Ing Groep N.v. · EURONEXT:INGA
Ing Groep — ING Group — FY2015 Earnings Presentation
23 slides from Ing Groep's earnings presentation, Feb 4, 2016
Slide 1: ING in 2015
ING in 2015 Improved customer experience, robust commercial growth, strong earnings Ralph Hamers, CEO ING Group Amsterdam • 4 February 2016
Slide 2: Improved customer experience, robust commercial growth, solid results
Improved customer experience, robust commercial growth, solid results Continued growth in customer numbers and lending… • Our retail customer base grew by over 1.4 mln to 34.4 mln at year-end • Our core lending franchises grew by EUR 21.7 bln or 4.2% in 2015, in line with our guidance …resulting in
Slide 3: In 2015 we continued to make progress on strategic initiatives
In 2015 we continued to make progress on strategic initiatives Our Think Forward strategy was launched in 2014 In its second year we continued progress on many fronts Highlights include: • Increasing the pace of innovation • Empowering customers • Diversifying lending capabilities • Sustainable tran
Slide 4: Strategic initiatives: focus on innovation
Strategic initiatives: focus on innovation Increasing the pace of innovation IInnovations in the payments area • In 2015 we made great strides in • In Spain and the involving employees, customers and Netherlands we others to increase the pace of innovation launched Twyp, a peer- • Innovative ideas a
Slide 5: Strategic initiatives: empowerment and lending capabilities
Strategic initiatives: empowerment and lending capabilities Empowering people Strengthening lending capabilities • Innovation helps to empower people to make better • We are looking at fintech innovations to help strengthen financial decisions our lending capabilities and better serve our consumer •
Slide 6: Sustainability approach: reducing our own footprint and accelerating sustainable transitions
Sustainability approach: reducing our own footprint and accelerating sustainable transitions Reducing ING’s own environmental footprint Sustainable transitions • We published our ambitions to reduce our carbon dioxide • The ING Sustainable Finance team promotes sustainable footprint, water usage and
Slide 7: Awards mean recognition from experts and customers
Awards mean recognition from experts and customers • In 2015 ING again won many awards for its banking services, both in Retail and Wholesale Banking • We are particularly proud of the recognition we got from customer groups like the titles for ‘Best Bank’ in both Australia and Germany • Apart from
Slide 8: Our customer growth continued in 2015 …
Our customer growth continued in 2015 … We added 1.4 mln new customers in 2015… …and on track to reach 10 mln primary customers Individual customers Primary customers* 33.0 34.4 31.7 Growth Markets >10 Poland, Romania, Turkey 8.9 8.4 7.8 Challengers Australia, Austria, Czech republic, France, German
Slide 9: …resulting in ongoing deposit and loan growth
…resulting in ongoing deposit and loan growth Customer deposits (in EUR bln) Customer lending (in EUR bln) 514 533 489 509 499 475 RB Other C&G RB Other C&G RB Germany RB Germany RB Belgium RB Belgium RB Netherlands RB Netherlands Wholesale Banking* Wholesale Banking* 2013 2014 2015 2013 2014 2015 C
Slide 10: Core lending franchises grew by EUR 21.7 bln or 4.2% in 2015
Core lending franchises grew by EUR 21.7 bln or 4.2% in 2015 Customer lending 2015 (in EUR bln) Core lending businesses: EUR 21.7 bln 3,8 -1.7 -0.3 -3.8 10,9 2,8 532,7 -3.1 1,5 7,8 513,5 -2.9 2,5 1,7 31-12-14 Retail NL Retail Retail Retail WB IL* WB GL&TS* WB Other* Corporate WUB Lease and Bank FX /
Slide 11: Lending credit outstandings Wholesale Banking well diversified
