Legal proceedings

6 Months Ended

Jun. 30, 2022

Legal proceedings [Abstract]

Legal proceedings

20 Legal proceedings

ING Group and its consolidated subsidiaries are involved in governmental, regulatory, arbitration and legal

proceedings and investigations in the Netherlands and in a number of foreign jurisdictions, including the U.S.,

involving claims by and against them which arise in the ordinary course of their businesses, including in

connection with their activities as lenders, broker-dealers, underwriters, issuers of securities and investors and

their position as employers and taxpayers. In certain of such proceedings, very large or indeterminate amounts

are sought, including punitive and other damages. 

This note should be read in conjunction with Note 46 of the 2021 consolidated financial statements of ING

Group, which included further details on legal proceedings.

While it is not feasible to predict or determine the ultimate outcome of all pending or threatened governmental,

regulatory, arbitration and legal proceedings and investigations, ING is of the opinion that some of the

proceedings and investigations set out below may have or have in the recent past had a significant effect on the

financial position, profitability or reputation of ING and/or ING and its consolidated subsidiaries.

SIBOR – SOR litigation:

 In July 2016, investors in derivatives tied to the Singapore Interbank Offer Rate (“SIBOR”)

filed a U.S. class action complaint in the New York District Court alleging that several banks, including ING,

conspired to rig the prices of derivatives tied to SIBOR and the Singapore Swap Offer Rate (“SOR”). The lawsuit

refers to investigations by the Monetary Authority of Singapore (“MAS”) and other regulators, including the U.S.

Commodity Futures Trading Commission (“CFTC”), in relation to rigging prices of SIBOR- and SOR based

derivatives. In October 2018, the New York District Court issued a decision dismissing all claims against ING

Group and ING Capital Markets LLC, but leaving ING Bank, together with several other banks, in the case, and

directing plaintiffs to file an amended complaint consistent with the Court's rulings. In October 2018, plaintiffs

filed such amended complaint, which asserts claims against a number of defendants but none against ING Bank

(or any other ING entity), effectively dismissing ING Bank from the case. In December 2018, plaintiffs sought

permission from the Court to file a further amended complaint that names ING Bank as a defendant. In July 2019,

the New York District Court granted the defendants’ motion to dismiss and denied leave to further amend the

complaint, effectively dismissing all remaining claims against ING Bank. In March 2021, the Second Circuit court

vacated the District Court’s ruling. The case was remanded to the District Court to reconsider the amended

complaint that would add ING Bank N.V. back to the case. In April 2021, the defendants filed a petition for

rehearing with the Second Circuit court. In May 2021, the Second Circuit court denied the defendants’ petition. In

March 2022, plaintiffs and ING executed a formal class settlement agreement. On June 9, 2022, the Court

preliminary approved ING’s settlement (and those of all other defendants) with plaintiffs.

Mortgage expenses claims:

 ING Spain has received claims and is involved in procedures with customers

regarding reimbursement of expenses associated with the formalisation of mortgages. In most court proceedings

in first instance the expense clause of the relevant mortgage contract has been declared null and ING Spain has

been ordered to reimburse all or part of the applicable expenses. Since 2018, the Spanish Supreme Court and the

European Court of Justice have issued rulings setting out which party should bear notary, registration, agency,

and stamp duty costs. In January 2021, the Spanish Supreme Court ruled that valuation costs of mortgages,

signed prior to 16 June 2019, the date the new mortgage law entered into force, should be borne by the bank.

Media attention for the statute of limitations applicable to the right to claim reimbursement of costs resulted in

an increased number of claims at the beginning of 2021. In June 2021, the Supreme Court published a press

release informing of its decision to ask the European Court of Justice for a preliminary ruling regarding the

criteria that should be applied to determine the date from which the action for claiming the reimbursement of

mortgage expenses is considered to be expired. ING Spain has also been included, together with other Spanish

banks, in three class actions filed by customer associations. In one of the class actions an agreement was reached

with the association. In another class action ING filed an appeal asking the Spanish Court of Appeal to determine

that the ruling of the court of first instance is only applicable to the consumers that were part of the case. The

National Court has revoked the ruling and declared that the consumers will not be able to initiate an action for

compensation based on first instance ruling, as the claimant association intended. This last decision is not yet

final, as it could be appealed in the Supreme Court. A provision has been established in the past and has been

adjusted where appropriate.

Imtech claim:

 In January 2018, ING Bank received a claim from Stichting ImtechClaim.nl and Imtech Shareholders

Action Group B.V. on behalf of certain (former) shareholders of Imtech N.V. (“Imtech”). Furthermore, in March

2018, ING Bank received another claim on the same subject matter from the Dutch Association of Stockholders

(Vereniging van Effectenbezitters, “VEB”). In June 2022 VEB reiterated and further substantiated its claim in a

letter to ING. Each of the claimants allege inter alia that shareholders were misled by the prospectus of the rights

issues of Imtech in July 2013 and October 2014. ING Bank, being one of the underwriters of the rights issues, is

held liable by the claimants for the damages that investors in Imtech would have suffered. ING Bank responded

to the claimants denying any and all responsibility in relation to the allegations made in the relevant letters. In

September 2018, the trustees in the bankruptcy of Imtech claimed from various financing parties, including ING,

payment of what the security agent has collected following bankruptcy or intends to collect, repayment of all

that was repaid to the financing parties, as well as compensation for the repayment of the bridge financing. At

this moment it is not possible to assess the outcome of these claims nor to provide an estimate of the (potential)

effect of these claims.

Certain Consumer Credit Products

: In October 2021, ING announced that it would offer compensation to certain

of its Dutch retail customers in connection with certain revolving consumer loans with variable interest rates that

allegedly did not sufficiently follow market rates. This announcement was made in response to a number of

rulings by the Dutch Institute for Financial Disputes (Kifid) regarding similar products at other banks. ING

currently expects that any such compensation will be paid before the end of 2022. ING has recognized a provision

of €

180

 million in 2021 for compensation and costs in connection with this matter. On 22 December 2021, ING

announced that it has reached an agreement with the Dutch Consumers’ Association (Consumentenbond) on the

compensation methodology for revolving credits. Meanwhile there are complaints handled by KIFID and cases

before the court against other banks about the method to be used for calculating compensation and about the

fairness of the interest clauses used. When final, such rulings can have an impact on financial institutions offering

consumer credit products with such interest clauses in the Netherlands, including ING.