Ing Groep N.v. · EURONEXT:INGA
Ing Groep — Q4 2024 Earnings Presentation
36 slides from Ing Groep's earnings presentation, Feb 6, 2025
Slide 1: Execution of our strategy resulted in outstanding growth and strong value delivery
Execution of our strategy resulted in outstanding growth and strong value delivery 4Q2024 ING Group 6 February 2025
Slide 2: Delivering outstanding commercial growth across all business lines
Delivering outstanding commercial growth across all business lines Mobile primary customers1) Net core lending growth Net core deposits growth +1.1 mln €+28 bln €+47 bln ▪ Very strong growth in mobile ▪ 4% net core lending growth, with ▪ Highest ever net core deposit primary customers, all markets r
Slide 3: Sustainably increasing impact on our stakeholders
Sustainably increasing impact on our stakeholders Customers Our people Planet and society ▪ Enhanced product offering to ▪ Highest ever organisational health ▪ Strong increase (+13%) in volume existing customer segments score with a record participation mobilised1) to €130 bln ▪ Introduced products
Slide 4: Accelerating our investments in our Growing the Difference strategy
Accelerating our investments in our Growing the Difference strategy Developing new customer segments ~€1 bln in deposits from Business Banking clients in Germany Investing in client acquisition ~1 mln additional customers Business growth Enhancing scalable infrastructure Enhanced product foundation
Slide 5: Record total income driven by volume growth and higher fees
Record total income driven by volume growth and higher fees Lending and liability NII Fee income Total income (in € bln)1) (in € bln) (in € bln) +5.6% CAGR +7.4% CAGR +6.4% CAGR 22.6 22.6 15.6 15.5 17.6 18.5 18.6 12.5 11.8 12.5 4.0 8.3 8.5 3.5 3.6 3.6 3.0 9.2 9.3 8.6 7.3 7.0 3.2 2.6 4.0 2020 2021 20
Slide 6: Consistently delivering value for our shareholders
Consistently delivering value for our shareholders Attractive shareholder return1) Key developments ▪ Sustained attractive shareholder 7.0 10.9 10.3 12.5 15.1 remuneration with a >15% yield 12.5% 15.0% 15.1% ▪ Continued high earnings per share, 9.4% driven by strong profitability and a 7.4% reductio
Slide 7: Showcase of Growing the Difference - Retail Netherlands
Showcase of Growing the Difference - Retail Netherlands Primary customers (in mln) Cost / income ratio (in %) Profit before tax (in € bln) Growing the difference 56.4% 2.9 ▪ Significant growth in 2.8 4.7 4.9 50.0% 50.4% market share new 4.6 4.6 4.5 42.7% 43.3% 2.1 production and record 1.9 2.0 high
Slide 8: ING to sell its onshore business in Russia
ING to sell its onshore business in Russia ING to sell its onshore business in Russia Offshore exposure continues to decrease (in € bln) ▪ Agreement on the sale of our Russian subsidiary to Global -81% Development JSC, which will effectively end our activities in the Russian market 5.4 ▪ Global Deve
Slide 9: Our targets confirm our ambition to be the best European bank
Our targets confirm our ambition to be the best European bank To be the best European bank by Mobile primary Total Fee Cost/income CET1 Return on customers income income ratio ratio equity annual growth CAGR 2024-2027 by 2027 by 2027 by 2025 by 2027 +1 mln +4-5% €5 bln 52-54% ~12.5% 14% Structurally
Slide 10: 4Q2024 results
4Q2024 results 10
Slide 11: Sustained strong growth in core customer balances
Sustained strong growth in core customer balances Customer lending (in € bln) Main drivers Net core lending growth €+7.2 bln ▪ Strong growth in customer lending 4.4 686.1 5.9 0.6 0.5 0.2 ▪ Growth in Retail Banking 654.0 662.2 674.5 mainly driven by strong 648.0 performance in mortgages across almost
