Ing Groep N.v. · EURONEXT:INGA
Ing Groep — Debt Investor Presentation (February 2025)
58 slides from Ing Groep's debt investor presentation, Feb 6, 2025
Slide 1: ING Credit Update 4Q2024
ING Credit Update 4Q2024 ING Investor Relations 6 February 2025
Slide 2: Delivering outstanding commercial growth across all business lines
Delivering outstanding commercial growth across all business lines Mobile primary customers1) Net core lending growth Net core deposits growth +1.1 mln €+28 bln €+47 bln ▪ Very strong growth in mobile ▪ 4% net core lending growth, with ▪ Highest ever net core deposit primary customers, all markets r
Slide 3: Sustainably increasing impact on our stakeholders
Sustainably increasing impact on our stakeholders Customers Our people Planet and society ▪ Enhanced product offering to ▪ Highest ever organisational health ▪ Strong increase (+13%) in volume existing customer segments score with a record participation mobilised1) to €130 bln ▪ Introduced products
Slide 4: Accelerating our investments in our Growing the Difference strategy
Accelerating our investments in our Growing the Difference strategy Developing new customer segments ~€1 bln in deposits from Business Banking clients in Germany Investing in client acquisition ~1 mln additional customers Business growth Enhancing scalable infrastructure Enhanced product foundation
Slide 5: Record total income driven by volume growth and higher fees
Record total income driven by volume growth and higher fees Lending and liability NII Fee income Total income (in € bln)1) (in € bln) (in € bln) +5.6% CAGR +7.4% CAGR +6.4% CAGR 22.6 22.6 15.6 15.5 17.6 18.5 18.6 12.5 11.8 12.5 4.0 8.3 8.5 3.5 3.6 3.6 3.0 9.2 9.3 8.6 7.3 7.0 3.2 2.6 4.0 2020 2021 20
Slide 6: Consistently delivering value for our shareholders
Consistently delivering value for our shareholders Attractive shareholder return1) Key developments ▪ Sustained attractive shareholder 7.0 10.9 10.3 12.5 15.1 remuneration with a >15% yield 12.5% 15.0% 15.1% ▪ Continued high earnings per share, 9.4% driven by strong profitability and a 7.4% reductio
Slide 7: Showcase of Growing the Difference - Retail Netherlands
Showcase of Growing the Difference - Retail Netherlands Primary customers (in mln) Cost / income ratio (in %) Profit before tax (in € bln) Growing the difference 56.4% 2.9 ▪ Significant growth in 2.8 4.7 4.9 50.0% 50.4% market share new 4.6 4.6 4.5 42.7% 43.3% 2.1 production and record 1.9 2.0 high
Slide 8: ING to sell its onshore business in Russia
ING to sell its onshore business in Russia ING to sell its onshore business in Russia Offshore exposure continues to decrease (in € bln) ▪ Agreement on the sale of our Russian subsidiary to Global -81% Development JSC, which will effectively end our activities in the Russian market 5.4 ▪ Global Deve
Slide 9: Our targets confirm our ambition to be the best European bank
Our targets confirm our ambition to be the best European bank To be the best European bank by Mobile primary Total Fee Cost/income CET1 Return on customers income income ratio ratio equity annual growth CAGR 2024-2027 by 2027 by 2027 by 2025 by 2027 +1 mln +4-5% €5 bln 52-54% ~12.5% 14% Structurally
Slide 10: Business profile
Business profile 10
Slide 11: Well-diversified business mix
Well-diversified business mix Retail Banking Retail Banking footprint Wholesale Banking Wholesale Banking ▪ Focus on earning the International Network ▪ A leading European primary relationship Netherlands Wholesale Bank, powered Belgium EMEA by: ▪ Technology to offer a Luxembourg Asia Pacific differ
Slide 12: 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 13: Our focus SDGs are reflected in our Sustainability Direction
