Basis of preparation and significant accounting policies	6 Months Ended
	Jun. 30, 2022
Basis of preparation and significant accounting policies [abstract]
Basis for preparation and significant accounting policies	1 Basis of preparation and significant accounting policies 1.1 Reporting entity and authorisation of the Consolidated financial statements ING Groep N.V. is a company domiciled in Amsterdam, the Netherlands. Commercial Register of Amsterdam, number 33231073. These Condensed consolidated interim financial statements, as at and for the six month period ended 30 June 2022, comprise ING Groep N.V. (the Parent company) and its subsidiaries, together referred to as ING Group. ING Group is a global financial institution with a strong European base, offering a wide range of retail and wholesale banking services to customers in over 40 countries. The ING Group Condensed consolidated interim financial statements, as at and for the six month period ended 30 June 2022, were authorised for issue in accordance with a resolution of the Executive Board on 3 August 2022. 1.2 Basis of preparation of the Consolidated financial statements The ING Group Condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standard 34 ‘ Interim Financial Reporting’. The accounting policies used to prepare the Condensed consolidated interim financial statements are consistent with International Financial Reporting Standards as issued by the International Accounting Standards Board (IFRS -IASB) and are consistent with those set out in the notes to the 2021 Consolidated financial statements as included in the Annual Report on Form 20-F of ING Group except for the adoption of a number of amendments effective in 2022 as set out in Note 1.4 ‘Changes to accounting policies’. The Condensed consolidated interim financial statements should be read in conjunction with ING Group’s 2021 Consolidated financial statements as included in the Form 20- F. The ING Group Condensed consolidated interim financial statements have been prepared on a going concern basis. The Consolidated financial statements are presented in euros and rounded to the nearest million, unless stated otherwise. Amounts may not add up due to rounding. 1.2.1 Presentation of Risk management disclosures Certain disclosures of the nature and extent of risks relate d to financial instruments as disclosed in the 2021 ING Group Consolidated financial statements as included in the 2021 Annual Report are updated and take into account developments in the first six months of 2022. These disclosures are an integral part of ING Group Condensed consolidated interim financial statements and are indicated in the ‘Risk management’ section by the symbol (*). Chapters, paragraphs, graphs or tables within the 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 statements. 1.2.2 Reconciliation between IFRS-EU and IFRS-IASB The 2021 ING Group Consolidated financial statements and the 2022 ING Group Condensed consolidated interim financial statements are prepared in accordance with IFRS-EU. IFRS-EU refers to International Financial Reporting Standards (‘IFRS’) as adopted by the European Union (EU), including the decisions ING Group made with regard to the options available under IFRS as adopted by the EU. IFRS-EU differs from IFRS -IASB in respect of certain paragraphs in IAS 39 ‘Financial Instruments: Recognition and Measurement’ regarding hedge accounting for portfolio hedges of interest rate risk. Under IFRS-EU, ING Group applies fair value hedge accounting for portfolio hedges of interest rate risk (fair value macro hedges) in accordance with the EU carve-out version of IAS 39. Under the EU IAS 39 carve-out, hedge accounting may be applied, in respect of fair value macro hedges, to core deposits and hedge ineffectiveness is only recognised when the revised estimate of the amount of cash flows in scheduled time buckets falls below the original designated amount of that bucket and is not recognised when the revised amount of cash flows in scheduled time buckets is more than the original designated amount. Under IFRS-IASB, hedge accounting for fair value macro hedges cannot be applied to core deposits and ineffectiveness arises whenever the revised estimate of the amount of cash flows in scheduled time buckets is either more or less than the original designated amount of that bucket. This information is prepared by reversing the hedge accounting impacts that are applied under the EU ‘carve- out’ version of IAS 39. Financial information under IFRS-IASB accordingly does not take account of the possibility that had ING Group applied IFRS-IASB as its primary accounting framework it might have applied alternative hedge strategies where those alternative hedge strategies could have qualified for IFRS-IASB compliant hedge accounting. These decisions could have resulted in different shareholders’ equity and net result amounts compared