Slide 1: ING posts FY2022 net result of €3,674 mln
ING posts FY2022 net result of €3,674 mln 4Q2022 net result of €1,089 mln Steven van Rijswijk, CEO of ING 2 February 2023
Slide 2: Delivering value in 2022
Delivering value in 2022 Primary customer growth % mobile-only active customers1) Digi index score2) +585,000 58% 64% versus +507,000 in 2021 versus 51% YE2021 versus 60% YE2021 Volume mobilised3) Net interest income4) Distribution to shareholders5) in transition finance €101 bln +€1.1 bln €4.8 bln
Slide 3: We are executing our strategy
We are executing our strategy Our purpose Empower people to stay a step ahead in life and in business Our strategic priorities Superior customer experience Sustainability #1 Net Promoter Primary customer Volume mobilised1) in Intermediate 2030 ✓ Score in base transition finance 2022 realised targets
Slide 4: Our strategy enablers
Our strategy enablers 2022 2025 targets 52% of workload on (private) cloud >70% Seamless digital experience 61% of customer online traffic using Touchpoint >90% 48% adoption of shared engineering platform >90% Scalable Tech & Operations 1) 64% Digi index score >75% Safe & secure bank 12% inbound cal
Slide 5: On track for our 2025 targets, improved target on income growth
On track for our 2025 targets, improved target on income growth Financial target 2022 actuals 2025 target Drivers ▪ Primary customer growth 5-10% ▪ Increasing package, service and behavioral fees in daily banking to better reflect cost of service Fees +2% annual ▪ Strong base in investment products,
Slide 6: FY2022 results
FY2022 results 6
Slide 7: Clear benefit from our funding profile with rising rates and our focus on income diversification
Clear benefit from our funding profile with rising rates and our focus on income diversification Own funds & liabilities (total in € bln) Rate environment impact on margins Total income2) (in € bln) 970 18.3 19.0 18.1 17.6 18.0 1.2 22% 1.4 1.4 1.0 1.4 152 145 2.8 2.9 3.6 3.0 3.5 12% 135 129 127 10%
Slide 8: NII up, continued fee growth in 2022
NII up, continued fee growth in 2022 Net interest income (in € mln) Net fee & commission income per product category (in € mln) 13.9 14.1 13.6 13.6 13.8 3,517 3,586 0.5 3,011 489 405 2,803 2,868 343 403 430 887 1,040 14.2 678 670 881 13.1 1,008 924 1,021 963 850 1,064 1,286 761 832 850 -0.4 1) 2018
Slide 9: Containing expenses while investing for the future
Containing expenses while investing for the future Regulatory expenses (in € bln) ▪ FY2022 expenses were flat YoY and included slightly lower 1.3 regulatory costs and €325 mln of incidental items, primarily 1.2 1.1 restructuring costs 1.0 0.9 0.4 0.4 ▪ Excluding regulatory costs and these incidental
Slide 10: FY2022 risk costs reflected geopolitics and macro uncertainty
FY2022 risk costs reflected geopolitics and macro uncertainty Risk costs (in € mln and in bps over customer lending) Stage 3 ratio 2,675 1,861 1.7% 1.5% 1.5% 43 1.4% 1.4% 1,120 29 656 516 18 11 8 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 ▪ 2022 risk costs were €1,861 mln, or 29 bps over aver
Slide 11: Our 12% return on equity target
Our 12% return on equity target CET1 ratio and return on equity ▪ Our RoE target is 12% by 2025 15.9% ▪ 2022 RoE mainly reflected higher risk costs, as well as a 15.5% significant equity position. Adjusted for incidental costs, our 14.5% through-the-cycle average risk costs and at 12.5% CET1, our 14
Slide 12: Continued attractive shareholder return
Continued attractive shareholder return Strong capital generation Attractive shareholder return Average 2018-2022 Based on payment date 12.5% 9.9% 8.4% 9.4% 1.28 6.7% 5.4% 1.01 0.70 0.67 0.68 0.41 Dividend ban 0.60 0.58 Reported return on equity Return on equity 2018 2019 2020 2021 2022 (average 15.
