Ing Groep N.v. · EURONEXT:INGA
Ing Groep — Q3 2024 Earnings Presentation
30 slides from Ing Groep's earnings presentation, Oct 31, 2024
Slide 1: Continued execution of our strategy to accelerate growth, increase impact and deliver value
Continued execution of our strategy to accelerate growth, increase impact and deliver value 3Q2024 ING Group 31 October 2024
Slide 2: Continuation of our strong growth trajectory
Continuation of our strong growth trajectory Mobile primary customers1) Net core lending growth Net core deposits growth Total income +189,000 €+9 bln €+3 bln €17.2 bln YTD ▪ Continued growth in mobile ▪ Sustained strong ▪ Successful campaign in ▪ 3Q2024 total income at a primary customers performan
Slide 3: Sustainably increasing impact
Sustainably increasing impact Customers Our people Planet and society ▪ 83% customers use mobile as ▪ Top Employer in 5 countries in ▪ Publication of our 2024 Climate preferred channel Europe2) Progress Update ▪ #1 NPS in 5 Retail Banking markets ▪ Further roll-out of the Global ▪ €28.4 bln of susta
Slide 4: Consistently delivering value
Consistently delivering value Recent distributions to shareholders (in € mln)1) Key developments 2,500 2,497 2,500 2,500 ▪ Strong capital generation with four-quarter rolling RoE of 13.8% 500 and CET1 of 14.3% 1,130 ▪ €2.5 bln additional distribution 2,000 ▪ €2 bln share buyback, structurally increa
Slide 5: Poland is an example of how we are 'Growing the difference' in Retail
Poland is an example of how we are ‘Growing the difference’ in Retail Consistent customer growth with an increasing primary customer base Growing the difference 40% 41% 42% 47% 47% 48% 50% 51% 51% ▪ New value propositions and enhanced product 2.1 2.2 2.2 offering for GenZ 1.9 2.0 1.7 1.8 0.3 0.3 1.5
Slide 6: Strategic priority to be leading in financing the sustainable transition
Strategic priority to be leading in financing the sustainable transition Recent achievements and milestones Climate action roadmap 2025 Target to grow financing of renewable power generation to €7.5 bln annually ~2,000 clients Financing of coal-fired power phased out to scored on climate disclosures
Slide 7: Further improving our outlook for 2024
Further improving our outlook for 2024 Results 3Q2024 Mobile primary Total Fee Cost/income CET1 Return on customers income income ratio ratio equity 4-quarter rolling 2024 YTD 2024 YTD 4-quarter rolling 3Q2024 4-quarter rolling +893,000 €17.2 bln €3.0 bln 52.4% 14.3% 13.8% Outlook 2024 Mobile primar
Slide 8: 3Q2024 results
3Q2024 results 8
Slide 9: Total income at a record level
Total income at a record level Total income (in € mln) Key developments ▪ Total income at a record level 5,909 ▪ Resilient core net interest income, 5,842 5,716 5,583 driven by continued growth in 5,408 680 618 374 495 customer balances 347 463 314 306 324 158 ▪ Strong performance in fee income 909
Slide 10: Customer balances continue to increase
Customer balances continue to increase Customer lending (in € bln) Main drivers Net core lending growth €+8.5 bln ▪ Strong growth in customer lending ▪ Growth in Retail Banking mainly 3.8 674.5 driven by strong performance in 0.6 0.1 2.1 5.7 mortgages across all markets 662.2 ▪ Continued growth in b
Slide 11: Resilient net interest income from lending and liabilities
Resilient net interest income from lending and liabilities Net interest 3Q2024 income remained NII development strong in 1Q2024 (in € mln) NII excl accounting asymmetry and one-offs €-128 mln Accounting asymmetry €18 mln 3,830 15 17 1 3,689 -35 -108 -31 NII 2Q2024 Liability NII Lending NII Other NII
Slide 12: Net interest margin impacted by Treasury
Net interest margin impacted by Treasury Net interest income (in € mln) Lending and liability margin (in bps) Net interest margin (in bps) 168 166 166 4,028 3,875 3,825 3,830 3,689 161 162 130 130 131 132 128 157 156 155 152 148 1,877 1,810 1,795 1,779 1,794 152 154 151 121 118 148 116 112 112 141 2
Slide 13: 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 14: Double-digit fee income growth to over one billion euro in 3Q2024
Double-digit fee income growth to over one billion euro in 3Q2024 Net fee & commission income per product category (in € mln) Main drivers +11% ▪ Strong structural year-on-year growth in fee income, driven by Retail Banking 998 999 1,009 909 879 ▪ +0.9 mln mobile primary 139 140 138 107 113 customer
Slide 15: Sustained focus on costs, while making investments in the business
