3 August 2023
ING Investor Relations
ING Credit Update 2Q2023
Delivering strong value in 2Q2023
2
Continued primary
customer growth
+227,000
versus +106,000 in 1Q2023
Growing volume mobilised
2)
to finance the transition
€25.0 bln
versus €21.9 bln in 1Q2022
Strong total income growth
23%
year-on-year
High share of
mobile-only customers
1)
60%
versus 57% in 1Q2023
Increasing return on equity
3)
11.7%
4-quarter rolling
Attractive shareholder return
€4.5 bln
distributed YTD
4)
1)
Retail customers who used the mobile channel at least once in the last quarter
2)
Volume mobilised for WB clients; includes loan products, capital markets, derivatives and advisory propositions that support clients by financing their sustainable activities and in the
transition to a more sustainable business model. In case of an ESG lead role the pro-rata share of the transaction is included, otherwise our final take is included
3)
ING Group return on equity is calculated using IFRS-EU shareholders’ equity after excluding amounts reserved for future distribution
4)
Based on payment date, including announced interim dividend over 1H2023 and the total amount of the ongoing €1.5 bln share buyback
We are executing our strategy
3
Superior customer experience
Our strategic priorities
2Q2023 highlights
Sustainability
Empowering people to stay a step ahead in life and in business
Our purpose
Straight-through-processing of
Retail customer journeys improved to 69%
1)
63% digital onboarding of new customers
in the Netherlands
Launch of an eco-renovation loan
for Business Banking clients in Belgium
Organised our first internal
Global Sustainability Week
1)
Average of straight-through-processing (STP) rates of 291 Retail customer journeys; STP rate is the percentage of a customer journey that is handled without manual intervention
ING’s strengths are amplified in a positive rate environment
4
2.1
2.2
2.1
1.9
1.7
1.5
1.3
1.3
1.4
2.5
3.6
4.3
4.5
4.5
4.7
4.6
4.6
4.6
4.7
4.4
4.2
4.1
1.4
1.4
1.4
1.5
1.5
1.5
1.7
1.8
1.8
1.8
1.8
0.4
0.3
0.3
0.3
0.5
0.4
0.5
0.5
0.6
0.5
0.6
0.7
0.8
0.7
0.7
0.9
0.6
0.7
0.9
1.2
1.1
1.2
8.9
9.1
9.0
9.1
9.2
8.7
8.8
9.1
9.5
10.1
11.4
1H2018 2H2018 1H2019 2H2019 1H2020 2H2020 1H2021 2H2021 1H2022 2H2022 1H2023
Liability NII Lending NII Fees Financial Markets Treasury & Other
1)
Incidental income items (corresponding with ‘other volatile income items’ as presented on slide 44) excluded: €198 mln in 1H2019; €-42 mln in 1H2020; €-230 mln in 2H2020;
€388 mln in 1H2021; €141 mln in 2H2021; €-223 mln in 1H2022; €-824 mln in 2H2022 (including €-288 mln to unwind a hedge in Belgium); and €-75 mln in 1H2023
2)
Excluding fees
2) 2)
▪ Focus on income diversification has resulted in structural fee income growth and resilient total income during a low rate environment
▪ Attractive funding structure with 61% of the growing balance sheet funded by customer deposits
▪ ~55% of our replicating portfolio is reinvested longer than 1 year, creating a long-term support of our liability NII
▪ Return of loan demand and improved asset margins will be a catalyst for future income growth
Positive rate environmentLow rate environment
Total income excluding incidental income items (in € bln)
1)
Well on track towards our 2025 targets
5
1)
Year-on-year comparison
2)
Total income excludes net TLTRO impact and hyperinflation accounting in Türkiye
3)
Based on 4-quarter rolling average. RoE is calculated using IFRS-EU shareholders’ equity after excluding amounts reserved for future distribution
4)
Formal build-up phase of several local Deposit Guarantee Schemes (DGS) and European Single Resolution Fund (SRF) are scheduled to be completed by 2024
5)
Implies management buffer (incl. Pillar 2 Guidance) of ~180 bps over fully loaded CET1 requirement of 10.70%
Financial target
2Q2023
2025 target
Drivers
Fee income
1)
2.7%
5-
10%
annual growth
▪
Primary customer growth
▪
Increasing package and service fees in daily banking to better reflect cost of service
▪
Growing base in investment products, both in number of accounts as well as AuM
▪
Global footprint to capture loan growth
Total income
1,2)
+19.2%
4-
5% CAGR
▪
Continued tailwind from a positive rate environment on the replicating portfolio
▪
