ING Groep N.V. · EURONEXT:INGA
ING Groep — ING Benelux Conference 2011
22 slides from ING Groep's conference presentation, Sep 15, 2011
Slide 1: ING Commercial Banking: Strong performance through the financial crisis
ING Commercial Banking Strong performance through the financial crisis ING Benelux Conference William Connelly CEO Commercial Banking London – 15 September 2011 www.ing.com
Slide 2: Commercial Banking: strong performance through the financial crisis
Commercial Banking: strong performance through the financial crisis • Bank is making good progress on Ambition 2013 • Bank has strong capital ratios • Commercial Banking performed well during the crisis and is well positioned for the future • ING Real Estate exposure has declined significantly ING B
Slide 3: Bank is making good progress on Ambition 2013
Bank is making good progress on Ambition 2013 ING Benelux Conference - 15 September 2011 3
Slide 4: Bank is making good progress on Ambition 2013
Bank is making good progress on Ambition 2013 Underlying income (EUR billion) Underlying cost/income ratio (%) +5.5% 75% 68.7% C/I ratio Target 65% 56.0% 57.0% excl. market CAGR 8.6 8.7 8.6 impacts 6.9 6.5 2010-13: 55% Target: 50% was 54.3% 5% 45% in 1H11 1H09 2H09 1H10 2H10 1H11 FY09 FY10 1H11 Unde
Slide 5: Exposure to Southern European sovereigns
Exposure to Southern European sovereigns Bank: Government bond exposure Bank: Government bond exposure (in EUR bln)* (exposures > EUR 2 bln)** 30 June 2011 30 June 2011 8.5 Belgium Greece -0.1 0.4 9.9 Germany Portugal -0.2 0.5 France 4.4 Spain 1.4 52.6 NL Italy -0.1 4.4 5.1 9.5 Poland Italy Reval pr
Slide 6: Core Tier 1 ratio at 9.4% despite payment to Dutch State
Core Tier 1 ratio at 9.4% despite payment to Dutch State Pro-forma 10.7% including impact of announced divestitures Core Tier I ratio 12% 0.2% 0.2% 0.9% 0.7% 9% -0.9% 6% 10.7% 9.6% 9.4% 3% 0% 31 Dec Paid to Capital 30 June ING Direct REIM Car Lease 30 June 2010 state generation 2011 US 2011 Pro- 1H1
Slide 7: ING Commercial Banking
ING Commercial Banking ING Benelux Conference - 15 September 2011 7
Slide 8: ING Commercial Banking performed well during the crisis and is well positioned for the future
ING Commercial Banking performed well during the crisis and is well positioned for the future ING Commercial Banking ING Commercial Banking excluding Real Estate • Performed well during the crisis • Good risk management • Strict cost discipline • RWA and lending asset growth managed prudently ING Re
Slide 9: ING Commercial Banking contributed 47% to total bank pre-tax result in 1H11
ING Commercial Banking contributed 47% to total bank pre-tax result in 1H11 Bank: Pre-tax result in 1H11 by Commercial Bank: Pre-tax result in segment* (%) 1H11 by product** (%) 18% 6% 5% 13% 47% 37% 39% 35% General lending & PCM Structured Finance Commercial Banking Financial Markets Retail banking
Slide 10: Commercial Banking performed well during the crisis
Commercial Banking performed well during the crisis ING Benelux Conference - 15 September 2011 10
Slide 11: Commercial Banking excluding Real Estate continued to perform well during the crisis
Commercial Banking excluding Real Estate continued to perform well during the crisis Underlying income* (EUR mln) Underlying income* 1H11 4,957 4,949 4% Financial Markets 9% 36% 3,566 3,660 Structured Finance 2,578 2,690 GLP & PCM 21% Leasing & Factoring Other 2007 2008 2009 2010 1H10 1H11 30% Under
Slide 12: Financial Markets remained profitable during the crisis
Financial Markets remained profitable during the crisis Underlying result before tax (EUR mln) Income by product (EUR mln) 1,289 356 919 384 92 128 136 640 573 1,567 1,316 316 891 936 847 300 355 697 2007 2008 2009 2010 1H10 1H11 2007 2008 2009 2010 1H10 1H11 Clients & Products Other FM * * Other FM
Slide 13: Structured Finance benefited from repricing of the portfolio and higher deal flow
Structured Finance benefited from repricing of the portfolio and higher deal flow Structured Finance income (EUR mln) Structured Finance Income 7% 1% 345 EUR 801 mln 179 32% 244 in 1H11 20% 255 129 239 943 1,095 713 539 562 481 40% 2007 2008 2009 2010 1H10 1H11 Energy, Transport & Infrastructure Int
Slide 14: Risk costs remained under control, benefiting from a well diversified portfolio
Risk costs remained under control, benefiting from a well diversified portfolio Risk costs* Risk costs by product*** (EUR mln) 64 51 Leasing & 33 30 40 Factoring 19 102 Structured 516 971 272 Finance 395 116 47 General Lending -143 119 78 & PCM 2007 2008 2009 2010 1H10 1H11 -6 Risk costs (EUR mln) R
Slide 15: Higher income and strict cost discipline resulted in best-in-industry operating efficiency
Higher income and strict cost discipline resulted in an operating efficiency which is among the best in the industry Cost / Income ratio* Cost/Income ratio by product* (1H11) 65% 61% 50.5% 45.1% 41.7% 44% 43% 24.6% 38% 2007 2008 2009 2010 1H11 GL&PCM L&F FM SF Cost / Income ratio CIB activities** (1
Slide 16: Commercial Banking RWA will continue to be managed prudently
Commercial Banking RWA will continue to be managed prudently RWA* (EUR bln) RoE** 1H11 by product (%) 38% 31% 155.9 140.0 19% 127.3 13% 121.6 9% GL & Other L&F SF FM 2008 2009 2010 1H11 PCM RWA per product (EUR bln) • Risk-weighted assets and lending assets declined significantly in 2008- 57 2010, p
Slide 17: ING Real Estate
ING Real Estate ING Benelux Conference - 15 September 2011 17
Slide 18: Exposure on development projects and investments has declined sharply
Exposure on development projects and investments (FV through P/L) has declined sharply Exposure on development projects and Underlying result before tax REF investments reduced (EUR bln) (EUR mln) 4.5 373 3.1 3.3 2.3 2.0 2.0 1.6 1.1 240 0.7 214 198 181 160 2008 2009 2010 2Q11 Development projects In
Slide 19: Improved ING Real Estate performance driven by lower FV changes and impairments
Improved ING Real Estate performance driven by lower FV changes on Investments and lower RED impairments ING Real Estate results* (in EUR mln) Underlying result Underlying result before tax excluding FV / Impairments + FV / Impairments = before tax 405 259 664 345 371 83 234 -113 197 -276 157 -422 -
Slide 20: Wrap up
Wrap up ING Benelux Conference - 15 September 2011 20
Slide 21: Wrap up
Wrap up • Bank is making good progress on Ambition 2013 • Bank has strong capital ratios • Commercial Banking performed well during the crisis and is well positioned for the future • ING Real Estate exposure has declined significantly ING Benelux Conference - 15 September 2011 21
Slide 22: Disclaimer
Disclaimer 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, the same accounting principles are applied as in the 2Q2011 ING Group Interim Acco