Slide 1: Third quarter 2022 results
Third quarter 2022 results ING posts net result of €979 mln Steven van Rijswijk, CEO of ING 3 November 2022
Slide 2: Key points
Key points ▪ We continue to have confidence in our strengths in a changing economic environment, with the right strategy and a good financial performance ▪ We execute our strategy by creating a superior customer experience and supporting the transition to a more sustainable society ▪ Pre-provision p
Slide 3: The changing world around us
The changing world around us Expected interest rates more than Significantly higher and prolonged Forecasting a modest economic doubled inflation in the eurozone contraction for the eurozone Implied year-avg euro short-term rate in bps Eurozone CPI (% YoY) Eurozone GDP (% YoY) 299 302 297 8.4% 5.6%
Slide 4: We are executing our strategy
We are executing our strategy Strengthening our customer experience Supporting clients and society on sustainability ▪ In Spain, we launched an account, co-created with ▪ Following the Netherlands and Poland, we now offer eco- customers, that offers an instant online onboarding process mortgages in
Slide 5: Well-positioned to benefit from higher rates
Well-positioned to benefit from higher rates Sensitivity of our €461 bln Retail eurozone replicating book NII tailwind from higher rates including illustrative pass-through scenario* Implied year-average euro short-term rate in bps Delta in NII versus 2021 replicating result in € bln 299 302 297 +2.
Slide 6: We manage our expenses and asset quality
We manage our expenses and asset quality Containing expenses while investing for the future Proven track record on managing credit risk ▪ Expenses are impacted by the significant increase in inflation ▪ We have confidence in our asset quality with risk costs and rates, partially absorbed by the savi
Slide 7: Continued attractive shareholder return
Continued attractive shareholder return Strong capital generation Attractive shareholder return Average 2018-2021 Based on payment date ~14.0% 10.3% 8.7% 9.4% 1.36 6.7% 5.4% 1.01 0.78 0.67 0.68 0.41 Dividend ban 0.60 0.58 Reported return on equity Return on equity 2018 2019 2020 2021 2022 (15.1% CET
Slide 8: 3Q2022 results
3Q2022 results 8
Slide 9: Pre-provision profit up YoY and QoQ
Pre-provision profit up YoY and QoQ Pre-provision profit excl. volatile items* and regulatory costs ▪ 3Q2022 pre-provision profit excluding volatile items and (in € mln) regulatory costs increased on both comparable quarters ▪ Good NII development, reflecting the positive effect of rising 2,632 inte
Slide 10: Good NII momentum and higher NIM
Good NII momentum and higher NIM Net interest income (in € mln) Net interest margin (in bps) 3,415 3,465 3,332 3,388 3,374 84 84 82 76 71 142 140 139 3,305 3,290 3,333 3,389 3,604 137 137 138 137 137 136 135 -343 128 3Q2021 4Q2021 1Q2022 2Q2022 3Q2022 3Q2021 4Q2021 1Q2022 2Q2022 3Q2022 TLTRO Polish
Slide 11: Continued loan growth
Continued loan growth Customer lending (in € bln) Net core lending growth €4.7 bln 5.7 -4.8 1.2 1.1 649.7 3.0 -0.3 642.9 0.6 -1.1 1.7 -0.3 2Q2022 Retail Retail Retail Retail Other WB Lending WB DB&TF* WB Other* Run-off Treasury FX / Other *** 3Q2022 Netherlands Belgium Germany C&GM* portfolios** ▪ N
Slide 12: Resilient fees supported by daily banking
Resilient fees supported by daily banking Net fee & commission income per business line (in € mln) Net fee & commission income per product category (in € mln) 882 925 933 888 882 925 933 888 876 876 105 140 112 92 96 295 322 324 280 295 247 261 267 226 194 247 269 275 253 230 247 238 253 232 265 338
Slide 13: Operating expenses well-contained in inflationary environment
Operating expenses well-contained in inflationary environment Expenses (in € mln) ▪ Excluding regulatory costs and incidental items, expenses were 5% higher YoY, well below inflation levels. Around half 2,947 2,945 of the increase was attributable to higher staff costs, due to 2,685 385 2,738 indexa
