
by
 
higher
 
income
 
in
 
the
 
Forex,
 
Rates
 
and
 
Global
 
Capital
 
Market
 
businesses,
 
together
 
with
substantial
 
lower
 
negative
 
valuation
 
adjustments
 
than
 
recorded
 
in
 
the
 
first
 
half
 
of
 
2019.
 
 
Net
 
interest
 
income
 
increased
 
by
 
€33
 
million,
 
or
 
1.8%,
 
on
 
the
 
first
 
six
 
months
 
of
 
2019,
 
mainly
 
driven
 
by
Treasury
 
&
 
Other
 
and
 
Financial
 
Markets.
 
The
 
increase
 
was
 
partly
 
offset
 
by
 
lower
 
interest
 
results
 
in
 
Daily
 
 
 
 
 
 
 
 
 
 
 
|
 
 
|
 
statements
|
 
 
 
statements
|
 
 
|
 
 
 
statements
 
ING
 
Group
 
Interim
 
financial
 
report
 
on
 
form
 
6-K
 
for
 
the
 
period
 
ended
 
30
 
June
 
2020
 
-
 
Unaudited
10
 
Banking
 
&
 
Trade
 
Finance,
 
mainly
 
due
 
to
 
lower
 
margins
 
in
 
Payments
 
&
 
Cash
 
Management.
 
Net
 
core
 
lending
(excluding
 
currency
 
impacts,
 
Treasury
 
and
 
the
 
Lease
 
run-off
 
portfolio)
 
grew
 
by
 
€3.8
 
billion
 
in
 
the
 
first
 
half
 
of
2020.
 
Net
 
customer
 
deposits
 
(excluding
 
currency
 
impacts
 
and
 
Treasury)
 
rose
 
by
 
€6.4
 
billion.
 
Net
 
fee
 
and
 
commission
 
income
 
increased
 
by
 
€23
 
million,
 
or
 
4.3%,
 
on
 
last
 
year,
 
predominantly
 
in
 
Financial
Markets
 
mainly
 
due
 
to
 
higher
 
deal
 
activity
 
in
 
Global
 
Capital
 
Markets.
 
The
 
increase
 
was
 
partly
 
offset
 
by
 
Daily
Banking
 
&
 
Trade
 
Finance
 
mainly
 
due
 
to
 
lower
 
fees
 
in
 
Trade
 
&
 
Commodity
 
Finance
 
(mainly
 
due
 
to
 
lower
average
 
oil
 
prices).
 
Investment
 
and
 
other
 
income
 
rose
 
to
 
€354
 
million
 
from
 
€248
 
million
 
in
 
the
 
first
 
half
 
of
2019,
 
primarily
 
due
 
to
 
higher
 
revenues
 
in
 
Financial
 
Markets.
 
This
 
increase
 
was
 
partly
 
offset
 
by
 
Lending,
 
which
included
 
negative
 
marked
 
-to-market
 
adjustments
 
related
 
to
 
syndicated
 
loans
 
and
 
loans
 
at
 
fair
 
value
 
through
profit
 
or
 
loss.
 
Operating
 
expenses
 
were
 
€1,728
 
million,
 
or
 
20.2%
 
higher
 
than
 
in
 
the
 
first
 
six
 
months
 
of
 
2019.
 
Excluding
regulatory
 
costs
 
(€151
 
million
 
in
 
the
 
first
 
half
 
of
 
2020
 
versus
 
€143
 
million
 
one
 
year
 
ago),
 
operating
 
expenses
increased
 
by
 
€283
 
million,
 
or
 
21.9%.
 
The
 
increase
 
was
 
mainly
 
explained
 
by
 
a
 
€260
 
million
 
goodwill
impairment
 
related
 
to
 
a
 
number
 
of
 
acquisitions
 
in
 
the
 
past.
 
Also
 
excluding
 
this
 
goodwill
 
impairment,
expenses
 
increased
 
by
 
1.8%,
 
mainly
 
due
 
to
 
higher
 
staff
 
expenses
 
related
 
to
 
annual
 
salary
 
increases
 
and
higher
 
KYC
 
costs.
 
This
 
increase
 
was
 
partly
 
offset
 
by
 
lower
 
performance
 
-related
 
expenses
 
and
 
the
 
impact
 
of
continued
 
cost
 
-savings
 
measures.
 
Net
 
addition
 
to
 
loan
 
loss
 
provisions
 
rose
 
to
 
€1,256
 
million,
 
or
 
annualised
 
133
 
basis
 
points
 
of
 
average
customer
 
lending,
 
from
 
€162
 
million,
 
or
 
18
 
basis
 
points,
 
in
 
the
 
first
 
half
 
of
 
2019.
 
The
 
increase
 
was
predominantly
 
due
 
to
 
various
 
Individual
 
Stage
 
3
 
provisions
 
and
 
high
 
collective
 
Stage
 
1
 
and
 
Stage
 
2
 
provisions
as
 
a
 
result
 
of
 
the
 
economic
 
impact
 
of
 
the
 
Covid-19
 
pandemic,
 
including
 
€366
 
million
 
of
 
collective
 
provisions
related
 
to
 
the
 
worsened
 
macro
 
-economic
 
indicators,
 
as
 
well
 
as
 
a
 
€30
 
million
 
collective
 
Stage
 
2
 
provision
 
for
increased
 
risk
 
that
 
was
 
observed
 
in
 
the
 
US
 
reserve
 
-based
 
lending
 
book.
Corporate
 
Line
The
 
Corporate
 
Line
 
reported
 
a
 
result
 
before
 
tax
 
of
 
€-34
 
million
 
compared
 
with
 
€221
 
million
 
in
 
the
 
first
 
half
 
of
2019.
 
Total
 
income
 
fell
 
to
 
€123
 
million
 
from
 
€413
 
million
 
a
 
year
 
ago.
 
This
 
decline
 
was
 
primarily
 
due
 
to
 
lower
investment
 
and
 
other
 
income,
 
as
 
the
 
first
 
six
 
months
 
om
 
2019
 
included
 
a
 
€119
 
million
 
one-off
 
gain
 
from
 
the
release
 
of
 
a
 
currency
 
translation
 
reserve
 
related
 
to
 
the
 
sale
 
of
 
ING’s
 
stake
 
in
 
Kotak
 
Mahindra
 
Bank
 
and
 
the
recognition
 
of
 
a
 
€79
 
million
 
receivable
 
related
 
to
 
the
 
insolvency
 
of
 
a
 
financial
 
institution.
 
Excluding
 
both
items,
 
income
 
decreased
 
by
 
€92
 
million,
 
primarily
 
due
 
to
 
lower
 
income
 
from
 
foreign
 
currency
 
exchange
 
ratio
hedging.
 
Operating
 
expenses
 
decreased
 
to
 
€154
 
million
 
from
 
€192
 
million
 
in
 
the
 
first
 
half
 
of
 
2019,
 
mainly
 
due
to
 
the
 
recognition
 
of
 
a
 
value
 
-added
 
tax
 
(VAT)
 
refund
 
in
 
the
 
first
 
half
 
of
 
2020,
 
partly
 
offset
 
by
 
higher
shareholders
 
and
 
KYC
 
-related
 
expenses.
ING
 
Group
 
statement
 
of
 
financial
 
position
 
(‘balance
 
sheet’)
 
 
ING
 
Group’s
 
total
 
balance
 
sheet
 
increased
 
by
 
€93
 
billion
 
to
 
€981
 
billion
 
at
 
30
 
June
 
2020
 
from
 
€889
 
billion
 
at
31
 
December
 
2019.
 
Cash
 
and
 
balances
 
with
 
central
 
banks
Cash
 
and
 
balances
 
with
 
central
 
banks
 
increased
 
by
 
€66
 
billion
 
to
 
€119
 
billion.
 
The
 
increase
 
was
 
driven
 
by
ING’s
 
participation
 
in
 
a
 
new
 
series
 
of
 
Targeted
 
Longer-Term
 
Refinancing
 
Operations,
 
TLTRO
 
III,
 
initiated
 
by
the
 
European
 
Central
 
Bank
 
(visible
 
in
 
deposits
 
from
 
banks)
 
and
 
increased
 
customer
 
deposits.
 
Further
 
details
on
 
TLTRO
 
can
 
be
 
found
 
in
 
note
 
Deposits
 
from
 
Banks.
Loans
 
and
 
advances
 
to
 
banks
 
and
 
deposits
 
from
 
banks
Loans
 
and
 
advances
 
to
 
banks
 
decreased
 
by
 
€4
 
billion
 
to
 
€31
 
billion.
 
Deposits
 
from
 
banks
 
increased
 
by
 
€44
billion
 
to
 
€79
 
billion,
 
mainly
 
due
 
to
 
the
 
participation
 
in
 
TLTRO
 
III
 
of
 
€60
 
billion
 
(of
 
which
 
€55
 
billion
 
in
 
June
2020),
 
which
 
was
 
partly
 
offset
 
by
 
repayments
 
and
 
maturities
 
of
 
TLTRO
 
II
 
(€-18
 
billion).
 
 
 
 
 
 
 
 
 
 
 
|
 
 
|
 
statements
|
 
 
 
statements
|
 
 
|
 
 
 
statements
 
ING
 
Group
 
Interim
 
financial
 
report
 
on
 
form
 
6-K
 
for
 
the
 
period
 
ended
 
30
 
June
 
2020
 
-
 
Unaudited
11
 
Financial
 
assets/liabilities
 
at
 
fair
 
value
 
through
 
profit
 
or
 
loss
Financial
 
assets
 
at
 
fair
 
value
 
through
 
profit
 
or
 
loss
 
increased
 
by
 
€15
 
billion
 
to
 
€111
 
billion,
 
after
 
a
 
relatively
low
 
year-end
 
2019.
 
The
 
increase
 
was
 
mainly
 
due
 
to
 
€10
 
billion
 
of
 
higher
 
assets
 
mandatorily
 
at
 
fair
 
value
through
 
profit
 
or
 
loss
 
(reverse
 
repos)
 
and
 
€5
 
billion
 
higher
 
trading
 
assets
 
(derivatives).
 
Financial
 
liabilities
 
at
fair
 
value
 
through
 
profit
 
or
 
loss
 
increased
 
by
 
€13
 
billion
 
to
 
€91
 
billion,
 
approximately
 
mirroring
 
the
development
 
on
 
the
 
asset
 
side
 
of
 
the
 
balance
 
sheet,
 
with
 
€8
 
billion
 
of
 
higher
 
trading
 
liabilities
 
(trading
derivatives
 
and
 
repos)
 
and
 
€5
 
billion
 
of
 
increased
 
designated
 
financial
 
liabilities
 
at
 
fair
 
value
 
through
 
profit
 
or
loss
 
(repo
 
activity).
 
Financial
 
assets
 
at
 
fair
 
value
 
through
 
other
 
comprehensive
 
income
Financial
 
assets
 
at
 
fair
 
value
 
through
 
other
 
comprehensive
 
income
 
(OCI)
 
increased
 
by
 
€5
 
billion
 
to
 
€39
 
billion,
due
 
to
 
€5
 
billion
 
more
 
debt
 
securities,
 
which
 
mainly
 
reflect
 
investments
 
in
 
government
 
bonds
 
(mainly
 
US
Treasuries)
 
and
 
short-term
 
paper.
 