Slide 12: Total net interest income supported by lending and Treasury
Total net interest income supported by lending and Treasury 4Q2024 NII development (in € mln) NII excl accounting asymmetry and one-offs €-47 mln Accounting asymmetry €+88 mln 3,689 102 40 3,680 16 48 -51 -164 NII 3Q2024 Liability NII Lending NII Other NII One-off Financial Markets Treasury interest
Slide 13: Net interest income impacted by normalising liability margin
Net interest income impacted by normalising liability margin Net interest income (in € mln) Lending and liability margin (in bps) Net interest margin (in bps) 3,875 3,825 3,830 3,689 168 166 166 3,680 130 131 132 162 159 128 128 156 155 152 1,810 1,795 1,779 1,794 148 145 1,630 118 154 151 116 112 1
Slide 14: Continued strong liability margin in a lower rate environment
Continued strong liability margin in a lower rate environment Replicating income on Retail eurozone Total liability margin to stabilise at a 3-month EURIBOR forward curves customer deposits 100-110 bps Implied interest rates, end-of-period, in bps Interest income in € bln1) Average liability margin
Slide 15: Strong performance in fee income
Strong performance in fee income Net fee & commission income per product category (in € mln) Main drivers +14% ▪ Year-on-year, continued strong structural growth in fee income, 998 999 1,009 1,001 driven by Retail Banking (+16%) 879 139 140 138 124 113 ▪ +1.0 mln customers and +1.1 251 240 250 245 2
Slide 16: Expenses higher due to inflation and continued investments
Expenses higher due to inflation and continued investments Development operating expenses (in € bln) +4.8% +7.6% 11.6 1.0 0.9 0.2 12.1 0.2 10.3 +5% +1% +3% 11.1 -2% Total Regulatory Incidental Operating Inflationary Danske VAT Business Operational Operating Regulatory Incidental Total expenses costs
Slide 17: Risk costs below the through-the-cycle average
Risk costs below the through-the-cycle average Risk costs per business line (in € mln)1) Stage 2 ratio Stage 3 ratio 5 16 18 20 18 1.9% 2.0% 9.4% 336 8.9% 7.6% 1.8% 300 299 8.1% 7.6% 8.9% 1.7% 8.0% 1.6% 1.6% 258 7.7% 7.3% 7.2% 1.5% 1.6% 191 141 93 202 8.7% 7.5% 7.5% 1.5% 86 6.9% 1.5% 1.5% 1.4% 1.5%
Slide 18: Capital ratio mainly impacted by the announced cash distributions
Capital ratio mainly impacted by the announced cash distributions CET1 capital ratio development (in %) 14.3% +0.2% +0.1% 13.6% 13.5% ~12.5% -0.8% -0.2% 10.9% 3Q2024 Announced 3Q2024 Profit added Other capital RWA 4Q2024 Basel IV CET1 ratio distribution pro forma to CET1 movements target CET1 Capita
Slide 19: Outlook 2025
Outlook 2025 19
Slide 20: Stable income in 2025 supported by volume growth and fees
Stable income in 2025 supported by volume growth and fees Total income scenario (in € bln) Commercial net interest income Fee income ~+0.3 +0.2 – 0.4 Roughly stable 22.6 ~+0.3 Roughly stable ~-0.7 ~-0.2 Total income 2024 Liability Liability Lending Lending Fee income Other 1) Total income 2025 1) vo
Slide 21: Sustained structural growth in fee income expected
Sustained structural growth in fee income expected Product category Historical performance Growth drivers 1,269 ▪ Continued customer growth Retail 659 18% CAGR ▪ Increased conversion to mobile primary customers Daily ▪ Updated pricing of package fees Banking 2020 2024 Daily Banking fees (in € mln) ▪
Slide 22: Continued investments to fuel business growth and create efficiencies
Continued investments to fuel business growth and create efficiencies Outlook operating expenses (in € bln) 12.1 +3% -2% 11.5 – 11.7 0.9 12.5 – 12.7 11.1 +4% -0.2 -0.9 Total operating Incidental Regulatory Expenses CLA / Incremental Operational Expenses excl Regulatory Total operating expenses 2024
