Ing Groep N.v. · EURONEXT:INGA
Ing Groep — Investor Day (March 2019)
14 slides from Ing Groep's investor day presentation, Mar 25, 2019
Slide 1: Growth and cross-border scalability: the value in Challengers & Growth Markets
Growth and cross-border scalability: the value in Challengers & Growth Markets Investor Day 2019 Aris Bogdaneris, Head of Challengers & Growth Markets Frankfurt • 25 March 2019
Slide 2: Key points
Key points • Since 2014, Retail Challengers & Growth Markets (C&GM) have successfully delivered on our primary banking strategy • There is still significant growth potential embedded in the current businesses by improving cross-border scalability • Our Growth Markets are expanding their digital prod
Slide 3: C&GM serves 27 million customers in 10 countries
C&GM serves 27 million customers in 10 countries C&GM total customer base continues Primary customer growth is well diversified to grow… Primary customer growth (2014-2018) and NPS 2018 2014 2018 CAGR +5% 22.6 mln 27.3 mln +545k customers customers NPS #1 in 6 out of 10 countries …especially primary
Slide 4: Primary customer growth drives strong increase in interactions…
Primary customer growth drives strong increase in interactions… Digital interactions in C&GM show accelerated growth Leading to more growth beyond mortgages and savings # Digital interactions with ING (in bln) Customer balances excl. mortgages and savings (in € bln) Mobile now CAGR +16% 1.9 represen
Slide 5: …resulting in increased profits despite higher regulatory costs
…resulting in increased profits despite higher regulatory costs Non-liability income growing to >60% of income Increased profits despite higher strategic investments and Income* (in € mln) regulatory cost growth Retail profit before tax* (in € mln) CAGR +7% CAGR +7% 5,287 CAGR 1,904 1,438 3,885 2,14
Slide 6: Improving cross-border scalability brings value in C&GM
Improving cross-border scalability brings value in C&GM Across markets, we are at different stages… …we are working to capture untapped value High Retail Challengers Unite Deepening customer relationships be+nl (% of Primary customers and cross-buy) Retail Ambition to increase cross-buy, improve cro
Slide 7: Poland, Romania and Australia continue to grow while building digital capabilities
Poland, Romania and Australia continue to grow while building digital capabilities Number of branches Primary customers Digital interactions Profit before tax (in mln) (in mln) (in € mln) 2014 2018 2014 2018 2016 2018 2014 2018 -18% +61% x1.3 +60% 409 337 1.1 1.7 383 514 218 349 -16% +98% x2.6 +236%
Slide 8: Model Bank to deliver a standard customer experience and scalable platform for >7 million customers
Challengers: Model Bank to deliver a standard customer experience and scalable platform for >7 million customers To be live in: SP, IT, FR and CZ >7 million customers on one Run with less Retail and IT FTEs; platform Retail C/I ratio of 55% Half a billion digital interactions Ready to scale combinin
Slide 9: Challengers: customer engagement is key accelerator for Model Bank
Challengers: customer engagement is key accelerator for Model Bank A superior customer experience is the key to success in Model Bank delivers enhanced customer interactions Retail across countries Model Bank More Better Easy interactions customer experience Digital on-boarding Mobile-first channels
Slide 10: Challengers: important milestones have already been reached
Challengers: important milestones have already been reached ~400k customers on-boarded in Czech Republic… …remaining customers to follow by 2021 Agile cross-country product tribes with Centre of expertise established in Madrid end-to-end responsibility harmonising retail products First release to Cz
Slide 11: Digital bancassurance market represents a large untapped opportunity
Challengers: digital bancassurance market represents a large untapped opportunity ING aims to do more in the protection space Together with AXA we aim to disrupt the bancassurance market Credit-linked protection Insurance income (policies as a % of loans) (as a % of Retail 0.1% of income) Consumer M
Slide 12: AXA partnership to reach 13 million customers with a scalable digital insurance proposition
Challengers: AXA partnership to reach 13 million customers with a scalable digital insurance proposition Mobile first, digital only Straight-through processing Meeting wider life needs and services Personal, instant, relevant and seamless Diagnostic – assess the right level of insurance per customer
Slide 13: Germany is a continuing success story
Challengers: Germany is a continuing success story Accelerated primary customer growth Growth beyond savings and mortgages Total number of (primary) customers (in mln) Customer balances excluding savings and mortgages (in € bln) 9% 18% CAGR +22% CAGR +22% 34 7.7 8.7 22 13 0.7 1.6 8 3 11 11 11 2014 2
Slide 14: 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