Slide 13: 4Q2022 results
4Q2022 results 13
Slide 14: Pre-provision profit up YoY and QoQ
Pre-provision profit up YoY and QoQ Pre-provision profit excl. volatile items1) and regulatory costs ▪ 4Q2022 pre-provision profit, excluding volatile items and (in € mln) regulatory costs, increased on both comparable quarters ▪ Strong NII development, reflecting the positive effect of rising 2,745
Slide 15: Strong NII momentum and higher NIM
Strong NII momentum and higher NIM Net interest income (in € mln) Net interest margin (in bps) 3,332 3,545 3,374 3,415 3,465 76 71 84 82 148 139 139 3,604 3,860 137 137 136 3,290 3,333 3,389 135 137 137 136 134 134 134 133 128 -343 -315 4Q2021 1Q2022 2Q2022 3Q2022 4Q2022 4Q2021 1Q2022 2Q2022 3Q2022
Slide 16: Continued loan growth, albeit at a lower pace
Continued loan growth, albeit at a lower pace Customer lending (in € bln) Net core lending growth €3.1 bln 2.4 0.9 -2.4 1.7 0.7 -0.6 -2.4 649.7 0.4 -8.3 0.0 642.0 3Q2022 Retail Retail Retail Retail Other WB Lending WB DB&TF1) WB Other1) Treasury FX Other2) 4Q2022 Netherlands Belgium Germany C&GM1) ▪
Slide 17: Fees supported by daily banking and lending, fee base growing
Fees supported by daily banking and lending, fee base growing Net fee & commission income per business line (in € mln) Net fee & commission income per product category (in € mln) 925 933 888 888 925 933 888 888 876 876 140 112 92 96 105 322 324 280 295 318 261 267 226 194 201 269 275 253 230 214 247
Slide 18: 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 5% higher YoY, well below inflation levels. This increase 2,947 2,945 2,888 was primarily attributable to higher staff costs, due to 385 2,738 indexation
Slide 19: Risk costs reflecting high quality loan book and prudent provisioning
Risk costs reflecting high quality loan book and prudent provisioning Risk costs per business line (in € mln) Stage 2 ratio Stage 3 ratio 987 10.2% 8.9% 7.2% 7.1% 1.7% 1.6% 939 6.0% 6.6% 7.0% 1.5% 1.5% 403 5.2% 1.4% 346 5.6% 128 269 5.3% 1.5% 1.4% 1.4% 202 5.8% 1.3% 1.4% 216 65 5.5% 1.2% 1.2% 1.4% 8
Slide 20: ING Group CET1 ratio remained strong at 14.5%
ING Group CET1 ratio remained strong at 14.5% ING Group CET1 ratio development (in %) 14.7% -0.4% 14.3% 0.2% -0.3% 0.3% 14.5% ~12.5% 10.5% 3Q2022 CET1 ratio Additional Pro forma 3Q2022 Profit added Other capital RWA 4Q2022 CET1 ratio Basel IV CET1 distribution1) CET1 ratio to CET1 movements ratio ta
Slide 21: Wrap up and Q&A
Wrap up and Q&A 21
Slide 22: Appendix
Appendix 22
Slide 23: Our 4Q2022 results overview
Our 4Q2022 results overview In € mln Reported P&L Volatile items P&L excluding volatile items Net interest income 3,545 -301 3,846 Net fee and commission income 888 1 886 Investment income 15 0 15 Other income 420 -92 512 Total income 4,868 -392 5,259 Expenses excl. regulatory costs 2,596 82 2,515 R
Slide 24: Volatile income and expense items
Volatile income and expense items Volatile items (in € mln) 4Q2021 1Q2022 2Q2022 3Q2022 4Q2022 WB/FM – valuation adjustments 3 -70 90 -15 -2 Capital gains/losses 5 26 8 -3 0 Hedge ineffectiveness1) -24 81 -31 -431 -71 Other items income2) 92 -68 -155 -218 -319 Total volatile items – income 76 -31 -8
Slide 25: Hyperinflation accounting in Turkey
Hyperinflation accounting in Turkey Application of IAS 29 to consolidation of ING Turkey Impact on results (in € mln) ▪ We applied IAS 29 (‘Financial Reporting in Hyperinflationary 4Q2022 FY2022 Economies’) to the consolidation of our subsidiary in Turkey, Profit or loss effective as of 1 January 20
Slide 26: Challengers & Growth Markets FY2022
Challengers & Growth Markets FY2022 1) Germany Australia Spain Italy Total income 2,714 mln Total income 895 mln Total income 883 mln Total income 338 mln Mortgages 91.3 bln Mortgages 35.2 bln Mortgages 21.8 bln Mortgages 7.8 bln Other lending 35.6 bln Other lending 9.2 bln Other lending 9.4 bln Oth
Slide 27: Well-diversified lending credit outstandings by activity
Well-diversified lending credit outstandings by activity 1) ING Group Retail Banking Wholesale Banking 6% 10% 13% 34% 22% 2% 15% €785 19% €521 6% €521 €263 bln bln bln bln 13% 26% 5% 62% 63% 17% 8% 66% 13% Retail Banking Residential mortgages Mortgages Netherlands Lending Wholesale Banking Consumer
Slide 28: Our lending book is senior and well-collateralised
Our lending book is senior and well-collateralised Residential ▪ Average LTV of 57% with low Stage 3 ratio at 0.9% Mortgages ▪ Risk metrics remained strong €327 bln 8% Consumer ▪ Relatively small book, largely home improvement and car related term loans Lending ▪ Stage 3 ratio at 4.2% €26 bln 42% 34
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 excluding Treasury & Other 1% 13% NL 1% 9% Real Estate, Infra & Construction 15% Belux Commodities, Food & Agri 30% 12% TMT & Healthcare 2% 10% Ger
Slide 30: Provisioning per Stage
Provisioning per Stage Stage 1 provisioning (in € mln) Stage 2 provisioning (in € mln) Stage 3 provisioning (in € mln) 844 56 407 40 18 386 34 13 318 837 165 4 25 37 240 27 230 11 9 177 47 -7 154 -21 8 7 32 97 161 -95 -78 -51 220 101 -194 167 -12 -86 -46 -8 141 -33 -202 53 70 4Q2021 1Q2022 2Q2022 3Q
Slide 31: 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