ING to book goodwill impairment in second quarter

ING to book goodwill impairment in second quarterING announced today that as a result of the impairment test triggered by the Covid-19 pandemic, it expects to book approximately a?¬300 million as an impairment on the goodwill on its balance sheet in its second quarter 2020 results. The goodwill is related to a number of acquisitions in the past.In accordance with accounting standard IAS 36, the impairment announced today follows the negative developments in the macro-economic outlook for the relevant business units in the context of the Covid-19 pandemic. In addition, the applicable discount rate is also affected by the deteriorated economic and risk environment.The goodwill impairment is estimated to be approximately a?¬300 million, to be recorded under operating expenses in INGa??s second quarter profit & loss statement. The accounting adjustment does not involve any cash outflow and will not impact INGa??s capital ratios, as goodwill is already deducted from regulatory capital. A ING will report its full results for the second quarter of 2020 on 6 August 2020. As indicated earlier, the economic impact of the Covid-19 pandemic and the impact of IFRS-9 methodology will result in risk costs significantly above the through-the-cycle average, which will impact INGa??s net profit for the quarter.
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