Our focus SDGs1) are reflected in our Sustainability Direction Environment Social Climate action Financial health Empowering our clients2) Empowering our customers3) by focusing on: ▪ We aim to steer the most carbon-intensive parts of our ▪ Financial inclusion by making bank products lending portfol
Slide 14: 4Q2024 results
4Q2024 results 14
Slide 15: Sustained strong growth in core customer balances
Sustained strong growth in core customer balances Customer lending (in € bln) Main drivers Net core lending growth €+7.2 bln ▪ Strong growth in customer lending 4.4 686.1 5.9 0.6 0.5 0.2 ▪ Growth in Retail Banking 654.0 662.2 674.5 mainly driven by strong 648.0 performance in mortgages across almost
Slide 16: Total net interest income supported by lending and Treasury
Total net interest income supported by lending and Treasury 4Q2024 NII development (in € mln) NII excl accounting asymmetry and one-offs €-47 mln Accounting asymmetry €+88 mln 3,689 102 40 3,680 16 48 -51 -164 NII 3Q2024 Liability NII Lending NII Other NII One-off Financial Markets Treasury interest
Slide 17: Net interest income impacted by normalising liability margin
Net interest income impacted by normalising liability margin Net interest income (in € mln) Lending and liability margin (in bps) Net interest margin (in bps) 3,875 3,825 3,830 3,689 168 166 166 3,680 130 131 132 162 159 128 128 156 155 152 1,810 1,795 1,779 1,794 148 145 1,630 118 154 151 116 112 1
Slide 18: 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 19: Strong performance in fee income
Strong performance in fee income Net fee & commission income per product category (in € mln) Main drivers +14% ▪ Year-on-year, continued strong structural growth in fee income, 998 999 1,009 1,001 driven by Retail Banking (+16%) 879 139 140 138 124 113 ▪ +1.0 mln customers and +1.1 251 240 250 245 2
Slide 20: Expenses higher due to inflation and continued investments
Expenses higher due to inflation and continued investments Development operating expenses (in € bln) +4.8% +7.6% 11.6 1.0 0.9 0.2 12.1 0.2 10.3 +5% +1% +3% 11.1 -2% Total Regulatory Incidental Operating Inflationary Danske VAT Business Operational Operating Regulatory Incidental Total expenses costs
Slide 21: Risk costs below the through-the-cycle average
Risk costs below the through-the-cycle average Risk costs per business line (in € mln)1) Stage 2 ratio Stage 3 ratio 5 16 18 20 18 1.9% 2.0% 9.4% 336 8.9% 7.6% 1.8% 300 299 8.1% 7.6% 8.9% 1.7% 8.0% 1.6% 1.6% 258 7.7% 7.3% 7.2% 1.5% 1.6% 191 141 93 202 8.7% 7.5% 7.5% 1.5% 86 6.9% 1.5% 1.5% 1.4% 1.5%
Slide 22: Outlook 2025
Outlook 2025 22
Slide 23: Stable income in 2025 supported by volume growth and fees
Stable income in 2025 supported by volume growth and fees Total income scenario (in € bln) Commercial net interest income Fee income ~+0.3 +0.2 – 0.4 Roughly stable 22.6 ~+0.3 Roughly stable ~-0.7 ~-0.2 Total income 2024 Liability Liability Lending Lending Fee income Other 1) Total income 2025 1) vo
Slide 24: Sustained structural growth in fee income expected
Sustained structural growth in fee income expected Product category Historical performance Growth drivers 1,269 ▪ Continued customer growth Retail 659 18% CAGR ▪ Increased conversion to mobile primary customers Daily ▪ Updated pricing of package fees Banking 2020 2024 Daily Banking fees (in € mln) ▪
Slide 25: Continued investments to fuel business growth and create efficiencies
Continued investments to fuel business growth and create efficiencies Outlook operating expenses (in € bln) 12.1 +3% -2% 11.5 – 11.7 0.9 12.5 – 12.7 11.1 +4% -0.2 -0.9 Total operating Incidental Regulatory Expenses CLA / Incremental Operational Expenses excl Regulatory Total operating expenses 2024
Slide 26: Outlook 2025