In
 
addition,
 
the
 
value
 
of
 
the
 
existing
 
portfolio
 
rose
 
due
 
to
 
a
 
drop
 
in
 
yields.
Securities
 
at
 
amortised
 
costs
Securities
 
at
 
amortised
 
cost
 
increased
 
by
 
€5
 
billion
 
to
 
€51
 
billion,
 
mainly
 
due
 
to
 
an
 
increase
 
of
 
investments
 
in
government
 
bonds.
Loans
 
and
 
advances
 
to
 
customers
Loans
 
and
 
advances
 
to
 
customers
 
increased
 
by
 
€4
 
billion
 
to
 
€612
 
billion
 
from
 
€608
 
billion
 
at
 
31
 
December
2019.
 
This
 
was
 
due
 
to
 
€6
 
billion
 
of
 
higher
 
customer
 
lending
 
partly
 
offset
 
by
 
€1
 
billion
 
of
 
higher
 
provisions
 
for
loan
 
losses.
 
When
 
adjusted
 
for
 
€3
 
billion
 
of
 
negative
 
currency
 
impacts,
 
customer
 
lending
 
increased
 
by
 
€9
billion.
 
After
 
also
 
exclu
 
ding
 
€4
 
billion
 
increase
 
of
 
short-term
 
lending
 
in
 
Treasury
 
and
 
a
 
€1
 
billion
 
decline
 
in
 
the
WUB
 
and
 
Lease
 
run-off
 
portfolios,
 
net
 
core
 
lending
 
increased
 
by
 
€5
 
billion
 
of
 
which
 
€3
 
billion
 
was
 
in
 
non-
mortgage
 
lending
 
and
 
€2
 
billion
 
in
 
residential
 
mortgages.
Other
 
assets/liabilities
Other
 
assets
 
increased
 
by
 
€3
 
billion
 
while
 
other
 
liabilities
 
were
 
€2
 
billion
 
higher.
 
Both
 
movements
 
were
mainly
 
due
 
to
 
changes
 
in
 
financial
 
transactions
 
pending
 
settlement.
Customer
 
deposits
Customer
 
deposits
 
increased
 
by
 
€31
 
billion
 
to
 
€606
 
billion.
 
Adjusted
 
for
 
currency
 
impacts
 
and
 
Treasury,
 
net
customer
 
deposits
 
grew
 
by
 
€30
 
billion
 
in
 
the
 
first
 
half
 
of
 
2020,
 
predominantly
 
due
 
to
 
higher
 
customer
deposits
 
at
 
Retail
 
Banking
 
reflecting
 
ING
 
Bank’s
 
strength
 
as
 
a
 
deposit
 
gatherer.
Debt
 
securities
 
in
 
issue
Debt
 
securities
 
in
 
issue
 
increased
 
by
 
€3
 
billion
 
to
 
€121
 
billion
 
due
 
to
 
€5
 
billion
 
of
 
higher
 
certificates
 
of
deposit/
 
commercial
 
paper
 
(CD/CPs),
 
while
 
other
 
debt
 
securities,
 
mainly
 
long-term
 
debt,
 
decreased
 
by
 
€3
billion.
Subordinated
 
lo
 
ans
Subordinated
 
loans
 
remained
 
flat
 
at
 
€17
 
billion,
 
as
 
new
 
issuances
 
in
 
February
 
and
 
May
 
were
 
offset
 
by
redemptions
 
in
 
the
 
same
 
months.
Shareholders’
 
equity
Shareholders’
 
equity
 
increased
 
by
 
€0.2
 
billion
 
to
 
€51.1
 
billion
 
from
 
€51.0
 
billion
 
at
 
31
 
December
 
2019.
 
The
increase
 
mainly
 
reflects
 
the
 
€0.6
 
billion
 
net
 
result
 
for
 
the
 
first
 
half
 
of
 
2020
 
and
 
a
 
positive
 
change
 
in
 
the
cashflow
 
hedge
 
reserve
 
of
 
€0.5
 
billion,
 
partly
 
offset
 
by
 
a
 
€0.6
 
billion
 
decrease
 
of
 
the
 
currency
 
translation
reserve
 
and
 
€0.3
 
billion
 
of
 
negative
 
unrealised
 
revaluations
 
of
 
equity
 
securities
 
(mainly
 
due
 
to
 
a
 
decrease
 
of
the
 
valuation
 
of
 
our
 
stake
 
in
 
Bank
 
of
 
Beijing).
 
 
 
 
 
 
 
 
 
 
 
|
 
 
|
 
statements
|
 
 
 
statements
|
 
 
|
 
 
 
statements
 
ING
 
Group
 
Interim
 
financial
 
report
 
on
 
form
 
6-K
 
for
 
the
 
period
 
ended
 
30
 
June
 
2020
 
-
 
Unaudited
12
 
Risk
 
management
 
Managing
 
risk
 
is
 
at
 
the
 
core
 
of
 
ING’s
 
business.
 
Financial
 
risks
 
include
 
credit
 
risk,
 
for
 
example
 
when
 
we
 
offer
loans,
 
market
 
risk
 
through
 
our
 
trading
 
and
 
banking
 
book
 
positions,
 
and
 
liquidity
 
or
 
funding
 
risk
 
through
financial
 
management.
 
Non-financial
 
risks
 
are
 
those
 
associated
 
with
 
IT
 
and
 
cybersecurity,
 
our
 
daily
operations
 
(e.g.
 
fraud
 
and
 
money
 
laundering),
 
compliance,
 
adhering
 
to
 
socially-acceptable
 
ethical
 
norms
 
and
reputational
 
issues.
 
We
 
continually
 
develop
 
our
 
risk
 
management
 
to
 
address
 
political
 
and
 
economic
 
developments,
 
evolving
regulatory
 
requirements,
 
changing
 
customer
 
expectations,
 
emerging
 
competitors
 
and
 
new
 
technologies,
 
all
of
 
which
 
could
 
potentially
 
impact
 
our
 
business.
Basis
 
of
 
disclosures
 
This
 
risk
 
management
 
section
 
contains
 
an
 
update
 
of
 
information
 
relating
 
to
 
the
 
nature
 
and
 
the
 
extent
 
of
 
the
risks
 
arising
 
from
 
financial
 
instruments
 
as
 
disclosed
 
in
 
the
 
2019
 
ING
 
Group
 
consolidated
 
financial
 
statements
as
 
included
 
in
 
the
 
2019
 
Annual
 
Report
 
on
 
Form
 
20F.
 
These
 
disclosures
 
are
 
an
 
integral
 
part
 
of
 
the
 
ING
 
Group
condensed
 
consolidated
 
interim
 
financial
 
statements
 
and
 
are
 
indicated
 
by
 
the
 
symbol
 
(*).
 
Chapters,
paragraphs,
 
graphs
 
or
 
tables
 
within
 
this
 
risk
 
management
 
section
 
that
 
are
 
indicated
 
with
 
this
 
symbol
 
in
 
the
respective
 
headings
 
or
 
table
 
header
 
are
 
considered
 
to
 
be
 
an
 
integral
 
part
 
of
 
the
 
condensed
 
consolidated
interim
 
financial
 
statem
 
ents.
 
This
 
risk
 
management
 
section
 
also
 
includes
 
additional
 
disclosures
 
beyond
 
those
 
required
 
by
 
IFRS
 
standards,
such
 
as
 
certain
 
regulatory
 
disclosures.
 
Not
 
all
 
information
 
in
 
this
 
section
 
can
 
be
 
reconciled
 
back
 
to
 
the
primary
 
financial
 
statements
 
and
 
corresponding
 
notes,
 
as
 
it
 
has
 
been
 
prepared
 
using
 
risk
 
data
 
that
 
differs
 
to
the
 
accounting
 
basis
 
of
 
measurement.
 
Examples
 
of
 
such
 
differences
 
include
 
the
 
exclusion
 
of
 
accrued
 
interest
and
 
certain
 
costs
 
and
 
fees
 
from
 
risk
 
data,
 
and
 
timing
 
differences
 
in
 
exposure
 
values
 
(IFRS
 
9
 
models
 
report
expected
 
credit
 
loss
 
on
 
underlying
 
exposures)
 
.
Business
 
environment
 
The
 
Covid-19
 
pandemic
 
and
 
subsequent
 
lockdown
 
measures
 
have
 
thrown
 
the
 
world
 
economy
 
in
 
turmoil.
Even
 
as
 
countries
 
are
 
reopening,
 
the
 
global
 
economy
 
is
 
expected
 
to
 
shrink
 
in
 
2020
 
as
 
domestic
 
demand
 
and
supply,
 
trade,
 
and
 
finance
 
have
 
been
 
severely
 
disrupted.
 
In
 
addition,
 
the
 
continuing
 
US-China
 
trade
 
tensions
and
 
prolonged
 
uncertainty
 
on
 
Brexit
 
have
 
negatively
 
affected
 
the
 
global
 
economy
 
in
 
the
 
first
 
half-year
 
of
2020.
Covid-19
In
 
late
 
-2019,
 
a
 
highly-infectious
 
coronavirus
 
named
 
Covid-19
 
was
 
first
 
identified
 
in
 
China.
 
Spreading
 
quickly
to
 
other
 
regions
 
of
 
the
 
world,
 
Covid-19
 
was
 
declared
 
a
 
global
 
pandemic
 
by
 
the
 
World
 
Health
 
Organization
 
on
11
 
March
 
2020.
 
Various
 
countries
 
and
 
local
 
governmental
 
authorities
 
across
 
the
 
world
 
have
 
introduced
measures
 
aimed
 
at
 
preventing
 
the
 
further
 
spread
 
of
 
Covid-19,
 
such
 
as
 
bans
 
on
 
public
 
events
 
with
 
over
 
a
certain
 
number
 
of
 
attendees,
 
closures
 
of
 
places
 
where
 
larger
 
groups
 
of
 
people
 
gather
 
such
 
as
 
schools,
 
sports
facilities
 
and
 
bars
 
and
 
restaurants,
 
lockdowns,
 
border
 
controls
 
and
 
travel
 
and
 
other
 
restrictions.
 
Such
measures
 
have
 
disrupted
 
the
 
normal
 
flow
 
of
 
business
 
operations
 
in
 
those
 
countries
 
and
 
regions,
 
which
include
 
countries
 
and
 
regions
 
where
 
ING
 
and
 
its
 
customers
 
and
 
counterparties
 
operate,
 
affected
 
global
supply
 
chains,
 
global
 
manufacturing,
 
tourism,
 
consumer
 
spending
 
and
 
asset
 
prices,
 
and
 
resulted
 
in
 
volatility
and
 
uncertainty
 
across
 
the
 
global
 
economy
 
and
 
financial
 
markets.
 
 
In
 
addition
 
to
 
measures
 
aimed
 
at
 
preventing
 
the
 
further
 
spread
 
of
 
the
 
Covid-19
 
virus,
 
governments
 
in
 
various
countries
 
have
 
introduced
 
measures
 
aimed
 
at
 
mitigating
 
the
 
economic
 
consequences
 
of
 
the
 
outbreak.
 
