Company: INGVF
Filing Date: 2025-07-31
Form Type: 6-K
Source: 0001628280-25-036812
Chunk: 30

Company: ING GROEP NV
Filing Date: 2025-07-31
Form: 6-K
Chunk 30
---
 The downside scenario captures the possible impact from escalating geopolitical tensions, increased trade tensions and persistent elevated inflation.

The upside scenario reflects the possibility of a better economic out-turn because of a substantial loosening of monetary policy, and policy stimulus in China. Management adjustments applied this reporting period (*) In times of volatility and uncertainty where portfolio quality and the economic environment are changing rapidly, models alone may not be able to accurately predict losses. In these cases, management adjustments can be applied to appropriately reflect ECL. Management adjustments can also be applied where the impact of the updated macroeconomic scenarios is over- or under-estimated by the IFRS 9 models, as well as to reflect the impact of model redevelopment or recalibration and periodic model assessment procedures that have not been incorporated in the IFRS 9 models yet. ING has an internal governance framework and controls in place to assess the appropriateness of all management adjustments.

| Management adjustments to ECL models (*)                      |     |     |              |     |     |                  |
| in EUR million                                                |     |     | 30 June 2025 |     |     | 31 December 2024 |
| Commercial Real Estate/ Inflation and interest rate increases |     |  32 |              |     |  50 |                  |
| Economic sector / portfolio based adjustments                 |     |  20 |              |     |  38 |                  |
| Mortgage portfolio adjustments                                |     | 112 |              |     | 112 |                  |
| Climate transition risk                                       |     |  44 |              |     |  29 |                  |
| Other Post Model Adjustments                                  |     |     |           29 |     |     |              -27 |
| Total management adjustments                                  |     |     |          236 |     |     |              203 |

As the ING credit risk models generally assume that inflation and interest rate increases materialize with a delay, via other risk drivers such as GDP and unemployment rates, an overlay approach was determined in previous financial years to timely estimate the expected credit losses (ECL) related to reduced repayment capacity and affordability for private individuals and business clients. As inflationary stress has decreased since origination of the overlay and limited impact has been observed in both the Retail and the Wholesale Banking segment, no management adjustment is reported since 31 December 2024, with the exception of a management adjustment for the Commercial Real Estate portfolio. The € 32million management adjustment related to the Commercial Real Estate portfolio (31