ING 1Q2023 Financial Targets Update slide image

ING 1Q2023 Financial Targets Update

Operating expenses include full-year 2022 inflationary impact and investments in growth Expenses (in € mln) 3,070 2,945 2,888 2,738 525 2,629 291 649 214 159 96 85 82 4 2,296 2,365 2,448 2,515 2,541 1Q2022 2Q2022 3Q2022 4Q2022 1Q2023 Regulatory costs¹) Incidental items²) Expenses excluding regulatory costs and incidental items 1) Formal build-up phase of several local DGS and SRF are scheduled to be completed by 2024 2) Incidental expenses as included in volatile items on slide 18 ■ Excluding regulatory costs and incidental items, expenses were 10.7% higher YoY Main driver was higher staff expenses, largely reflecting the full-year inflationary impact of indexation (incl. 10.5% YoY impact for Belgium) and CLA increases (incl. an accrual for the new CLA in NL). Further impacts included a one-off energy payment in Germany and a more frontloaded accrual for variable remuneration in Wholesale Banking Furthermore, marketing costs were up, as we invest in growth of our customer base, while also legal provisions and energy costs were at elevated levels this quarter Sequentially, expenses excluding regulatory costs and incidental items were 1.0% higher, mainly driven by higher staff and IT expenses ■ Regulatory costs were lower YoY, mainly due to a lower tariff for the European SRF contribution. The QoQ increase reflected the full payment in the first quarter of each year of the annual contributions to the SRF and Belgian DGS. This also applies to the annual Belgian bank tax, while 4Q2022 included the annual Dutch bank tax Incidental cost items in 1Q2023 were €4 mln for hyperinflation accounting in Turkey (IAS 29) 12
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