For
example,
 
the
 
Dutch
 
government
 
has
 
announced
 
economic
 
measures
 
aimed
 
at
 
protecting
 
jobs,
 
households’
wages
 
and
 
companies,
 
e.g.,
 
by
 
way
 
of
 
tax
 
payment
 
holidays,
 
guarantee
 
schemes
 
and
 
a
 
compensation
 
scheme
for
 
heavily
 
affected
 
sectors
 
in
 
the
 
economy.
 
These
 
announced
 
measures
 
and
 
any
 
additional
 
measures,
including
 
any
 
payment
 
holidays
 
with
 
respect
 
to
 
mortgages
 
or
 
other
 
loans,
 
have
 
had
 
and
 
may
 
continue
 
to
have
 
a
 
significant
 
impact
 
on
 
ING’s
 
customers
 
and
 
other
 
counterparties.
 
Governments,
 
regulators
 
and
 
central
 
banks
 
(including
 
the
 
ECB),
 
have
 
also
 
announced
 
that
 
they
 
are
 
taking
 
or
considering
 
measures
 
seeking
 
to
 
safeguard
 
the
 
stability
 
of
 
the
 
financial
 
sector,
 
to
 
prevent
 
lending
 
to
 
the
 
 
 
 
 
 
 
 
 
 
 
|
 
 
|
 
statements
|
 
 
 
statements
|
 
 
|
 
 
 
statements
 
ING
 
Group
 
Interim
 
financial
 
report
 
on
 
form
 
6-K
 
for
 
the
 
period
 
ended
 
30
 
June
 
2020
 
-
 
Unaudited
13
 
business
 
sector
 
from
 
being
 
jeopardised
 
and
 
to
 
ensure
 
the
 
payment
 
system
 
continues
 
to
 
function
 
properly.
The
 
Basel
 
III
 
framework
 
includes
 
capital
 
and
 
liquidity
 
buffers
 
which
 
are
 
designed
 
to
 
withstand
 
stressed
situations
 
like
 
the
 
current
 
one.
 
In
 
this
 
context,
 
ING
 
Group’s
 
Systemic
 
Risk
 
Buffer
 
has
 
been
 
lowered
 
from
 
3.0%
of
 
global
 
risk-weighted
 
exposures
 
to
 
2.5%.
 
In
 
addition,
 
the
 
ECB
 
allows
 
banks
 
to
 
operate
 
temporarily
 
below
the
 
level
 
of
 
capital
 
defined
 
by
 
the
 
Pillar
 
2
 
Guidance
 
(P2G)
 
and
 
the
 
capital
 
conservation
 
buffer
 
(CCB).
 
The
 
ECB
effectuated
 
Art
 
104(a)
 
CRDV
 
as
 
of
 
the
 
first
 
quarter
 
of
 
2020,
 
which
 
essentially
 
brings
 
forward
 
the
 
possibility
 
to
cover
 
Pilar
 
2
 
requirements
 
with
 
a
 
mix
 
of
 
own
 
funds
 
instead
 
of
 
CET1
 
only.
 
For
 
ING
 
this
 
means
 
a
 
reduction
 
of
P2R
 
from
 
1.75%
 
to
 
0.98%.
 
Furthermore,
 
several
 
countries
 
released
 
or
 
reduced
 
their
 
countercyclical
 
buffer
(CCyB).
 
This
 
brings
 
back
 
ING
 
Group’s
 
fully
 
loaded
 
CCyB
 
from
 
24
 
bps
 
in
 
Q4
 
2019
 
to
 
3
 
bps
 
in
 
Q2
 
2020,
 
helping
 
to
maintain
 
the
 
supply
 
of
 
credit
 
and
 
dampen
 
the
 
downswing
 
of
 
the
 
financial
 
cycle.
 
The
 
measures
 
remain
 
until
further
 
notice.
 
ING
 
is
 
monitoring
 
the
 
ongo
 
ing
 
Covid-19
 
pandemic
 
carefully
 
as
 
it
 
evolves
 
to
 
understand
 
the
 
impact
 
on
 
its
people
 
and
 
business.
 
A
 
central
 
ING
 
team
 
has
 
been
 
set
 
up
 
to
 
monitor
 
the
 
situation
 
globally
 
and
 
provide
guidance
 
on
 
health
 
and
 
safety
 
measures,
 
travel
 
advice
 
and
 
business
 
continuity
 
for
 
our
 
company.
 
As
 
the
situation
 
differs
 
from
 
country
 
to
 
country,
 
we
 
are
 
following
 
local
 
government
 
guidelines
 
in
 
our
 
response
 
to
 
the
virus.
 
As
 
of
 
April
 
2020,
 
most
 
of
 
ING’s
 
staff
 
are
 
working
 
from
 
home
 
for
 
several
 
months,
 
during
 
which
 
time
 
ING
has
 
not
 
experienced
 
any
 
substantial
 
operational
 
disruptions
 
as
 
result
 
of
 
work
 
from
 
home.
 
In
 
addition,
 
since
May
 
staff
 
in
 
various
 
countries
 
have
 
started
 
rotation
 
schemes
 
to
 
return
 
to
 
work
 
in
 
the
 
office
 
in
 
a
 
controlled
manner,
 
taking
 
into
 
account
 
local
 
circumstances
 
and
 
any
 
applicable
 
government
 
measures
 
(including
 
with
respect
 
to
 
social
 
distancing).
 
This
 
controlled
 
office
 
opening
 
process
 
is
 
expected
 
to
 
allow
 
for
 
essential
 
face
 
-to-
face
 
meetings.
 
However,
 
at
 
this
 
time,
 
it
 
is
 
not
 
certain
 
when
 
ING’s
 
employees
 
may
 
be
 
generally
 
expected
 
or
permitted
 
to
 
return
 
to
 
ING’s
 
offices.
 
If
 
due
 
to
 
illness,
 
technical
 
limitations
 
or
 
other
 
restrictions
 
in
 
connection
with
 
the
 
pandemic,
 
employees
 
are
 
unable
 
to
 
work
 
or
 
are
 
not
 
able
 
to
 
operate
 
as
 
effectively
 
and
 
efficiently
 
as
in
 
the
 
office,
 
this
 
may
 
adversely
 
affect
 
ING’s
 
business,
 
results
 
and
 
financial
 
condition.
 
 
In
 
addition,
 
a
 
situation
 
in
 
which
 
most
 
or
 
some
 
ING’s
 
employees
 
continue
 
working
 
from
 
home
 
may
 
raise
operational
 
risks,
 
including
 
with
 
respect
 
to
 
information
 
security,
 
data
 
protection,
 
availability
 
of
 
key
 
systems
and
 
infrastructure
 
integrity
 
.
 
There
 
is
 
also
 
a
 
risk
 
that
 
ING
 
will
 
not
 
be
 
effective
 
in
 
implementing
 
regulatory
 
or
strategic
 
change
 
programs
 
in
 
the
 
current
 
environment.
 
If
 
any
 
of
 
these
 
risks
 
were
 
to
 
materialize
 
that
 
may
adversely
 
affect
 
ING’s
 
business,
 
results
 
and
 
financial
 
condition
 
Also
 
the
 
potential
 
economic
 
implications
 
for
 
the
 
countries
 
and
 
sectors
 
where
 
ING
 
is
 
active,
 
which
 
could
 
have
a
 
material
 
adverse
 
effect
 
on
 
ING’s
 
business
 
and
 
operations,
 
are
 
being
 
assessed
 
and
 
discussed
 
in
 
order
 
to
identify
 
possible
 
mitigating
 
actions.
 
Further
 
details
 
on
 
our
 
credit
 
risk
 
and
 
market
 
risk
 
portfolios
 
are
 
covered
 
in
 
the
 
next
 
chapters.
 
Credit
 
risk
 
management
 
practices
 
(*)
 
In
 
many
 
countries,
 
Governments
 
have
 
adopted
 
economic
 
support
 
programs
 
(such
 
as
 
tax
 
advantages,
unemployment
 
regulations
 
or
 
guarantees)
 
that
 
we
 
believe
 
will
 
assist
 
ING
 
clients
 
in
 
potential
 
financial
difficulty
 
to
 
manage
 
through
 
these
 
extraordinary
 
times.
 
In
 
addition,
 
various
 
initiatives
 
have
 
been
 
taken
 
to
grant
 
payment
 
holidays,
 
(guaranteed)
 
new
 
money
 
facilities
 
etc.
 
 
Governments
 
in
 
almost
 
all
 
Retail
 
Banking
 
countries
 
have
 
adopted
 
measures
 
providing
 
for
 
payment
 
holidays.
As
 
of
 
end
 
of
 
June,
 
approximately
 
189,000
 
customers
 
were
 
granted
 
payment
 
holidays.
 
The
 
total
 
exposure
 
of
loans
 
for
 
which
 
a
 
payment
 
holiday
 
is
 
granted
 
amounts
 
to
 
 
18.1
 
billion,
 
of
 
which
 
over
 
55%
 
were
 
for
customers
 
located
 
in
 
the
 
Netherlands
 
and
 
Belgium.
 
The
 
payment
 
holiday
 
schemes
 
offered
 
in
 
the
 
various
 
countries
 
differ
 
in
 
terms
 
of
 
scope,
 
benefit
 
duration
 
and
key
 
conditions.
 
Generally
 
these
 
schemes
 
offer
 
a
 
3
 
or
 
6
 
month
 
suspension
 
of
 
principal
 
payment,
 
and
 
in
 
some
instances
 
also
 
of
 
interest
 
payment.
 
The
 
payment
 
holidays
 
are
 
applied
 
to
 
business
 
lending
 
and
 
for
 
mortgages
and
 
consumer
 
loans.
 
The
 
modification
 
of
 
contractual
 
terms
 
of
 
loans
 
subject
 
to
 
payment
 
holiday
 
arrangements
 
does
 
not
automatically
 
result
 
in
 
derecognition
 
of
 
the
 
financial
 
assets.
 
Where
 
applicable,
 
the
 
carrying
 
amount
 
of
 
the
financial
 
asset
 
has
 
been
 
recalculated
 
as
 
the
 
present
 
value
 
of
 
the
 
renegotiated
 
or
 
modified
 
contractual
 
cash
flows,
 
discounted
 
at
 
the
 
original
 
effective
 
interest
 
rate
 
and
 
a
 
gain
 
or
 
loss
 
was
 
recognized
 
.
 
 
 
 
 
 
 
 
 
 
 
|
 
 
|
 
statements
|
 
 
 
statements
|
 
 
|
 
 
 
statements
 
ING
 
Group
 
Interim
 
financial
 
report
 
on
 
form
 
6-K
 
for
 
the
 
period
 
ended
 
30
 
June
 
2020
 
-
 
Unaudited
14
 
 
The
 
various
 
measures
 
by
 
governments
 
and
 
ING
 
to
 
alleviate
 
the
 
impact
 
of
 
Covid-19
 
also
 
impact
 
the
 
loan
classification
 
in
 
terms
 
of
 
forbearance
 
and
 
consequently
 
IFRS
 
9
 
staging.
 
In
 
light
 
of
 
this,
 
the
 
EBA
 
has
 
provided
guidelines
 
which
 
define
 
eligibility
 
criteria
 
for
 
a
 
payment
 
holiday
 
arrangement
 
offered
 
to
 
a
 
large
 
group
 
of
customers
 
to
 
be
 
classified
 
as
 
a
 
“general
 
payment
 
moratorium”.
 