Liability NII growth depending on central bank rate increases, deposit tracking and customer behaviour
▪
Lending NII growth depending on demand and pricing discipline in the market
▪
Fee growth
Cost/income ratio
3)
54.4%
50-
52%
▪ Total income growth
▪ Costs including full-year inflationary effects and continued investments in our business for growth
▪ Lower regulatory costs once funds required for the DGS and SRF are filled
4)
CET1 ratio
14.9%
~12.5%
5)
▪ Intention to converge to our target level in roughly equal steps through pay-out ratio of 50% of
resilient net profit and additional distributions
▪ The next steps to converge to our ~12.5% CET1 ratio target will reflect the strong capital generation
and capital discipline and we will update the market with the 3Q2023 results
Return on equity
3)
11.7%
12%
▪ Continued income growth and cost control
▪ Improved income / risk-weighted assets in Wholesale Banking
▪ Strong diversified asset book and low Stage 3 ratio protects P&L
▪ ~12.5% CET1 ratio target level
6
Business profile
Netherlands Belgium Germany Other Challengers Growth Markets WB Rest of World
67%
33%
Retail Banking
Wholesale Banking
Well-diversified business mix with many profitable growth drivers
7
30%
16%
16%
11%
12%
14%
€11.1
bln
Wholesale Banking
International Network
Market Leaders
Netherlands,
Belgium, Luxembourg
Challengers
Australia, Germany, Italy,
Spain
Growth Markets
Poland, Romania, Türkiye
Retail Banking
▪ Focus on earning the
primary relationship
▪ We use technology to offer
a differentiating experience
to our customers
▪ Distribution increasingly
through mobile devices
which requires simple
product offering
Wholesale Banking
▪ Our business model is
similar throughout our
global WB franchise
▪ With a sector and client-
driven strategy, our global
franchises serve corporate
and institutional clients
with international activities
in a sector where we have
strong expertise
€11.1
bln
26%
15%
15%
10%
11%
24%
Total income
1)
1H2023
Total income
1)
1H2023
RWA (end of period)
1)
2Q2023
1)
Segment “Other" is not shown on the slide. For this segment (Corporate Line and Real Estate run-off portfolio), total income was €211 mln in 1H2023 and RWA was €16.0 bln as per
30 June 2023
€307
bln
8
Purpose
Empowering people to stay a step ahead in life and in business
Strategic priorities
Superior customer experience Sustainability
Enablers
Seamless
digital experience
Scalable
Tech & Operations
Safe
& secure
Our
people
Our strategy, with a focus on execution certainty
Our focus SDGs
1)
are reflected in our Sustainability Direction
9
Social
Financial health
Empowering our customers by focusing on:
▪ Financial inclusion by making bank products
accessible
▪ Helping to get a grip on everyday finances and plan
for the future
Empowering communities by investing in programmes
focusing on:
▪ Future-proof employment
▪ Financial capabilities
▪ Social enterprises
Human rights
UN Guiding Principles (UNGP) prioritisation and due
diligence
▪ ESR Framework and dedicated human rights policy
▪ Proactive client dialogue
▪ Sustainable procurement standards
Transparency
▪ Disclosure aligned with the UNGP Reporting
Framework
Environment
Climate action
Empowering our clients
2)
▪ Aim to steer the most carbon-intensive parts of our
lending portfolio towards net zero
▪ Co-develop net zero sector pathways
▪ Grow our Sustainable Finance business
▪ Provide sustainable products/services
▪ Help clients manage biodiversity risks and
opportunities
Transparency
▪ Disclosure aligned with the TCFD and NZBA
Frameworks
Improving our own footprint
▪ Reducing scope 1, 2 and 3 CO2e emissions from our
own operations
▪ Sustainable procurement standards
For more information please visit: www.ing.com/Sustainability/Sustainability-direction.htm
1)
Sustainable Development Goals (SDGs) set by the United Nations General Assembly
2)
Society is transitioning to a low-carbon economy. So are our clients, and so is ING. We finance a lot
of sustainable activities, but we still finance more that’s not. See how we’re progressing on
www.ing.com/climate
2Q2023 results
10
Continued strong NII development
▪ NII, excluding the impact from TLTRO, increased 19.8% YoY, primarily driven by a strong increase of the interest margins on liabilities.
