Slide 1: Strong results confirming our ability to accelerate growth, increase impact and deliver value
Strong results confirming our ability to accelerate growth, increase impact and deliver value 2Q2024 ING Group 1 August 2024
Slide 2: Recap of our recent Capital Markets Day
Recap of our recent Capital Markets Day ING is a highly successful bank, with a unique DNA and a strong track record Operating in attractive markets with enormous untapped potential Continuing to accelerate growth, increase impact and deliver value Aiming to be the best European bank for customers,
Slide 3: Accelerating growth with continued strong commercial performance
Accelerating growth with continued strong commercial performance Mobile primary customers1) Net core lending growth Net core deposits growth +248,000 €+8 bln €+15 bln ▪ Significant growth in mobile ▪ Strong commercial performance ▪ Strong growth of the deposit base primary customers, driven by the m
Slide 4: Increasing impact for our stakeholders
Increasing impact for our stakeholders Customers Our people Planet and society Shareholders ▪ +430,000 mobile ▪ Further improving ▪ Manage our lending ▪ Four-quarter rolling primary customers in engagement scores portfolio towards return on equity of 14% 1H2024 ▪ Progression to the net-zero by 2050
Slide 5: Consistently delivering value
Consistently delivering value Strong capital generation Attractive returns on strong capital base (in %) ▪ Strong NII development, growing 12.0 14.2 15.2 15.1 14.3 by €65 mln quarter-on-quarter, excluding accounting asymmetry 13.8 14.8 14.8 14.0 and one-offs 11.7 ▪ €2 bln fee income in 1H2024, on tr
Slide 6: Showcase of 'Growing the difference' strategy execution - Romania
Showcase of ‘Growing the difference’ strategy execution - Romania Consistent customer growth with an increasing primary customer base Growing the difference ▪ Digital leadership 31% 33% 36% 40% 47% 49% 52% 53% 54% with new digital 0.9 0.9 onboarding process 0.8 0.8 0.1 0.7 0.1 ▪ Digital lending and
Slide 7: 2Q2024 results
2Q2024 results 7
Slide 8: Net interest income increased despite margin normalisation
Net interest income increased despite margin normalisation Net interest income (in € mln) Lending and liability margin (in bps) Net interest margin (in bps) 4,061 4,028 3,875 3,825 3,830 156 157 156 129 130 130 131 132 155 152 1,880 1,877 1,810 1,795 1,779 154 121 121 152 151 118 116 148 112 145 2,0
Slide 9: Strong development of structural net interest income drivers
Strong development of structural net interest income drivers Net interest 2Q2024 income remained NII development strong in 1Q2024 (in € mln) NII excl accounting asymmetry and one-offs €+65 mln Accounting asymmetry €-91 mln 35 46 31 3,825 3,830 -49 -43 -16 NII 1Q2024 Liability NII Lending NII Other N
Slide 10: Focus on growing customer balances is clearly paying off
Focus on growing customer balances is clearly paying off Customer lending (in € bln) Main drivers Net core lending growth €+7.8 bln ▪ Strong growth in customer lending 3.2 662.2 ▪ Growth in Retail Banking mainly 4.9 0.6 0.4 654.0 driven by strong performance in -1.0 mortgages across all markets ▪ In
Slide 11: Fee income on track to reach our 2024 target
Fee income on track to reach our 2024 target Net fee & commission income per business line (in € mln)1) Main drivers ▪ Year-on-year growth was mainly +10% driven by structural (alpha) revenues and effectiveness of our fee structures 912 909 998 999 879 ▪ +0.9 mln mobile primary 294 354 322 346 296 c
Slide 12: Total income outlook for 2024 increased to >€22 bln
Total income outlook for 2024 increased to >€22 bln P&L drivers 1H2024 Previous 2024 outlook Current 2024 outlook Structural NII €8.4 bln €16.1 – €16.6 bln (upper end) €16.1 – €16.6 bln (upper end) Accounting asymmetry €-0.8 bln €-1.1 bln Net interest income €7.7 bln €15.0 - €15.5 bln (upper end) Fe
Slide 13: Total expenses in line with our 2024 outlook
Total expenses in line with our 2024 outlook Development operating expenses (in € bln) +3% +6% 0.6 0.4 0.0 5.9 5.7 +1% +3% 5.4 0.0 5.1 +4% -2% Total Regulatory Incidental Operating CLA / salary Danske VAT Business Operational Operating Regulatory Incidental Total expenses costs items expenses indexa