The
 
application
 
of
 
such
 
a
 
general
 
payment
moratorium
 
should
 
not
 
lead
 
to
 
a
 
forbearance
 
classification.
 
Therefore
 
it
 
should
 
not
 
automatically
 
trigger
recognition
 
of
 
lifetime
 
ECL
 
either.
 
ING
 
follows
 
the
 
EBA
 
guidelines
 
and
 
when
 
a
 
payment
 
holiday
 
is
 
provided
 
to
a
 
customer
 
as
 
part
 
of
 
a
 
“general
 
payment
 
moratorium”,
 
ING
 
does
 
not
 
consider
 
this
 
measure
 
to
 
classify
 
as
forbearance
 
.
Portfolio
 
quality
 
and
 
concentration
 
Lending
 
to
 
businesses
 
is
 
diversified
 
over
 
various
 
sectors
 
and
 
countries.
 
The
 
total
 
gross
 
carrying
 
amounts
 
is
composed
 
of
 
approximately
 
65%
 
business
 
lending
 
and
 
35%
 
consumer
 
lending.
 
For
 
a
 
detailed
 
breakdown
 
of
ING’s
 
credit
 
risk
 
portfolio
 
by
 
Sector
 
and
 
Geographical
 
area,
 
refer
 
to
 
the
 
section
 
“Credit
 
Risk
 
portfolio”
reported
 
in
 
the
 
‘Risk
 
management’
 
section
 
of
 
the
 
2019
 
Annual
 
Report
 
on
 
Form
 
20F.
 
ING’s
 
total
 
credit
 
outstandings
 
increased
 
significantly
 
compared
 
to
 
year
 
-end
 
2019
 
mainly
 
as
 
a
 
result
 
of
 
the
TLTRO
 
III
 
participation
 
through
 
deposits
 
to
 
central
 
banks.
 
This
 
is
 
visible
 
in
 
the
 
next
 
table
 
as
 
investment
 
grade
with
 
AAA
 
rating.
 
For
 
the
 
sectors
 
which
 
were
 
mostly
 
impacted
 
by
 
Covid
 
-19,
 
please
 
refer
 
to
 
the
 
section
“Changes
 
in
 
gross
 
carrying
 
amounts
 
and
 
loan
 
loss
 
provision”.
 
As
 
described
 
in
 
above
 
section
 
“business
 
environment”
 
governments
 
in
 
various
 
countries
 
have
 
introduced
measures
 
aimed
 
at
 
mitigating
 
the
 
economic
 
consequences
 
of
 
the
 
Covid
 
-19
 
virus
 
outbreak,
 
especially
 
for
private
 
individuals
 
and
 
small
 
business.
 
These
 
measures
 
have
 
a
 
mitigating
 
effect
 
on
 
the
 
deterioration
 
of
 
the
credit
 
quality
 
of
 
the
 
portfolio.
 
Policies
 
with
 
respect
 
to
 
payment
 
holidays
 
are
 
intended
 
to
 
address
 
short-term
liquidity
 
difficulties
 
for
 
individuals
 
and
 
businesses
 
resulting
 
from
 
the
 
impact
 
of
 
Covid-19.
 
These
 
payment
holidays
 
have
 
led
 
to
 
a
 
reduced
 
number
 
of
 
defaults.
Loan
 
Loss
 
Provisioning
 
(*)
 
Since
 
1
 
January
 
2018,
 
ING
 
has
 
recognised
 
loss
 
allowances
 
based
 
on
 
the
 
expected
 
credit
 
loss
 
model
 
(ECL)
 
of
IFRS
 
9,
 
which
 
is
 
designed
 
to
 
be
 
forward
 
-looking.
 
The
 
IFRS
 
9
 
impairment
 
requirements
 
are
 
applicable
 
to
 
on-
balance
 
sheet
 
financial
 
assets
 
measured
 
at
 
amortised
 
cost
 
or
 
fair
 
value
 
through
 
other
 
comprehensive
 
income
(FVOCI),
 
such
 
as
 
loans,
 
debt
 
securities
 
and
 
lease
 
receivables,
 
as
 
well
 
as
 
off
 
-balance
 
sheet
 
items
 
such
 
as
undrawn
 
loan
 
commitments,
 
certain
 
financial
 
guarantees,
 
and
 
undrawn
 
committed
 
revolving
 
credit
 
facilities.
 
The
 
table
 
below
 
describes
 
the
 
portfolio
 
composition
 
over
 
the
 
different
 
IFRS
 
9
 
stages
 
and
 
rating
 
classes.
 
The
Stage
 
1
 
portfolio
 
represents
 
91.9%
 
(31
 
December
 
2019:
 
94.0%)
 
of
 
the
 
total
 
gross
 
carrying
 
amounts,
 
mainly
composed
 
of
 
investment
 
grade,
 
while
 
Stage
 
2
 
makes
 
up
 
6.7%
 
(31
 
December
 
2019:
 
4.7%)
 
and
 
Stage
 
3
 
makes
up
 
1.4%
 
(31
 
December
 
2019:
 
1.3%)
 
total
 
gross
 
carrying
 
amounts,
 
respectively.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
|
 
 
|
 
statements
|
 
 
 
statements
|
 
 
|
 
 
 
statements
 
ING
 
Group
 
Interim
 
financial
 
report
 
on
 
form
 
6-K
 
for
 
the
 
period
 
ended
 
30
 
June
 
2020
 
-
 
Unaudited
15
 
Gross
 
Carrying
 
amount
 
per
 
IFRS
 
9
 
stage
 
and
 
rating
 
class
 
(*)
1
30
 
June
 
2020
12-month
 
ECL
 
(Stage
 
1)
Lifetime
 
ECL
 
not
 
credit
 
impaired
(Stage
 
2)
Lifetime
 
ECL
 
credit
 
impaired
(Stage
 
3)
Total
Rating
 
class
Gross
 
Carrying
Amount
Provisions
Gross
 
Carrying
Amount
Provisions
Gross
 
Carrying
Amount
Provisions
Gross
 
Carrying
Amount
Provisions
Investment
 
grade
1
 
(AAA)
125,600
5
273
125,873
5
2-4
 
(AA)
103,608
5
297
103,905
5
5-7
 
(A)
134,992
23
1,177
1
136,168
24
8-10
 
(BBB)
296,019
90
7,825
14
303,844
104
Non-Investment
 
grade
11-13
 
(BB)
171,411
215
17,849
119
189,260
334
14-16
 
(B)
30,548
210
24,388
496
54,936
706
17
 
(CCC)
1,421
169
4,676
436
6,097
605
Substandard
 
grade
18
 
(CC)
4,055
200
4,055
200
19
 
(C)
2,238
145
2,238
145
NPL
 
grade
20-22
 
(D)
13,476
3,984
13,476
3,984
Total
863,599
717
62,777
1,412
13,476
3,984
939,852
6,112
1
 
IAS
 
37
 
provisions
 
(EUR
 
95.4
 
million)
 
are
 
excluded.
 
Gross
 
Carrying
 
amount
 
per
 
IFRS
 
9
 
stage
 
and
 
rating
 
class
 
(*)
1
31
 
December
 
2019
12-month
 
ECL
 
(Stage
 
1)
Lifetime
 
ECL
 
not
 
credit
 
impaired
(Stage
 
2)
Lifetime
 
ECL
 
credit
 
impaired
(Stage
 
3)
Total
Rating
 
class
Gross
 
Carrying
Amount
Provisions
Gross
 
Carrying
Amount
Provisions
Gross
 
Carrying
Amount
Provisions
Gross
 
Carrying
Amount
Provisions
Investment
 
grade
1
 
(AAA)
75,144
1
75,144
1
2-4
 
(AA)
82,992
3
28
83,020
3
5-7
 
(A)
131,931
11
273
132,204
11
8-10
 
(BBB)
295,449
55
4,905
6
300,354
61
Non-Investment
 
grade
11-13
 
(BB)
194,643
209
7,925
54
202,568
263
14-16
 
(B)
36,683
202
18,416
367
55,099
569
17
 
(CCC)
405
7
4,067
146
4,472
153
Substandard
 
grade
18
 
(CC)
3,253
160
3,253
160
19
 
(C)
2,216
148
2,216
148
NPL
 
grade
20-22
 
(D)
10,955
3,275
10,955
3,275
Total
817,247
490
41,082
881
10,955
3,275
869,284
4,646
1
 
IAS
 
37
 
provisions
 
(EUR
 
93.3
 
million)
 
are
 
excluded.
 
 
 
 
 
 
 
 
 
 
 
|
 
 
|
 
statements
|
 
 
 
statements
|
 
 
|
 
 
 
statements
 
ING
 
Group
 
Interim
 
financial
 
report
 
on
 
form
 
6-K
 
for
 
the
 
period
 
ended
 
30
 
June
 
2020
 
-
 
Unaudited
16
 
Changes
 
in
 
gross
 
carrying
 
amounts
 
and
 
loan
 
loss
 
provision
 
(*)
The
 
table
 
below
 
provides
 
a
 
reconciliation
 
by
 
stage
 
of
 
the
 
gross
 
carrying/nominal
 
amount
 
and
 
allowances
 
for
loans
 
and
 
advances
 
to
 
banks
 
and
 
customers,
 
including
 
loan
 
commitments
 
and
 
financial
 
guarantees.
 
The
transfers
 
of
 
financial
 
instruments
 
represents
 
the
 
impact
 
of
 
stage
 
transfers
 
upon
 
the
 
gross
 
carrying/nominal
amount
 
and
 
associated
 
allowance
 
for
 
ECL.
 
This
 
includes
 
the
 
net
 
remeasurement
 
of
 
ECL
 
arising
 
from
 
stage
transfers,
 
for
 
example,
 
moving
 
from
 
a
 
12-month
 
(stage
 
1)
 
to
 
a
 
lifetime
 
(stage
 
2)
 
ECL
 
measurement
 
basis.
 
The
 
net
 
remeasurement
 
line
 
represents
 
the
 
changes
 
in
 
provisions
 
for
 
facilities
 
that
 
remain
 
in
 
the
 
same
 
stage.
 
Please
 
note
 
the
 
following
 
comments
 
with
 
respect
 
to
 
the
 
movements
 
observed
 
in
 
the
 
table
 
below
 
for
 
the
 
first
half-year
 
2020:
 
Stage
 
3
 
gross
 
carrying
 
amount
 
increased
 
by
 
€2.5
 
billion
 
from
 
€10.9
 
billion
 
as
 
per
 
31
 
December
 
2019
mainly
 
as
 
a
 
result
 
of
 
ING’s
 
introduction
 
of
 
a
 
new
 
definition
 
of
 
default
 
which
 
had
 
an
 
impact
 
of
 
€1.0
 
billion
and
 
due
 
to
 
developments
 
with
 
respect
 
to
 
certain
 
large
 
individual
 
files.
 
For
 
further
 
background
 
on
implementation
 
of
 
new
 
Definition
 
of
 
Default,
 
please
 
refer
 
to
 
section
 
1.5
 
of
 
the
 
Condensed
 
Consolidated
Financial
 
Statements.
 
