AMSTERDAM: ING, one of the largest banks in Europe, announced its financial results for the fourth quarter and the full year of 2023, showing strong performance across its retail and wholesale banking segments.
The bank posted a net result of €1,558 million for the fourth quarter, up 31% from the same period in 2022, and a net result of €7,287 million for the full year, almost double the amount in 2022. The bank’s return on equity, a key measure of profitability, rose to 14.8% for the year, well above its target of 10-13%.
ING attributed its exceptional results to its customer-centric strategy, its digital innovation, its disciplined risk management, and its support for sustainable transitions. The bank added 750,000 primary retail customers in 2023, reaching a total of 15.3 million, and increased its lending and deposits in both retail and wholesale banking. The bank also announced a final dividend of €0.756 per share, bringing the total distribution to €7.8 billion for the year.
CEO Steven van Rijswijk said that 2023 was a challenging year, as geopolitical and economic shocks affected many of its clients and the societies it operates in. However, he said that most economies proved resilient, with low unemployment, inflation coming down, and rates turning positive at an unprecedented pace. He said that ING was able to continue the successful execution of its strategy in this context, and that both retail and wholesale banking contributed to its strong results.
He also said that ING was committed to accelerating its climate action, and that it announced in December that it will phase out the financing of oil and gas exploration and production by 2040, and that it will triple the financing of renewable energy by 2025. He said that engaging with corporates in their transition to more sustainable businesses was key to its climate approach, and that it developed a digital tool to collect public information on the transition plans of its clients. He said that ING applied the tool for over 2,000 of its largest and most relevant wholesale banking clients in 2023, and that it was progressing well with introducing sustainable alternatives for key sectors.