Ing Groep N.v. · EURONEXT:INGA
Ing Groep — Investor Day (March 2019)
21 slides from Ing Groep's investor day presentation, Mar 25, 2019
Slide 1: Building value in Wholesale Banking
Building value in Wholesale Banking Investor Day 2019 Isabel Fernandez, Head of Wholesale Banking Frankfurt • 25 March 2019
Slide 2: Wholesale Banking overview
Wholesale Banking overview Wholesale Banking strengths Underlying result before tax (in € mln) Sustainability • 1st bank to start steering loan CAGR 8.6% portfolio to Paris climate goals 2,846 2,755 40+ 2,533 2,668 • 1st bank launching sustainability improvement loans countries 1,978 • A growing gre
Slide 3: Our strategic priorities drive primary client growth
Our strategic priorities drive primary client growth Unleash Leverage Innovate Primary Strengthen sector the for the clients the basics potential network future • Consistency • Know Your • Sector expertise to • Harmonised • 100% of all data in Customer expand strategic cross-border one data lake • P
Slide 4: Wholesale Banking is accelerating growth in primary clients
Wholesale Banking is accelerating growth in primary clients Number of Share of Product Value Cross-buy clients Primary value Primary clients* 16% Active clients 84% Client segmentation Primary clients Active clients Average # of products 4.1 1.2 Average # of countries 4.5 1.1 Total revenues** €2.9 b
Slide 5: Primary clients are 5x more profitable
Primary clients are 5x more profitable Commercial excellence Revenues per client Cross-buy* ratio Fee income / RWA 7x 3x 1.6x Active Primary Active Primary Active Primary Profit before tax YoY Increase NPS score** 5x Primary 24% Total WB 14% Active Primary * Cross-buy = non-lending revenues over tot
Slide 6: WB transformation delivering efficiency
WB transformation delivering efficiency Wholesale • Single account opening process TOM • 2 global operations Shared in 18 countries Service Centres • Cross-border cash • Pan-European Daily Banking management in 18 countries Desk Shared • >30 (sub-)processes robotised Processes Services • Organisatio
Slide 7: Organisation changed to unleash sector potential
Organisation changed to unleash sector potential Traditional bank Client point of view “Buy our products” “Do you understand my business?” TMT* & Healthcare ... Real Estate, Infra ... 20 years of & Construction expertise Financial markets Commodities, Food Term loans & Agri Payments & Cash Managemen
Slide 8: We serve clients throughout our network in over 40 countries
We serve clients throughout our network in over 40 countries Client profitability Virtual client monitored on a teams bring our global basis best sector and product expertise Geographic and where our clients 32% product- are 41% agnostic EMEA approach 9% 18% 27% 44% Americas 37% Asia 47% 45% Local r
Slide 9: Our network ensures a diversified income stream
Our network ensures a diversified income stream Wholesale Banking total underlying income 2018 diversified across… …products …geographies …sectors 3% 7% 8% 17% 16% 11% 10% 28% 35% 5% €5.8 €5.8 11% €5.8 5% bln bln bln 21% 29% 10% 11% 20% 10% 5% 6% 12% 7% 12% Project and Asset-based Finance excl. TCF
Slide 10: Roadmap from current market position
Roadmap from current market position Primary clients • Grow primary clients • Lending growth ~2-3% per annum Income • Fees to grow faster than NII • Further efficiency in running the bank Costs • Digital first • Improve sales effectiveness Efficiency ROE • Maintain focus on ROE as the key business d
Slide 11: Basel IV and TRIM mitigants
Basel IV and TRIM mitigants Product features, data quality Disintermediation and regulations and capital relief Income enhancement No regret Contingent upon regulations and other actions Increase external Selective capital General Lending rating coverage relief transactions ~50% of portfolio matures
Slide 12: Financial Markets – rightsizing footprint while unlocking value
Financial Markets – rightsizing footprint while unlocking value RWA development (in € bln) FM front-office headcount Operating expenses CVA hedges to relieve RWA density Further rightsizing expected in 2019 Reducing operating expenses going forward -45% -8% +12% 37 981 813 873 750 86 20 50 823 895 2
Slide 13: Innovation to drive value in Wholesale Banking
Innovation to drive value in Wholesale Banking Build Partner Buy Cash Management Trade Payments Bank Mendes Gans Global innovation leader >80 • Pooling; improving visibility on your in trade finance payment methods corporate’s liquidity and interest results Top 5 in DLT* Merchant Service >150 curren
Slide 14: Terra: steering our loan book to meet climate goals
Terra: steering our loan book to meet climate goals Terra • Steering our loan book towards the Paris Agreement’s well-below 2˚C-goal approach Empowering • Supporting our clients’ technology transition and reduced carbon footprint clients Financing • Financing investments needed to transition to a lo
Slide 15: We are a leader in the growing ESG debt market
We are a leader in the growing ESG debt market Global annual sustainable debt Euro Green Bond League Table issuance* (Ex-SSA)* Strong momentum with WB clients Ranking #3 > 40 Sustainability improvement loan mandates ~€220 since 2017** €4 bln 16 bln # issues 0 2012 2018 2012 2018 We aim to double our
Slide 16: Appendix
Appendix 16
Slide 17: Organisation changed to unleash sector potential
Organisation changed to unleash sector potential Increased commercial effectiveness Relationship Manager led Transaction Financial Sector Lending CF / GCM / CS&A* virtual client Services Markets teams / product agnostic Real Estate, Infra TMT* & Healthcare Energy Financial Institutions & Constructio
Slide 18: ING's specialised offering encompasses seven sectors
ING’s specialised offering encompasses seven sectors Our clients operate in 7 sectors in % of total WB lending credit outstandings* Real Estate, Infra Infra - MLA of the Best Commodities Supply Chain 13% & Construction Year Trade Finance Finance Provider Commodities, Food 14% Bank in the world of th
Slide 19: Illustrative country example - WB France performance
Illustrative country example - WB France performance Total number of clients League tables Customer lending WB France (in € bln) +40 #10 #7 IG syndicated loans* x2.3 201 #12 #9 8.2 161 IG corporate bonds** 3.5 #12 #5 80 100 Acquisition Finance deals** 3.0 2013 2018 #7 #3 2013 2018 Primary Real Estat
Slide 20: Terra: steering our loan book to meet climate goals
Terra: steering our loan book to meet climate goals • Our strategy to steer our lending book towards the Paris Agreement’s Terra well-below 2˚C-goal. • Measures needed shift in technology for key sectors against actual and future technologies used by clients Methodology • Developed with 2° Investing
Slide 21: 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