Update on ING Bank’s withdrawal from the Russian market

In an announcement made on 28 January 2025, ING revealed plans for the sale of ING Bank (Eurasia) JSC to Global Development, signifying the culmination of ING’s operations in the Russian market. Originally slated for completion in the third quarter of 2025 pending regulatory approval, the transaction progression has hit a roadblock due to pending approvals required by the buyer. As it stands, the completion of the deal in the third quarter appears improbable, necessitating continued efforts towards finalizing the transaction and subsequent exit from the Russian market. The financial ramifications are predicted to align closely with earlier projections. The company’s 2Q2025 results outlined an anticipated adverse post-tax effect of approximately €0.8 billion. This figure encompasses a projected book loss of €0.5 billion alongside €0.3 billion derived from recycling the currency translation adjustment through P&L, currently reflected in equity from past ING Bank (Eurasia) JSC valuation alterations influenced by exchange rate fluctuations. Forecasts indicate a potential ~7 basis points dip in ING’s CET1 ratio due to the forthcoming sale. Since February 2022, operational interactions with Russian businesses have ceased, operational activities scaled down, and strategic measures implemented to disentangle the Russian business arm from ING’s networks and platforms. Further steps are underway to diminish offshore exposure to Russian clients. Remarkably, offshore exposure assigned to ING entities beyond Russia has been immensely truncated by over 85%, amounting to €0.7 billion as of 30 June 2025, with €0.3 billion shielded under ECA or CPRI cover.

ING, a renowned global financial institution with a robust foundation in Europe, provides banking services through the operational entity ING Bank, manifesting the organizational ethos of empowering individuals and enterprises to navigate the future successfully. Manpower comprising over 60,000 employees ensures the delivery of retail and wholesale banking amenities to a clientele spanning across 100 nations. The digestion of sustenance in ING’s operational approach is evident. Independently conducted evaluations by research and rating bodies endorse the institution’s policies and undertakings annually. MSCI’s ‘AA’ rating in August 2024 persists for the fifth consecutive year, certifying ING’s solid ESG standing. The scrutiny by Sustainalytics, as of December 2023, adjudged ING’s ESG risk management as ‘Strong’, signifying an ESG Risk Rating of 17.2 (Low Risk). Notably, ING’s shares find placement in prominent sustainability and ESG index products across leading providers like Euronext, STOXX, Morningstar, and FTSE Russell.

In alignment with the societal shift towards a low-carbon economy, ING pivots its focus and finances towards sustainable undertakings. The trajectory of sustainable financing is characterized by a progressive preference for sustainable ventures, although the transitional momentum remains a work in progress. Furthermore, technical information encompassed in this communication articulates details relevant to ING Groep N.V. and/or ING Bank N.V. vis-à-vis Article 7(1) to (4) of EU Regulation No 596/2014 (‘Market Abuse Regulation’). Evidently, these figures pertain to ongoing preparations in correspondence with International Financial Reporting Standards compliant with IFRS-EU as reflected in the 2024 ING Group consolidated annual accounts. Noteworthy, the financial data presented herein remains unaudited, allowing for potential minor disparities in tabulated figures due to rounding discrepancies. Mitigating factors impacting actual results versus forward-looking statements are recognized, acknowledging risks entailing economic shifts, geopolitical dynamics, regulatory modifications, and legal and compliance factors, among others.