Ing Groep N.v. · EURONEXT:INGA
Ing Groep — Debt Investor Presentation (May 2025)
49 slides from Ing Groep's debt investor presentation, May 2, 2025
Slide 1: 1Q2025 Fixed income presentation
1Q2025 Fixed income presentation 2 May 2025
Slide 2: Strength of our franchise drives continued growth in 1Q2025
Strength of our franchise drives continued growth in 1Q2025 Mobile primary Net core Net core Fee Volume customers lending growth deposits growth income mobilised +174,000 €+6.8 bln €+22.6 bln €1,094 mln €30 bln vs 182,000 in 1Q2024 vs €+4.2 bln in 1Q2024 vs €+13.5 bln in 1Q2024 vs €998 mln in 1Q2024
Slide 3: Strong fundamentals enabling ING to navigate volatility
Strong fundamentals Growth outlook Asset quality enabling ING to Strong fundamentals navigate volatility • Demonstrated ability to grow faster than GDP, supported by our diversified presence • Continued increase in balances and fee Proven risk management framework income driven by customer growth •
Slide 4: Favourable housing market dynamics and leading European mortgage bank
Favourable housing market dynamics and our position as the leading European mortgage bank fuel continuous growth Mortgage markets are expected to continue growing House prices have shown sustained increases Example - mortgage production in Germany (in € bln) Example - average purchase price in the N
Slide 5: Wholesale Banking is well-positioned to capture the European growth opportunity
Wholesale Banking is well-positioned to capture the European growth opportunity The German fiscal stimulus package and the broader European initiatives to spend more on defence, technology and infrastructure offer significant opportunities • Top 5 lending bank in Europe with presence in 20 European
Slide 6: Consistently delivering value for our shareholders
Consistently delivering value for our shareholders Distributions (in € mln) • €2 bln share buyback programme announced As announced with the respective quarterly results • >€28 bln of cash returned since 2,500 2,500 2,150 2021 500 2,000 • Committed to generate a healthy 1,129 shareholder return goin
Slide 7: Confirmation of our 2025 outlook and 2027 targets
Confirmation of our 2025 outlook and 2027 targets 2025 outlook 2027 targets Mobile primary customers Mobile primary customers To be the best European bank annual growth +1 mln annual growth +1 mln Total income Total income 2025 CAGR 2024-2027 Roughly stable +4-5% by Fee income Fee income 2025 2027 +
Slide 8: Business profile
Business profile 8
Slide 9: Well-diversified business mix
Well-diversified business mix Retail Banking Retail Banking footprint Wholesale Banking Wholesale Banking • Focus on earning the primary Netherlands International Network • A leading European Wholesale relationship Belgium EMEA Bank, powered by: Luxembourg Asia Pacific • Technology to offer a German
Slide 10: Executing our strategy to be the best European bank
Executing our strategy to be the best European bank growing the difference Purpose Empowering people to stay a step ahead in life and in business Superior value for customers Uniquely Strategic pillars Sustainability at the heart ING Providing Staying seamless digital services safe & secure Enablers
Slide 11: 1Q2025 results
1Q2025 results 11
Slide 12: Total income supported by resilient commercial NII
Total income supported by resilient commercial NII Total income (in € mln) 5,909 5,583 5,716 5,637 5,407 800 1,003 749 688 657 998 999 1,009 1,094 1,001 3,897 3,917 3,897 3,749 3,794 1Q2024 2Q2024 3Q2024 4Q2024 1Q2025 Commercial NII Fee income All other income • Resilient commercial net interest inc
Slide 13: Sustained strong growth in customer balances
Sustained strong growth in customer balances Customer lending (in € bln) Strong growth in customer lending • €8.6 bln growth in Retail Banking Net core lending growth €6.8 bln driven by continued mortgage growth 1.9 in most markets 6.0 0.7 686.1 688.5 • Additional growth in both consumer -1.8 and bu