Outlook 2025 To be the best European bank by Mobile primary Total Fee Total CET1 Return customers income income expenses ratio on equity annual growth 2025 2025 2025 by 2025 2025 +1 mln Roughly stable +5-10% growth €12.5 - €12.7 bln ~12.5% >12% Note: The outlook excludes the impact of the announced
Slide 27: Capital
Capital 27
Slide 28: 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 RWA €+5.4 bln 3.4 -1.2 -1.3 1.5 -0.2 0.0 333.7 328.5 3.0 3Q2024 FX Volume Overall profile of Models, Other Market Operational 4Q2024 RWA impact development the loan book methodology RWA RW
Slide 29: CET1 ratio decreased to 13.6% after deduction of the additional distribution
CET1 ratio decreased to 13.6% after deduction of the additional distribution as announced in October 2024 Total capital ratio development (in %) +3.0% 18.9% +2.4% 14.3% -0.8% 13.5% +0.2% +0.1% -0.2% 13.6% ~12.5% 10.9% 3Q2024 Additional Pro forma Profit added Other capital RWA 4Q2024 AT1 Tier 2 4Q202
Slide 30: Buffer to MDA remains strong
Buffer to MDA remains strong ING Group fully loaded SREP requirements ▪ Fully loaded CET1 requirement is 10.88% ▪ 4.50% Pillar 1 Requirement (P1R) MDA restriction ▪ 0.93% Pillar 2 Requirement (P2R) MDA level ▪ 2.50% Capital Conservation Buffer (CCB) restriction (15.10%) MDA level ▪ 0.95% Countercycl
Slide 31: Funding & liquidity
Funding & liquidity 31
Slide 32: 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 33.3% 9.8% 29.08% 23.33% 5.33% 6.75% 7.32% 14.4% 4.3% 5.33% 3.0% 0.9% 2.4% 23.75% 0.7% 13.6% 18.00% 4.0% TLAC/MREL TLAC MREL TLAC/MREL TLAC MREL eligible instruments requirement
Slide 33: 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 December 2024 ▪ Issuance guidance, subject to balance sheet developments, is: HoldCo Senior Tier 2 AT1 ▪ ~€6-8 bln Holdco Senior 8% 9% 3% ▪ ~€5-7 bln Secured issuance (including RMBS) across v
Slide 34: Issuance across ING subsidiaries
Issuance 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 unsecured ▪ S
Slide 35: 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 ▪ Second party Opinion provider ▪ Fund growth in our Eligible Green Loan portfolio ▪ Continued leadership in the Green
Slide 36: 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) and is aligned with the latest ICMA Green Bond Principles 2021. The framework is presented through below four pillars: Use of proceeds Project evaluation and selecti
Slide 37: 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 38: 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 39: 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 1,049 1,021 1,049 1,021 23 14 13 100 22 70 14 17 52 17 51 14 150 138 168 160 Stabl
Slide 40: Robust liquidity position with a 12-month moving average LCR of 143%
Robust liquidity position with a 12-month moving average LCR of 143% Funding mix1) ING maintains a sizeable liquidity buffer 31 December 2024 ▪ ING’s funding consists mainly of retail deposits, corporate deposits and public debt 11% 2% Customer deposits (private individuals) 5% Customer deposits (ot
Slide 41: Strong rating profile at both Group and Bank levels
Strong rating profile at both Group and Bank levels Main credit ratings of ING on 5 February 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 Stand-alone rating a baa1 a+ 2024, S&P affirmed ING's rating and outlook, reflecting S&
Slide 42: Asset quality
Asset quality 42
Slide 43: Addition to loan loss provisions per Stage
Addition to loan loss provisions per Stage Stage 1 provisioning (in € mln)1) Stage 2 provisioning (in € mln)1,2) Stage 3 provisioning (in € mln)1) 451 453 24 7 3 3 47 43 368 -4 -7 10 12 -31 -21 -23 -37 311 -12 -4 -46 -65 -59 -104 306 289 -16 -18 209 -33 -100 -53 175 156 -35 -94 -64 59 -147 159 145 1
Slide 44: Well-diversified lending credit outstandings by activity
