Ing Groep N.v. · EURONEXT:INGA
Ing Groep — Investor Day (March 2014)
18 slides from Ing Groep's investor day presentation, Mar 31, 2014
Slide 1: Transform, innovate, diversify: Case study Italy, Spain, Poland
Transform, innovate, diversify Case study Italy, Spain, Poland ING Investor Day Brunon Bartkiewicz Head Retail Banking International, Rest of Europe Amsterdam - 31 March 2014 www.ing.com
Slide 2: Key messages
Key messages A Focus on becoming the primary bank for our customers B Innovation-driven fulfilling relevant customer needs C This will allow us to grow customer lending and diversify the asset base 2
Slide 3: Shifting business models
A Shifting business models Franchise is built on strong savings proposition Low-cost position allows us to share part of the benefits with clients Funds entrusted in ING Direct* (in EUR bln) ING Direct*, cost-over-client balances (in bps) 174 155 157 130 140 106 114 68 48 46 2 12 1999 2001 2003 2005
Slide 4: All units are well-positioned to serve the customer needs
A All units are well-positioned to serve the customer needs We are well positioned in Spain, Italy and Poland We continue to focus on providing a superior customer experience 2014 Spain Italy Poland NPS position Product categories Spain / Italy Retail +37 +8 Poland Savings -3 Payment accounts
Slide 5: Solid commercial growth with a focus on payment account clients
A Solid commercial growth with a focus on payment account clients We continue to grow our client base… …with an increased role of payment accounts as entry product % payment account customers over total customers CAGR 2010 - 2013 75% 51% Poland 50% 21% Italy 25% Spain 7% 6% 6% 0% -7% 0.0 0.5 1.0 1.5
Slide 6: Payment accounts an important driver for increased cross-buy and the primary banking relationship
A Payment accounts an important driver for increased cross-buy and the primary banking relationship Payment accounts customers have more propensity to buy Strong potential to increase the share of primary bank relationships % multi-product customers % of primary bank customers (of total active custo
Slide 7: Case study Spain: payment account customers have more products, are more satisfied and have more lending
A Case study Spain: payment account customers have more products, are more satisfied and have more lending with us After 3 years, clients acquired through payments have more products ...and have more annual contact moments with the bank Savings clients 34 Payment clients 100 68% Inactive Mono-produc
Slide 8: Retail lending outpaced market growth
A Retail lending outpaced market growth Spain increased retail lending by 7% in a Retail lending growth in Italy driven by new In Poland, we demonstrated the highest shrinking market mortgage production with attractive margins organic growth among Polish banks CAGR 9% CAGR CAGR 7% 12% 2010 2013 2010
Slide 9: Innovation in distribution: mobile-first everywhere
B Innovation in distribution: mobile-first everywhere Massive shift to mobile and direct channels expected in EU… …which is already observed in ING’s client base Percent of interaction Example Italy: % of client service contacts per channel 12 2 2 Other 13% 10% ATM & Branch 34 28 Mobile 69% Call-cen
Slide 10: Innovation in distribution: a "Bank Shop" model
B Innovation in distribution: a “Bank Shop” model Italy Spain Poland 10
Slide 11: Bank shops – successfully different
B Bank shops – successfully different • Selective location Differentiating model, significantly more efficient than the market average • Very limited number 900 • New drivers (e.g. easy 500 access) 353 Physical network • Network size suitable for 131 ING Branches/ING million is still valid… sales op
Slide 12: Case study Spain: the essentials to build a strong relationship in the new digital era
B Case study Spain: the essentials to build a strong relationship in the new digital era New customer needs New digital solutions • Universal access to all functionality from • Responsive web design: one single > Traffic 1 anywhere. application for all devices & channels (control cost and complexity
Slide 13: Multi-segment balance sheet management – consolidation
C Multi-segment balance sheet management – consolidation Stand-alone balance sheets... Example Italy …became One Bank balance sheets… …which are consolidated to a large extent ING Direct Assets Liabilities Commercial Banking Assets Liabilities REF Assets Liabilities Assets Liabilities Assets Liabili
Slide 14: Focus on diversifying the balance sheet through high-yielding asset growth
C Focus on diversifying the balance sheet through high-yielding asset growth In Italy, total assets decreased by 21% while In Spain, fast lending growth was achieved ING in Poland grew twice the market further increasing customer lending by 13% in a shrinking market supporting balance sheet diversif
Slide 15: Accelerating asset generation capabilities
C Accelerating asset generation capabilities • Accelerate responsible lending growth in line with our brand Italy 1.0% values 0.0% Consumer Lending - • Embracing potential of existing customers and brand Spain 4.0% Market share potential to exploit attributes 0.9% payment account payment accounts •
Slide 16: Case study Poland: SME and Midcorps as the 'third engine'
C Case study Poland: SME and Midcorps as the ‘third engine’ • Creation of dedicated sales network Strong client growth (‘000s) Trending towards digital channels • Separation of duties: Relationship Manager focuses on sales activities (% of Mid-corp network in acquisition) and the Account Manager on
Slide 17: Wrap-up
Wrap-up Recommendation Satisfaction Retail customer Balanced sales - needs Retail Earning the SME customer Superior customer Balanced sales - Diversified primary needs experience SME balance sheet relationship CB customer Balanced sales - needs CB • Innovation-driven fulfilling relevant customer nee
Slide 18: Disclaimer
Disclaimer ING Group’s Annual Accounts are prepared in accordance with International Financial Reporting Standards as adopted by the European Union (‘IFRS-EU’). All figures in this document are based on the 2013 ING Group Annual Accounts. This document is unaudited. Certain of the statements contain