to those indicated in this Condensed consolidated interim financial statements on Form 6-K. In the first six months of 2022, interest yields increased resulting in a positive EU IAS39 carve out adjustment of EUR 8,594 million (2021 first six months EUR 956 million positive). The impact of the adjustment is mainly reflected in line item ‘Valuation results and net trading income’ in the statement of profit or loss. A reconciliation between IFRS-EU and IFRS-IASB is included below. Both IFRS-EU and IFRS-IASB differ in several areas from accounting principles generally accepted in the United States of America (US GAAP). Reconciliation net result under IFRS-EU and IFRS-IASB 1 January to 30 June in EUR million 2022 2021 In accordance with IFRS-EU (attributable to the shareholders of the parent) 1,606 2,464 Adjustment of the EU IAS 39 carve-out 8,594 956 Tax effect of the adjustment 1) -2,456 -260 Effect of adjustment after tax 6,139 697 In accordance with IFRS-IASB (attributable to the shareholders of the parent) 7,745 3,161 1) includes the effect of changes in tax rate. Reconciliation shareholders’ equity under IFRS-EU and IFRS-IASB in EUR million 30 June 2022 31 December 2021 In accordance with IFRS-EU (attributable to the shareholders of the parent) 51,628 53,919 Adjustment of the EU IAS 39 carve-out 6,099 -2,490 Tax effect of the adjustment -1,817 637 Effect of adjustment after tax 4,281 -1,853 In accordance with IFRS-IASB Shareholders’ equity 55,910 52,066 1.3 Impact of Russian invasion in Ukraine The Russian invasion of Ukraine is a significant tragedy, which is having a devastating impact on people’s lives and is threatening international stability and security. The invasion has introduced increased level of estimation uncertainty and increased credit risk on ING’s Russian-related exposure which led to higher Loan loss provisions in the first six months of 2022. In the course of the second quarter other risks have emerged resulting from second-order impacts mainly reflected in high energy prices, high interest rates and inflation, supply chain disruptions and staffing shortages. Reference is made to Risk Management chapter for further information on the impact of the Russian invasion of Ukraine and second order impacts. Furthermore, reference is made to paragraph 1.5 for areas of ‘Significant judgements and critical accounting estimates and assumptions’ 1.4 Changes to accounting policies and presentation ING Group has consistently applied its accounting policies to all periods presented in these Condensed consolidated interim financial statement. 1.4.1 Changes in IFRS effective in 2022 The following amended standards became effective in 2022: ◾ Amendments to IFRS 3 ‘Business Combinations’: Reference to the Conceptual Framework (issued in May 2020). ◾ Amendments to IAS 16 ‘Property, Plant and Equipment’: Proceeds before Intended Use (issued in May 2020). ◾ Amendments to IAS 37 ‘Provisions, Contingent Liabilities and Contingent Assets’: Onerous Contracts — Cost of Fulfilling a Contract (issued in May 2020). ◾ Annual improvements to IFRS Standards 2018-2020 Cycle: Amendments to IFRS 1 ‘First-time Adoption of International Financial Reporting Standards’, amendments to IFRS 9 ‘Financial Instruments’ and amendments to IFRS 16 ‘Leases’ (issued in May 2020). The above changes did not have significant impact on ING Group’s Consolidated financial statements. ING Group has not early adopted any standard, interpretation or amendment in 2022 which has been issued, but is not yet effective. 1.4.2 Upcoming changes in IFRS after 2022 The following published amendments are not mandatory for 2022 and have not been early adopted by ING Group. ING Group is still currently assessing the detailed impact of these amendments. However, the implementation of these amendments is expected to have no significant impact on ING Group’s consolidated financial statements: ◾ Amendments to IAS 1 ‘Presentation of Financial Statements’: Classification of Liabilities as Current or Non- current (issued in January 2020). ◾ Amendments to IAS 1 ‘Presentation of Financial Statements’: Disclosure of Accounting Policies (issued in February 2021). ◾ Amendments to IAS 8 ‘Accounting Policies, Changes in Accounting Estimates and Errors’: Definition of Accounting Estimates (issued in February 2021). ◾ Amendments to IAS 12 ‘Income Taxes’: Deferred Tax Related to Assets and Liabilities Arising From a Single Transaction (issued in May 2021). IFRS 17 ‘Insurance contracts’ – effective in 2023 In May 2017, the IASB issued IFRS 17 ‘Insurance Contracts’, a new accounting standard for insurance contracts covering recognition and measurement, presentation and disclosure. Once effective, IFRS 17 will replace IFRS 4 ‘Insurance Contracts’, which allowed diversity in accounting practices for insurance contracts. In June 2020, the IASB published amendments to IFRS 17 including a scope exclusion