NII from mortgages decreased slightly, as higher volumes and margins in Germany and the Netherlands were more than offset by
lower income in Belgium and Retail Other. Treasury benefited from favourable market opportunities through money market and FX
transactions
1)
. NII in Financial Markets declined as rising rates led to higher funding costs, while other income rose significantly
▪ Sequentially, NII increased 1.2%. Higher net interest income on liabilities more than compensated for a decline in net interest income
in Financial Markets and from FX ratio hedging
▪ NIM decreased by 3 bps to 156 bps, as the increase in NII was more than offset by a higher average balance sheet total
11
Net interest income (in € mln) Net interest margin (in bps)
1)
Impact on NII 1Q2023 €-234 mln, 2Q2023 €-225 mln; Impact on Other Income 1Q2023 €+267 mln, 2Q2023 €+261 mln; negligible impact in 2Q2022
Lending and deposit margin (in bps)
3,389
3,604
3,860
4,012
4,061
76
71
-315
-343
3,465
3,332
3,545
4,012
4,061
2Q2022 3Q2022 4Q2022 1Q2023 2Q2023
Polish mortgage moratorium
Net TLTRO impact
NII
Customer lending (in € bln)
Continued loan growth and significant deposit inflow
▪ Net core lending growth was €2.8 bln
▪ Retail Banking was €3.3 bln higher. Mortgages grew by €2.7 bln, primarily reflecting growth in Australia, the Netherlands and
Germany. Other lending increased by €0.6 bln
▪ Wholesale Banking decreased by €0.6 bln. Growth in Lending was offset by lower volumes in Trade and Commodity Finance and in
Working Capital Solutions, reflecting lower commodity prices and economic activity
▪ Net core deposits growth was €17.2 bln
▪ Growth in Retail Banking was €18.9 bln, mainly driven by inflows in Germany, following successful promotional campaigns
▪ Wholesale Banking was €1.7 bln lower
12
639.5
643.2
0.7
0.3
0.4
1.9
2.2
0.3
0.9
-2.5
-0.2
-0.2
1Q2023 Retail
Netherlands
Retail
Belgium
Retail
Germany
Retail
Other
WB
Lending
WB
DB&TF
WB
Other
Treasury FX Other 2Q2023
Net core lending growth €2.8 bln
1)
DB&TF is Daily Banking & Trade Finance; WB Other includes Financial Markets
2)
Other includes run-off portfolios (Lease, WUB and Retail France)
2)
1) 1)
Fee income growth supported by Wholesale Banking Lending
13
▪ Income from fees grew by 2.7% YoY, driven by Wholesale Banking
▪ Fees were up in Retail Benelux, driven by increased fees for payment packages in the Netherlands, which more than offset higher
commissions paid to agents in Belgium. Outside the Benelux, fee income was down as a result of subdued trading activity in
investment products, fewer mortgage transactions at Interhyp and ING’s exit from the French retail market
▪ Fees in Wholesale Banking rose by 23.4%, reflecting an increase in deal flow in Lending and Global Capital Markets
▪ Sequentially, fees increased 1.8%, mainly driven by higher fees in Wholesale Banking, with growth in Corporate Finance, Global
Capital Markets and Lending. Fees were stable in Retail Banking
Net fee & commission income per business line (in € mln)
1)
Net fee & commission income per product category (in € mln)
1)
Totals including Corporate Line
2)
Other includes insurance products and Financial Markets
610
583
573
575
569
280
295
318
323
346
888
876
888
896 912
2Q2022 3Q2022 4Q2022 1Q2023 2Q2023
Retail Banking Wholesale Banking
323
349
324
329
322
247
238
258
244
253
226
194
201
217
206
92
96
105
106
131
888
