Slide 1: First quarter 2023 results
First quarter 2023 results ING posts net result of €1,591 mln Steven van Rijswijk, CEO of ING 11 May 2023
Slide 2: Delivering value in 1Q2023
Delivering value in 1Q2023 Continued primary High share of mobile-only Growing volume mobilised2) customer growth customers1) to finance the transition +106,000 57% €22 bln Strong total income growth3) Increasing return on equity4) Attractive shareholder return 23% 9.7% €1.5 bln year-on-year 4-quart
Slide 3: We are executing our strategy
We are executing our strategy Our purpose Empower people to stay a step ahead in life and in business Our strategic priorities Superior customer experience Sustainability Increase Streamline Smarter straight-through-processing customer interactions KYC processes of customer journeys 2023 focus Incre
Slide 4: Our strong foundation with a large retail deposit base and high liquidity
Our strong foundation with a large retail deposit base and a high level of available liquidity resources A growing base of insured Retail Banking deposits (in € bln) Strong liquidity position (in € bln) Available liquidity resources 660 45 17% 66 435 31% 13% €268 549 bln 83% insured 114 35% insured
Slide 5: Growing shareholder return
Growing shareholder return Strong capital generation Attractive shareholder return Return on equity (4-quarter rolling) Based on (announced) payment date 11.8% 12.5% 9.7% 9.4% 1.28 8.0% 6.7% 5.4% 1.01 0.89 0.70 0.67 0.68 0.41 0.50 Dividend 0.60 0.58 ban 0.39 Return on equity Return on equity 2018 20
Slide 6: Progress towards our 2025 targets
Progress towards our 2025 targets Financial target 1Q2023 2025 target Drivers Primary customer growth 5-10% 1) Increasing package and service fees in daily banking to better reflect cost of service Fee income -4% annual Growing base in investment products, both in number of accounts as well as
Slide 7: 1Q2023 results
1Q2023 results Full P&L overview on slide 17 7
Slide 8: A robust model delivering value
A robust model delivering value Pre-provision profit excl. volatile items1) and regulatory costs 1Q2023 pre-provision profit, excluding volatile items and (in € mln) regulatory costs, increased on both comparable quarters Strong NII development, driven by the positive effect of 3,055 higher inte
Slide 9: Strong NII momentum and higher NIM
Strong NII momentum and higher NIM Net interest income (in € mln) Lending and deposit margin (in bps) Net interest margin (in bps) 3,545 4,012 159 3,465 3,332 3,415 71 82 76 145 135 129 127 128 148 3,604 3,860 114 137 137 139 136 3,333 3,389 94 140 137 136 135 71 134 52 134 133 45 128 -343 -315 1Q20
Slide 10: Continued deposit inflow and loan growth, albeit at a lower pace
Continued deposit inflow and loan growth, albeit at a lower pace Customer lending (in € bln) Net core lending growth €1.0 bln 1.8 -2.3 1.4 0.3 0.3 -0.7 0.3 -3.1 641.5 0.2 -0.2 639.4 4Q2022 Retail Retail Retail Retail Other WB Lending WB DB&TF1) WB Other1) Treasury FX Other2) 1Q2023 Netherlands Belgi
Slide 11: Fees supported by daily banking, fee base growing
Fees supported by daily banking, fee base growing Net fee & commission income per business line (in € mln) Net fee & commission income per product category (in € mln) 933 888 888 896 933 888 888 896 876 876 112 92 96 105 106 324 280 295 318 323 267 226 194 201 217 275 253 230 214 224 247 238 258 244
Slide 12: Operating expenses include full-year 2022 inflationary impact and investments in growth
Operating expenses include full-year 2022 inflationary impact and investments in growth Expenses (in € mln) Excluding regulatory costs and incidental items, expenses were 10.7% higher YoY 3,070 2,945 2,888 Main driver was higher staff expenses, largely reflecting 2,738 525 the full-year inflatio
Slide 13: Risk costs reflect high quality loan book
