ING reported 2023 earnings of 314 million euros in Spain and Portugal, up 51% from 2022. The rise was driven mainly by a higher business volume and, to a lesser extent, by the central banks’ policy shifts that pushed reference interest rates higher to curb inflation. As a result, the bank grew its loan book by 4%, and the stronger cost of money, which lenders passed through more aggressively to loans than to deposits, lifted core revenues by 22%. Fee income also rose, climbing 5%, with total revenues advancing 24% to 1,091 million euros.
Operating costs rose by 13%, a smaller increase that, combined with a controlled rise in provisions for potential losses, helped the pre-tax result improve by 51%, reaching 314 million euros. The Iberian subsidiary accounted for 4.83% of the 22.575 billion euros earned by the Dutch group in 2023 and for 4.3% of the 7.287 billion euros in group profit. Additionally, it lifted its return on capital from 13% to 16%, a level that already covers the cost of capital demanded by investors, according to Ignacio Juliá, the unit’s chief executive.
The head of consumer banking, Almudena Román, highlighted that the remuneration on the orange account rose four times in one year, from 0.3% to 1.5% for payroll customers, with 1% for other clients. “We have stayed true to our promise to reward our customers for their funds; we have paid 370 million euros in interest to clients, helping them save more and improve their financial situations,” Juliá remarked.
Román also noted that the bank will adjust to the year’s rate environment as central banks begin to loosen policy and reference market rates trend downward. “One thing is forecasting a trend; another is knowing how far rates will fall, whether they rise again, or if they stay flat, which would change everything. When I say we will adapt, I do not claim to have more information to share at this moment. I do not intend to predict the future; I prefer to provide the certainty that our clients require,” she concluded.