876
888
896
912
2Q2022 3Q2022 4Q2022 1Q2023 2Q2023
Daily Banking Lending Investment Products Other
2)
Lower operating expenses despite continued investments
14
1)
Formal build-up phase of several local DGS and SRF are scheduled to be completed by 2024
2)
Incidental expenses as included in volatile items on slide 44
▪ Expenses excluding regulatory costs and incidental items
were 6.9% higher YoY
▪ Main driver was higher staff expenses, reflecting the
impact of indexation and CLA increases across our markets
▪ We also continued investing in the growth of our business
▪ These higher expenses were partly offset by savings from
exiting the retail markets in France and the Philippines
▪ Sequentially, expenses excluding regulatory costs and
incidental items were 0.5% lower, despite higher staff
expenses
▪ The previous quarter had included €27 mln of legal
provisions and €17 mln of restructuring costs
▪ 2Q2023 includes €22 mln restructuring provisions
▪ Regulatory costs were seasonally lower and declined
compared to 2Q2022, which had included a €92 mln
contribution to the Institutional Protection Scheme in Poland
▪ Incidental cost items in 2Q2023 were €6 mln for
hyperinflation accounting in Türkiye (IAS 29)
Expenses (in € mln)
2)
1)
2,365
2,448
2,515
2,541
2,528
159
85
82
4
6
214
96
291
525
91
2,738
2,629
2,888
3,071
2,626
2Q2022 3Q2022 4Q2022 1Q2023 2Q2023
Regulatory costs
Incidental items
Expenses excluding regulatory costs and incidental items
Stage 2 ratio
2)
Risk costs per business line (in € mln)
1)
Stage 3 ratio
Low risk costs reflecting high quality and resilience of the loan book
15
▪ Risk costs were €98 mln, or 6 bps of average customer lending, well below the through-the-cycle average of ~25 bps
▪ €39 mln was added to management overlays, mainly reflecting the current inflation and interest environment, as well as some
regular model adjustments. At the end of 2Q2023, the total amount of management overlays was €560 mln
▪ In Wholesale Banking, risk costs related to a few individual files were more than offset by a further release of Russia-related provisions
as we continue to reduce our exposure. In Retail Banking, there were limited additions to risk costs in Poland, Spain and Belgium
▪ In Stage 3 we saw modest inflow of individual files with no clear trends identifiable, the Stage 3 ratio remained low at 1.4%
▪ The Stage 2 ratio decreased to 6.9%, as Stage 2 outstandings declined by €2.5 bln, mainly reflecting deleveraging in Russia and
movements in the Watch List portfolio
113
274
203
242
113
88
128
65
-90
-15
202
403
269
152
98
2Q2022 3Q2022 4Q2022 1Q2023 2Q2023
Retail Banking Wholesale Banking
5.3%
7.0%
7.1%
7.2%
6.9%
4.5%
5.8%
5.5%
5.2%
5.1%
6.6%
8.9%
10.2%
11.2%
10.8%
2Q2022 3Q2022 4Q2022 1Q2023 2Q2023
ING Retail Banking Wholesale Banking
1.4%
1.3%
1.4%
1.4%
1.4%
1.5%
1.4%
1.4%
1.3%
1.3%
1.2%
1.2%
1.5%
1.5%
1.4%
2Q2022 3Q2022 4Q2022 1Q2023 2Q2023
ING Retail Banking Wholesale Banking
1)
Totals including Corporate Line
2)
Comparative 1Q2023 numbers have been adjusted, including an IFRS 9 scope change after the adoption of IFRS 17
16
Capital
ING Group risk-weighted assets development (in € bln)
Risk-weighted assets decreased in 2Q2023, mainly reflecting a
better overall profile of the loan book and model impacts
17
▪ In 2Q2023, RWA decreased by €4.5 bln to €322.9 bln, including €+0.2 bln of FX impact on credit RWA
