EBA reports on outcome of 2018 EU-wide stress test

ING Group was subject to the 2018 EU-wide stress test conducted by the European Banking Authority (EBA), in cooperation with the De Nederlandsche Bank, the European Central Bank (ECB), and the European Systemic Risk Board (ESRB). ING Group notes the announcements made today by the EBA on the EU-wide stress test and fully acknowledges the outcomes of this exercise.

The 2018 EU-wide stress test does not contain a pass fail threshold and instead is designed to be used as an important source of information for the purposes of the SREP. The results will assist competent authorities in assessing ING Group’s ability to meet applicable prudential requirements under stressed scenarios.

The adverse stress test scenario was set by the ECB/ESRB and covers a three-year time horizon (2018-2020). The stress test has been carried out applying a static balance sheet assumption as at December 2017, and therefore does not take into account future business strategies and management actions. It is not a forecast of ING Group’s profits.

Under the hypothetical baseline scenario and EBA’s methodological instructions, ING Group would have a fully loaded common equity Tier 1 capital ratio (CET1) of 13.99% in 2020. Under the hypothetical adverse scenario and EBA’s methodological instructions, ING Group would have a fully loaded CET1 ratio of 10.70% in 2020. ING Group published an actual fully loaded CET1 ratio of 14.51% per 31 December 2017. As of 30 September 2018 ING Group reported a fully loaded CET1 ratio of 14.0%.