Dividend and distribution policy
ING is committed to maintaining a healthy Group CET1 ratio above the prevailing fully-loaded requirement, plus a comfortable management buffer (including Pillar 2 Guidance). At the same time, ING aims to offer a sustainable and attractive return to shareholders.
As announced on November 5th 2020, ING’s distribution policy is to pay-out 50% of resilient net profit (excluding extraordinary items). The 50% pay-out may be in the form of cash, or a combination of cash and share repurchases, with the majority in cash. Additional distributions to be considered periodically, taking into account alternative opportunities, macro-economic circumstances and the outcome of our capital planning.
The aim is to pay a cash-only interim dividend, representing ~1/3 of first half year resilient net profit, with our half year results. The exact form and level of the final distribution will be subject to approval by the shareholders at the Annual General Meeting. Distribution proposals will reflect considerations that are relevant to a capital plan, including expected future capital requirements, growth opportunities available to the Group and regulatory developments. Furthermore, the execution of this policy will comply with prevailing ECB recommendations on shareholder distributions.
Cash payment per share represent gross amounts which are subject to Dutch dividend withholding tax.
Withholding tax mechanics
Cash dividend payments in the Netherlands are subject to 15% dividend withholding tax. Additional distributions in the form of a share buyback are subject to 17.65% withholding tax, however exempted if the cash dividend paid in the calendar year is in excess of a company specific hurdle.
The hurdle is calculated by taking the average cash dividend paid in the last 7 calendar years (-/- the minimum and maximum amount), corrected for annual inflation. If the cash dividend in a calendar year is less than the hurdle, withholding tax on a share buyback will need to be paid on the difference between the hurdle and the amount of cash dividend paid. The tax authorities will assess the implications of the distributions at the end of each calendar year and will not impose withholding tax on a share buyback during the year.
For ING, the hurdle in 2023 is €~2.8 bln. Following the cash dividend payments of €0.3 bln in January 2023 and €1.4 bln in May 2023, the remaining amount to reach the hurdle is €~1.1 bln.
|Historic share buyback programmes|
|Commencement date||Buyback amount (€ mln)||Completion date||Shares purchased||Average purchase price|
|12 May 2023||1,500||n/a||n/a|
|3 Nov 2022||1,204||28 Dec 2022||107,032,745||11.25|
|12 May 2022||380||14 Jul 2022||40,749,792||9.41|
|5 Oct 2021||1,744||25 Feb 2022||139,711,040||12.47|
|Cash dividends Euronext Amsterdam|
|Financial year||Amount (€ mln)||Amount per share (€)||Record date||Payment date|
|Interim||1,260||0.350||8 Aug 2023||14 Aug 2023|
|Additional||874||0.232||11 May 2022||18 May 2022|
|Interim||636||0.170||9 Aug 2022||15 Aug 2022|
|Additional||297||0.082||10 Jan 2023||16 Jan 2023|
|Final||1,408||0.389||27 Apr 2023||5 May 2023|
|Interim||820||0.210||5 Oct 2021||12 Oct 2021|
|Additional*||1,054||0.270||5 Oct 2021||12 Oct 2021|
|Final||1,545||0.410||28 Apr 2022||9 May 2022|
|Final*||468||0.120||17 Feb 2021||24 Feb 2021|
|Interim*||935||0.240||6 Aug 2019||12 Aug 2019|
|Interim||934||0.240||7 Aug 2018||14 Aug 2018|
|Final||1,714||0.440||26 Apr 2019||2 May 2019|
|Interim||933||0.240||7 Aug 2017||14 Aug 2017|
|Final||1,670||0.430||26 Apr 2018||3 May 2018|
|Interim||931||0.240||8 Aug 2016||15 Aug 2016|
|Final||1,629||0.420||11 May 2017||18 May 2017|
|Interim||929||0.240||10 Aug 2015||17 Aug 2015|
|Final||1,590||0.410||28 Apr 2016||4 May 2016|
|Final||464||0.120||14 May 2015||21 May 2015|
|Cash dividends New York Stock Exchange (ADR holders**)|
|Financial year||Amount per share ($)||Record date||Payment date|
|Interim||0.381||14 Aug 2023||21 Aug 2023|
|Additional||0.244||16 May 2022||25 May 2022|
|Interim||0.173||15 Aug 2022||22 Aug 2022|
|Additional||0.089||17 Jan 2023||23 Jan 2023|
|Final||0.427||27 Apr 2023||12 May 2023|
|Interim||0.242||5 Oct 2021||19 Oct 2021|
|Additional*||0.311||5 Oct 2021||19 Oct 2021|
|Final||0.431||28 Apr 2022||16 May 2022|
|Final*||0.145||24 Feb 2021||3 Mar 2021|
|Interim*||0.269||12 Aug 2019||19 Aug 2019|
|Interim||0.272||13 Aug 2018||21 Aug 2018|
|Final||0.492||26 Apr 2019||9 May 2019|
|Interim||0.282||14 Aug 2017||21 Aug 2017|
|Final||0.514||26 Apr 2018||11 May 2018|
|Interim||0.268||15 Aug 2016||22 Aug 2016|
|Final||0.465||11 May 2017||25 May 2017|
|Interim||0.265||17 Aug 2015||24 Aug 2015|
|Final||0.470||28 Apr 2016||11 May 2016|
|Final||0.132||14 May 2015||29 May 2015|
* ING has adhered to the recommendations by the ECB not to pay dividends or buy back shares from 27 March 2020 until 30 September 2021. The only exception was the payment of €0.12 per share on 24 February 2021, which was allowed by the ECB.
** ADR dividends are presented rounded to the second decimal. More information on American Depository Receipts and related dividends can be found at https://www.adr.com/drprofile/456837103. The applicable foreign exchange rate, and thus the final amount, is determined at the time of the dividend payment.