for credit card contracts and similar contracts that provide insurance coverage, and an optional scope exclusion for loans with death waivers. ING Group does not have an insurance business, but on a limited basis sells insurance products as a broker where it does not run the insurance risk. ING Group performed an assessment which revealed only a limited number of products that might be in scope and the potential financial impact of IFRS 17, if any or expected to be limited, will be quantified with reasonable certainty later in the year. 1.5 Significant judgements and critical accounting estimates and assumptions The preparation of the Condensed consolidated interim financial statements requires management to make judgements in the process of applying its accounting policies and to use estimates and assumptions. The estimates and assumptions affect the reported amounts of the assets and liabilities and the amounts of the contingent assets and contingent liabilities at the balance sheet date, as well as reported income and expenses for the period. The actual outcome may differ from these estimates. The process of setting assumptions is subject to internal control procedures and approvals. Consistent with Note 1.5 ‘Significant judgements and critical accounting estimates and assumptions’ of the 2021 ING Group Consolidated financial statements, the following areas continue to require management to make significant judgements and use critical accounting estimates and assumptions based on the information and financial data that may change in future periods: ● Loan loss provisions (financial assets); ● The determination of the fair values of financial assets and liabilities; ● Impairment assessment of an investment in associate; ● Provisions; and ● Accounting for Targeted Longer-Term Refinancing Operations (TLTRO). 1.6 Other developments Application of IAS 29 ‘Financial Reporting in Hyperinflationary Economies’ During the second quarter of 2022 Turkey became a hyperinflationary economy for accounting purposes. As ING Group has a subsidiary in Turkey, ING Group applied IAS 29 ‘Financial Reporting in Hyperinflationary Economies’ to its operations as if the economy in Turkey had always been hyperinflationary. Given that ING Group presents its results in EUR, comparatives were not restated and IAS 29 was applied from 1 January 2022 with the impact of the first-time application and the effect for the period both shown in these Condensed consolidated interim financial statements for the six month period ended 30 June 2022. Under IAS 29, the results of the operations in Turkey should be stated in terms of the current purchasing power at the reporting date. For that, the consumer price index (CPI) as determined by the Turkish Statistical Institute was used. The development of the CPI during the six month period ended 30 June 2022 was as follows (2003=100): 1 January 2022 686.95 30 June 2022 977.90 Change for the period 42.35 % To state all the items in the financial statements in terms of their current purchasing power at the reporting date, ING Group restated the non-monetary items of ING Turkey (such as properties and equipment, intangibles, right-of use assets, shareholder’s equity) for the changes in CPI up to the reporting date. Monetary items (such as cash and balances with banks, loans and advances, deposits) are not restated as they are already expressed in the current purchasing power. Furthermore, all items in the statement of comprehensive income were also restated for the effects of inflation based on the developments in CPI during the six month period to reflect the purchasing power as at 30 June 2022. The effect of such restatement of the statement of comprehensive income and the balance sheet for inflation in the current period has been recognised in the statement of profit or loss within ‘Other income’ as a ‘Net monetary gain or loss’. The net monetary loss for the period represents the loss of purchasing power by the net monetary position (monetary assets exceeding monetary liabilities) of ING Turkey. After the application of the above restatement procedures in Turkish Lira under IAS 29, the financial position and the results for the period of ING Turkey are translated and presented in EUR at the exchange rate on 30 June 2022. For the statement of comprehensive income this is in contrast with the usual translation procedures where items of comprehensive income are translated at the exchange rate at the date of transaction. Furthermore, ING Group selected to present both the restatement effect resulting from restating ING Group’s interest in the equity of ING Turkey as required by IAS 29; and the translation effect from translating at a closing rate that differs from the previous closing rate, in the Currency translation reserve. Refer to Note 10 ‘Equity’ for the impact of applying IAS 29 during the six month period ended 30 June 2022.