2018 EU-wide Transparency Exercise Summary - ING Groep N.V.
Core Content Overview
The document presents the results of the 2018 EU-wide Transparency Exercise for ING Groep N.V., a Dutch bank. It includes detailed financial and capital data under various regulatory frameworks, primarily the Capital Requirements Regulation (CRR) and the Capital Requirements Directive (CRD). The data is structured to show capital components, capital ratios, risk exposures, and profit and loss (P&L) figures for the years 2017 and 2018.
Key Financial and Capital Data
Own Funds (Transitional Period)
| Component |
2017 (EUR) |
2018 (EUR) |
Regulation |
| Own Funds |
57,410 |
58,570 |
Articles 4(118) and 72 of CRR |
| CET1 Capital (net of deductions) |
45,581 |
44,833 |
Article 50 of CRR |
| CET1 Capital (fully loaded) |
45,503 |
44,754 |
Article 3 of CR |
| Tier 1 Capital |
50,326 |
50,137 |
Article 25 of CRR |
| Tier 2 Capital |
7,085 |
8,434 |
Article 71 of CRR |
Capital Ratios (Transitional Period)
- Common Equity Tier 1 (CET1) Ratio: 14.71% (2017) → 14.07% (2018)
- Tier 1 Capital Ratio: 16.24% (2017) → 15.73% (2018)
- Total Capital Ratio: 18.53% (2017) → 18.38% (2018)
Leverage Ratio
- Tier 1 Capital (Transitional): 50,326 mln EUR (2017) → 50,137 mln EUR (2018)
- Tier 1 Capital (Fully Phased-in): 48,291 mln EUR (2017) → 47,607 mln EUR (2018)
- Leverage Ratio (Transitional): 4.7% (2017) → 4.3% (2018)
- Leverage Ratio (Fully Phased-in): 4.5% (2017) → 4.1% (2018)
Risk Exposure Amounts
| Risk Type |
2017 (mln EUR) |
2018 (mln EUR) |
| Credit Risk |
262,361 |
273,051 |
| Securitisation and Re-securitisation (Banking Book) |
628 |
521 |
| Contributions to CCP Default Fund |
376 |
270 |
| Other Credit Risk |
261,356 |
272,260 |
| Market Risk (Position, FX, Commodities) |
4,679 |
5,302 |
| Credit Valuation Adjustment |
2,754 |
1,161 |
| Operational Risk |
40,093 |
37,338 |
| Other Risk Exposures |
0 |
1,876 |
| Total Risk Exposure |
309,887 |
318,729 |
Profit and Loss (P&L) Summary
| Item |
2017 (mln EUR) |
2018 (mln EUR) |
| Interest Income |
43,958 |
20,293 |
| Interest Expenses |
30,245 |
13,475 |
| Net Fee and Commission Income |
2,710 |
1,377 |
| Gains/Losses on Derecognition |
288 |
125 |
| Gains/Losses on Trading Financial Assets |
635 |
399 |
| Gains/Losses at Fair Value Through Profit or Loss |
-58 |
140 |
| Gains/Losses from Hedge Accounting |
-46 |
-64 |
| Exchange Differences |
5 |
2 |
| Net Other Operating Income/Expenses |
325 |
93 |
| Total Operating Income, Net |
17,744 |
8,932 |
| Administrative Expenses |
9,150 |
4,825 |
| Depreciation |
498 |
255 |
| Impairment of Financial Assets |
689 |
219 |
| Profit or Loss Before Tax from Continuing Operations |
7,268 |
3,727 |
| Profit or Loss After Tax from Continuing Operations |
4,987 |
2,706 |
| Profit or Loss for the Year |
4,987 |
2,706 |
Market Risk Breakdown
| Risk Type |
2017 (mln EUR) |
2018 (mln EUR) |
| Traded Debt Instruments |
0 |
0 |
| Foreign Exchange Risk |
1,074 |
1,403 |
| Commodities Risk |
0 |
0 |
| Total Market Risk Exposure |
1,074 |
1,403 |
Additional Notes
- The document includes memo items related to specific risk components and their capital charges.
- The Total Risk Exposure Amount increased from 309,887 mln EUR in 2017 to 318,729 mln EUR in 2018.
- The profitability of the bank declined from 4,987 mln EUR in 2017 to 2,706 mln EUR in 2018.
- The leverage ratio decreased in both transitional and fully phased-in definitions.
- The CET1 capital slightly decreased from 45,581 mln EUR in 2017 to 44,833 mln EUR in 2018, but the fully loaded CET1 capital also showed a similar trend.
- Transitional adjustments are applied to CET1 capital, affecting the net figures.
Summary of Key Regulatory References
- CET1 Capital: Covered by Articles 26(1) points (a)-(e), 36(1) point (f), and others in CRR.
- Tier 1 Capital: Article 25 of CRR.
- Tier 2 Capital: Article 71 of CRR.
- Leverage Ratio: Article 429 of CRR.
- Risk Exposure Amounts: Covered under various CRR articles including 4(112), 4(113), 4(118), 4(119), and others.
- P&L Items: Covered under IFRS and CRR provisions for financial assets and liabilities.
Conclusion
The 2018 EU-wide Transparency Exercise provides a comprehensive overview of ING Groep N.V.'s capital and risk exposure as of December 31, 2017, and June 30, 2018. The bank's CET1 and Tier 1 capital levels slightly decreased during the period, with a corresponding decline in capital ratios. The leverage ratio also showed a downward trend, indicating a reduction in the bank's leverage. Profitability declined significantly, and market risk exposure increased, particularly in foreign exchange risk. The data reflects the application of transitional and phased-in regulatory requirements under the CRR.