Stage
 
2
 
gross
 
carrying
 
amount
 
increased
 
by
 
€21.6
 
billion
 
from
 
€41.1
 
billion
 
as
 
per
 
31
 
December
 
2019.
This
 
is
 
mainly
 
caused
 
by
 
the
 
significant
 
lifetime
 
PD
 
trigger
 
(€8.4
 
billion),
 
the
 
Watchlist
 
trigger
 
(€4.0
billion),
 
primarily
 
in
 
Wholesale
 
Banking,
 
and
 
to
 
a
 
lesser
 
extent
 
Forbearance
 
(€3.3
 
billion);
 
Transportation
 
&
 
Logistics,
 
Services,
 
Real
 
Estate
 
and
 
Food,
 
Beverages
 
&
 
Personal
 
Care
 
were
 
the
 
sectors
 
particularly
 
impacted
 
by
 
the
 
Covid-19
 
pandemic,
 
with
 
an
 
increase
 
in
 
Stage
 
2
 
amounts
 
of
 
€4.7
 
billion,
 
€2.1
billion,
 
€2.0
 
billion
 
and
 
€1.7
 
billion
 
respectively.
 
These
 
sectors
 
represent
 
12%,
 
9%,
 
9%
 
and
 
8%
 
of
 
the
 
total
Stage
 
2
 
gross
 
carrying
 
amounts
 
respectively.
 
The
 
net
 
remeasurement
 
of
 
loan
 
loss
 
provisions
 
in
 
Stage
 
1
 
and
 
Stage
 
2
 
of
 
€182
 
million
 
and
 
€354
 
million
respectively
 
and
 
the
 
transfer
 
into
 
lifetime
 
ECL
 
of
 
€522
 
million
 
were
 
significantly
 
impacted
 
by
 
the
worsened
 
macro
 
-economic
 
outlook,
 
including
 
management
 
adjustments
 
of
 
€90
 
million
 
to
 
reflect
 
the
risks
 
in
 
payment
 
holidays
 
and
 
the
 
impact
 
of
 
oil
 
price
 
decrease
 
on
 
the
 
upstream
 
Reserve
 
Based
 
Lending
book
 
in
 
the
 
US.
 
 
Additional
 
information
 
on
 
macro
 
-economic
 
scenarios
 
is
 
included
 
in
 
the
 
section
 
“Macro
 
-economic
scenarios
 
and
 
sensitivity
 
analysis
 
of
 
key
 
sources
 
of
 
estimation
 
uncertainty”.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
|
 
 
|
 
statements
|
 
 
 
statements
|
 
 
|
 
 
 
statements
 
ING
 
Group
 
Interim
 
financial
 
report
 
on
 
form
 
6-K
 
for
 
the
 
period
 
ended
 
30
 
June
 
2020
 
-
 
Unaudited
17
 
Changes
 
in
 
gross
 
carrying
 
amounts
 
and
 
loan
 
loss
 
provisions
 
(*)
1,2,3
30
 
June
 
2020
12-month
 
ECL
 
(Stage
 
1)
Lifetime
 
ECL
 
not
 
credit
 
impaired
 
(Stage
 
2)
Lifetime
 
ECL
 
credit
 
impaired
 
(Stage
 
3)
Total
Gross
 
carrying
amount
Provisions
Gross
 
carrying
amount
Provisions
Gross
 
carrying
amount
Provisions
Gross
 
carrying
amount
Provisions
Opening
 
balance
 
as
 
at
 
1
 
January
 
2020
817,247
490
41,082
881
10,955
3,275
869,284
4,645
Transfer
 
into
 
12-month
 
ECL
 
(Stage
 
1)
7,746
14
-7,401
-126
-346
-8
-120
Transfer
 
into
 
lifetime
 
ECL
 
not
 
credit
 
impaired
 
(Stage
 
2)
-33,528
-50
33,948
522
-420
-46
426
Transfer
 
into
 
lifetime
 
ECL
 
credit
 
impaired
 
(Stage
 
3)
-2,136
-20
-2,144
-136
4,280
1,058
900
Net
 
remeasurement
 
of
 
loan
 
loss
 
provisions
182
354
261
797
New
 
financial
 
assets
 
originated
 
or
 
purchased
95,280
146
95,280
146
Financial
 
assets
 
that
 
have
 
been
 
derecognised
-65,966
-43
-4,230
-66
-551
-73
-70,747
-182
Net
 
drawdowns
 
and
 
repayments
44,955
1,522
-9
46,468
Changes
 
in
 
models/risk
 
parameters
Increase
 
in
 
loan
 
loss
 
provisions
230
548
1,192
1,970
Write
 
-offs
-433
-433
-433
-433
Recoveries
 
of
 
amounts
 
previously
 
written
 
off
19
19
Foreign
 
exchange
 
and
 
other
 
movements
-2
-17
-70
-89
Closing
 
balance
 
as
 
at
 
30
 
June
 
2020
863,599
717
62,777
1,412
13,476
3,983
939,852
6,112
1
 
At
 
the
 
end
 
of
 
June
 
2020,
 
the
 
Gross
 
carrying
 
amounts
 
included
 
loans
 
and
 
advances
 
to
 
central
 
banks
 
(€116.9
 
billion),
 
loans
 
and
 
advances
 
to
 
banks
 
(€30.7
 
billion),
 
financial
 
assets
 
at
 
FVOCI
 
(€37.0
 
billion),
securities
 
at
 
amortised
 
cost
 
(€51.1
 
billion),
 
loans
 
and
 
advances
 
to
 
customers
 
(€618.4
 
billion)
 
and
 
financial
 
guarantees
 
(cred
 
it
 
replacement)
 
in
 
scope
 
of
 
IFRS
 
9
 
impairment
 
requirements
 
(€112.7
 
billion)
 
and
excludes
 
receivables
 
related
 
to
 
securities
 
in
 
reverse
 
repurchase
 
transaction
 
(EUR
 
-13.4
 
billion),
 
cash
 
collateral
 
in
 
respect
 
of
 
derivatives
 
(€-9.4
 
billion),
 
the
 
value
 
adjustment
 
hedged
 
items
 
(€-0.1
 
billion),
 
a
 
receivable
 
that
 
is
 
offset
 
by
 
a
 
liquidity
 
facility
 
(€-1.5
 
billion),
 
on-demand
 
bank
 
balances
 
(€-2.7
 
billion)
 
and
 
other
 
differences
 
amounting
 
to
 
€0.1
 
billion.
2
 
Stage
 
3
 
Lifetime
 
credit
 
impaired
 
includes
 
€5
 
million
 
Purchased
 
or
 
Originated
 
Credit
 
Impaired.
3
 
At
 
the
 
end
 
of
 
June
 
2020,
 
the
 
stock
 
of
 
provisions
 
included
 
provisions
 
for
 
loans
 
and
 
advances
 
to
 
central
 
banks
 
(€5
 
million),
 
loans
 
and
 
advances
 
to
 
banks
 
(€13
 
million),
 
financial
 
assets
 
at
 
FVOCI
 
(€13
 
million),
securities
 
at
 
amortised
 
cost
 
(€21
 
million),
 
provisions
 
for
 
loans
 
and
 
advances
 
to
 
customers
 
(€6,029
 
million)
 
and
 
provisions
 
for
 
contingent
 
liabilities
 
(credit
 
replacements)
 
recorded
 
under
 
Provisions
 
(€30
 
million).
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
|
 
 
|
 
statements
|
 
 
 
statements
|
 
 
|
 
 
 
statements
 
ING
 
Group
 
Interim
 
financial
 
report
 
on
 
form
 
6-K
 
for
 
the
 
period
 
ended
 
30
 
June
 
2020
 
-
 
Unaudited
18
 
Changes
 
in
 
gross
 
carrying
 
amounts
 
and
 
loan
 
loss
 
provisions
 
(*)
1,2,3
31
 
December
 
2019
12-month
 
ECL
 
(Stage
 
1)
Lifetime
 
ECL
 
not
 
credit
 
impaired
 
(Stage
 
2)
Lifetime
 
ECL
 
credit
 
impaired
 
(Stage
 
3)
Total
Gross
 
carrying
amount
Provisions
Gross
 
carrying
amount
Provisions
Gross
 
carrying
amount
Provisions
Gross
 
carrying
amount
Provisions
Opening
 
balance
 
as
 
at
 
1
 
January
 
2019
788,537
501
46,949
925
10,758
3,141
846,244
4,568
Transfer
 
into
 
12-month
 
ECL
 
(Stage
 
1)
12,856
30
-12,579
-253
-277
-23
-246
Transfer
 
into
 
lifetime
 
ECL
 
not
 
credit
 
impaired
 
(Stage
 
2)
-21,577
-73
22,382
474
-805
-81
320
Transfer
 
into
 
lifetime
 
ECL
 
credit
 
impaired
 
(Stage
 
3)
-2,210
-6
-1,753
-135
3,964
1,113
972
Net
 
remeasurement
 
of
 
loan
 
loss
 
provisions
-77
36
283
242
New
 
financial
 
assets
 
originated
 
or
 
purchased
180,605
205
180,605
205
Financial
 
assets
 
that
 
have
 
been
 
derecognised
-126,082
-103
-9,108
-162
-1,659
-137
-136,849
-402
Net
 
drawdowns
 
and
 
repayments
-14,880
-4,807
1
-19,686
Changes
 
in
 
models/risk
 
parameters
15
2
-8
9
Increase
 
in
 
loan
 
loss
 
provisions
-9
-39
1,147
1,099
Write
 
-offs
-1
-1
-2
-2
-1,027
-1,028
-1,030
-1,031
Recoveries
 
of
 
amounts
 
previously
 
written
 
off
55
55
Foreign
 
exchange
 
and
 
other
 
movements
-1
-3
-41
-45
Closing
 
balance
 
as
 
at
 
31
 
December
 
2019
817,247
490
41,082
881
10,955
3,275
869,284
4,646
1
 
At
 
the
 
end
 
of
 
December
 
2019,
 
the
 
Gross
 
carrying
 
amounts
 
included
 
loans
 
and
 
advances
 
to
 
central
 
banks
 
(€51.2
 
billion),
 
loans
 
and
 
advances
 
to
 
banks
 
(€35.1
 
billion),
 
financial
 
assets
 
at
 
FVOCI
 
(€32.2
 
billion),
securities
 
at
 
amortised
 
cost
 
(€46.1
 
billion),
 
loans
 
and
 
advances
 
to
 
customers
 
(€612.6
 
billion)
 
and
 
financial
 
guarantees
 
(cre
 
dit
 
replacement)
 
in
 
scope
 
of
 
IFRS
 
9
 
impairment
 
requirements
 
(€115.7
 
billion)
 
and
excludes
 
receivables
 
related
 
to
 
securities
 
in
 
reverse
 
repurchase
 
transaction
 
(€-9.9
 
billion),
 
cash
 
collateral
 
in
 
respect
 
of
 
derivatives
 
(€-10.2
 
billion),
 
a
 
receivable
 
that
 
is
 
offset
 
by
 
a
 
liquidity
 
facili
 
ty
 
(€-1.3
 
billion),
de-netting
 
of
 
cash
 
pool
 
balances
 
(€-1.8
 
billion)
 
and
 
other
 
differences
 
amounting
 
to
 
€-0.3
 
billion.
2
 
Stage
 
3
 
Lifetime
 
credit
 
impaired
 
includes
 
€1
 
million
 
Purchased
 
or
 
Originated
 
Credit
 
Impaired.
3
 
At
 
the
 
end
 
of
 
December
 
2019,
 
the
 
stock
 
of
 
provisions
 
included
 
provisions
 
for
 
loans
 
and
 
advances
 
to
 
central
 
banks
 
(€1
 
million),
 
loans
 
and
 
advances
 
to
 
banks
 
(€9
 
million),
 
financial
 
assets
 
at
 
FVOCI
 
(€10
 
million),
securities
 
at
 
amortised
 
cost
 
(€10
 
million),
 
provisions
 
for
 
loans
 
and
 
advan
 
ces
 
to
 
customers
 
(€4,590
 
million)
 
and
 
provisions
 
for
 
contingent
 
liabilities
 
(credit
 
replacements)
 
recorded
 
under
 
Provisions
 
(€25
 
million).
 
