Ing Groep N.v. · EURONEXT:INGA
Ing Groep — Investor Day (June 2022)
12 slides from Ing Groep's investor day presentation, Jun 13, 2022
Slide 1: ING Investor Update 2022 Chief Financial Officer
ING Investor Update 2022 Chief Financial Officer 13 June 2022
Slide 2: Track record of delivering value
Track record of delivering value Resilient income in a negative rate environment Diversified fee income growth Cost discipline Total income (in € bln) Net fee and commission income (in € bln) Total expenses (in € bln) CAGR +0.9% CAGR +6.7% CAGR +1.3%* 17.7 18.1 18.3 18.5 CAGR 3.5 17.6 11.2 11.2 7% 8
Slide 3: Adapting to the world around us
Adapting to the world around us Impact from negative rate environment on margins Changing macro outlook* Impacting our P&L Lending and deposit margins (in bps) 5 year EUR swap rate 0.9% 1.0% 1.0% 0.8% Less certain outlook on 149 149 150 151 153 0.0% lending demand 85 82 73 -0.5% 56 2020 2021 2022 20
Slide 4: Lending growth to absorb lending margin normalisation
Lending growth to absorb lending margin normalisation Eurozone GDP growth Profitable lending growth ▪ Focus on value through pricing discipline and risk framework Average ~1% Average ~2% ▪ Growth outlook for Retail Banking remains strong. Less 5.4% certain outlook on lending demand in Wholesale Bank
Slide 5: Managing the interest rate risk in our deposit book
Managing the interest rate risk in our deposit book Majority of deposits is related to retail eurozone Replicated in the short term Total Customer deposits 31 December 2021 (in € bln) Replication composition by tenor 617 Average over past 10 years ~25% ~60% 461 ~75% Current accounts Savings ~40% 156
Slide 6: NII sensitivity of the retail eurozone replicating book
NII sensitivity of the retail eurozone replicating book Sensitivity Retail eurozone replicating Sensitivity Retail eurozone replicating book (including illustrative 50% book (without pass-through)* Pass-through and negative charging pass-through scenario)* Delta in NII versus 2021 replicating result
Slide 7: Drivers of future fee growth
Drivers of future fee growth Net fee and commission income (in € bln) Daily banking Investment products ▪ Optimise pricing of payment ▪ Account openings on existing packages products +5-10% ▪ Introduce behavioral fees ▪ Inflow from savings into investment annual growth products ▪ Introduce new value
Slide 8: We will manage our costs below inflation
We will manage our costs below inflation Expenses excluding regulatory costs and volatile items Retail Banking Regulatory costs Annual growth (in %) ▪ Optimise assisted channels ▪ Regulatory costs expected 6.4% ▪ Digitalise key customer journeys approximately €0.4 bln lower in 2025 compared with 202
Slide 9: Cost/income ratio of 50-52% by 2025
Cost/income ratio of 50-52% by 2025 Lending NII Total income (in € bln) ▪ Profitable lending growth to absorb lending margin normalisation +3% CAGR 2021-2025 18.5 Liability NII 0.5 ▪ Positive interest rates 18.0 ▪ (Primary) customer growth 2021 2022 2023 2024 2025 Net fee and commission income Total
Slide 10: CET1 ratio at ~12.5% by 2025
CET1 ratio at ~12.5% by 2025 Our distribution policy Additional distribution of structural excess capital ▪ Annual pay-out ratio of 50% of ▪ CET1 ratio target of ~12.5% by 2025 resilient net profit ▪ Total annual distribution will take into account in capital planning: prevailing ▪ Structural excess
Slide 11: Our financial targets
Our financial targets Total income Fee income Cost/income-ratio CAGR 2021-2025 Annual growth By 2025 +3% 5-10% 50-52% +1% average 2017-2021 +7% average 2017-2021 59% average 2017-2021 CET1 ratio Return on equity* By 2025 By 2025 ~12.5% 12% 14.9% 1Q2022 9% average 2017-2021 * ING Group return on equi
Slide 12: 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