Slide 14: Resilient commercial net interest income
Resilient commercial net interest income Breakdown commercial NII (in € mln) Average customer balances (in € bln) Development of margins (in bps) +6.2% 3,897 3,917 3,897 243 242 238 3,749 3,794 226 226 1,795 1,779 1,794 1,630 1,685 620 637 643 652 668 131 132 128 128 125 116 112 112 2,138 2,119 2,10
Slide 15: Strong structural increase in fee income
Strong structural increase in fee income Fee income per product category (in € mln) Structural growth • Continued strong structural growth in +10% fee income, ~75% alpha driven 1,094 • Retail Banking fees grew across 998 999 1,009 1,001 151 markets (+18% YoY) 139 140 138 124 251 240 250 245 308 • +>
Slide 16: All other income supported by strong client business in Financial Markets
All other income supported by strong client business in Financial Markets All other income (in € mln) • Financial Markets benefited from increased client activity and 1,003 favourable market conditions 106 749 • Treasury was up on both comparable 800 688 49 126 quarters, mainly due to higher results
Slide 17: Expenses in line with guidance and lower quarter-on-quarter
Expenses in line with guidance and lower quarter-on-quarter Operating expenses (in € mln) Regulatory costs (in € mln) Incidental items (in € mln) Excl regulatory costs and incidental items +6.2% +0.8% 2,792 2,881 2,835 2,670 2,719 109 358 347 361 41 88 88 24 4 4 1Q2024 2Q2024 3Q2024 4Q2024 1Q2025 1Q
Slide 18: Risk costs below the through-the-cycle average
Risk costs below the through-the-cycle average Risk costs per business line Stage 2 ratio Stage 3 ratio Totals including Corporate Line 9.4% 336 8.4% 2.0% 300 299 313 1.9% 8.1% 8.3% 258 1.8% 1.8% 7.7% 7.6% 1.6% 1.7% 7.6% 8.9% 191 138 7.3% 7.2% 1.5% 1.6% 1.6% 1.6% 141 8.7% 8.2% 93 202 7.5% 6.9% 1.5%
Slide 19: Concluding remarks
Concluding remarks • Strong start of the year with continued delivery of shareholder value • Our strategy and strong fundamentals enable us to navigate volatility • Well-positioned to support the European economy and capture growth opportunities • Reconfirmation of our 2025 outlook and 2027 targets
Slide 20: Capital
Capital 20
Slide 21: Risk-weighted assets increased mainly due to business growth
Risk-weighted assets increased mainly due to business growth Risk-weighted assets development (in € bln) Credit RWA1) €+5.2 bln 5.1 -0.2 1.3 0.0 337.2 333.7 -1.4 0.3 -1.7 4Q2024 Basel IV FX impact Volume Overall profile of Other Market RWA 2) Operational RWA 2) 1Q2025 RWA implementation development
Slide 22: Strong CET1 capital ratio well above our target
Strong CET1 capital ratio well above our target Total capital ratio development (in %) 2.7% 18.4% 2.0% 13.6% +0.4% -0.2% +0.0% -0.1% 13.6% ~12.5% 10.9% 4Q2024 Net profit Dividend Other capital RWA 1Q2025 AT1 Tier 2 1Q2025 Total Basel IV CET1 CET1 ratio reserve movements CET1 ratio capital ratio rati
Slide 23: Buffer to MDA remains strong
Buffer to MDA remains strong ING Group fully loaded SREP requirements • Fully loaded CET1 requirement is 10.88% MDA • 4.50% Pillar 1 Requirement (P1R) restriction • 0.93% Pillar 2 Requirement (P2R) MDA level restriction (15.11%) • 2.50% Capital Conservation Buffer MDA level (CCB) restriction 2.00% (
Slide 24: Funding & liquidity
Funding & liquidity 24
Slide 25: Comfortably meeting TLAC and MREL requirements
Comfortably meeting TLAC and MREL requirements TLAC/MREL as percentage of RWA TLAC/MREL as percentage of leverage exposure 32.7% 9.4% 29.08% 23.33% 6.75% 7.32% 14.3% 5.33% 4.1% 5.33% 2.7% 0.8% 2.0% 23.75% 0.6% 13.6% 18.00% 3.9% TLAC/MREL TLAC MREL TLAC/MREL TLAC MREL eligible instruments requirement
Slide 26: Long-term debt issuance activity and maturity ladder