Slide 14: Risk costs reflecting prudence on a high quality loan book
Risk costs reflecting prudence on a high quality loan book Risk costs per business line (in € mln) Stage 2 ratio Stage 3 ratio 987 8.9% 7.2% 7.0% 6.6% 6.0% 6.0% 1.7% 1.7% 939 403 5.6% 1.6% 346 5.3% 5.2% 5.3% 1.5% 1.4% 128 5.8% 1.4% 216 202 1.5% 1.5% 1.4% 1.3% 88 4.9% 4.7% 4.6% 39 274 4.5% 1.2% 1.2%
Slide 15: ING Group CET1 ratio at 14.7%
ING Group CET1 ratio at 14.7% ING Group CET1 ratio development (in %) 14.7% 0.1% 0.0% -0.1% 14.7% ~12.5% 10.5% 2Q2022 CET1 ratio Profit added to CET1 Other capital movements RWA 3Q2022 CET1 ratio Basel IV CET1 ratio target Capital ratio CET1 developments SREP requirement Management buffer (incl. P2G
Slide 16: Executing towards our financial targets
Executing towards our financial targets 3Q2022 2025 ▪ 3Q2022 resilient net result €1,032 mln, of which 50% reserved outside of CET1 for future distribution CET1 ratio ▪ Total amount reserved for future distribution outside CET1 capital €848 mln CET1 ratio* 14.7% ▪ €1.5 bln (~44 bps) additional distr
Slide 17: Wrap up
Wrap up 17
Slide 18: Wrap up
Wrap up ▪ We continue to have confidence in our strengths in a changing economic environment, with the right strategy and a good financial performance ▪ We execute our strategy by creating a superior customer experience and supporting the transition to a more sustainable society ▪ Pre-provision prof
Slide 19: Appendix
Appendix 19
Slide 20: Profit or loss
Profit or loss Profit or loss 3Q2022 (in € mln) Reported P&L Volatile items P&L excluding volatile items Net interest income 3,332 -262 3,594 Net fee and commission income 876 1 875 Investment income 111 -3 114 Other income 93 -404 497 Total income 4,412 -668 5,080 Expenses excl. regulatory costs 2,
Slide 21: Volatile items
Volatile items Volatile items (in € mln) 3Q2021 4Q2021 1Q2022 2Q2022 3Q2022 WB/FM – valuation adjustments 38 3 -70 90 -15 Capital gains/losses 6 5 26 8 -3 Hedge ineffectiveness* 7 -24 81 -31 -431 Other items income** 50 92 -68 -155 -218 Total volatile items – income 101 76 -31 -89 -668 Incidental it
Slide 22: Hyperinflation accounting in Turkey
Hyperinflation accounting in Turkey Application of IAS 29 to consolidation of ING Turkey Impact on results (in € mln) ▪ We applied IAS 29 (‘Financial Reporting in Hyperinflationary 3Q2022 2Q2022 Economies’) to the consolidation of our subsidiary in Turkey, Profit or loss effective as of 1 January 20
Slide 23: Well-diversified lending credit outstandings by activity
Well-diversified lending credit outstandings by activity ING Group Retail Banking Wholesale Banking Lending credit O/S* 3Q2022 Lending credit O/S* 3Q2022 Lending credit O/S* 3Q2022 11% 7% 22% 27% 40% 16% 20% €846 €510 €510 €337 7% bln bln bln bln 9% 2% 50% 5% 18% 8% 60% 64% 21% 13% Retail Banking Re
Slide 24: Wholesale Banking lending
Wholesale Banking lending Loan portfolio is well diversified across geographies… …and sectors Lending Credit O/S* Wholesale Banking Lending Credit O/S* Wholesale Banking excluding Treasury & Other 1% NL 1% 10% Real Estate, Infra & Construction 13% 25% Belux 22% Commodities, Food & Agri 2% Germany 15
Slide 25: We actively reduce our Russia-related exposure
We actively reduce our Russia-related exposure Total Russia-related exposure* Onshore exposure* and equity Offshore exposure* (in € bln) (in € bln) (in € bln) 0.5 5.3 0.0 3.2 6.2 1.3 3.8 0.6 0.4 0.2 28 February** 30 September 28 February** 30 September 28 February** 30 September Central bank deposit
Slide 26: Provisioning per Stage
Provisioning per Stage Stage 1 provisioning (in € mln) Stage 2 provisioning (in € mln) Stage 3 provisioning (in € mln) 844 386 40 34 318 13 165 25 237 230 4 27 837 177 1 11 9 68 7 154 -7 -7 47 161 -21 98 -42 -95 8 7 32 220 101 -78 -51 169 141 -12 -159 -86 -46 53 70 -33 -201 3Q2021 4Q2021 1Q2022 2Q20
Slide 27: 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 are