Well-diversified lending credit outstandings by activity 1) ING Group Retail Banking Wholesale Banking 9% 6% 12% 33% 23% 4% 16% 21% €796 €534 €534 €261 bln bln bln bln 13% 11% 23% 5% 62% 65% 8% 67% 18% 5% Retail Banking Residential mortgages Mortgages Netherlands Lending Wholesale Banking Consumer l
Slide 45: Wholesale Banking lending credit outstandings
Wholesale Banking lending credit outstandings 1) Loan portfolio is well diversified across geographies… …and sectors Wholesale Banking Wholesale Banking 1% 8% NL 1% 9% Real Estate, Infra & Construction 14% Commodities, Food & Agri Belux 2% 10% 30% 12% TMT & Healthcare Germany Transportation & Logist
Slide 46: Appendix
Appendix 46
Slide 47: 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 48: 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 December 2024 2024 2023 45.3 Share premium 17,116 17,116 Other reserves 27,950 29,167 Legal and statutory reserves 78 -770 €21.9 bln 6.6pp1) Non-distributable -5,672
Slide 49: 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) 3% 2%1% Interest-only Investment ▪ This programme is used for external issuance purposes. There is a se
Slide 50: …benefits from a continued strong Dutch housing market
…benefits from a continued strong Dutch housing market Dutch Purchasing Managers Index (PMI) showing initial signs of recovery Dutch unemployment rate (%) stable at a low level 70 15 60 10 50 5 40 30 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2013 2014 2015 2016 2017 2018 2019 202
Slide 51: 4Q2024 results overview
4Q2024 results overview In € mln Reported P&L Volatile items P&L excluding volatile items Net interest income 3,680 -29 3,709 Net fee and commission income 1,001 3 998 Investment income -63 -64 1 Other income 789 -102 890 Total income 5,407 -191 5,598 Expenses excl. regulatory costs 2,989 109 2,881
Slide 52: Volatile income and expense items
Volatile income and expense items Volatile items (in € mln) 4Q2023 1Q2024 2Q2024 3Q2024 4Q2024 WB/FM – valuation adjustments -52 16 19 8 -13 Capital gains/losses -25 7 4 -51 -64 Hedge ineffectiveness1) 49 -60 39 170 -53 Other items income2) -16 4 5 46 -62 Total volatile items – income -44 -32 67 173
Slide 53: 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 (4Q2024) Customers (mln) 39.7 7.7 2.4 9.2 4.4 1.3 2.7 4.4 1.8 5.7 o.w. primary (mln) 16.2 4.9 1.1 3.0 1.7 0.5 1.1 2.3 1.0 0.6 o.w. mobile prim
Slide 54: Accounting asymmetry impacting net interest income
Accounting asymmetry impacting net interest income Treasury interest rate differential (in € mln) Wholesale Banking Financial Markets (in € mln) 383 356 376 302 23 19 17 21 29 197 474 515 515 242 193 233 231 203 416 216 -172 -174 39 70 50 52 29 -219 -215 -214 -58 -160 -209 -192 -143 4Q2023 1Q2024 2Q
Slide 55: Change in income reporting as of 1Q2025: Commercial NII
Change in income reporting as of 1Q2025: Commercial NII Net interest income to be split between Commercial NII and Other NII ▪ Starting from 1Q2025 disclosure, Net interest income Commercial NII Commercial NII will be added to P&L reporting 3,825 3,830 3,897 3,917 3,897 3,689 3,680 3,749 Consisting
Slide 56: Granular customer deposit base
Granular customer deposit base Total customer deposits per segment (in € bln) ▪ Highly insured, granular and continuously growing customer 650 675 693 698 692 deposits represent a strong funding 39 42 20 base 58 26 62 37 68 69 74 118 118 120 121 126 ▪ ~70% of total deposits is from private individua
Slide 57: Hyperinflation accounting in Türkiye
Hyperinflation accounting in Türkiye Application of IAS 29 to consolidation of ING in Türkiye Impact on results (in € mln) ▪ We applied IAS 29 (‘Financial Reporting in Hyperinflationary 3Q2024 4Q2024 Economies’) to the consolidation of our subsidiary in Türkiye, Profit or loss effective as of 1 Janu
Slide 58: 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
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