Long-term debt issuance activity and maturity ladder Issuance 2025 Currency split of outstandings as per 31 March 2025 • Issuance guidance, subject to balance sheet developments, is: HoldCo Senior Tier 2 AT1 • ~€6-8 bln Holdco Senior of which ~€6 bln has already been 8% 9% issued in 1Q2025 3% • ~€5-
Slide 27: Issuance outstanding across ING subsidiaries
Issuance outstanding across ING subsidiaries ING Belgium ING Bank (Australia) ING Bank Hipoteczny ING Bank AS ING Bank N.V. S.A./N.V. ING DiBa AG Ltd (Poland) (Türkiye) Instruments • Secured funding • Secured funding • Secured funding • Secured funding • Secured funding • Capital overview • Senior u
Slide 28: ING is dedicated to its Green Funding Programme
ING is dedicated to its Green Funding Programme Green Funding instruments objectives and added value External consultants & providers • Support meeting our sustainability objectives • Fund growth in our Eligible Green Loan portfolio • Second party Opinion provider • Continued leadership in the Green
Slide 29: ING Global Green Funding Framework 2024
ING Global Green Funding Framework 2024 • Our new ING Global Green Funding Framework has been assessed by a Second Party Opinion (SPO) provider and is aligned with the latest ICMA Green Bond Principles 2021. The framework is presented through below four pillars: Use of proceeds Project evaluation an
Slide 30: Project selection and management of proceeds
Project selection and management of proceeds • Projects financed and/or refinanced through Green Funding proceeds are evaluated and selected based on compliance with the Eligibility Criteria Compliance with the Eligibility Criteria Management of proceeds • ICMA Green Bond Principles categories • Eli
Slide 31: External verification
External verification SPO Opinion on the ING Global Green Funding Framework • ISS’s overall evaluation of the Green Funding Framework’s sustainability quality of the eligibility criteria by ING is positive • ING Green Funding Framework is in line with the latest ICMA Green Bond Principles • Use of P
Slide 32: Strong balance sheet with customer deposits as the primary source of funding
Strong balance sheet with customer deposits as the primary source of funding Balance sheet ING Group (in € bln) Well-diversified customer loan book Assets Liabilities • See “Asset Quality” section of this presentation 1,021 1,079 1,021 1,079 36 14 15 22 14 94 14 21 53 Stable funding profile 70 17 51
Slide 33: Robust liquidity position with a 12-month moving average LCR of 142%
Robust liquidity position with a 12-month moving average LCR of 142% Funding mix1) ING maintains a sizeable liquidity buffer 31 March 2025 • ING’s funding consists mainly of retail deposits, corporate deposits and public debt 11% 2% Customer deposits (private individuals) 6% • ING’s 12-month moving
Slide 34: Strong rating profile at both Group and Bank levels
Strong rating profile at both Group and Bank levels Main credit ratings of ING on 1 May 2025 Latest rating actions on ING Group and Bank S&P Moody’s Fitch • S&P: upgraded ING Bank to A+ in July 2017. In June 2024, S&P Stand-alone rating a baa1 a+ affirmed ING's rating and outlook, reflecting S&P’s v
Slide 35: Asset quality
Asset quality 35
Slide 36: Additions to loan loss provisions per stage
Additions to loan loss provisions per stage Stage 1 provisioning (in € mln) Stage 2 provisioning (in € mln) Stage 3 provisioning (in € mln) WB includes Corporate Line Including modifications and WB includes Corporate Line 15 84 451 453 17 7 -4 3 3 -2 81 368 -7 43 -12 -21 10 12 2 311 -4 -31 289 -46 -
Slide 37: Well-diversified lending credit outstandings by activity
Well-diversified lending credit outstandings1) by activity ING Group Retail Banking Wholesale Banking 11% 6% 16% 22% 32% 16% 4% 20% €825 bln €557 bln €557 bln €268 bln 13% 11% 21% 59% 68% 5% 64% 8% 17% 6% Retail Banking Residential mortgages Mortgages Netherlands Lending Wholesale Banking Consumer l