 
 
 
 
 
 
 
 
 
 
|
 
 
|
 
statements
|
 
 
 
statements
|
 
 
|
 
 
 
statements
 
ING
 
Group
 
Interim
 
financial
 
report
 
on
 
form
 
6-K
 
for
 
the
 
period
 
ended
 
30
 
June
 
2020
 
-
 
Unaudited
19
 
Macro-economic
 
scenarios
 
and
 
sensitivity
 
analysis
 
of
 
key
 
sources
 
of
 
estimation
 
uncertainty
 
(*)
 
Methodology
 
(*)
Our
 
methodology
 
in
 
relation
 
to
 
the
 
adoption
 
and
 
generation
 
of
 
macroeconomic
 
scenarios
 
is
 
described
 
in
 
the
Risk
 
Management
 
section
 
of
 
the
 
Annual
 
Report
 
on
 
Form
 
20F
 
2019.
 
We
 
continue
 
to
 
follow
 
this
 
methodology
in
 
generating
 
our
 
probability-weighted
 
ECL,
 
with
 
consideration
 
of
 
alternative
 
scenarios
 
and
 
management
adjustments
 
supplementing
 
this
 
ECL
 
where,
 
in
 
management's
 
opinion,
 
the
 
consensus
 
forecast
 
does
 
not
 
fully
capture
 
the
 
extent
 
of
 
recent
 
credit
 
or
 
economic
 
events.
 
The
 
macro
 
-economic
 
scenarios
 
are
 
applicable
 
to
 
the
whole
 
ING
 
portfolio
 
in
 
the
 
scope
 
of
 
IFRS9
 
ECL’s
 
.
 
Macro
 
-economic
 
scenarios
 
(*)
The
 
provisions
 
are
 
based
 
on
 
the
 
end
 
of
 
June
 
macro
 
-economic
 
consensus
 
forecasts,
 
with
 
the
 
main
 
inputs
 
for
four
 
of
 
our
 
main
 
portfolios
 
in
 
the
 
upside
 
scenario,
 
baseline
 
scenario
 
and
 
downside
 
scenario
 
presented
 
in
 
the
sensitivity
 
table
 
below.
 
The
 
Macro
 
-economic
 
(ME)
 
forecast
 
resulted
 
increased
 
calculated
 
model
 
based
collective
 
provisions.
 
The
 
main
 
driver
 
for
 
the
 
increase
 
is
 
the
 
significant
 
GDP
 
growth
 
deterioration
 
which
 
is
forecasted
 
as
 
result
 
of
 
the
 
Covid-19
 
crisis,
 
which
 
mainly
 
impacted
 
risk
 
costs
 
in
 
Wholesale
 
Banking.
 
For
 
Retail
portfolios,
 
unemployment
 
rate
 
and
 
house
 
prices
 
are
 
the
 
most
 
important
 
drivers
 
and
 
those
 
did
 
show
 
more
moderate
 
deterioration.
 
Hence
 
the
 
impact
 
of
 
worsened
 
macroeconomic
 
forecasts
 
on
 
the
 
Retail
 
portfolios
 
is
more
 
moderate.
 
 
The
 
macro
 
-economic
 
scenarios
 
reflects
 
how
 
the
 
Covid-19
 
pandemic,
 
the
 
(reversal
 
of)
 
lockdown
 
measures
 
and
government
 
and
 
central
 
bank
 
support
 
measures
 
potentially
 
can
 
impact
 
the
 
economic
 
outlook.
 
In
 
the
consensus
 
forecast,
 
a
 
rebound
 
in
 
activity
 
is
 
projected
 
to
 
start
 
in
 
the
 
second
 
half
 
of
 
2020
 
despite
 
ongoing
containment
 
measures.
 
Nevertheless,
 
the
 
consensus
 
does
 
not
 
expect
 
the
 
major
 
economies
 
to
 
return
 
to
 
pre-
crisis
 
levels
 
until
 
after
 
2021.
 
Making
 
predictions
 
is
 
difficult
 
as
 
there
 
are
 
still
 
many
 
uncertainties
 
about
 
the
development
 
of
 
the
 
Covid-19
 
pandemic.
 
Management
 
adjustments
 
(*)
In
 
times
 
of
 
volatility
 
and
 
uncertainty
 
where
 
the
 
portfolio
 
quality
 
and
 
economic
 
environment
 
is
 
rapidly
changing,
 
models
 
alone
 
may
 
not
 
be
 
able
 
to
 
accurately
 
predict
 
losses.
 
In
 
these
 
cases
 
management
adjustments
 
can
 
be
 
applied
 
to
 
appropriately
 
reflect
 
ECL.
 
Adjustments
 
can
 
also
 
be
 
applied
 
where
 
the
 
impact
of
 
the
 
updated
 
macroeconomic
 
scenarios
 
is
 
over
 
-
 
or
 
under-estimated
 
by
 
the
 
IFRS
 
9
 
models.
 
As
 
mentioned
 
above,
 
per
 
the
 
guidance
 
from
 
EBA,
 
Covid-19
 
related
 
payment
 
holidays
 
should
 
not
 
be
 
regarded
as
 
an
 
automatic
 
forbearance
 
trigger,
 
and
 
hence,
 
should
 
not
 
automatically
 
trigger
 
recognition
 
of
 
lifetime
 
ECL.
 
Looking
 
forward,
 
it
 
is
 
expected
 
that
 
the
 
phasing
 
out
 
of
 
the
 
Covid-19
 
related
 
payment
 
holiday
 
schemes
 
and
other
 
support
 
measures
 
in
 
the
 
second
 
half
 
of
 
2020
 
could
 
potentially
 
lead
 
to
 
more
 
business
 
insolvencies
 
and
unemployment.
 
This
 
could
 
lead
 
to
 
more
 
clients
 
that
 
have
 
currently
 
taken
 
payment
 
holidays,
 
getting
 
into
financial
 
difficulties
 
and
 
to
 
higher
 
levels
 
of
 
defaults.
 
To
 
the
 
extent
 
ING
 
believes
 
that
 
this
 
elevated
 
risk
 
is
 
not
yet
 
covered
 
in
 
the
 
IFRS9
 
models,
 
a
 
management
 
adjustment
 
has
 
been
 
recognised.
 
This
 
management
 
adjustment
 
has
 
been
 
recognised
 
for
 
SME
 
portfolios
 
as
 
these
 
portfolios
 
are
 
considered
 
to
be
 
most
 
at
 
risk
 
and
 
have
 
the
 
highest
 
percentage
 
of
 
customers
 
requesting
 
payment
 
holidays
 
compared
 
to
other
 
portfolios.
 
ING
 
has
 
recognised
 
a
 
management
 
adjustment
 
of
 
€45
 
million
 
in
 
Netherlands
 
and
 
€15
 
million
in
 
Belgium
 
as
 
they
 
are
 
the
 
largest
 
SME
 
portfolios
 
and
 
not
 
significantly
 
impacted
 
by
 
ME
 
forecasts
 
updates.
 
In
 
addition,
 
as
 
oil
 
price
 
remains
 
volatile,
 
as
 
well
 
as
 
exposed
 
to
 
the
 
impacts
 
of
 
the
 
Covid-19
 
crisis
 
and
 
subject
to
 
political
 
decisions,
 
ING
 
reco
 
gnised
 
a
 
management
 
adjustment
 
for
 
the
 
upstream
 
oil
 
book
 
of
 
€30
 
million.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
|
 
 
|
 
statements
|
 
 
 
statements
|
 
 
|
 
 
 
statements
 
ING
 
Group
 
Interim
 
financial
 
report
 
on
 
form
 
6-K
 
for
 
the
 
period
 
ended
 
30
 
June
 
2020
 
-
 
Unaudited
20
 
Analysis
 
on
 
sensitivity
 
(*)
Based
 
on
 
the
 
above,
 
analysis
 
on
 
the
 
sensitivity
 
of
 
key
 
forward
 
-looking
 
macroeconomic
 
inputs
 
used
 
in
 
the
 
ECL
collective
 
-assessment
 
modelling
 
process
 
and
 
the
 
probability
 
-weights
 
applied
 
to
 
each
 
of
 
the
 
three
 
scenarios
 
is
presented
 
below.
 
The
 
countries
 
included
 
in
 
the
 
analysis
 
are
 
the
 
Group’s
 
most
 
significant
 
geographic
 
regions,
in
 
terms
 
of
 
both
 
gross
 
contribution
 
to
 
reportable
 
ECL,
 
and
 
sensitivity
 
of
 
ECL
 
to
 
forward
 
-looking
macroeconomics.
 
Accordingly,
 
the
 
Group
 
considers
 
these
 
portfolios
 
to
 
present
 
the
 
most
 
significant
 
risk
 
of
resulting
 
in
 
a
 
material
 
adjustment
 
to
 
the
 
carrying
 
amount
 
of
 
financial
 
assets
 
within
 
the
 
next
 
financial
 
year.
The
 
Group
 
also
 
observes
 
that,
 
in
 
general,
 
the
 
Wholesale
 
business
 
is
 
more
 
sensitive
 
to
 
the
 
impact
 
of
 
forward-
looking
 
macroeconomic
 
scenarios.
 
While
 
the
 
table
 
does
 
give
 
a
 
high-level
 
indication
 
of
 
the
 
sensitivity
 
of
 
the
 
outputs
 
to
 
the
 
different
 
scenarios,
 
it
does
 
not
 
provide
 
insight
 
on
 
the
 
interdependencies
 
and
 
correlations
 
between
 
different
 
macroeconomic
variable
 
inputs.
 
