2018 EU-wide Stress Test Summary for ING Groep N.V.
Core Information
Bank Name: ING Groep N.V.
LEI Code: 549300NYKK9MWM7GGW15
Country Code: NL (Netherlands)
Stress Test Period: 2018 EU-wide Stress Test
Key Financial Indicators
Profit and Income
Metric
Actual (31/12/2017)
Baseline Scenario (31/12/2018-2020)
Adverse Scenario (31/12/2018-2020)
Net Interest Income (mn EUR)
13,714
11,862 / 11,183 / 10,283
10,527 / 10,093 / 9,248
Gains or Losses on Financial Assets (mn EUR)
635
739 / 739 / 739
-3,188 / 554 / 554
Impairment or Reversal of Impairment (mn EUR)
-689
-1,358 / -969 / -909
-5,954 / -2,620 / -2,025
Profit or Loss for the Year (mn EUR)
4,987
2,626 / 2,969 / 2,395
-5,023 / 500 / 473
Capital Ratios
Metric
Actual (31/12/2017)
Baseline Scenario (31/12/2018-2020)
Adverse Scenario (31/12/2018-2020)
Common Equity Tier 1 (CET1) Capital (mn EUR)
45,581
45,072 / 45,411 / 45,080
37,550 / 38,236 / 38,862
CET1 Ratio (%)
14.71%
14.43% / 14.32% / 13.99%
11.47% / 10.96% / 10.70%
Fully Loaded CET1 Ratio (%)
14.68%
14.43% / 14.32% / 13.99%
11.47% / 10.96% / 10.70%
Tier 1 Capital (mn EUR)
50,325
50,250 / 50,589 / 49,638
42,728 / 43,413 / 43,421
Leverage Ratio (%)
4.65%
4.65% / 4.68% / 4.59%
3.95% / 4.02% / 4.02%
Fully Loaded Leverage Ratio (%)
4.46%
4.42% / 4.45% / 4.42%
3.72% / 3.79% / 3.85%
Credit Risk IRB Results
Exposure and Risk Exposure Amounts
Category
Exposure Values (mn EUR)
Risk Exposure Amounts (mn EUR)
Performing Exposure (mn EUR)
Non-Performing Exposure (mn EUR)
Stock of Provisions (mn EUR)
Of Which: from Non-Performing Exposures (mn EUR)
Coverage Ratio (%)
Central banks and central governments
97,467 / 0
0 / 0
5,819 / 0
251,192 / 6,725
2,919 / 2,328
30.0%
Institutions
76,469 / 316
0 / 0
12,797 / 5
39,531 / 6
9 / 3
55.5%
Corporates
291,701 / 7,115
0 / 0
122,592 / 10,139
251,192 / 6,725
2,919 / 2,328
34.6%
Corporates - Specialised Lending
113,839 / 2,830
0 / 0
36,434 / 3,449
102,411 / 2,712
921 / 756
27.9%
Corporates - SME
28,769 / 1,258
0 / 0
14,581 / 1,470
25,826 / 1,136
483 / 377
33.2%
Retail
315,129 / 4,208
0 / 0
49,942 / 6,715
306,573 / 4,084
1,377 / 946
23.2%
Retail - Secured on Real Estate
289,176 / 3,486
0 / 0
38,279 / 5,639
285,596 / 3,394
702 / 493
14.6%
Retail - Secured on Real Estate - SME
11,035 / 554
0 / 0
3,202 / 518
10,714 / 544
205 / 160
29.4%
Retail - Secured on Real Estate - non-SME
278,141 / 2,932
0 / 0
35,073 / 5,120
274,882 / 2,847
497 / 333
11.7%
Retail - Other Retail
25,952 / 722
0 / 0
11,667 / 1,076
20,977 / 693
675 / 453
65.3%
Retail - Other Retail - SME
4,665 / 279
0 / 0
1,957 / 518
3,822 / 256
216 / 161
62.7%
Retail - Other Retail - non-SME
21,287 / 443
0 / 0
9,710 / 558
17,154 / 437
459 / 292
66.9%
IRB TOTAL
780,766 / 11,638
0 / 0
191,150 / 16,859
656,994 / 10,814
4,309 / 3,277
30.3%
Summary of Key Findings
Core Business Performance
Net interest income decreased over the stress test period, showing a decline from 13,714 mln EUR in 2017 to 10,283 mln EUR in the baseline scenario and further to 9,248 mln EUR in the adverse scenario.
Profit for the year was 4,987 mln EUR in 2017, but declined to 2,395 mln EUR in the baseline scenario and turned negative in the adverse scenario, reaching -5,023 mln EUR.
Capital Adequacy
CET1 ratio dropped from 14.71% in 2017 to 13.99% in the baseline scenario and further to 10.70% in the adverse scenario.
Leverage ratio also declined from 4.65% in 2017 to 4.59% in the baseline scenario and to 4.02% in the adverse scenario.
Fully loaded CET1 and leverage ratios show similar trends, indicating the bank's capital remains under pressure in adverse conditions.
Credit Risk Exposure
Credit risk exposure is categorized into performing and non-performing exposures, with the latter being a significant portion of the total risk exposure.
Non-performing exposure was 656,994 mln EUR in the baseline scenario and 656,994 mln EUR in the adverse scenario.
Coverage ratio for non-performing exposures stood at 30.3% in the baseline and 30.3% in the adverse scenario, indicating a relatively stable coverage despite the stress.
Notes
Mandatory conversion instruments were not included in the CET1 calculation.
Eligible instruments that could convert into Common Equity Tier 1 or be written down upon a trigger event were included, with a total of 5,178 mln EUR.
The data is computed as defined in paragraphs 49 and 112 of the Methodological note.
