Ing Groep N.v. · EURONEXT:INGA
Ing Groep — Investor Day (March 2019)
22 slides from Ing Groep's investor day presentation, Mar 25, 2019
Slide 1: Think Forward: staying a step ahead
Think Forward: staying a step ahead Investor Day 2019 Ralph Hamers, CEO Frankfurt • 25 March 2019
Slide 2: Think Forward has been accelerated through structural changes
Think Forward has been accelerated through structural changes Think Forward strategy on a page Transformation and platform programmes 2
Slide 3: Consistent delivery of a differentiated customer experience
Consistent delivery of a differentiated customer experience Results support relevance of Think Forward strategy Creating a differentiated Earn the Develop Increase Think beyond customer experience primary relationship analytical skills pace of innovation traditional banking Shopping #1 in 7 +49% 46%
Slide 4: Sustainability is embedded in our purpose
Sustainability is embedded in our purpose Sustainability direction 2018-2022 focuses on two themes We are empowering customers and society at large Responsible Finance portfolio (in € bln)* Industry ESG leaders Climate Finance Empowering people to stay a step Purpose ahead in life and in business 11
Slide 5: Key accelerators
Key accelerators Grow primary customers Increase cross-buy Improve cross-border scalability in Retail and Wholesale leveraging own, partners’ and third parties’ products Faster time-to-volume Benefit from attractive Enhance sustainability profile funding and lending mix to increase opportunities 5
Slide 6: Progress on Think Forward strategy
Progress on Think Forward strategy 6
Slide 7: Think Forward strategy continues to deliver profitable growth
Think Forward strategy continues to deliver profitable growth Net interest income and net interest margin Net fee and commission income (in € bln) CAGR +3.9% CAGR +5.2% 13.6 2.7 2.8 12.2 13.3 2.4 11.6 12.8 2.3 2.3 154 153 151 152 146 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 NII (in € bln, e
Slide 8: Retail Banking successfully grows and engages with customers
Retail Banking successfully grows and engages with customers Primary Retail customers* (in mln) Use of digital channels Higher revenues Digital channels penetration (% active Retail customers who contact us, in 4Q) +120% CAGR +10.6% >16.5 89% 91% 93% 86% 88% Additional income per 11.4 12.5 customer
Slide 9: Wholesale Banking leverages its client centricity and efficiency
Wholesale Banking leverages its client centricity and efficiency ING Wholesale Banking strengths Strong performance Underlying ROE** +2%pt Focused on primary clients* Sector expertise Cost efficiency 9.4% 11.4% • 16% of total clients • Front-office and risk sector • One of the most efficient 2014 20
Slide 10: Progress in transformation continues, despite challenges
Progress in transformation continues, despite challenges 10
Slide 11: Transformation programmes are delivering results
Transformation programmes are delivering results Transformation is improving efficiencies and cross-border scalability (2016-2018) Transformation Programmes Unite be+nl Model Bank Welcome WTOM Foundations 16% ~400k 12% >700 >45% Decrease in underlying Customers migrated FTEs reduced in IT applicatio
Slide 12: Reputation and trust are paramount
Reputation and trust are paramount Non-Financial Risk framework Non-Financial Risk highlights NFR Governance Business Non-Financial Risk areas IT within Continuity risk appetite Management Framework Compliance Unauthorised Risk Activity Risk Global Dedicated centres Control & Processing Personal & P
Slide 13: Opportunities ahead
Opportunities ahead 13
Slide 14: We keep redefining banking in a fast-changing world
We keep redefining banking in a fast-changing world Regulation Customer Technology Behaviour Competitive Economics Landscape & Politics 14
Slide 15: We are transforming into a dynamic digital player
We are transforming into a dynamic digital player Classic bank Dynamic digital player Digital DNA and experience creating cross-border Customers • Mature, established • Explorers, change-oriented scalability are advantages Products • Owned • Open architecture where relevant Strategy • Defensive, cos
Slide 16: Our platform will drive opportunities in banking and beyond
Our platform will drive opportunities in banking and beyond ING app Banks Utilities Investment companies Insurers 16
Slide 17: New services and business models to support 5-10% fee growth
New services and business models to support 5-10% fee growth Building blocks of our platform programme… …enrich our offering… …supporting growth SME lending comparison portals Instant consumer finance solution • Acceleration of Consumer & SME lending • Increased fee income scope through Lending fees
Slide 18: Ambitions
Ambitions 18
Slide 19: Roadmap from current market positions
Roadmap from current market positions Retail Retail Benelux Challengers & Growth Markets Wholesale Banking Financial ambitions Focus on profitable Income lending and fee income Cost discipline focus; Costs some increases in markets that grow Efficiency Scalability Efficiency Scalability Growth RWA o
Slide 20: ING Group financial ambitions
ING Group financial ambitions Actual 2018 Financial ambitions • CET1 ratio (%) 14.5% ~13.5%* (Basel IV) Capital • Leverage ratio (%) 4.4% >4% • Underlying ROE (%)** 11.2% 10-12% (IFRS-EU Equity) Profitability • Underlying C/I ratio (%) 54.8% 50-52% Dividend • Dividend (per share) €0.68 Progressive d
Slide 21: Closing remarks
Closing remarks • We are embedding non-financial risk management in our DNA • We are delivering on the right strategy and continuing our transformation into a dynamic digital player • We will: • Capture the value embedded in our platform and unlock value through our key accelerators • Profitably gro
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, except as described otherwise, the same accounting principles are