Slide 1: Third quarter 2021 results
Third quarter 2021 results ING posts 3Q2021 net result of €1,367 mln Steven van Rijswijk, CEO of ING 4 November 2021
Slide 2: Key points
Key points ▪ Focus on climate action continues to accelerate and we actively engage with companies to finance the investments needed for the transition to a low-carbon economy ▪ Strong pre-provision result, supported by continued strong fee income, higher lending margins and negative interest rate c
Slide 3: A sustainability leader supporting our clients in the transition
A sustainability leader supporting our clients in the transition We published our integrated climate report We support our clients in the transition to a low-carbon economy ▪ The 2021 climate report integrates our progress on climate alignment of our loan book and climate risk management €1.35 bln G
Slide 4: Strong pre-provision result reflecting continued fee growth
Strong pre-provision result reflecting continued fee growth Pre-provision result excl. volatile items* and regulatory costs ▪ As both income and costs improved, this quarter’s (in € mln) pre-provision result excluding volatile items and regulatory costs increased ~10% both YoY and QoQ 2,215 ▪ 3Q2021
Slide 5: The quality of our loan book is strong
The quality of our loan book is strong Risk costs compared to peers* (in bps of customer lending) ▪ In 3Q2021 we released €96 mln of management overlays applied in previous quarters, reflecting a recovery of 263 247 economic activity, robust GDP forecasts and improved risk 210 indicators on our loan
Slide 6: 3Q2021 results
3Q2021 results 6
Slide 7: Income supported by continued strong fee income
Income supported by continued strong fee income Income (in € mln) ▪ Total income YoY included another strong quarter for fee income 4,702 4,648 ▪ Fee income was up for all products, with daily banking as 4,517 4,286 296 the main driver 4,169 39 312 304 120 74 103 6 48 10 ▪ NII included a €84 mln TLT
Slide 8: Resilient NII; 4-quarter rolling average NIM stable at 140 bps
Resilient NII; 4-quarter rolling average NIM stable at 140 bps Net interest income (in € mln) Net Interest Margin (in bps) 3,513 3,344 3,340 3,388 3,329 233 84 148 83 144 146 140 140 138 141 142 136 138 3,280 3,257 3,304 3Q2020 4Q2020 1Q2021 2Q2021 3Q2021 3Q2020 4Q2020 1Q2021 2Q2021 3Q2021 NIM NIM (
Slide 9: Sustained mortgage growth, higher repayments in WB
Sustained mortgage growth, higher repayments in WB Customer lending 3Q2021 (in € bln) Core lending businesses: €3.1 bln 2.2 2.5 -2.5 1.0 -0.1 -0.3 -0.2 0.2 619.2 616.3 0.1 -0.1 2Q2021 Retail NL Retail Retail Retail Other WB Lending WB Daily WB Other* Lease / WUB Treasury FX / Other** 3Q2021 Belgium
Slide 10: Fee income strong
Fee income strong Net fee & commission income per business line (in € mln) Net fee & commission income per product category (in € mln) 854 855 882 854 855 882 734 771 734 771 113 130 105 278 302 295 94 255 99 247 253 233 284 248 203 278 232 247 206 235 220 253 221 198 219 273 281 295 322 338 246 257
Slide 11: Operating expenses under control
Operating expenses under control Expenses (in € mln) ▪ Expenses included €233 mln of incidental items, reflecting a €180 mln provision for compensation to retail customers on certain Dutch consumer credit products and €53 mln for an 331 587 impairment and redundancy costs. This compares to €140 111
Slide 12: Risk costs remain well below the through-the-cycle average
Risk costs remain well below the through-the-cycle average Risk costs per business line (in € mln) Stage 2 ratio Stage 3 ratio 469 8.6% 7.6% 145 7.6% 7.0% 7.0% 6.7% 208 223 6.0% 1.7% 1.8% 1.8% 1.8% 1.7% 140 30 7.0% 6.7% 6.6% 193 85 39 6.1% 1.7% 1.7% 1.6% 6.4% 5.6% 1.5% 1.5% 184 -91 19 5.8% 1.6% 1.4%
Slide 13: Strong ING Group CET1 ratio at 15.8%
Strong ING Group CET1 ratio at 15.8% ING Group CET1 ratio development (in %) 15.7% +0.2% -0.0% -0.1% 15.8% ~12.5% 10.5% 2Q2021 Profit added Other capital movements RWA 3Q2021 Basel IV CET1 ratio CET1 ratio to CET1 CET1 ratio ambition Capital ratio CET1 developments SREP requirement Management buffer
Slide 14: ING Group financial ambitions
ING Group financial ambitions Actual 2020 Actual 3Q2021 Financial ambitions ~12.5%* Capital ▪ CET1 ratio (%) 15.5% 15.8% (Basel IV) ▪ ROE (%)** 4.8% 8.8% 10-12% (IFRS-EU Equity) Profitability ▪ C/I ratio (%)** 63.2% 61.9% 50-52% Distribution ▪ Distribution (per share) €0.12*** 50% pay-out ratio****
Slide 15: Wrap up
Wrap up 15
Slide 16: Wrap up
Wrap up ▪ Focus on climate action continues to accelerate and we actively engage with companies to finance the investments needed for the transition to a low-carbon economy ▪ Strong pre-provision result, supported by continued strong fee income, higher lending margins and negative interest rate char
Slide 17: Appendix
Appendix 17
Slide 18: Volatile items 3Q2021
Volatile items 3Q2021 Volatile items and regulatory costs (in € mln) 3Q2020 4Q2020 1Q2021 2Q2021 3Q2021 WB/FM – valuation adjustments 91 -13 11 11 38 Capital gains/losses 6 3 36 -2 6 Hedge ineffectiveness 43 -59 23 11 7 Other items income* -230 0 233 155 50 Total volatile items – income -90 -69 303
Slide 19: Well-diversified lending credit outstandings by activity
Well-diversified lending credit outstandings by activity ING Group* Retail Banking* Wholesale Banking* 3Q2021 3Q2021 3Q2021 7% 13% 22% 24% 37% 15% 19% €796 €501 7% €501 2% €296 bln bln bln bln 10% 52% 5% 17% 8% 63% 63% 22% 14% Retail Banking Residential mortgages Mortgages Netherlands Lending Wholes
Slide 20: Our lending book is senior and well-collateralised
Our lending book is senior and well-collateralised Residential ▪ Average LTV of 55% with low Stage 3 ratio at 1.2% Mortgages ▪ Risk metrics remained strong €314 bln 8% Consumer Lending ▪ Relatively small book, risk metrics slightly improved 40% €26 bln €796 37% bln ▪ Limited exposure to most vulnera
Slide 21: Provisioning per Stage
Provisioning per Stage Stage 1 provisioning (in € mln) Stage 2 provisioning (in € mln) Stage 3 provisioning (in € mln) 45 144 428 30 -30 -40 1 -168 169 63 15 2 3 7 -46 -7 56 290 -32 -43 36 -235 -201 8 300 237 -25 -42 -95 -83 124 189 -110 173 -159 169 135 -125 166 177 -73 127 54 68 3Q2020 4Q2020 1Q20
Slide 22: Wholesale Banking lending
Wholesale Banking lending Loan portfolio is well diversified across geographies… …and sectors Lending Credit O/S Wholesale Banking (3Q2021)* Lending Credit O/S Wholesale Banking (3Q2021)* 1% NL 1% 11% Real Estate, Infra & Construction 13% 26% Belux Commodities, Food & Agri 23% 2% Germany TMT & Healt
Slide 23: 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