Slide 1: Third quarter 2023 results
Third quarter 2023 results ING posts net result of €1,982 mln Steven van Rijswijk, CEO of ING 2 November 2023
Slide 2: Delivering strong value in 3Q2023
Delivering strong value in 3Q2023 Continued primary High share of Growing volume mobilised2) customer growth mobile-only customers1) to finance the transition +181,000 62% €27 bln versus +227,000 in 2Q2023 versus 60% in 2Q2023 versus €25 bln in 2Q2023 Strong total income growth Increasing return on
Slide 3: Future proofing our business for success
Future proofing our business for success Our purpose Empowering people to stay a step ahead in life and in business Our strategic priorities A superior customer experience Sustainability at the heart 75% digital onboarding of new customers Publication of the in the Netherlands 2023 Climate Report 3Q
Slide 4: We continue helping our clients in their low-carbon transition
We continue helping our clients in their low-carbon transition Overview milestones 2023 1Q2023 2Q2023 4Q2023 Climate considerations Joined PCAF to help develop Published 2023 Climate Report, which embedded in corporate client data and methodology describes progress on our aim to steer and transactio
Slide 5: Continued strong performance in the German retail market
Continued strong performance in the German retail market Consistent customer growth with an increasing primary customer base Highlights1) 19.0 21.1 25.0 26.5 28.5 29.2 29.6 29.9 Most preferred bank #1 8.6 8.6 8.5 For the 17th time in a row 8.5 8.5 8.4 8.4 8.2 Net Promoter Score #1 2018 2019 2020 202
Slide 6: Right-sizing our capital remains a priority
Right-sizing our capital remains a priority Strong capital position ▪ The €2.5 bln share buyback as announced today is the next 15.2% step in converging our CET1 ratio towards our target level of 14.5% ~12.5% €2.5 bln ~€9 bln ▪ We have returned ~€21 bln to shareholders since 2018 ~12.5% ▪ €~7 bln di
Slide 7: Well on track towards our 2025 targets
Well on track towards our 2025 targets Financial target 3Q2023 2025 target Drivers ▪ Primary customer growth 5-10% ▪ Increasing package and service fees in daily banking to better reflect cost of service Fee income1) 3.8% annual growth ▪ Growing base in investment products, both in number of account
Slide 8: 3Q2023 results
3Q2023 results 8
Slide 9: Total income structurally higher in a positive rate environment
Total income structurally higher in a positive rate environment Total income excluding incidental income items (in € bln)1) ▪ Total income at a structurally higher level driven by a recovery of interest margin on liabilities 5.9 ▪ The cycle of recent central bank rate hikes appears to have 5.6 5.8 p
Slide 10: Continued high liability margin and increasing lending margin
Continued high liability margin and increasing lending margin Net interest income (in € mln) Lending and liability margin (in bps) Net interest margin (in bps) 3,545 4,012 4,061 4,028 3,332 129 127 128 129 130 159 156 157 121 121 114 135 136 3,860 4,012 4,061 4,028 152 3,604 94 145 140 134 71 128 -2
Slide 11: Strong and resilient positioning of our Retail Banking business
Strong and resilient positioning of our Retail Banking business Customer lending (in € bln) Net core lending €-2.4 bln 643.2 +0.7 +0.7 +0.5 637.3 -1.4 -2.2 -0.4 -0.2 -2.5 -0.9 -0.2 2Q2023 Retail Retail Retail Retail WB WB WB Treasury FX Other 2) 3Q2023 Netherlands Belgium Germany Other Lending DB&TF
Slide 12: Solid fee income growth in Retail Banking
Solid fee income growth in Retail Banking Net fee & commission income per business line (in € mln)1) Net fee & commission income per product category (in € mln) 876 888 896 912 909 876 888 896 912 909 96 105 106 131 107 295 318 323 346 294 207 194 201 217 206 238 258 244 253 246 583 573 575 569 608
Slide 13: Operating expenses well under control
Operating expenses well under control Expenses (in € mln) ▪ Expenses excluding regulatory costs and incidental items were 4.7% higher YoY 3,071 2,888 ▪ Main driver was higher staff expenses, reflecting the 2,793 2,629 525 2,626 impact of indexation and CLA increases across our markets 291 109 96 91
Slide 14: Low risk costs reflecting high quality and resilience of the loan book
Low risk costs reflecting high quality and resilience of the loan book Risk costs per business line (in € mln)1) Stage 2 ratio Stage 3 ratio 403 11.2% 10.2% 10.8% 9.8% 128 269 8.9% 152 1.6% 65 183 7.2% 1.5% 1.5% 7.0% 7.1% 6.9% 6.8% 1.4% 98 15 1.4% 1.5% 274 242 203 166 113 1.4% 1.4% 1.4% 5.8% 5.5% 1.
