Investor Presentaiton
Hyperinflation accounting in Türkiye
Application of IAS 29 to consolidation of ING in Türkiye
■ We applied IAS 29 ('Financial Reporting in Hyperinflationary
Economies') to the consolidation of our subsidiary in Türkiye,
effective as of 1 January 2022, as cumulative inflation in
Türkiye over the preceding three years had exceeded 100%
■ The application of IAS 29 resulted in a negative accounting
impact on ING net result in 2Q2023 of €-14 mln, reflecting
the adjustments for changes in the general purchasing
power of the Turkish lira
Resilient net profit and shareholders' distribution has not
been affected as the total quarterly P&L impact of €-14 mln
was treated as a significant item not linked to the normal
course of business, in line with ING's distribution policy
Impact on results (in € mln)
1Q2023
2Q2023
Profit or loss
Net interest income
Net fee and commission income
Investment income
Other income
Total income
1
2
0
0
0
0
-70
-9
-69
-6
Expenses excl. regulatory costs
4
6
Regulatory costs
0
0
Operating expenses
4
6
Gross result
-73
-12
Addition to loan loss provisions
0
0
Result before tax
-73
-13
Taxation
-6
1
Net result
-68
-14
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