Sustained focus on costs, while making investments in the business Development operating expenses (in € bln) +3% +7% 0.7 0.5 0.1 8.5 +1% +3% 8.8 0.1 +4% 8.2 7.6 -2% Total Regulatory Incidental Operating CLA / salary Danske VAT Business Operational Operating Regulatory Incidental Total expenses costs
Slide 16: Risk costs at the through-the-cycle average
Risk costs at the through-the-cycle average Risk costs per business line (in € mln)1) Stage 2 ratio Stage 3 ratio 11 5 16 18 20 1.9% 336 9.8% 8.9% 1.8% 300 8.0% 8.1% 7.6% 7.6% 1.6% 258 1.6% 1.6% 7.7% 7.3% 7.2% 1.5% 1.6% 191 6.8% 1.5% 183 93 202 7.5% 7.5% 15 6.9% 86 1.5% 1.5% 1.4% 1.5% 6.3% 1.4% 1.4%
Slide 17: Capital ratio increased due to strong profitability and lower RWA
Capital ratio increased due to strong profitability and lower RWA CET1 capital ratio development (in %) 14.0% +0.3% +0.1% 14.3% 13.5% ~12.5% -0.1% -0.8% 10.9% 2Q2024 Profit added Other capital RWA 3Q2024 Announced 3Q2024 Basel IV CET1 ratio to CET1 movements distribution pro forma target CET1 Capita
Slide 18: Q&A
Q&A 18
Slide 19: Appendix
Appendix 19
Slide 20: 3Q2024 results overview
3Q2024 results overview In € mln Reported P&L Volatile items P&L excluding volatile items Net interest income 3,689 0 3,689 Net fee and commission income 1,009 0 1,008 Investment income 52 -51 103 Other income 1,160 224 936 Total income 5,909 173 5,736 Expenses excl. regulatory costs 2,816 23 2,793
Slide 21: 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 (3Q2024) Customers (mln) 39.5 7.7 2.4 8.9 4.4 1.3 2.9 4.4 1.7 5.7 o.w. primary (mln) 15.8 4.8 1.1 2.9 1.6 0.5 1.1 2.2 0.9 0.6 o.w. mobile prim
Slide 22: Volatile income and expense items
Volatile income and expense items Volatile items (in € mln) 3Q2023 4Q2023 1Q2024 2Q2024 3Q2024 WB/FM – valuation adjustments 15 -52 16 19 8 Capital gains/losses 0 -25 7 4 -51 Hedge ineffectiveness1) 102 49 -60 39 170 Other items income2) -88 -16 4 5 46 Total volatile items – income 29 -44 -32 67 173
Slide 23: Other income mainly driven by stable client business and accounting asymmetry
Other income mainly driven by stable client business and accounting asymmetry Accounting asymmetry Other income (in € bln) Client business (in € mln) (in € mln) Other (in € mln) 458 471 442 423 266 2.8 444 423 432 0.2 413 421 2.2 63 63 83 67 79 334 334 353 24 74 80 29 31 286 300 209 192 55 40 27 28
Slide 24: Accounting asymmetry impacting net interest income
Accounting asymmetry impacting net interest income Treasury interest rate differential (in € mln) Wholesale Banking Financial Markets (in € mln) 383 356 376 24 375 23 19 17 21 197 474 515 515 273 242 233 231 408 193 216 28 39 70 50 52 -219 -172 -215 -214 -58 -249 -61 -160 -209 -192 3Q2023 4Q2023 1Q2
Slide 25: Granular customer deposit base
Granular customer deposit base Total customer deposits per segment (in € bln) ▪ Highly insured, granular and continuously growing customer 664 650 675 693 698 deposits represent a strong funding 39 42 base 61 41 58 26 62 37 68 69 116 118 118 120 121 ▪ ~70% of total deposits is from private individua
Slide 26: Hyperinflation accounting in Türkiye
Hyperinflation accounting in Türkiye Application of IAS 29 to consolidation of ING in Türkiye Impact on results (in € mln) ▪ We applied IAS 29 (‘Financial Reporting in Hyperinflationary 2Q2024 3Q2024 Economies’) to the consolidation of our subsidiary in Türkiye, Profit or loss effective as of 1 Janu
Slide 27: Addition to loan loss provisions per Stage
Addition to loan loss provisions per Stage Stage 1 provisioning (in € mln)1) Stage 2 provisioning (in € mln)1,2) Stage 3 provisioning (in € mln)1) 30 451 453 10 24 20 3 47 368 -4 -7 10 12 -31 -4 -23 -12 -4 -46 -65 -59 -81 -104 306 289 238 209 -16 -33 -100 -53 -84 89 156 -35 -94 -64 59 -147 149 159 1
Slide 28: Well-diversified lending credit outstandings by activity
Well-diversified lending credit outstandings by activity 1) ING Group Retail Banking Wholesale Banking 12% 6% 12% 33% 22% 16% 8% 20% €815 €545 5% €545 €270 bln bln bln bln 12% 21% 59% 5% 63% 17% 8% 67% 13% Retail Banking Residential mortgages Mortgages Netherlands Lending Wholesale Banking Consumer
Slide 29: 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% 10% NL 1% 9% Real Estate, Infra & Construction 16% Belux Commodities, Food & Agri 10% 11% TMT & Healthcare 2% Germany 34% Transportation & Logis
Slide 30: 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