Ing Groep N.v. · EURONEXT:INGA
Ing Groep — Investor Day (June 2024)
11 slides from Ing Groep's investor day presentation, Jun 17, 2024
Slide 1: Growing the difference
Growing the difference Accelerating growth, increasing impact, delivering value Capital Markets Day 2024 Tanate Phutrakul, Chief Financial Officer 17 June 2024
Slide 2: We have a strong financial model, delivering attractive returns
We have a strong financial model, delivering attractive returns Who we are Highly diversified Superior Strong capital generation Attractive shareholder business funding profile and ratios distribution ▪ Diversified ▪ Highly insured and ▪ Strong capital position ▪ Proven ability to provide geographic
Slide 3: We are delivering on our promises since Capital Markets Day 2022
We are delivering on our promises since Capital Markets Day 2022 Where we are now Increasing Growing our business Optimising our costs Generating capital structural fees ▪ Our focus on ▪ We have increased our ▪ We have further ▪ We have increased our profitable lending number of primary increased th
Slide 4: Strong margins and profitable growth, supporting interest income
Strong margins and profitable growth, supporting interest income Our targets Annual volume growth Lending and liability margins Net interest margin in bps in bps ~4.0% 156 ~150 150 151 153 154 >130 134 144 3.0% 129 139 134 119 1.3% 73 66 1.0% 56 >110 100-110 43 2019-2023 2024-2027 '19 '20 '21 '22 '2
Slide 5: Delivering €1 billion of additional fee income by 2027
Delivering €1 billion of additional fee income by 2027 Our targets Net fee and commission income Alpha: building a stronger base Beta: capturing the opportunity in € bln Daily banking Daily banking +5-10% ▪ Continued customer growth ▪ Payment activity levels by annual growth ▪ Optimise pricing of pa
Slide 6: Investing in longer-term value creation
Investing in longer-term value creation Our targets Business growth to be offset by operational leverage % in CAGR +3-4% CAGR 2024-2027 ~3% ~2% ~0.3% €~12 bln ~-2% Growing our Operational business leverage ▪ >1 mln of mobile primary ▪ Absolute reduction in customer growth per year Operations costs T
Slide 7: Delivering positive jaws to 2027
Delivering positive jaws to 2027 Our targets 2024 outlook 2027 targets Total income ~€22 bln 4-5% CAGR 2024-2027 Total expenses ~€12 bln 3-4% CAGR 2024-2027 Cost/income ratio ~54% 52-54% Cost/income ratio pathway to 2027 ▪ Positive jaws to 2027, supported by ~54% 54-55% 52-54% profitable growth and
Slide 8: Improving our return on equity to 14%
Improving our return on equity to 14% Our targets Shifting capital allocation towards Retail Banking Improving our structural profitability to a 14% return on equity 2023 2027 ~0.7% ~0.6% ~0.4% ~0.3% 14% >12% RWA 50% RWA 55% 2024 Converging Growing fee Shifting Improving 2027 Retail Banking Wholesal
Slide 9: Providing attractive shareholder returns
Providing attractive shareholder returns Our targets Potential uses of retained earnings and capital in excess of Unchanged CET1 ratio target and distribution policy ~12.5% CET1 ratio target ▪ Annual pay-out ratio of 50% of resilient net profit ▪ CET1 ratio target of ~12.5% confirmed (by end of 2025
Slide 10: Our targets confirm our ambition to be the best European bank
Our targets confirm our ambition to be the best European bank Our targets To be the best European bank by Mobile primary Total Fee Cost/income CET1 Return on customers income income ratio ratio equity annual growth CAGR 2024-2027 by 2027 by 2027 by 2025 by 2027 +1 mln +4-5% €5 bln 52-54% ~12.5% 14%
Slide 11: 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