Ing Groep N.v. · EURONEXT:INGA
Ing Groep — Investor Day (March 2019)
16 slides from Ing Groep's investor day presentation, Mar 25, 2019
Slide 1: Risk Management
Risk Management Investor Day 2019 Steven van Rijswijk, CRO Frankfurt • 25 March 2019
Slide 2: Reputation and trust are paramount
Reputation and trust are paramount Non-Financial Risk Framework Non-Financial Risk highlights NFR Governance Business Non-Financial Risk areas IT within Continuity risk appetite Management Framework Compliance Unauthorised Risk Activity Risk Global Dedicated centres Control & Processing Personal & P
Slide 3: Management of IT Risk
Management of IT Risk Business continuity & Cybercrime resilience Data & privacy protection operational resilience Crisis Management Organisation (CMO) BCM Framework Disaster Recovery Plan (DRP) Business Continuity Plan (BCP) • Away from a pure recovery ING regularly withstands cyber • Data and syst
Slide 4: A lending-focused model with prudent credit risk management
A lending-focused model with prudent credit risk management Total lending credit outstandings* Total RWA Credit RWA split as per end-2018 as per end-2018 as per end-2018 2% 1% 11% 37% €675 bln €314 bln 48% €272 bln 51% 63% 87% Retail Banking Credit RWA Retail Banking Wholesale Banking Operational RW
Slide 5: Retail lending overview
Retail lending overview Residential mortgages remain significant part of our book 2014 2018 7% 7% 18% 18% Residential mortgages SME/Midcorp lending Consumer lending €392 bln €428 bln Other lending* 4% 6% 71% 69% Retail lending across geographies 2014 43% 18% 19% 7% 2% 3% 7% €392 bln 2018 35% 22% 21%
Slide 6: Credit Risk Management – Wholesale Banking
Credit Risk Management – Wholesale Banking 6
Slide 7: Continuously strengthening management of credit risk
Continuously strengthening management of credit risk Strong risk management framework Three lines of defence Personal responsibility on top of risk • Client (single name) frameworks • Product Concentration • Sector Credit risk Credit risk risk measured, • Country appetite concentration managed and 1
Slide 8: Well-diversified lending across our global franchise…
Well-diversified lending across our global franchise… Total Wholesale Bank 4% 12% 21% Average maturities 15% >1 year: €248 bln 4.0 years 14% 34% Americas EMEA Asia 8% 9% 6% 9% 3% 14% 24% 6% 12% 27% 15% 4% €47 bln €157 bln €44 bln 64% 25% 33% 22% 18% Trade & Commodity Finance (TCF)* Transaction Servi
Slide 9: …with a clear focus on senior and secured deal structures
…with a clear focus on senior and secured deal structures WB average internal counterparty rating distribution improved* Nearly all lending is senior** 0% 1% 4% 3% 99.98% 11% 12% > 55% of lending 0.02% credit outstandings Senior 36% are investment grade 40% Subordinated Lending cover percentages inc
Slide 10: Wholesale Banking through-the-cycle risk costs
Wholesale Banking through-the-cycle risk costs Risk costs Wholesale Banking Risk costs Project & Asset-based Finance (in bps of average RWA) 2,000 200 169 1,500 150 72 36 84 66 1,000 100 62 57 63 24 40 30 22 500 50 59 52 27 36 22 0 0 5 13 12 21 -12 -31 -15 -500 -50 2007 2009 2011 2013 2015 2017 2007
Slide 11: Proactive restructuring preserves value
Proactive restructuring preserves value Proactive restructuring Prudent provisioning WB through-the-cycle risk costs vs write-offs Global Credit Restructuring files Cumulative over 2008-2018 with no losses Risk costs Write-offs €6.4 €5.5 75% bln bln Over ~€210 bln average WB lending book over 2008-2
Slide 12: Leveraged finance book managed within a solid framework
Leveraged finance book managed within a solid framework Business overview Leveraged finance book* focused on developed markets (as per end-2018) • Focus on larger sponsors with an established track record and a good history of seeking to resolve issues in event of underperformance by the acquired bu
Slide 13: Real Estate Finance diversified and de-risked
Real Estate Finance diversified and de-risked Main actions taken REF breakdown by type (as per end-2018) • REF exposure limit tightened in 2018 4% 7% • Geographical concentration to the Netherlands reduced 7% 35% • Portfolio substantially de-risked as evidenced by reduction in LTV (average 53%) and
Slide 14: Oil & Gas book structured to withstand adverse market conditions
Oil & Gas book structured to withstand adverse market conditions Business overview Lending credit outstandings by asset type • We lend to operating companies, keeping a senior Total €38.0 bln position versus other creditors €4.3 bln €33.7 bln • €4.3 bln directly exposed to commodity price risk 8% 1%
Slide 15: A secured lender in shipping focused on selected clients
A secured lender in shipping focused on selected clients Business overview Shipping lending by asset type (as per end-2018) • Not a traditional ship finance mortgage lender 30% • Secured corporate lender • Recourse to a corporate balance sheet Book progressively €14.6 7% • Long-term client relations
Slide 16: 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