Ing Groep N.v. · EURONEXT:INGA
Ing Groep — Q1 2025 Earnings Presentation
29 slides from Ing Groep's earnings presentation, May 2, 2025
Slide 1: Strength of our franchise drives continued growth
1Q2025 Strength of our franchise drives continued growth 2 May 2025
Slide 2: Strength of our franchise drives continued growth in 1Q2025
Strength of our franchise drives continued growth in 1Q2025 Mobile primary Net core Net core Fee Volume customers lending growth deposits growth income mobilised +174,000 €+6.8 bln €+22.6 bln €1,094 mln €30 bln vs 182,000 in 1Q2024 vs €+4.2 bln in 1Q2024 vs €+13.5 bln in 1Q2024 vs €998 mln in 1Q2024
Slide 3: Strong fundamentals enabling ING to navigate volatility
Strong fundamentals Growth outlook Asset quality enabling ING to Strong fundamentals navigate volatility • Demonstrated ability to grow faster than GDP, supported by our diversified presence • Continued increase in balances and fee Proven risk management framework income driven by customer growth •
Slide 4: Favourable housing market dynamics and our position as the leading European mortgage bank
Favourable housing market dynamics and our position as the leading European mortgage bank fuel continuous growth Mortgage markets are expected to continue growing House prices have shown sustained increases Example - mortgage production in Germany (in € bln) Example - average purchase price in the N
Slide 5: Wholesale Banking is well-positioned to capture the European growth opportunity
Wholesale Banking is well-positioned to capture the European growth opportunity The German fiscal stimulus package and the broader European initiatives to spend more on defence, technology and infrastructure offer significant opportunities • Top 5 lending bank in Europe with presence in 20 European
Slide 6: Consistently delivering value for our shareholders
Consistently delivering value for our shareholders Distributions (in € mln) • €2 bln share buyback programme announced As announced with the respective quarterly results • >€28 bln of cash returned since 2,500 2,500 2,150 2021 500 2,000 • Committed to generate a healthy 1,129 shareholder return goin
Slide 7: Confirmation of our 2025 outlook and 2027 targets
Confirmation of our 2025 outlook and 2027 targets 2025 outlook 2027 targets Mobile primary customers Mobile primary customers To be the best European bank annual growth +1 mln annual growth +1 mln Total income Total income 2025 CAGR 2024-2027 Roughly stable +4-5% by Fee income Fee income 2025 2027 +
Slide 8: 1Q2025 results
1Q2025 results 8
Slide 9: Total income supported by resilient commercial NII
Total income supported by resilient commercial NII Total income (in € mln) 5,909 5,583 5,716 5,637 5,407 800 1,003 749 688 657 998 999 1,009 1,094 1,001 3,897 3,917 3,897 3,749 3,794 1Q2024 2Q2024 3Q2024 4Q2024 1Q2025 Commercial NII Fee income All other income • Resilient commercial net interest inc
Slide 10: Sustained strong growth in customer balances
Sustained strong growth in customer balances Customer lending (in € bln) Strong growth in customer lending • €8.6 bln growth in Retail Banking Net core lending growth €6.8 bln driven by continued mortgage growth 1.9 in most markets 6.0 0.7 686.1 688.5 • Additional growth in both consumer -1.8 and bu
Slide 11: Resilient commercial net interest income
Resilient commercial net interest income Breakdown commercial NII (in € mln) Average customer balances (in € bln) Development of margins (in bps) +6.2% 3,897 3,917 3,897 243 242 238 3,749 3,794 226 226 1,795 1,779 1,794 1,630 1,685 620 637 643 652 668 131 132 128 128 125 116 112 112 2,138 2,119 2,10
Slide 12: Strong structural increase in fee income
Strong structural increase in fee income Fee income per product category (in € mln) Structural growth • Continued strong structural growth in +10% fee income, ~75% alpha driven 1,094 • Retail Banking fees grew across 998 999 1,009 1,001 151 markets (+18% YoY) 139 140 138 124 251 240 250 245 308 • +>
Slide 13: All other income supported by strong client business in Financial Markets
All other income supported by strong client business in Financial Markets All other income (in € mln) • Financial Markets benefited from increased client activity and 1,003 favourable market conditions 106 749 • Treasury was up on both comparable 800 688 49 126 quarters, mainly due to higher results