 
Sensitivity
 
analysis
 
(*)
1,2,3
2020
2021
2022
Un-weighted
ECL
 
(Eur
 
mln)
Probability-
weighing
Reportable
 
ECL
(Eur
 
mln)
4
Netherlands
Upside
 
scenario
Real
 
GDP
-6.0
5.2
3.9
476
20%
559
Unemployment
4.9
4.4
3.8
HPI
3.7
14.7
5.3
Baseline
 
Scenario
Real
 
GDP
-6.3
4.0
2.3
536
60%
Unemployment
5.3
5.4
5.4
HPI
-0.2
0.8
3.2
Downside
 
scenario
Real
 
GDP
-6.9
0.6
0.1
708
20%
Unemployment
6.2
7.5
8.3
HPI
-4.4
-14.4
0.3
Sensitivity
 
analysis
 
(*)
1,2,3
2020
2021
2022
Un-weighted
ECL
 
(Eur
 
mln)
Probability-
weighing
Reportable
 
ECL
(Eur
 
mln)
4
Germany
Upside
 
scenario
Real
 
GDP
-5.8
7.1
2.6
518
20%
575
Unemployment
3.7
2.4
1.6
HPI
6.0
7.0
8.5
Baseline
 
Scenario
Real
 
GDP
-6.3
5.3
1.9
558
60%
Unemployment
4.0
3.6
3.2
HPI
4.4
3.2
5.1
Downside
 
scenario
Real
 
GDP
-6.9
1.7
-0.4
681
20%
Unemployment
4.7
5.1
5.2
HPI
0.7
-1.3
1.3
Belgium
Upside
 
scenario
Real
 
GDP
-7.6
6.2
2.8
450
20%
510
Unemployment
8.9
7.7
7.2
HPI
2.8
5.0
4.4
Baseline
 
Scenario
Real
 
GDP
-7.9
4.9
2.3
491
60%
Unemployment
9.2
7.7
7.7
HPI
1.9
3.9
3.5
Downside
 
scenario
Real
 
GDP
-8.5
2.5
1.0
628
20%
Unemployment
10.3
10.2
10.3
HPI
0.7
2.2
2.6
United
 
States
Upside
 
scenario
Real
 
GDP
-5.6
5.3
4.9
205
20%
335
Unemployment
9.8
5.2
2.7
HPI
3.1
6.8
8.8
Baseline
 
Scenario
Real
 
GDP
-5.7
4.2
3.0
285
60%
Unemployment
10.2
6.6
4.7
HPI
2.3
2.8
3.0
Downside
 
scenario
Real
 
GDP
-6.6
0.5
0.7
612
20%
Unemployment
10.9
9.1
8.1
HPI
1.3
-1.9
-3.3
1
 
Real
 
GDP,
 
in
 
%
 
year
 
-on-year
 
change
2
 
Unemployment
 
in
 
%
 
of
 
total
 
labour
 
force
3
 
House
 
Price
 
Index
 
(HPI)
 
in
 
%
 
year-on-year
4
 
Sensitivity
 
does
 
not
 
include
 
the
 
effect
 
of
 
manual
 
adjustments,
 
which
 
are
 
not
 
material
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
|
 
 
|
 
statements
|
 
 
 
statements
|
 
 
|
 
 
 
statements
 
ING
 
Group
 
Interim
 
financial
 
report
 
on
 
form
 
6-K
 
for
 
the
 
period
 
ended
 
30
 
June
 
2020
 
-
 
Unaudited
21
 
The
 
setting
 
of
 
PD
 
threshold
 
bandings
 
requires
 
management
 
judgement,
 
and
 
is
 
a
 
key
 
source
 
of
 
estimation
uncertainty.
 
To
 
demonstrate
 
the
 
sensitivity
 
of
 
the
 
ECL
 
to
 
these
 
PD
 
thresholds
 
bandings,
 
analysis
 
was
 
run
 
on
all
 
collectively
 
-assessed
 
assets,
 
which
 
assumed
 
all
 
assets
 
(Stage
 
1
 
and
 
2)
 
were
 
below
 
the
 
threshold,
 
and
apportioned
 
a
 
12
 
month
 
ECL.
 
On
 
ING
 
Group
 
level,
 
the
 
total
 
ECL
 
collective
 
-assessment
 
for
 
performing
 
assets
 
is
€2,129
 
million
 
(2019:
 
€1,291
 
million).
 
On
 
the
 
same
 
asset
 
base,
 
analysis
 
was
 
run
 
which
 
assumed
 
all
 
performing
assets
 
were
 
above
 
the
 
threshold,
 
and
 
apportioned
 
a
 
lifet
 
ime
 
ECL.
 
This
 
gave
 
rise
 
to
 
a
 
hypothetical
 
collective-
assessment
 
ECLs
 
€1,636
 
million
 
(2019:
 
€866
 
million)
 
and
 
€3,409
 
million
 
(2019:
 
€2,665
 
million)
 
respectively.
Please
 
note
 
that
 
in
 
this
 
analysis
 
all
 
other
 
ECL
 
risk
 
parameters
 
(except
 
for
 
the
 
stage)
 
were
 
kep
 
t
 
equal.
 
 
It
 
should
 
be
 
noted
 
that
 
the
 
lifetime
 
PD
 
thresholds
 
are
 
not
 
the
 
only
 
drivers
 
of
 
stage
 
allocation.
 
An
 
asset
 
can
change
 
stages
 
as
 
a
 
result
 
of
 
being
 
in
 
arrears,
 
on
 
a
 
Watch
 
List
 
or
 
being
 
forborne,
 
among
 
other
 
triggers.
 
Market
 
risk
 
in
 
trading
 
books(*)
 
Sensitivities
 
(*)
As
 
part
 
of
 
the
 
risk
 
monitoring
 
framework,
 
ING
 
actively
 
monitors
 
the
 
daily
 
changes
 
of
 
sensitivities
 
of
 
the
trading
 
portfolios.
 
Sensitivities
 
measure
 
the
 
impact
 
of
 
movements
 
in
 
individual
 
market
 
risk
 
factors
 
(foreign
exchange
 
rates,
 
interest
 
rates,
 
credit
 
spreads,
 
equity,
 
and
 
commodity
 
prices)
 
on
 
profit
 
and
 
loss
 
results
 
of
 
the
trading
 
positions
 
and
 
portfolios.
 
 
The
 
following
 
tables
 
show
 
the
 
five
 
largest
 
trading
 
positions
 
in
 
terms
 
of
 
sensitivities
 
to
 
foreign
 
exchange,
interest
 
rate
 
and
 
credit
 
spread
 
risk
 
factor
 
movements.
 
These
 
largest
 
exposures
 
also
 
reflect
 
concentrations
 
of
risk
 
in
 
FX
 
risk
 
per
 
currency,
 
IR
 
risk
 
per
 
currency,
 
and
 
Credit
 
Spread
 
risk
 
per
 
country
 
and
 
rating
 
and
 
sector.
 
Due
to
 
the
 
nature
 
of
 
the
 
trading
 
portfolios,
 
positions
 
in
 
the
 
portfolios
 
can
 
change
 
significantly
 
from
 
day
 
to
 
day,
and
 
sensitivities
 
of
 
the
 
portfolios
 
can
 
change
 
daily
 
accordingly.
 
Most
 
important
 
foreign
 
exchange
 
trading
 
positions
 
(*)
amounts
 
in
 
EUR
 
millions
30
 
June
 
2020
31
 
December
2019
Foreign
 
exchange
Foreign
 
exchange
US
 
Dollar
127
US
 
Dollar
116
Great
 
Britain
 
Pound
-37
Chinese
 
Yuan
 
Renminbi
–21
Chinese
 
Yuan
 
Renminbi
27
South
 
Korean
 
Won
20
Japanese
 
Yen
-26
Brazilian
 
Real
–15
Switzerland
 
Franc
-24
Japanese
 
Yen
–10
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
|
 
 
|
 
statements
|
 
 
 
statements
|
 
 
|
 
 
 
statements
 
ING
 
Group
 
Interim
 
financial
 
report
 
on
 
form
 
6-K
 
for
 
the
 
period
 
ended
 
30
 
June
 
2020
 
-
 
Unaudited
22
 
Most
 
important
 
interest
 
rate
 
and
 
credit
 
spread
 
sensitivities
 
(*)
amounts
 
in
 
EUR
 
thousands
30
 
June
 
2020
31
 
December
2019
Interest
 
Rate
 
(BPV)
 
1
Interest
 
Rate
 
(BPV)
 
1
Euro
-1,280
Euro
–740
US
 
Dollar
-745
US
 
Dollar
–325
Great
 
-Britain
 
Pound
-154
Russian
 
Ruble
–105
Japanese
 
Yen
-92
Great
 
-Britain
 
Pound
–68
Australian
 
Dollar
-66
Australian
 
Dollar
–31
Credit
 
Spread
 
(CSO1)
 
2
Credit
 
Spread
 
(CSO1)
 
2
Germany
153
United
 
States
360
United
 
States
109
Germany
163
Republic
 
of
 
Korea
-58
France
117
Indonesia
42
Russian
 
Federation
73
United
 
Kingdom
40
United
 
Kingdom
72
1
 
Basis
 
Point
 
Value
 
(BPV)
 
measures
 
the
 
impact
 
on
 
value
 
of
 
a
 
1
 
basis
 
point
 
increase
 
in
 
interest
 
rates.
 
The
 
figures
 
include
 
commodity
 
risk
 
in
banking
 
books.
2
 
Credit
 
Spread
 
Sensitivity
 
(CS01)
 
measures
 
the
 
impact
 
on
 
value
 
of
 
a
 
1
 
basis
 
point
 
increase
 
in
 
credit
 
spreads.
 
Exposures
 
to
 
supranational
institutions
 
are
 
not
 
assigned
 
to
 
a
 
specific
 
country.
 
 
 
 
 
 
 
 
 
Credit
 
spread
 
sensitivities
 
per
 
risk
 
class
 
and
 
sector
 
(excluding
 
sovereign
 
exposures)
 
(*)
30
 
June
 
2020
31
 
December
 
2019
amounts
 
in
 
EUR
 
thousands
Corporate
Financial
Institutions
Corporate
Financial
Institutions
Credit
 
Spread
 
(CSO1)
 
1
Risk
 
classes
1
 
(AAA)
1
-3
1
–1
2–4
 
(AA)
21
-64
–15
–63
5–7
 
(A)
56
-50
143
32
8–10
 
(BBB)
207
-24
273
1
11–13
 
(BB)
57
-4
148
9
14–16
 
(B)
20
-2
51
1
17–22
 
(CCC
 
and
 
NPL)
3
26
Not
 
rated
Total
365
-147
626
–21
1
 
Credit
 
Spread
 
Sensitivity
 
(CS01)
 
measures
 
the
 
impact
 
on
 
value
 
of
 
a
 
1
 
basis
 
point
 
increase
 
in
 
credit
 
spreads.
 
 
 
 
 
 
 
 
 
 
 
|
 
 
|
 
statements
|
 
 
 
statements
|
 
 
|
 
 
 
statements
 
ING
 
Group
 
Interim
 
financial
 
report
 
on
 
form
 
6-K
 
for
 
the
 
period
 
ended
 
30
 
June
 
2020
 
-
 
Unaudited
23
 
Other
 
risks
 
and
 
uncertainties
 
Because
 
we
 
are
 
a
 
financial
 
services
 
company
 
conducting
 
business
 
on
 
a
 
global
 
basis,
 
our
 
revenues
 
and
earnings
 
are
 
affected
 
by
 
the
 
volatility
 
and
 
strength
 
of
 
the
 
economic,
 
business,
 
liquidity,
 
funding
 
and
 
capital
markets
 
environments
 
specific
 
to
 
the
 
geographic
 
regions
 
in
 
which
 
we
 
conduct
 
business.
 
The
 
ongoing
turbulence
 
and
 
volatility
 
of
 
such
 
factors
 
have
 
adversely
 
affected,
 
and
 
may
 
continue
 
to
 
adversely
 
affect,
 
the
profitability,
 
solvency
 
and
 
liquidity
 
of
 
our
 
business.
 
