Slide 1: Strong commercial performance led to an excellent start of the year
Strong commercial performance led to an excellent start of the year 1Q2024 ING Group 2 May 2024
Slide 2: Strong commercial performance
Strong commercial performance Growth in primary customers1) Growth in core lending Growth in core deposits 99,000 €4.2 bln €13.5 bln ▪ Continued growth in primary ▪ Continued signs of recovery of loan ▪ Strong growth of the deposit base, customers, driven by Germany and demand both in Retail Banking
Slide 3: Resulting in an excellent start of the year
Resulting in an excellent start of the year Delivering value Increasing returns on strong capital base Return on (tangible) equity2) and CET1 ratio (in %) Strong NII +€5 mln 15.2 15.1 versus 4Q2023 excluding accounting asymmetry 14.2 14.8 14.8 12.0 Double-digit fee income growth 13.8 +11% 9.9 11.7 v
Slide 4: Increasingly attractive shareholder return
Increasingly attractive shareholder return Historical distributions to shareholders (in € mln) Attractive shareholder return ▪ €2.5 bln buyback announced on the 2,500 2,497 2,500 back of strong capital generation 1,500 ▪ Structurally increasing earnings per 1,260 share and dividend per share ▪ We ha
Slide 5: Good progress on our strategy execution
Good progress on our strategy execution Our purpose Empowering people to stay a step ahead in life and in business Our strategic priorities A superior customer experience Sustainability at the heart Introduction of sustainable alternatives 62% mobile-only customers for Retail products in several mar
Slide 6: Themes Capital Markets Day - 17 June London
Themes Capital Markets Day - 17 June London Strategy update Capital Financial Growth allocation targets initiatives Operational leverage 6
Slide 7: 1Q2024 results
1Q2024 results 7
Slide 8: Resilient net interest income from lending and liabilities
Resilient net interest income from lending and liabilities Net interest income (in € mln) Lending and liability margin (in bps) Net interest margin (in bps) 129 130 130 131 159 156 157 156 128 155 4,012 4,061 4,028 3,875 3,825 121 121 152 154 151 1,877 114 118 116 1,748 1,880 1,810 1,795 145 140 2,0
Slide 9: Net interest income drivers for 2024 have improved
Net interest income drivers for 2024 have improved Net interest 1Q2024 income remained NII development strong in 1Q2024 (in € mln) Key developments NII excl accounting asymmetry Accounting asymmetry ▪ Accounting asymmetry increased €+5 mln €-55 mln by €55 mln, with the negative 3,875 4 16 impact on
Slide 10: Continued strong liability NII in a lower rate environment
Continued strong liability NII in a lower rate environment Strong Retail eurozone liability NII is Total liability margin to stabilise at a Interest rates expected to moderate preserved in a lower rate environment higher level Implied interest rates, end-of-period, in bps Interest income in € bln Av
Slide 11: Continuation of commercial momentum in 1Q2024
Continuation of commercial momentum in 1Q2024 Customer lending (in € bln) Main drivers Net core lending growth €+4.2 bln ▪ Strong growth in customer lending 1.8 654.0 ▪ Growth in Retail Banking driven 1.3 0.5 by strong performance in 2.4 648.0 mortgages, primarily in the Netherlands and Germany ▪ In
Slide 12: Double-digit fee income growth
Double-digit fee income growth Net fee & commission income per business line (in € mln)1) Main drivers +11% ▪ Double-digit fee income growth in 1Q2024, exceeding our target range +14% ▪ Roughly half of the growth was 896 912 909 998 driven by resilient revenue 879 354 generation and effectiveness of
Slide 13: Increase in operating expenses offset by lower regulatory costs
Increase in operating expenses offset by lower regulatory costs Operating expenses (in € mln)1) Regulatory costs (in € mln) Incidental items (in € mln)2) +5% -32% 2,541 2,528 2,562 2,644 2,670 525 358 317 122 114 91 109 4 6 4 1Q2023 2Q2023 3Q2023 4Q2023 1Q2024 1Q2023 2Q2023 3Q2023 4Q2023 1Q2024 1Q20