Slide 14: Risk costs below through-the-cycle average
Risk costs below through-the-cycle average Risk costs per business line (in € mln)1) Stage 2 ratio Stage 3 ratio 10.8% 300 9.8% 1.8% 8.9% 258 8.0% 8.1% 7.6% 1.6% 1.6% 183 7.7% 7.3% 1.5% 1.6% 93 202 6.9% 6.8% 1.4% 1.5% 98 15 86 7.5% 7.5% 166 165 6.9% 1.5% 1.5% 1.4% 113 86 98 1.4% 1.4% 1.4% -15 -1 5.1
Slide 15: Capital ratio mainly impacted by the ongoing share buyback
Capital ratio mainly impacted by the ongoing share buyback CET1 capital ratio development (in %) 14.8% +0.3% 14.1% 14.0% ~12.5% -0.8% -0.0% -0.4% 10.8% 1Q2024 Announced share 1Q2024 Profit added Other capital RWA 2Q2024 Basel IV CET1 ratio buyback pro forma to CET1 movements target CET1 Capital rati
Slide 16: Strong performance on all targets
Strong performance on all targets Results 1H2024 Mobile primary Total Fee Cost/income CET1 Return on customers income income ratio ratio equity 1H2024 1H2024 1H2024 4-quarter rolling 2Q2024 4-quarter rolling +430,000 €11.3 bln €2.0 bln 52.1% 14.0% 14.0% Outlook 2024 Mobile primary Total Fee Cost/inc
Slide 17: Q&A
Q&A 17
Slide 18: Appendix
Appendix 18
Slide 19: 2Q2024 results overview
2Q2024 results overview In € mln Reported P&L Volatile items P&L excluding volatile items Net interest income 3,830 41 3,789 Net fee and commission income 999 1 999 Investment income 16 4 12 Other income 871 21 850 Total income 5,716 67 5,649 Expenses excl. regulatory costs 2,760 41 2,719 Regulatory
Slide 20: Retail Banking countries contributing to strong returns
Retail Banking countries contributing to strong returns Retail Banking Total Netherlands Belgium1) Germany Spain Italy Australia Poland Romania Türkiye Scale (2Q2024) Customers (mln) 39.2 7.7 2.4 8.9 4.3 1.3 2.9 4.3 1.7 5.6 o.w. primary (mln) 15.6 4.8 1.1 2.8 1.6 0.5 1.1 2.2 0.9 0.6 o.w. mobile prim
Slide 21: Volatile income and expense items
Volatile income and expense items Volatile items (in € mln) 2Q2023 3Q2023 4Q2023 1Q2024 2Q2024 WB/FM – valuation adjustments 33 15 -52 16 19 Capital gains/losses -0 0 -25 7 4 Hedge ineffectiveness -46 102 49 -60 39 Other items income1) -6 -88 -16 4 5 Total volatile items – income -21 29 -44 -32 67 I
Slide 22: NII sensitivity on Retail eurozone customer deposits
NII sensitivity on Retail eurozone customer deposits Replicating income on Retail eurozone 3-month EURIBOR forward curves customer deposits Drivers of liability NII Implied interest rates, end-of-period, in bps Interest income in € bln1) ▪ Replicating income represents the 11.6 gross investment retu
Slide 23: Granular customer deposit base
Granular customer deposit base Total customer deposits per segment (in € bln) ▪ Highly insured, granular and continuously growing customer 678 664 650 675 693 deposits represent a strong funding 39 base 65 45 61 41 58 26 62 37 68 113 116 118 118 120 ▪ ~70% of total deposits is from private individua
Slide 24: Accounting asymmetry impacting net interest income
Accounting asymmetry impacting net interest income Treasury interest rate differential (in € mln) Wholesale Banking Financial Markets (in € mln) 383 356 36 24 359 375 23 17 21 197 474 515 261 273 242 233 385 408 193 216 47 28 39 70 50 -225 -219 -172 -215 -73 -58 -249 -61 -160 -209 2Q2023 3Q2023 4Q20
Slide 25: 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 1Q2024 2Q2024 Economies’) to the consolidation of our subsidiary in Türkiye, Profit or loss effective as of 1 Janu
Slide 26: 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 23 451 10 24 17 20 3 6 47 368 -4 -7 10 -9 -4 -23 -12 -4 -39 -46 -59 -81 -104 238 306 -16 -48 209 -100 -84 89 156 -35 -94 124 -147 8 59 116 149 159 145
Slide 27: 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% 16% 9% 20% €810 €537 6% €537 €273 bln bln bln bln 12% 21% 5% 59% 63% 17% 8% 66% 13% Retail Banking Residential mortgages Mortgages Netherlands Lending Wholesale Banking Consumer
Slide 28: 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% 10% Real Estate, Infra & Construction 16% Belux Commodities, Food & Agri 2% 9% Germany 33% 11% TMT & Healthcare Transportation & Logis
Slide 29: 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