Capital management

6 Months Ended

Jun. 30, 2022

Capital Management [Abstract]

Capital management

22 Capital management

ING Group’s Common Equity Tier 1 capital (CET1) ratio decreased to

14.7

% as at 30 June 2022 (31 December

2021:

15.9

%), mainly driven by an increase in risk-weighted assets due to model impacts and rating migration on

Russia-related exposure. 

ING’s CET1 target level is around

12.5

%. This target level is comfortably above the prevailing Maximum

Distributable Amount (MDA) level of

10.51

%, implying a management buffer of ~

200

 basis points.

Distribution

ING has reserved EUR

965

 million of the net profit of the 6 month period ended 30 June 2022 for distribution

outside of CET1 capital, reflecting our distribution policy of a

50

% pay-out ratio on resilient net profit. Resilient

net profit (which is defined as net profit adjusted for significant items not linked to the normal course of

business) in 1H2022 is EUR

1,883

 million, which includes a positive P&L adjustment of EUR

277

 million related to

hyperinflation accounting on Turkey . 

Following our distribution policy of a

50

% pay-out ratio on resilient net profit, a final cash dividend over 2021 of

EUR

0.41

 per share was paid on 9 May 2022. An interim dividend over 1H2022 of EUR

0.17

 per share will be paid

on 15 August 2022 (representing ~

1/3

 of the 1H2022 resilient net profit).

On 28 February 2022, ING announced that it had completed a share buyback programme for EUR

1,744

 million to

distribute the remaining amount of profits originally reserved over 2019. A total number of

139.7

 million ordinary

shares were repurchased under the programme and have been cancelled. 

On 6 May 2022, ING announced a next step to converge the CET1 ratio towards the CET1 target level by

distributing an additional EUR

1,250

 million. A cash dividend of EUR

0.232

 per share was paid on 18 May 2022

and a total number of

40.7

 million ordinary shares were repurchased by the remaining amount (EUR

380

 million)

via a share buyback programme, which was completed on 14 July 2022.

Ratings

The ratings and outlook from S&P, Moody’s and Fitch remained unchanged in the first half year of 2022.