Risk costs reflect high quality loan book Risk costs per business line (in € mln) Stage 2 ratio Stage 3 ratio 987 10.2% 9.4% 8.9% 939 7.2% 6.6% 7.0% 7.1% 1.6% 403 6.6% 1.5% 1.4% 1.5% 1.4% 128 269 152 5.6% 5.3% 1.4% 202 1.4% 1.4% 1.4% 1.4% 65 5.8% 5.5% 88 274 242 5.2% 1.2% 1.3% 1.4% 113 203 4.6% 4.5%
Slide 14: ING Group CET1 ratio very strong at 14.8%
ING Group CET1 ratio very strong at 14.8% ING Group CET1 ratio development (in %) 14.5% 0.2% -0.0% 0.2% 14.8% ~12.5% 10.7% 4Q2022 CET1 ratio Profit added to CET1 Other capital movements RWA 1Q2023 CET1 ratio Basel IV CET1 ratio target Capital ratio CET1 developments SREP requirement Management buffe
Slide 15: Wrap up and Q&A
Wrap up and Q&A 15
Slide 16: Appendix
Appendix 16
Slide 17: 1Q2023 results overview
1Q2023 results overview In € mln Reported P&L Volatile items P&L excluding volatile items Net interest income 4,012 1 4,010 Net fee and commission income 896 0 895 Investment income 15 15 1 Other income 644 -45 690 Total income 5,567 -29 5,596 Expenses excl. regulatory costs 2,546 4 2,541 Regulatory
Slide 18: Volatile income and expense items
Volatile income and expense items Volatile items (in € mln) 1Q2022 2Q2022 3Q2022 4Q2022 1Q2023 WB/FM – valuation adjustments -70 90 -15 -2 -10 Capital gains/losses 26 8 -3 0 15 Hedge ineffectiveness1) 81 -31 -431 -71 35 Other items income2) -68 -155 -218 -319 -69 Total volatile items – income -31 -8
Slide 19: Hyperinflation accounting in Turkey
Hyperinflation accounting in Turkey Application of IAS 29 to consolidation of ING Turkey Impact on results (in € mln) We applied IAS 29 (‘Financial Reporting in Hyperinflationary 4Q2022 1Q2023 Economies’) to the consolidation of our subsidiary in Turkey, Profit or loss effective as of 1 January 20
Slide 20: Well-diversified lending credit outstandings by activity
Well-diversified lending credit outstandings by activity 1) ING Group Retail Banking Wholesale Banking 6% 11% 15% 34% 21% 6% 15% €807 19% €536 5% €536 €271 bln bln bln bln 15% 22% 17% 61% 5% 61% 66% 8% 12% Retail Banking Residential mortgages Mortgages Netherlands Lending Wholesale Banking Consumer
Slide 21: 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% 12% NL 1% 9% Real Estate, Infra & Construction 17% Belux Commodities, Food & Agri Germany 33% 11% TMT & Healthcare 2% 10% Other Challengers Tran
Slide 22: Well-diversified Commercial Real Estate (CRE) portfolio
Well-diversified Commercial Real Estate (CRE) portfolio Portfolio overview CRE by asset type (as per 1Q2023) CRE portfolio of €47.9 bln (5.9% of loan book) vs €56 bln 7% cap, with a low Stage 3 ratio of 1.0% and average 47% LtV 8% Office 23% 5% Residential Retail €47.9 bln Industrial Strict underw
Slide 23: 1Q2023 provisioning per Stage
1Q2023 provisioning per Stage Stage 1 provisioning (in € mln) Stage 2 provisioning (in € mln) Stage 3 provisioning (in € mln) 844 56 407 40 18 34 13 318 837 25 37 240 27 230 9 177 197 1 47 -6 154 43 -21 -5 32 97 40 161 7 -78 -51 -194 -117 101 -12 -46 141 167 155 -8 -77 -33 -202 53 70 1Q2022 2Q2022 3
Slide 24: Growing base of mainly sticky insured retail deposits
Growing base of mainly sticky insured retail deposits Growing base of insured deposits from private individuals as Customer deposits excluding Group Treasury (in € bln) main source of funding €435 bln deposits representing ~70% of total customer 600 deposits (excl. GT) and ~43% % of our balance sh
Slide 25: Withholding tax mechanics
Withholding tax mechanics Withholding tax mechanics Implications Cash dividend payments in the Netherlands are subject to For ING, the hurdle in 2023 is €~2.8 bln 15% dividend withholding tax Following the cash dividend payments of €0.3 bln in January Additional distributions in the form of
Slide 26: 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