Slide 14: Expenses in line with guidance and lower quarter-on-quarter
Expenses in line with guidance and lower quarter-on-quarter Operating expenses (in € mln) Regulatory costs (in € mln) Incidental items (in € mln) Excl regulatory costs and incidental items +6.2% +0.8% 2,792 2,881 2,835 2,670 2,719 109 358 347 361 41 88 88 24 4 4 1Q2024 2Q2024 3Q2024 4Q2024 1Q2025 1Q
Slide 15: Risk costs below the through-the-cycle average
Risk costs below the through-the-cycle average Risk costs per business line Stage 2 ratio Stage 3 ratio Totals including Corporate Line 9.4% 336 8.4% 2.0% 300 299 313 1.9% 8.1% 8.3% 258 1.8% 1.8% 7.7% 7.6% 1.6% 1.7% 7.6% 8.9% 191 138 7.3% 7.2% 1.5% 1.6% 1.6% 1.6% 141 8.7% 8.2% 93 202 7.5% 6.9% 1.5%
Slide 16: Strong CET1 capital ratio well above our target
Strong CET1 capital ratio well above our target CET1 capital ratio development (in %) 13.6% +0.4% +0.0% 13.6% 13.1% ~12.5% -0.2% -0.1% -0.6% 10.9% 4Q2024 Net result Dividend Other capital RWA 1Q2025 Announced 1Q2025 pro formaBasel Basel 1Q2025 IV CET1IV ratio reserve movements distribution pro forma
Slide 17: Concluding remarks
Concluding remarks • Strong start of the year with continued delivery of shareholder value • Our strategy and strong fundamentals enable us to navigate volatility • Well-positioned to support the European economy and capture growth opportunities • Reconfirmation of our 2025 outlook and 2027 targets
Slide 18: Q&A
Q&A 18
Slide 19: Appendix
Appendix 19
Slide 20: 1Q2025 results overview
1Q2025 results overview 1Q2025 results overview (in € mln) Reported P&L Volatile items P&L excluding volatile items Commercial NII 3,794 0 3,794 Fee income 1,094 0 1,094 All other income 749 -39 788 Total income 5,637 -39 5,676 Expenses excl. regulatory costs 2,839 4 2,835 Regulatory costs 361 0 361
Slide 21: Volatile income and expense items
Volatile income and expense items Volatile items (in € mln) 1Q2024 2Q2024 3Q2024 4Q2024 1Q2025 WB/FM – valuation adjustments 16 19 8 -13 -6 Capital gains/losses 7 4 -51 -64 6 Hedge ineffectiveness1) -60 39 170 -53 -10 Other items income2) 4 5 46 -62 -29 Total volatile items – income -32 67 173 -191
Slide 22: 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 (1Q2025) Customers (mln) 40.1 7.7 2.5 9.3 4.5 1.3 2.8 4.4 1.8 5.8 o.w. primary (mln) 16.3 4.9 1.1 3.0 1.7 0.5 1.1 2.3 1.0 0.6 o.w. mobile prim
Slide 23: 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 24: Impact accounting asymmetry
Impact accounting asymmetry Treasury interest rate differential (in € mln) Wholesale Banking Financial Markets (in € mln) 19 17 19 21 29 383 356 376 415 302 193 233 231 203 226 474 515 515 521 416 -172 -215 -214 -174 -207 70 50 52 29 61 -160 -209 -192 -143 -167 1Q2024 2Q2024 3Q2024 4Q2024 1Q2025 1Q2
Slide 25: Granular deposit base
Granular deposit base Total customer deposits per segment (in € bln) • Highly insured, granular and continuously growing customer 675 693 698 692 734 deposits represent a strong funding 79 40 base 62 37 68 39 69 42 74 20 118 120 121 126 122 • ~70% of total deposits is from private individuals, of wh
Slide 26: Additions to loan loss provisions per stage
Additions to loan loss provisions per stage Stage 1 provisioning (in € mln) Stage 2 provisioning (in € mln) Stage 3 provisioning (in € mln) WB includes Corporate Line Including modifications and WB includes Corporate Line 15 84 451 453 17 7 -4 3 3 -2 81 368 -7 43 -12 -21 10 12 2 311 -4 -31 289 -46 -
Slide 27: Well-diversified lending credit outstandings by activity
Well-diversified lending credit outstandings1) by activity ING Group Retail Banking Wholesale Banking 11% 6% 16% 22% 32% 16% 4% 20% €825 bln €557 bln €557 bln €268 bln 13% 11% 21% 59% 68% 5% 64% 8% 17% 6% Retail Banking Residential mortgages Mortgages Netherlands Lending Wholesale Banking Consumer l
Slide 28: Wholesale Banking lending credit outstandings
Wholesale Banking lending credit oustandings1) Diversification across geographies Diversification across sectors 1% 8% Netherlands 1% 8% Real Estate, Infra & Construction 16% BeLux Commodities, Food & Agri 10% 11% 2% Germany 34% TMT & Healthcare Retail Other countries Transportation & Logistics 9% €
Slide 29: 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