Slide 23: Outlook 2025
Outlook 2025 To be the best European bank by Mobile primary Total Fee Total CET1 Return customers income income expenses ratio on equity annual growth 2025 2025 2025 by 2025 2025 +1 mln Roughly stable +5-10% growth €12.5 - €12.7 bln ~12.5% >12% Note: The outlook excludes the impact of the announced
Slide 24: Q&A
Q&A 24
Slide 25: Appendix
Appendix 25
Slide 26: 4Q2024 results overview
4Q2024 results overview In € mln Reported P&L Volatile items P&L excluding volatile items Net interest income 3,680 -29 3,709 Net fee and commission income 1,001 3 998 Investment income -63 -64 1 Other income 789 -102 890 Total income 5,407 -191 5,598 Expenses excl. regulatory costs 2,989 109 2,881
Slide 27: Volatile income and expense items
Volatile income and expense items Volatile items (in € mln) 4Q2023 1Q2024 2Q2024 3Q2024 4Q2024 WB/FM – valuation adjustments -52 16 19 8 -13 Capital gains/losses -25 7 4 -51 -64 Hedge ineffectiveness1) 49 -60 39 170 -53 Other items income2) -16 4 5 46 -62 Total volatile items – income -44 -32 67 173
Slide 28: Retail Banking countries contributing to strong returns
Retail Banking countries contributing to strong returns Retail Banking Total Netherlands Belgium1) Germany Spain Italy Australia Poland Romania Türkiye Scale (4Q2024) Customers (mln) 39.7 7.7 2.4 9.2 4.4 1.3 2.7 4.4 1.8 5.7 o.w. primary (mln) 16.2 4.9 1.1 3.0 1.7 0.5 1.1 2.3 1.0 0.6 o.w. mobile prim
Slide 29: Accounting asymmetry impacting net interest income
Accounting asymmetry impacting net interest income Treasury interest rate differential (in € mln) Wholesale Banking Financial Markets (in € mln) 383 356 376 302 23 19 17 21 29 197 474 515 515 242 193 233 231 203 416 216 -172 -174 39 70 50 52 29 -219 -215 -214 -58 -160 -209 -192 -143 4Q2023 1Q2024 2Q
Slide 30: Change in income reporting as of 1Q2025: Commercial NII
Change in income reporting as of 1Q2025: Commercial NII Net interest income to be split between Commercial NII and Other NII ▪ Starting from 1Q2025 disclosure, Net interest income Commercial NII Commercial NII will be added to P&L reporting 3,825 3,830 3,897 3,917 3,897 3,689 3,680 3,749 Consisting
Slide 31: Granular customer deposit base
Granular customer deposit base Total customer deposits per segment (in € bln) ▪ Highly insured, granular and continuously growing customer 650 675 693 698 692 deposits represent a strong funding 39 42 20 base 58 26 62 37 68 69 74 118 118 120 121 126 ▪ ~70% of total deposits is from private individua
Slide 32: 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 3Q2024 4Q2024 Economies’) to the consolidation of our subsidiary in Türkiye, Profit or loss effective as of 1 Janu
Slide 33: Addition to loan loss provisions per Stage
Addition to loan loss provisions per Stage Stage 1 provisioning (in € mln)1) Stage 2 provisioning (in € mln)1,2) Stage 3 provisioning (in € mln)1) 451 453 24 7 3 3 47 43 368 -4 -7 10 12 -31 -21 -23 -37 311 -12 -4 -46 -65 -59 -104 306 289 -16 -18 209 -33 -100 -53 175 156 -35 -94 -64 59 -147 159 145 1
Slide 34: Well-diversified lending credit outstandings by activity
Well-diversified lending credit outstandings by activity 1) ING Group Retail Banking Wholesale Banking 9% 6% 12% 33% 23% 4% 16% 21% €796 €534 €534 €261 bln bln bln bln 13% 11% 23% 5% 62% 65% 8% 67% 18% 5% Retail Banking Residential mortgages Mortgages Netherlands Lending Wholesale Banking Consumer l
Slide 35: 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% 8% NL 1% 9% Real Estate, Infra & Construction 14% Commodities, Food & Agri Belux 2% 10% 30% 12% TMT & Healthcare Germany Transportation & Logist
Slide 36: 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 ar