Slide 1: Second quarter 2022 results
Second quarter 2022 results ING posts 2Q2022 net result of €1,178 mln Steven van Rijswijk, CEO of ING 4 August 2022
Slide 2: Key points
Key points ▪ In line with our strategic priorities, we continued our efforts to offer a superior customer experience, with a focus on the digital customer journey, and to contribute to a sustainable future ▪ Pre-provision profit remained strong, despite increasingly challenging operating conditions
Slide 3: Continuously improving the customer experience
Continuously improving the customer experience Mobile-only active customers* ▪ To further strengthen customer experience and drive value, we have improved several propositions in 2Q2022 53% ▪ In Romania, we were the first bank to make the start of our mortgage application process fully digital with
Slide 4: Sustainability at the heart of what we do
Sustainability at the heart of what we do ▪ We joined forces with industry players to form the Sustainability deals 1H2022* (#) Aluminium Climate-Aligned Finance Working Group, as the latest initiative to support the transition to net zero emissions 205 deals ▪ We have set intermediate 2030 targets
Slide 5: Strong pre-provision profit
Strong pre-provision profit Pre-provision profit excl. volatile items* and regulatory costs ▪ 2Q2022 pre-provision profit excluding volatile items and (in € mln) regulatory costs increased on both comparable quarters ▪ NII was strong, reflecting the positive effect of rising interest 2,405 rates on
Slide 6: 2Q2022 results
2Q2022 results 6
Slide 7: Strong NII; 4-quarter rolling average NIM at 137 bps
Strong NII; 4-quarter rolling average NIM at 137 bps Net interest income (in € mln) Net interest margin (in bps) 3,340 3,388 3,374 3,415 3,465 83 84 84 82 76 140 140 139 3,257 3,304 3,290 3,333 3,389 137 137 138 137 137 136 136 2Q2021 3Q2021 4Q2021 1Q2022 2Q2022 2Q2021 3Q2021 4Q2021 1Q2022 2Q2022 TL
Slide 8: Loan growth across all segments
Loan growth across all segments Customer lending 2Q2022 (in € bln) Core lending growth €10.1 bln 1.8 -0.3 -0.3 0.3 -1.0 1.4 642.9 1.8 2.0 1.9 1.4 633.9 1Q2022 Retail Retail Retail Retail Other WB Lending WB DB&TF* WB Other* Run-off Treasury FX / Other *** 2Q2022 Netherlands Belgium Germany C&GM* por
Slide 9: Sustained fee growth year-on-year
Sustained fee growth year-on-year Net fee & commission income per business line (in € mln) Net fee & commission income per product category (in € mln) 882 925 933 888 882 925 933 888 855 855 105 140 112 92 322 324 280 130 302 295 267 226 248 247 261 232 247 269 275 253 247 253 232 265 220 322 338 33
Slide 10: Operating expenses well contained in inflationary environment
Operating expenses well contained in inflationary environment Expenses (in € mln) ▪ Excluding regulatory costs and incidental items, expenses were 1.4% higher YoY, well below inflation levels. This was 2,947 2,945 mainly due to higher staff costs reflecting CLA increases and 2,685 385 2,738 salary i
Slide 11: Modest risk costs on a high quality loan book
Modest risk costs on a high quality loan book Risk costs per business line (in € mln) Stage 2 ratio Stage 3 ratio 987 7.2% 6.7% 6.6% 6.0% 6.0% 5.8% 5.6% 939 5.3% 5.2% 5.3% 346 1.8% 1.7% 1.7% 202 5.2% 1.6% 1.5% 216 4.9% 4.7% 39 88 4.6% 4.5% 1.4% 58 19 130 113 1.5% 1.5% 1.5% 1.4% 48 -149 20 1.1% 1.1%
Slide 12: We actively reduce our Russia-related exposure
We actively reduce our Russia-related exposure Total Russia-related exposure* Onshore exposure* and equity Offshore exposure* (in € bln) (in € bln) (in € bln) 6.7 4.6 5.3 3.6 1.3 0.9 0.2 0.2 28 February** 30 June 28 February** 30 June 28 February** 30 June Equity-at-risk Russian subsidiary ▪ Since t
