Investments in associates and joint ventures	6 Months Ended
Investments in associates and joint ventures	Jun. 30, 2022
Investments in associates and joint ventures [Abstract]
Investments in associates and joint ventures	5 Investments in associates and joint ventures Investments in associates and joint ventures in EUR million 30 June 2022 Interest held (%) Fair value of listed invest- ments Balance sheet value Total assets Total liabilities Total income Total expenses TMBThanachart Bank Public Company Limited 23 743 1,096 48,680 42,879 429 321 Other investments in associates and joint ventures 381 1,477 Investments in associates and joint ventures in EUR million 31 December 2021 Interest held (%) Fair value of listed invest- ments Balance sheet value Total assets Total liabilities Total income Total expenses TMBThanachart Bank Public Company Limited 23 866 1,208 46,478 40,957 1,286 1,038 Other investments in associates and joint ventures 379 1,587 The reporting dates of certain associates and joint ventures can differ from the reporting date of the Group, but by no more than three months. TMBThanachart Bank Public Company Limited ING Group has a 23 % investment in TMBThanachart Bank Public Company Limited (hereafter: TTB), a bank listed on the Stock Exchange of Thailand. TTB is providing products and services to Wholesale, Small and Medium Enterprise (SME), and Retail customers. TTB is accounted for as an investment in associate based on the size of ING shareholding and representation on the Board. Impairment testing The fair value has been below the purchase cost of the investment for a prolonged period of time (since 1Q 2020). This is considered to be objective evidence of impairment. The impairment test performed led to an impairment at 31 March 2022 of EUR 150 million, as the recoverable amount of EUR 1,099 million, as determined by a Value in Use calculation, was below the carrying amount of EUR 1,249 million at that point in time. The impairment test at 30 June 2022 did not lead to an impairment loss. Methodology The recoverable amount is determined as the higher of the fair value less costs of disposal and Value in Use (‘VIU’). Fair value less costs of disposal is based on observable share price. The VIU calculation uses discounted cash flow projections based on management’s best estimates. VIU is derived using a Dividend Discount Model (DDM) where distributable equity, i.e. future earnings available to ordinary shareholders, is used as a proxy for future cash flows. The valuation looks at expected cash flows into perpetuity resulting in two main components to the VIU calculation: i) the estimation of future earnings over a 5 year forecast period; and ii) the terminal value being the extrapolation of earnings into perpetuity applying a long term growth rate. The earnings that are used for extrapolation represent the stable long term financial results and position of TTB, i.e. a steady state. The terminal value comprises the majority of the total VIU. Key assumptions used in the VIU calculation as at 30 June 2022 (and as at 31 March 2022 resulting in impairment) The VIU is determined using a valuation model which is subject to multiple management assumptions. The key assumptions, i.e. those to which the overall result is most sensitive to, are the following: ⬝ Expected future earnings of TTB: based on forecasts derived from broker consensus over the short to medium term and TTB observable targets for steady state earnings into perpetuity. A capital maintenance charge is applied, which is management’s forecast of the earnings that need to be withheld in order for TTB to meet target regulatory requirements over the forecast period; ⬝ Discount rate (cost of equity): 10.15 % (31 March 2022: 9.60 %), based on the capital asset pricing model (CAPM) calculated for TTB using current market data. ⬝ Terminal growth rate: 3.36 % (31 March 2022: 2.87 %) consistent with current long term government bond yield in Thailand as a proxy for a risk-free rate; As at 30 June 2022, the recoverable amount as determined by the VIU calculation is slightly above the carrying value of EUR 1,096 million. To assess the risk of further impairment at 30 June 2022, the model was evaluated for reasonably possible changes to key assumptions in the model. This reflects the sensitivity of the VIU to each key assumption on its own and it is possible that more than one favourable and/or unfavourable change may occur at the same time. Holding the other key assumptions constant, a reduction in all of the forecasted annual cash flows, including terminal value, of 40 bps would reduce the recoverable amount to the carrying amount. A 57 bps decrease in terminal growth rate or a 3 bps increase in the discount rate would cause the VIU to equal the carrying amount. Other investments in associates and joint ventures Included in Other investments in associates and joint ventures are mainly financial services and financial technology funds or vehicles operating predominantly in Europe. Other investments in associates and joint ventures represents a number of associates and joint ventures that are individually not significant to ING Group. Changes in Investments in associates and joint ventures in EUR million 30 June 2022 31 December 2021 Opening balance 1,587 1,475 Additions 16 91 Revaluations -6 -24 Share of results 35 141 Dividends received -31 -34 Disposals -6 -23 Impairments -153 -3 Exchange rate differences 29 -31 Other 4 -5 Closing balance 1,477 1,587 Share of results from associates and joint ventures of EUR 35 million (31 December 2021: EUR 141 million) as included in the table above is mainly attributable to results of TTB of EUR 37 million (31 December 2021: EUR 61 million).