▪ Credit RWA excluding FX impacts decreased by €5.6 bln, mainly reflecting a better overall profile of the loan book and model impacts
▪ Operational RWA were flat, while market RWA increased by €+1.0 bln, mainly due to increased Stressed Value-at-Risk for the trading
portfolio
0.2
1.0
0.0
-1.3
-1.7
-2.5
-0.1
1Q2023
RWA
FX
impact
Volume
development
Overall profile of
the loan book
Models,
methodology
and policy
updates
Other Market
RWA
Operational
RWA
2Q2023
RWA
327.4
322.9
Credit RWA €-5.4 bln
CET1 ratio improved to 14.9%
18
▪ The CET1 ratio strengthened to 14.9%, driven by strong capital generation and lower RWA, which more than offset the €1.5 bln
deduction from capital for the ongoing share buyback programme, as announced on 11 May 2023
▪ At the end of 2Q2023, there was €1,917 mln reserved outside of CET1 capital for future distribution
▪ We will pay an interim dividend over 1H2023 of €0.35 per share in cash on 14 August 2023
▪ The AT1 and Tier 2 ratios remained stable during 2Q2023
Total capital ratio development (in %)
14.8%
14.4%
14.9%
20.0%
10.7%
+0.3%
+0.2%
+2.2%
+2.8%
-0.5%
-0.0%
1Q2023
CET1 ratio
Additional
distribution
Pro forma
1Q2023
CET1 ratio
Profit added
to CET1
Other capital
movements
RWA 2Q2023
CET1 ratio
AT1 Tier 2 2Q2023 Total
capital ratio
Basel IV CET1
ratio target
~12.5%
Capital ratio Fully loaded SREP requirementCapital ratio developments Management buffer (incl. P2G)
1)
1)
€1.5 bln of additional distribution in the form of a share buyback, as announced on 11 May 2023
4.50%
6.00%
8.00%
0.98%
1.31%
1.75%
2.50%
2.50%
2.50%
0.71%
0.71%
0.71%
2.00%
2.00%
2.00%
CET1 Tier 1 Total capital
P1R P2R CCB CCyB SiFi P2G
▪ ING Group’s fully loaded CET1 requirement in 2Q2023
decreased to 10.70% (1Q2023: 10.98%)
▪ This reflects a 0.50% lower O-SII (Other Systemically
Important Institutions) buffer requirement, partly offset by
an increase of the Dutch countercyclical buffers from 1% to
2%. Both will apply as of 31 May 2024
▪ 4.50% Pillar 1 Requirement (P1R)
▪ 0.98% Pillar 2 Requirement (P2R)
▪ 2.50% Capital Conservation Buffer (CCB)
▪ 0.71% Countercyclical Buffer (CCyB)
1)
▪ 2.00% Systemically Important Financial Institutions
Buffer (SiFi)
▪ Fully loaded Tier 1 requirement is 12.52%
▪ 0.33%-point of P2R can be filled with AT1
▪ Fully loaded Total Capital requirement is 14.96%
▪ 0.44%-point of P2R can be filled with Tier 2
MDA
restriction
level
(10.70%)
MDA
restriction
level
(12.52%)
MDA
restriction
level
(14.96%)
ING Group fully loaded SREP requirements
Fully loaded SREP requirement decreased due to lower O-SII buffer
19
Distance to
MDA
4.20%
or €13.6 bln
4.60%
or €14.8 bln
5.00%
or €16.1 bln
1)
Fully loaded CCyB increased in 2Q2023 by 0.21% to 0.71%, mainly as a result of the announced increase of the Dutch counter-cyclical buffer from 1% to 2% effective 31 May 2024;
current CCyB increased in 2Q2023 by 0.21% to 0.45%, mainly due to the initial increase of the Dutch counter-cyclical buffer to 1% becoming effective
20
Funding & liquidity
14.9%
2.2%
2.8%
11.7%
18.00%
5.45%
2Q2023
ING meets its TLAC and MREL requirements
21
MREL as % of RWA (and LR)
14.9%
2.2%
2.8%
11.7%
22.29%
23.51%
5.45%
5.52%
2Q2023 Current Requirement Requirement 1/1/2024
5.97%
TLAC as % of RWA (and LR)
▪ ING follows a Single Point of Entry (SPE) resolution strategy and issues TLAC/MREL eligible instruments from its resolution entity ING
Groep N.V.