Slide 13: ING Group CET1 ratio at 14.7%
ING Group CET1 ratio at 14.7% ING Group CET1 ratio development (in %) 14.9% 0.1% -0.4% 0.1% 0.0% 14.7% ~12.5% 10.5% 1Q2022 CET1 ratio Profit added to CET1 Additional capital Other capital RWA 2Q2022 CET1 ratio Basel IV CET1 ratio target distribution movements Capital ratio CET1 developments SREP req
Slide 14: ING Group financial targets
ING Group financial targets Actual 2021 Actual 2Q2022 Financial targets 2025 ~12.5%* Capital ▪ CET1 ratio (%) 15.9% 14.7% (Basel IV) ▪ Return on equity (%)** 9.2% 7.5% 12% (IFRS-EU equity) Profitability ▪ Cost/Income ratio (%)** 60.5% 61.0% 50-52% * Implies management buffer (incl. Pillar 2 Guidance
Slide 15: Wrap up
Wrap up 15
Slide 16: Wrap up
Wrap up ▪ In line with our strategic priorities, we continued our efforts to offer a superior customer experience, with a focus on the digital customer journey, and to contribute to a sustainable future ▪ Pre-provision profit remained strong, despite increasingly challenging operating conditions due
Slide 17: Appendix
Appendix 17
Slide 18: Profit or loss 2Q2022
Profit or loss 2Q2022 Profit or loss (in € mln) Reported P&L Volatile items P&L excluding volatile items Net interest income 3,465 91 3,375 Net fee and commission income 888 1 887 Investment income 31 8 23 Other income 297 -189 486 Total income 4,682 -89 4,771 Expenses excl. regulatory costs 2,524 1
Slide 19: Volatile items 2Q2022
Volatile items 2Q2022 Volatile items (in € mln) 2Q2021 3Q2021 4Q2021 1Q2022 2Q2022 WB/FM – valuation adjustments 11 38 3 -70 90 Capital gains/losses -2 6 5 26 8 Hedge ineffectiveness 11 7 -24 81 -31 Other items income* 155 50 92 -68 -155 Total volatile items – income 175 101 76 -31 -89 Incidental it
Slide 20: Hyperinflation accounting and goodwill impairment in Turkey
Hyperinflation accounting and goodwill impairment in Turkey Application of IAS 29 to consolidation of Combined impact on 2Q2022 results (in € mln) ING Turkey Combined IAS 29 B/S IAS 29 P&L Goodwill ▪ We applied IAS 29 (‘Financial Reporting in impact 2Q2022 indexation indexation impairment Hyperinfla
Slide 21: Well-diversified lending credit outstandings by activity
Well-diversified lending credit outstandings by activity ING Group Retail Banking Wholesale Banking Lending credit O/S* 2Q2022 Lending credit O/S* 2Q2022 Lending credit O/S* 2Q2022 10% 7% 22% 19% 39% 16% 20% 6% €831 €506 €506 €325 bln 6% bln bln 9% bln 52% 5% 18% 8% 61% 64% 23% 14% Retail Banking Re
Slide 22: Wholesale Banking lending
Wholesale Banking lending Loan portfolio is well diversified across geographies… …and sectors Lending Credit O/S* Wholesale Banking Lending Credit O/S Wholesale Banking excluding Treasury & Other 1% NL 0% 9% Real Estate, Infra & Construction 17% 22% Belux Commodities, Food & Agri 29% TMT & Healthcar
Slide 23: Updated overview exposure related to Russia and Ukraine
Updated overview exposure related to Russia and Ukraine Lending credit outstandings* (in € bln) 31 March 2022 30 June 2022 Lending credit outstandings related to Russia Russian borrower with Russian ownership 4.2 3.3 Russian borrower with non-Russian ownership 0.4 0.5 Non-Russian borrower with Russi
Slide 24: Provisioning per Stage
Provisioning per Stage Stage 1 provisioning (in € mln) Stage 2 provisioning (in € mln) Stage 3 provisioning (in € mln) 844 34 386 25 4 1 837 165 3 7 11 9 237 230 -7 -7 173 68 -21 154 -42 8 32 161 -43 220 101 -12 -110 -95 7 -78 178 169 -159 70 -33 -125 -86 -46 53 -40 -235 -201 -4 2Q2021 3Q2021 4Q2021
Slide 25: 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