 
Factors
 
such
 
as
 
interest
 
rates,
 
securities
 
prices,
 
credit
 
ratings,
 
credit
 
spreads,
 
liquidity
 
spreads,
 
exchange
rates,
 
effects
 
of
 
the
 
Covid-19
 
pandemic,
 
consequences
 
of
 
the
 
United
 
Kingdom’s
 
withdrawal
 
from
 
the
European
 
Union,
 
changes
 
to
 
‘benchmark’
 
indices,
 
consumer
 
spending,
 
changes
 
in
 
client
 
behaviour,
 
business
investment,
 
real
 
estate
 
values
 
and
 
private
 
equity
 
valuations,
 
government
 
spending,
 
inflation
 
or
 
deflation,
 
the
volatility
 
and
 
strength
 
of
 
the
 
capital
 
markets,
 
political
 
events
 
and
 
trends,
 
non-compliance
 
with
 
(or
 
changes)
 
in
laws
 
and
 
re
 
gulations,
 
climate
 
change,
 
terrorism,
 
as
 
well
 
as
 
inability
 
to
 
protect
 
our
 
intellectual
 
property
 
and
infringement
 
claims
 
by
 
third
 
parties,
 
to
 
achieve
 
our
 
strategy
 
or
 
to
 
retain
 
key
 
personnel
 
may
 
all
 
impact
 
the
business
 
and
 
economic
 
environment
 
and,
 
ultimately,
 
our
 
solvency,
 
liquidity
 
and
 
the
 
amount
 
and
 
profitability
of
 
business
 
we
 
conduct
 
in
 
a
 
specific
 
geographic
 
region.
 
 
Additional
 
risks
 
of
 
which
 
the
 
ING
 
is
 
not
 
presently
 
aware,
 
or
 
that
 
are
 
currently
 
viewed
 
as
 
less
 
material
 
than
 
the
risks
 
described
 
above,
 
could
 
also
 
affect
 
the
 
business
 
operations
 
of
 
ING
 
and
 
have
 
a
 
material
 
adverse
 
effect
 
on
ING’s
 
business
 
activities,
 
financial
 
condition,
 
results
 
of
 
operations
 
and
 
prospects.
 
For
 
more
 
information
 
on
risks,
 
please
 
refer
 
to
 
“Other
 
information
 
and
 
appendices
 
-
 
Risk
 
Factors”
 
in
 
the
 
Annual
 
Report
 
on
 
Form
 
20-F
 
of
ING
 
Group
 
for
 
the
 
year
 
ended
 
December
 
31,
 
2019."
Developments
 
on
 
KYC
In
 
the
 
first
 
half
 
year
 
of
 
2020,
 
as
 
part
 
of
 
this
 
process,
 
the
 
Risk
 
Committee
 
and
 
the
 
Supervisory
 
Board
 
spent
considerable
 
time
 
discussing,
 
among
 
other
 
things,
 
the
 
progress
 
in
 
the
 
bank-wide
 
Know
 
Your
 
Customer
Enhancement
 
Programme.
 
The
 
KYC
 
Enhancement
 
Programme
 
encompasses
 
all
 
client
 
segments
 
in
 
all
 
ING
 
business
 
units.
 
The
 
programme
consists
 
of
 
three
 
parts:
 
(a)
 
look-back
 
analysis
 
on
 
past
 
deficiencies
 
in
 
post
 
-transaction
 
monitoring.
 
The
 
look-
back
 
analysis
 
consists
 
of
 
screening
 
of
 
transactions
 
executed
 
in
 
the
 
past.
 
In
 
case
 
unusual
 
transactions
 
are
identified,
 
ING
 
is
 
committed
 
to
 
following
 
the
 
applicable
 
reporting
 
process;
 
(b)
 
enhancement
 
of
 
customer
 
due
diligence
 
files
 
with
 
the
 
aim
 
to
 
document
 
sufficiently
 
the
 
knowledge
 
the
 
bank
 
has
 
about
 
its
 
clients
 
in
 
the
 
line
with
 
past
 
and
 
new
 
requirements;
 
(c)
 
structural
 
solutions
 
that
 
should
 
support
 
getting
 
sustainably
 
better
 
in
addressing
 
money
 
laundering
 
risks
 
in
 
our
 
portfolio
 
and
 
complying
 
with
 
laws
 
and
 
regulations.
 
 
The
 
structural
 
solutions
 
comprise
 
five
 
pillars:
 
 
Development
 
and
 
global
 
roll
 
-out
 
of
 
KYC
 
risk
 
appetite
 
statements,
 
KYC
 
risk
 
assessments
 
on
 
clients,
capability
 
structure
 
and
 
maturity
 
assessments;
 
 
Development
 
and
 
global
 
roll
 
-out
 
of
 
a
 
bank-wide
 
KYC
 
digital
 
service
 
platform;
 
Translation
 
of
 
risk
 
assessment
 
outcomes
 
into
 
scenarios
 
and
 
alert
 
definitions
 
that
 
can
 
be
 
applied
 
in
transaction
 
monitoring;
 
Set
 
up
 
central
 
KYC
 
organisation
 
that
 
defines
 
standards
 
and
 
drives
 
global
 
execution
 
and
 
improvements;
and
 
Develop
 
and
 
rollout
 
KYC
 
communication
 
and
 
awareness
 
initiatives
 
and
 
set
 
up
 
a
 
behavioural
 
risk
department
 
that
 
performs
 
risk
 
assessments.
 
In
 
the
 
first
 
half-year
 
2020,
 
ING
 
continued
 
to
 
make
 
progress
 
in
 
executing
 
the
 
Global
 
KYC
 
Enhancement
Program.
 
Several
 
workstreams
 
have
 
delivered
 
on
 
their
 
commitments
 
and
 
further
 
improvement
 
activities
 
are
now
 
embedded
 
in
 
continuous
 
improvement
 
cycles
 
in
 
regular
 
operations.
 
Key
 
achievements
 
in
 
the
 
past
months
 
include
 
among
 
others:
 
the
 
adjusted
 
Global
 
KYC
 
organisation
 
started
 
on
 
1st
 
February
 
with
 
the
 
establishment
 
of
 
three
 
pillars
 
-
Customer
 
Due
 
Diligence,
 
Transac
 
tion
 
Monitoring
 
and
 
Screening
 
 
to
 
enhance
 
end-to-end
 
steering
 
and
ownership;
 
the
 
adoption
 
of
 
ING’s
 
2020
 
Global
 
KYC
 
RAS,
 
which
 
includes
 
a
 
number
 
of
 
inclusions
 
set
 
for
 
high
 
risk
client
 
relationships;
 
and
 
the
 
partnership
 
with
 
the
 
Association
 
of
 
Certified
 
Ant
 
i-Money
 
Laundering
 
Specialists
 
(ACAMS)
 
to
 
rollout
their
 
internationally
 
recognised
 
and
 
certified
 
KYC
 
training
 
for
 
ING
 
employees
 
.
 
 
 
 
 
 
 
 
 
 
 
|
 
 
|
 
statements
|
 
 
 
statements
|
 
 
|
 
 
 
statements
 
ING
 
Group
 
Interim
 
financial
 
report
 
on
 
form
 
6-K
 
for
 
the
 
period
 
ended
 
30
 
June
 
2020
 
-
 
Unaudited
24
 
IBOR
 
Transition
 
Interbank
 
offered
 
rates,
 
such
 
as
 
EURIBOR
 
and
 
LIBOR,
 
are
 
widely
 
used
 
as
 
benchmarks
 
to
 
set
 
interest
 
rates
across
 
a
 
broad
 
range
 
of
 
financial
 
products
 
and
 
contracts.
 
In
 
line
 
with
 
recommendations
 
from
 
the
 
Financial
Stability
 
Board,
 
a
 
fundamental
 
review
 
and
 
reform
 
of
 
the
 
major
 
interest
 
rates
 
benchmarks
 
has
 
been
undertaken.
 
For
 
the
 
Eurozone,
 
this
 
led
 
to
 
a
 
reform
 
of
 
the
 
EURIBOR
 
benchmark
 
rate
 
and
 
development
 
of
 
€STR
as
 
the
 
recommended
 
new
 
nearly
 
risk-free-rate
 
(RFR)
 
to
 
replace
 
EONIA.
 
For
 
LIBOR
 
benchmarks,
 
the
 
reform
will
 
include
 
replacing
 
interest
 
rate
 
benchmarks
 
with
 
alternative,
 
nearly
 
risk-free
 
rates.
 
This
 
process
 
is
 
at
different
 
stages,
 
and
 
is
 
progressing
 
at
 
different
 
speeds,
 
across
 
several
 
major
 
currencies.
 
 
ING
 
Bank
 
has
 
exposure
 
to
 
IBORs
 
through
 
various
 
products
 
in
 
all
 
of
 
its
 
business
 
lines
 
(wholesale
 
banking,
 
retail
banking,
 
business
 
banking)
 
and
 
exposure
 
relating
 
to
 
the
 
associated
 
funding
 
and
 
hedging
 
activities
 
including
debt
 
issuance,
 
the
 
interest
 
rate
 
risk
 
position,
 
holdings
 
of
 
investment
 
securities,
 
etc.
 
ING
 
has
 
established
 
a
global
 
IBOR
 
Transition
 
Program
 
to
 
manage
 
the
 
transition.
 
The
 
program
 
performs
 
the
 
assessment
 
and
 
actions
necessary
 
to
 
manage
 
a
 
smooth
 
transition
 
to
 
RFRs
 
within
 
all
 
internal
 
processes
 
and
 
systems,
 
including
 
pricing,
risk
 
management,
 
legal
 
documentation,
 
hedge
 
arrangements,
 
as
 
well
 
as
 
any
 
impact
 
on
 
customers.
 
The
 
Covid-19
 
virus
 
outbreak
 
has
 
impacted
 
the
 
progress
 
in
 
a
 
number
 
of
 
interim
 
industry
 
developments
intended
 
to
 
aid
 
transition.
 
However,
 
the
 
key
 
industry
 
working
 
groups
 
are
 
active
 
and
 
the
 
FCA
 
has
 
reiterated
that
 
the
 
working
 
assumption
 
that
 
LIBOR
 
cannot
 
be
 
assumed
 
to
 
be
 
available
 
beyond
 
the
 
end
 
of
 
2021
 
remains.
 
ING
 
is
 
proactively
 
reaching
 
out
 
to
 
industry
 
participants,
 
counterparties
 
and
 
clients
 
to
 
create
 
awareness
 
and
offer
 
support
 
on
 
the
 
upcoming
 
transition.
 
 
At
 
ING,
 
progress
 
has
 
been
 
made
 
in
 
H1
 
2020
 
on
 
the
 
IBOR
 
execution
 
activities
 
in
 
all
 
Business
 
Lines
 
of
 
the
 
bank.
The
 
program
 
has
 
a
 
robust
 
governance
 
in
 
place,
 
with
 
progress
 
being
 
tracked
 
by
 
business
 
line
 
Steering
committees
 
reporting
 
into
 
the
 
central
 
IBOR
 
Steering
 
committee.
 
ING
 
is
 
well
 
on
 
track
 
to
 
meet
 
the
 
external
milestones
 
of
 
2020
 
and
 
finalizing
 
detailed
 
roadmaps
 
and
 
resource
 
planning
 
for
 
implementation
 
in
 
2021.
 
ING
is
 
monitor
 
ing
 
market
 
developments
 
closely,
 
as
 
there
 
remain
 
some
 
uncertainties
 
in
 
the
 
industry.