▪ ING amply meets the end-state TLAC requirement with a TLAC ratio of 31.7% of RWA and 9.0% of TLAC leverage exposure (LR)
▪ RWA-based MREL is the most constraining requirement for ING. As per 30 June 2023, ING Group amply meets the intermediary MREL
requirements
9.0%
9.0% 7.27%
TLAC / MREL as % of leverage exposure
6.75%
31.7%
27.74%
29.03%
31.7%
23.45%
CET1 AT1 T2 HoldCo Senior TLAC / MREL requirement CBR
Current Requirement
EUR USD Other
58%
32%
10%
Long-term debt maturity ladder and issuance guidance
Long-term debt maturity ladder (in € bln)
1)
1)
Tier 2 maturities are based on the 1st call date for callable bonds and contractual maturity for bullets. All HoldCo Senior bonds are based on contractual maturity. Excluding RMBS
Currency split of outstandings as at 30 June 2023
HoldCo Senior Tier 2 AT1
87%
3%
10%
100%
Issuance guidance 2023
▪ Guidance for 2023 issuance is ~€7-9 bln in HoldCo Senior and
~€4-7 bln in Secured issuance from various entities, subject
to balance sheet developments
▪ In 2Q2023 we issued:
- €3 bln dual tranche in Holdco Senior
- €1.25 bln Covered bond from ING Belgium
▪ OpCo Senior Unsecured could be issued for internal ratio
management and general corporate funding purposes
22
0
5
10
15
Covered Bank Senior HoldCo Tier 2 AT1
>2033
Redemptions
2023
Issuance
2023
2023 2024
2025
2026 2027 2028 2029
2030
2031
2032
2033
0
2
4
6
2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 >2033
ING Bank* ING Belgium* ING Bank Australia ING Germany ING Bank Hipoteczny
Covered bond funding through various programmes
23
1)
Externally placed covered bonds
2)
Maturity ladder as per contractual maturity
3)
Mainly structured notes
Covered bond maturity ladder as at 30 June 2023 (in € bln)
2)
ING Bank N.V. ING Belgium S.A./N.V. ING DiBa AG ING Bank (Australia) Ltd ING Bank Hipoteczny
Instruments
overview
▪ Secured funding
▪ Senior unsecured
▪ Secured funding ▪ Secured funding ▪ Secured funding ▪ Secured funding
Outstanding
1)
▪ Covered bond: ~€18.5 bln
▪ Senior Unsecured: ~€6.8
bln
3)
▪ Covered bond: €5.75
bln
▪ Covered bond: €7.4 bln ▪ Covered bond: AUD$4.8
bln
▪ Green covered bond:
PLN400 mln
2023 Issuance
1)
▪ €4.0 bln ▪ €1.25 bln ▪ None ▪ None ▪ None
Underlying
Collateral
▪ Residential Mortgages ▪ Residential Mortgages ▪ Residential Mortgages ▪ Residential Mortgages ▪ Residential Mortgages
Covered Bond
programme
▪ ING Bank Hard and Soft
Bullet
▪ ING Bank Soft Bullet
▪ ING Bank Soft Bullet 2
▪ ING Belgium
Pandbrieven
▪ ING-DiBa AG Pfandbriefe ▪ ING Bank (Australia) Ltd ▪ ING Bank Hipoteczny
1) 1)
▪ Second party opinion provider
▪ Renewable energy consultant
▪ Green buildings consultant
Recent Green Bond transactions
Year of Issuance
2021 2021 2021 2022 2022 2022
Issuer ING Group N.V. ING Group N.V. ING-DiBa AG ING Group N.V. ING Group N.V. ING-DiBa AG
Size / Currency £800 million €500 million €1.25 billion €1.5 billion €1 billion €1 billion
Tenor 8NC7 11NC6 7yr 4NC3 11NC6 8yr
Asset class HoldCo Senior Tier 2 Covered Bond HoldCo Senior Tier 2 Covered Bond
External consultants & providers
ING is an active issuer of Green Bonds
24
For more information please visit: www.ing.com/Investor-relations/Fixed-income-information/Debt-securities-ING-Groep-N.V./Green-bonds-1.htm
Green Bond issuance objectives
▪ Support meeting our sustainability objectives
▪ Fund growth in our Eligible Green Loan portfolio
▪ Continued leadership in the Green Bond market
▪ Support development of the Global Green Bond market
Project Evaluation and Selection