Slide 14: Low risk costs reflecting high quality and resilience of the loan book
Low risk costs reflecting high quality and resilience of the loan book Risk costs per business line (in € mln)1) Stage 2 ratio Stage 3 ratio 11.2% 10.8% 9.8% 152 258 8.9% 1.6% 8.1% 1.6% 183 7.2% 6.9% 8.0% 1.5% 1.5% 93 6.8% 7.7% 1.4% 1.5% 98 15 242 86 7.5% 7.5% 166 165 1.5% 1.5% 113 86 1.4% 1.4% 1.4%
Slide 15: CET1 ratio increase driven by strong capital generation
CET1 ratio increase driven by strong capital generation CET1 capital ratio development (in %) 14.7% +0.2% +0.1% 14.8% 14.1% ~12.5% -0.2% -0.8% 10.8% 4Q2023 Profit added Other capital RWA 1Q2024 Announced share 1Q2024 Basel IV CET1 ratio to CET1 movements buyback pro forma target CET1 Capital ratio C
Slide 16: 2024 outlook
2024 outlook 1Q2024 achievements 2024 outlook5) ▪ Total income to remain Total income1,2) +0.3% strong in a positive rate environment, however somewhat below the level of 2023 Fee income1) +11.4% ▪ Fee growth of 5-10% ▪ Total cost growth of ~3%6) ▪ CET1 ratio to converge ING Capital Markets Day Cost
Slide 17: Q&A
Q&A 17
Slide 18: Appendix
Appendix 18
Slide 19: 1Q2024 results overview
1Q2024 results overview In € mln Reported P&L Volatile items P&L excluding volatile items Net interest income 3,825 3 3,822 Net fee and commission income 998 0 998 Investment income 8 7 1 Other income 752 -43 795 Total income 5,583 -32 5,616 Expenses excl. regulatory costs 2,674 4 2,670 Regulatory c
Slide 20: Volatile income and expense items
Volatile income and expense items Volatile items (in € mln) 1Q2023 2Q2023 3Q2023 4Q2023 1Q2024 WB/FM – valuation adjustments -10 33 15 -52 16 Capital gains/losses 15 -0 0 -25 7 Hedge ineffectiveness 35 -46 102 49 -60 Other items income1) -69 -6 -88 -16 4 Total volatile items – income -29 -21 29 -44
Slide 21: Granular customer deposit base
Granular customer deposit base Total customer deposits per segment (in € bln) ▪ Highly insured, granular and 678 664 675 continuously growing customer 660 650 deposits represent a strong funding 66 45 65 45 61 41 58 26 62 37 base 114 113 116 118 118 ▪ ~70% of total deposits is from private individua
Slide 22: Accounting asymmetry impacting net interest income
Accounting asymmetry impacting net interest income Treasury interest rate differential (in € mln) WB Financial Markets (in € mln) 383 33 36 24 23 359 375 21 349 197 474 267 261 273 242 193 385 408 327 216 -234 -225 -219 -172 41 47 28 39 70 -249 -19 -73 -61 -58 -160 1Q2023 2Q2023 3Q2023 4Q2023 1Q2024
Slide 23: 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 4Q2023 1Q2024 Economies’) to the consolidation of our subsidiary in Türkiye, Profit or loss effective as of 1 Janu
Slide 24: Well-diversified Commercial Real Estate portfolio
Well-diversified Commercial Real Estate portfolio CRE by asset type (in %) CRE by geography (in %)1) Key highlights Netherlands ▪ CRE is well-diversified over different 9% 2% 8% Belux asset classes and geographies 10% 25% 3%2% 34% Australia Residential 3% ▪ Caps in place to limit concentration 4% US
Slide 25: 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) 30 368 23 10 24 17 20 86 1 6 47 -15 -4 10 238 -12 -9 -4 -23 209 -39 -81 197 -14 -59 -16 -117 -104 -48 89 156 43 -84 124 -35 -31 -94 8 59 155 149 159 116
Slide 26: Well-diversified lending credit outstandings by activity
Well-diversified lending credit outstandings by activity 1) ING Group Retail Banking Wholesale Banking 12% 6% 10% 34% 22% 15% 9% €801 20% €531 6% €531 €270 bln bln bln bln 12% 21% 5% 60% 63% 18% 8% 66% 13% Retail Banking Residential mortgages Mortgages Netherlands Lending Wholesale Banking Consumer
Slide 27: 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% 12% NL 1% 9% Real Estate, Infra & Construction 16% Belux Commodities, Food & Agri 33% 11% TMT & Healthcare 2% 9% Germany Transportation & Logist
Slide 28: 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