Slide 38: Wholesale Banking lending credit outstandings
Wholesale Banking lending credit oustandings1) Diversification across geographies Diversification across sectors 1% 8% Netherlands 1% 8% Real Estate, Infra & Construction 16% BeLux Commodities, Food & Agri 10% 11% 2% Germany 34% TMT & Healthcare Retail Other countries Transportation & Logistics 9% €
Slide 39: Appendix
Appendix 39
Slide 40: Issuance entities under our approach to resolution
Issuance entities under our approach to resolution Issuance entities Eligible instruments for Group TLAC/MREL Designated TLAC MREL resolution ING Groep N.V. entity • Own funds (CET1 / AT1 / Tier 2) ✓ ✓ • Senior unsecured debt (> 1 year) ✓ ✓ • Secured funding & senior unsecured debt ING Bank N.V. (>
Slide 41: Comfortable buffer to Additional Tier 1 trigger
Comfortable buffer to Additional Tier 1 trigger Buffer to AT1 trigger (in € bln) ING Group available distributable items (in € mln) 31 March 2025 2024 2023 46.0 Share premium 17,116 17,116 Other reserves 27,950 29,167 €22.4 bln Legal and statutory reserves 78 -770 6.6pp1) Non-distributable -5,672 -6
Slide 42: ING Bank's covered bond programme
ING Bank’s covered bond programme • ING Bank NV €30 bln Hard and Soft Bullet Covered Bonds programme Redemption type1) • UCITS, CRR and ECBC Label compliant. Rated Aaa/AAA/AAA (Moody’s/S&P/Fitch) 2%1% Interest-only 3% Investment • This programme is used for external issuance purposes. There is a sep
Slide 43: 1Q2025 results overview
1Q2025 results overview 1Q2025 results overview (in € mln) Reported P&L Volatile items P&L excluding volatile items Commercial NII 3,794 0 3,794 Fee income 1,094 0 1,094 All other income 749 -39 788 Total income 5,637 -39 5,676 Expenses excl. regulatory costs 2,839 4 2,835 Regulatory costs 361 0 361
Slide 44: Volatile income and expense items
Volatile income and expense items Volatile items (in € mln) 1Q2024 2Q2024 3Q2024 4Q2024 1Q2025 WB/FM – valuation adjustments 16 19 8 -13 -6 Capital gains/losses 7 4 -51 -64 6 Hedge ineffectiveness1) -60 39 170 -53 -10 Other items income2) 4 5 46 -62 -29 Total volatile items – income -32 67 173 -191
Slide 45: Retail Banking countries contributing to strong returns
Retail Banking countries contributing to strong returns Retail Banking Total Netherlands Belgium1) Germany Spain Italy Australia Poland Romania Türkiye Scale (1Q2025) Customers (mln) 40.1 7.7 2.5 9.3 4.5 1.3 2.8 4.4 1.8 5.8 o.w. primary (mln) 16.3 4.9 1.1 3.0 1.7 0.5 1.1 2.3 1.0 0.6 o.w. mobile prim
Slide 46: Continued strong liability margin in a lower rate environment
Continued strong liability margin in a lower rate environment Replicating income on Retail eurozone Total liability margin to stabilise at a 3-month EURIBOR forward curves customer deposits 100-110 bps Implied interest rates, end-of-period, in bps Interest income in € bln1) Average liability margin
Slide 47: Impact accounting asymmetry
Impact accounting asymmetry Treasury interest rate differential (in € mln) Wholesale Banking Financial Markets (in € mln) 19 17 19 21 29 383 356 376 415 302 193 233 231 203 226 474 515 515 521 416 -172 -215 -214 -174 -207 70 50 52 29 61 -160 -209 -192 -143 -167 1Q2024 2Q2024 3Q2024 4Q2024 1Q2025 1Q2
Slide 48: Granular deposit base
Granular deposit base Total customer deposits per segment (in € bln) • Highly insured, granular and continuously growing customer 675 693 698 692 734 deposits represent a strong funding 79 40 base 62 37 68 39 69 42 74 20 118 120 121 126 122 • ~70% of total deposits is from private individuals, of wh
Slide 49: Important legal information
Important legal information ING Group’s annual accounts are prepared in accordance with International Financial Reporting Standards as adopted by the European Union (‘IFRS- EU’). In preparing the financial information in this document, except as described otherwise, the same accounting principles ar