▪ Projects financed and/or refinanced through Green Bond
proceeds are evaluated and selected based on compliance
with the Eligibility Criteria
▪ Governance of the Green Bond Framework is in place
▪ ING’s Environmental & Social Risk policies and transaction
approval process ensures that loans comply with
environmental and social policies
Management of proceeds
▪ The proceeds are managed in a portfolio approach
▪ Single pool of eligible green loans
1)
:
▪ Renewable energy €5.6 bln
▪ Green buildings (residential) €21.4 bln
▪ Green buildings (commercial) €2.9 bln
▪ Total Eligible Green Loan Portfolio €29.9 bln
▪ Green funding outstanding: €11.1 bln
Use of proceeds
▪ ING will finance and/or refinance, in part or in whole, an
Eligible Green Loan Portfolio in accordance with the
Eligibility Criteria
▪ Net proceeds will be allocated to Eligible Green Loan
Portfolio, including:
Reporting
▪ Aggregated (between multiple Green Bonds)
▪ Allocation and impact are reported. Additional reported
items can be found in the Green Bond Framework
▪ Limited assurance of the Green Bond Allocation Report
provided by external auditor on an annual basis
▪ Second party opinion by ISS ESG
1)
As per ING Green Bond Allocation Report 2022
25
We issue Green Bonds to support our sustainability objectives
▪ Our Green Bond Framework was updated in 2022 and has been assessed by a Second Party Opinion (SPO) and is aligned with the
ICMA Green Bond Principles 2021. The framework is presented through below four pillars:
Commercial
Real Estate
Netherlands
Residential
Real Estate
Netherlands & Germany
Renewable Energy
(wind & solar)
Global
ESG ratings ING Groep N.V.
▪ Evaluation: ING's management of ESG
material risk is ‘Strong’
▪ Position: in the 22nd percentile of 406
banks
▪ Updated: August 2022
▪ Rating AA
▪ Updated: September 2022
▪ ESG evaluation ‘Strong’ (score 84/100)
▪ Updated: June 2022
External recognition of ING’s commitment to ESG
Sustainability Index Products
ING is regularly included in ESG and sustainability-focused indices, such as:
26
1,022
1,029
Balance sheet ING Group (in € bln)
▪ Balance sheet ING Group increased to €1,029 bln in 2Q2023
Assets Liabilities
Strong and conservative balance sheet with customer deposits as
the primary source of funding
27
634
638
48
48
34
37
140
142
118
114
33
33
16
17
1Q2023 2Q2023
Other
Loans to banks
Cash with central banks
Financial assets at FVPL
Financial assets at FVOCI
Securities at amortised cost
Loans to customers
Well-diversified customer loan book
▪ See “Asset Quality” section of this presentation
Stable funding profile
▪ 66% of the balance sheet is funded by customer deposits
▪ 89% of total customer deposits is in Retail Banking
▪ Well-balanced loan-to-deposit ratio of 0.94 as per
30 June 2023
1)
Conservative trading profile
▪ Majority of our Financial Markets business is customer flow
based where we largely hedge our positions, reflected in
large, but often offsetting, positions in assets and liabilities at
fair value
▪ The average Value-at-Risk for the trading portfolio increased
to €15 mln (from €14 mln in 1Q2023)
660
678
114
116
125
136
54
31
52
51
16 16
1Q2023 2Q2023
Other
Total equity
Deposits from banks
Wholesale funding
Financial liabilities at FVPL
Customer deposits
1)
Loan-to-deposit ratio is calculated as customer lending including provisions for loan losses divided by customer deposits
1,022
1,029
Robust liquidity position with a 12-month moving average LCR of
137%
28
50%
22%
3%
9%
5%
9%
2%
Customer deposits (private individuals)