Lending credit outstandings Wholesale Banking well diversified Loan portfolio is well diversified across geographies… ...with the majority in developed countries Lending Credit O/S Wholesale Banking (4Q15)* • Our business model is the same throughout our global WB franchise • We focus on top-end cor
Slide 12: Our consistent customer focus drove our strong results in 2015…
Our consistent customer focus drove our strong results in 2015… Underlying net result increased 23.2% from 2014 (in EUR mln) …resulting in underlying RoE of 10.8% in 2015 CAGR +19.9% 4.219 10,8% 10-13% 9,9% 3.424 9,0% 3.155 7,0% 2.450 10% 2012 2013 2014 2015 2012 2013 2014 2015 Ambition 2017 • Under
Slide 13: …supported by healthy income growth and lower risk costs
…supported by healthy income growth and lower risk costs Underlying income excl. CVA/DVA Net interest result excl. FM Risk costs (in EUR bln) (in EUR bln) (in EUR bln and bps of RWA) CAGR +3.0% 16,3 15,2 15,6 15,0 CAGR +3.4% 12,2 11,3 11,6 11,0 83 74 55 44 2,1 2,3 1,6 1,3 2012 2013 2014 2015 2012 20
Slide 14: ING Germany's pre-tax profit increased to EUR 1,152 mln in 2015
ING Germany’s pre-tax profit increased to EUR 1,152 mln in 2015, reaching above EUR 1 bln for the first time Pre-tax profit ING Germany above Diversifying our Balance Sheet… …by growing consumer lending and EUR 1 bln for the first time Customer lending (in %) Wholesale Banking lending… (in EUR mln)
Slide 15: 4Q15 results
4Q15 results 15
Slide 16: Solid fourth-quarter results, with net interest income holding up well
Solid fourth-quarter results, with net interest income holding up well Underlying pre-tax result ING Bank (in EUR mln) Net interest income excl. Financial Markets (in EUR mln) 1.661 1.601 3.070 3.038 3.046 1.495 3.009 3.004 1.202 783 4Q14 1Q15 2Q15 3Q15 4Q15 4Q14 1Q15 2Q15 3Q15 4Q15 • ING Bank recor
Slide 17: Net interest margin remains steady from 3Q15
Net interest margin remains steady from 3Q15 Net interest margin up from 3Q15 (in bps) Volatility in net interest margin largely reflects volatility of interest results in Financial Markets (in bps) 153 151 147 146 147 146 143 142 4Q14 1Q15 2Q15 3Q15 4Q15 2013 2014 2015 Net interest margin up from 3
Slide 18: Operating expenses heavily impacted by regulatory costs
Operating expenses heavily impacted by regulatory costs Underlying operating expenses (in EUR mln) Regulatory costs (in EUR mln) 620 143 408 374 344 233 85 159 161 2.068 2.157 2.141 2.139 158 2.015 260 213 249 244 147 11 4Q14 1Q15 2Q15 3Q15 4Q15 2011 2012 2013 2014 2015 Expenses Regulatory costs Red
Slide 19: Risk costs amounted to EUR 302 mln or 38 bps of RWA and NPL ratio improved to 2.5%
Risk costs amounted to EUR 302 mln or 38 bps of RWA and NPL ratio improved to 2.5% Risk costs (in EUR mln) NPL ratio 432 3,3% 3,3% 400 353 3,1% 173 3,0% 3,0% 152 302 2,9% 111 261 2,8% 2,8% 97 65 59 2,6% 62 97 2,8% 2,8% 2,5% 18 48 80 40 2,6% 66 2,5% 165 153 16 65 2,4% 140 82 59 4Q14 1Q15 2Q15 3Q15 4Q
Slide 20: Capital position strengthens further
Capital position strengthens further ING Group pro-forma fully-loaded CET1 ratio at 13.4% after 2015 dividend payment (in %) 13,4% 0,1% 0,2% 12,7% 12,3% 0,3% 12,3% 11,6% -0,1% 10,4% 4Q14 1Q15 2Q15 3Q15 Net profit Equity RWA** Other*** 4Q15 Pro-forma stakes / FX* after full divestment NN Group • Grou
Slide 21: Wrap up
Wrap up Continued growth in customer numbers and lending… • Our retail customer base grew by over 1.4 mln to 34.4 mln at year-end • Our core lending franchises grew by EUR 21.7 bln or 4.2% in 2015, in line with our guidance …resulting in strong results… • Underlying net result ING Bank rose to EUR 4
Slide 22: 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, the same accounting principles are applied as in the 2014 ING Gro
Slide 23: Follow us to stay a step ahead
Follow us to stay a step ahead ING.com @ING_News LinkedIn.com/company/ING SlideShare.net/ING Facebook.com/ING YouTube.com/ING Flickr.com/INGGroup