Slide 15: CET1 ratio increased to 15.2%
CET1 ratio increased to 15.2% CET1 capital ratio development (in %) 14.9% +0.3% +0.1% 15.2% 14.5% ~12.5% -0.1% -0.8% 10.8% 2Q2023 Profit added Other capital RWA 3Q2023 Announced share 3Q2023 Basel IV CET1 ratio to CET1 movements buyback pro forma target CET1 Capital ratio CET1 developments Fully-loa
Slide 16: Wrap up and Q&A
Wrap up and Q&A 16
Slide 17: Appendix
Appendix 17
Slide 18: 3Q2023 results overview
3Q2023 results overview In € mln Reported P&L Volatile items P&L excluding volatile items Net interest income 4,028 15 4,013 Net fee and commission income 909 3 906 Investment income 103 0 102 Other income 802 11 791 Total income 5,842 29 5,813 Expenses excl. regulatory costs 2,684 122 2,562 Regulat
Slide 19: Volatile income and expense items
Volatile income and expense items Volatile items (in € mln) 3Q2022 4Q2022 1Q2023 2Q2023 3Q2023 WB/FM – valuation adjustments -15 -2 -10 33 15 Capital gains/losses -3 0 15 -0 0 Hedge ineffectiveness1) -431 -71 35 -46 102 Other items income2) -218 -319 -69 -6 -88 Total volatile items – income -668 -39
Slide 20: 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 2Q2023 3Q2023 Economies’) to the consolidation of our subsidiary in Türkiye, Profit or loss effective as of 1 Janu
Slide 21: Accounting asymmetry impacting net interest income
Accounting asymmetry impacting net interest income Treasury interest rate differential (in € mln) WB Financial Markets (in € mln) 33 36 24 47 359 375 18 349 267 261 273 282 287 120 184 176 327 385 408 215 -102 -137 27 22 41 -234 -225 -249 78 50 47 28 -19 -73 -61 3Q2022 4Q2022 1Q2023 2Q2023 3Q2023 3Q
Slide 22: Well-diversified lending credit outstandings by activity
Well-diversified lending credit outstandings by activity 1) ING Group Retail Banking Wholesale Banking 5% 12% 16% 33% 21% 3% 15% €814 €543 6% €543 €272 19% bln bln bln bln 16% 22% 4% 61% 17% 62% 67% 8% 12% Retail Banking Residential mortgages Mortgages Netherlands Lending Wholesale Banking Consumer
Slide 23: 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% NL 2% 9% Real Estate, Infra & Construction 14% 14% Belux Commodities, Food & Agri 2% Germany 32% 12% TMT & Healthcare 10% Transportation & Logis
Slide 24: Addition to loan loss provisions per Stage
Addition to loan loss provisions per Stage Stage 1 provisioning (in € mln) Stage 2 provisioning (in € mln)1,2) Stage 3 provisioning (in € mln)2) 52 407 48 37 21 318 2 30 98 86 23 4 239 238 10 -9 -4 -50 -39 177 197 35 31 -117 -81 17 89 20 -48 43 1 6 -194 124 -84 -31 8 -15 167 141 155 149 116 -14 -190
Slide 25: 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