Slide 1: First quarter 2022 results
First quarter 2022 results ING posts 1Q2022 net result of €429 mln Steven van Rijswijk, CEO of ING 6 May 2022
Slide 2: Key points
Key points ▪ Pre-provision profit was strong, supported by resilient NII, with the pressure on liability income turning into a tailwind, strong fees and lower expenses ▪ We continue our support for the green transition, as evidenced by growth of our renewable energy financing and an increasing numbe
Slide 3: Strong pre-provision profit
Strong pre-provision profit Pre-provision result excl. volatile items* and regulatory costs ▪ 1Q2022 pre-provision result excluding volatile items and (in € mln) regulatory costs increased both YoY and QoQ 2,335 ▪ NII (excl. TLTRO III) was resilient, reflecting also the effect of 2,216 rising intere
Slide 4: Financing the green transition
Financing the green transition ▪ We see the green transition as both a necessity and a ▪ In support of the green transition in Retail Banking, we have growth opportunity, as also reflected in our financing of introduced a green residential mortgage in the Netherlands renewable power generation* ▪ In
Slide 5: We further improved our most used and efficient channel
We further improved our most used and efficient channel Mobile-only active customers (in mln)* ▪ To further improve our customer experience and drive value, we introduced several new digital propositions in 1Q2022 52% ▪ In Spain, instant lending was launched for new clients, with 51% pricing and ris
Slide 6: 1Q2022 results
1Q2022 results 6
Slide 7: Resilient NII; 4-quarter rolling average NIM at 137 bps
Resilient NII; 4-quarter rolling average NIM at 137 bps Net interest income (in € mln) Net Interest Margin (in bps) 3,513 3,340 3,388 3,374 3,415 233 83 84 84 82 146 140 140 139 3,280 3,257 3,304 3,290 3,333 137 142 138 137 137 136 1Q2021 2Q2021 3Q2021 4Q2021 1Q2022 1Q2021 2Q2021 3Q2021 4Q2021 1Q202
Slide 8: Sustained mortgage growth in Retail, repayment of short-term facilities in WB
Sustained mortgage growth in Retail, repayment of short-term facilities in WB Customer lending 1Q2022 (in € bln) Core lending growth €0.4 bln 2.3 -0.3 -1.6 1.7 -3.3 1.1 1.2 -0.3 633.9 632.8 0.6 -0.2 4Q2021 Retail NL Retail Retail Retail Other WB Lending WB DB&TF* WB Other* Lease / WUB Treasury FX /
Slide 9: Fee income growth continued
Fee income growth continued Net fee & commission income per business line (in € mln) Net fee & commission income per product category (in € mln) 882 925 933 882 925 933 854 855 854 855 105 140 112 322 324 113 130 278 302 295 267 284 248 247 261 278 232 247 269 275 265 220 253 232 219 295 322 338 336
Slide 10: Operating expenses under control
Operating expenses under control Expenses (in € mln) ▪ Excluding regulatory costs and incidental items, expenses were 2.1% lower YoY, as a lower number of FTE and lower IT 3,016 2,947 costs more than offset CLA increases and salary indexation 2,945 2,685 385 ▪ Sequentially, expenses excluding regula
Slide 11: Good quality loan book, risk costs elevated by Stage 2 provisions for Russia
Good quality loan book, risk costs elevated by collective Stage 2 provisions for Russia-related exposure Risk costs per business line (in € mln) Stage 2 ratio Stage 3 ratio 987 7.2% 7.0% 6.7% 6.3% 6.0% 6.0% 5.8% 5.6% 939 5.3% 5.2% 346 5.9% 1.8% 1.8% 1.7% 1.7% 223 5.2% 1.6% 30 216 4.9% 4.7% 39 4.6% 1
Slide 12: 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) 6.7 5.8 5.3 4.5 1.3 1.3 0.2 0.1 28 February** 30 April 28 February** 30 April 28 February 30 April Equity Russian subsidiary ▪ Since the end
Slide 13: ING Group CET1 ratio at 14.9%
ING Group CET1 ratio at 14.9% ING Group CET1 ratio development (in %) 15.9% 0.1% 0.0% -1.0% 14.9% ~12.5% 10.5% 4Q2021 CET1 ratio Profit added to CET1 Other capital movements RWA 1Q2022 CET1 ratio Basel IV CET1 ratio ambition Capital ratio CET1 developments SREP requirement Management buffer (incl. P
Slide 14: ING Group financial ambitions
ING Group financial ambitions Actual 2021 Actual 1Q2022 Financial ambitions ~12.5%* Capital ▪ CET1 ratio (%) 15.9% 14.9% (Basel IV) ▪ ROE (%)** 9.2% 8.0% 10-12% (IFRS-EU Equity) Profitability ▪ C/I ratio (%)** 60.5% 60.5% 50-52% Distribution ▪ Distribution (per share) €0.89*** 50% pay-out ratio****
Slide 15: Wrap up
Wrap up 15
Slide 16: Wrap up
Wrap up ▪ Pre-provision profit was strong, supported by resilient NII, with the pressure on liability income turning into a tailwind, strong fees and lower expenses ▪ Elevated risk costs at €987 mln, or 62 bps of average customer lending. This was mainly driven by Stage 2 provisioning for Russia-rel
Slide 17: Appendix
Appendix 17
Slide 18: Volatile items 1Q2022
Volatile items 1Q2022 Volatile items and regulatory costs (in € mln) 1Q2021 2Q2021 3Q2021 4Q2021 1Q2022 WB/FM – valuation adjustments 11 11 38 3 -70 Capital gains/losses 36 -2 6 5 26 Hedge ineffectiveness 23 11 7 -24 81 Other items income* 233 155 50 92 -68 Total volatile items – income 303 175 101
Slide 19: Well-diversified lending credit outstandings by activity
Well-diversified lending credit outstandings by activity ING Group Retail Banking Wholesale Banking Lending credit O/S* 1Q2022 Lending credit O/S* 1Q2022 Lending credit O/S* 1Q2022 10% 8% 22% 24% 39% 16% 20% €819 €499 €499 3% €320 bln 5% bln bln bln 9% 51% 5% 17% 9% 61% 65% 22% 14% Retail Banking Re
Slide 20: 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% 9% Real Estate, Infra & Construction 13% 27% Belux Commodities, Food & Agri 2% 27% TMT & Health
Slide 21: Updated overview exposure related to Russia and Ukraine
Updated overview exposure related to Russia and Ukraine Lending credit outstandings (in € bln) 28 Feb 2022* 31 March 2022 30 April 2022 Lending credit outstandings related to Russia Russian borrower with Russian ownership 5.0 4.2 4.2 Russian borrower with non-Russian ownership 0.3 0.4 0.5 Non-Russia
Slide 22: Provisioning per Stage
Provisioning per Stage Stage 1 provisioning (in € mln) Stage 2 provisioning (in € mln) Stage 3 provisioning (in € mln) 844 4 1 386 7 11 2 3 -7 -7 837 165 -21 237 -32 63 189 173 68 -43 154 8 54 -12 56 -42 8 7 220 101 -110 -95 178 169 -30 -33 -159 135 -125 -86 53 -40 -235 -201 -4 1Q2021 2Q2021 3Q2021
Slide 23: 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