Customer deposits (other)
Interbank
Lending/repurchase agreements
CD/CP
Long-term senior debt
Subordinated debt
LCR 12-month moving average (in € bln)
30 June
2023
31 March
2023
Level 1
181.4
177.2
Level 2A
4.3
5.4
Level 2B
4.4
4.5
Total HQLA
190.2
187.1
Stressed outflow
243.6
243.0
Stressed inflow
104.3
103.3
LCR
137%
134%
Funding mix
1)
30 June 2023
ING maintains a sizeable liquidity buffer
▪ ING’s funding consists mainly of retail deposits, corporate
deposits and public debt
▪ ING’s 12-month moving average LCR improved to 137%
▪ Besides the HQLA buffer, ING maintains large pools of
ECB-eligible assets, in the form of internal securitisations and
credit claims. Total available liquidity resources increased to
€298 bln in 2Q2023 (from €268 bln in 1Q2023)
Liquidity buffer
▪ Level 1: mainly core European sovereign bonds, SSA and US
Treasuries
▪ Level 1B: core European and Nordic covered bonds
▪ Level 2A: mainly Canadian covered bonds
▪ Level 2B: mainly short-dated German Auto ABS
1)
Liabilities excluding trading securities and IFRS-EU equity
Strong rating profile at both Group and Bank levels
29
Main credit r
atings of ING as of 2 August 2023
S&P
Moody’s
Fitch
Stand
-alone rating
a
baa1
a+
Government
support
-
1 notch
-
Junior debt support
1 notch
N/A
-
Moody’s LGF support
N/A
3 notches
N/A
ING
Groep N.V. (HoldCo)
Long
-term issuer rating
A-
n/a
A+
Short
-term issuer rating A
-2
n/a
F1
Outlook
Stable
Stable
1)
Stable
Senior unsecured rating
A-
Baa1
A+
AT1
BB
Ba1
BBB
Tier 2
BBB
Baa2
A-
ING
Bank N.V. (OpCo)
Long
-term issuer rating
A+
A1
AA-
Short
-term issuer rating A
-1
P
-1
F1+
Outlook
Stable
Stable
Stable
Senior unsecured rating
A+
A1
AA-
Tier 2
BBB+
Baa2
A-
Latest rating actions on ING Group and Bank
▪ S&P: upgraded ING Bank to A+ in July 2017. In
October 2022, S&P affirmed ING's rating and
outlook, reflecting S&P’s view that ING's
geographical and business diversification will
support its financial profile through a darkened
economic outlook
▪ Moody’s: affirmed ING Bank's long-term issuer rating
at A1 with a stable outlook in May 2022, reflecting
Moody’s view that ING’s solvency and liquidity are
robust and will remain resilient over the outlook
horizon, despite significant exposure to highly
cyclical sectors
▪ Fitch: upgraded ING Bank to AA- in February 2019
and affirmed in September 2022. This reflects Fitch’s
view that ING has a strong franchise in RB and WB in
the Benelux region, good geographic diversification
in selected European countries and moderate risk
appetite, resulting in sound through-the-cycle asset
quality and earnings. Ratings are also underpinned
by solid capital ratios and a well-balanced funding
profile
1)
Outlook refers to the senior unsecured rating
30
Asset quality
60%
4%
19%
17%
Residential mortgages
Consumer Lending
Business Lending
Other Lending
2)
21%
16%
8%
12%
17%
6%
14%
5%
Mortgages Netherlands
Other lending Netherlands
Mortgages Belgium
Other lending Belgium
Mortgages Germany
Other lending Germany
Mortgages Other
Other lending Other
68%
32%
Retail Banking
Wholesale Banking
65%
22%
2%
12%
Lending
Daily Banking & Trade Finance
Financial Markets
Treasury & Other
€810
bln
€550
bln
€259
bln
Well-diversified lending credit outstandings
1)
by activity
▪ ING has a well-diversified and well-collateralised loan book with a strong focus on own-originated mortgages and senior loans
€550
bln
1)
Lending and money market credit outstandings, including guarantees and letters of credit, excluding undrawn committed exposures (off-balance sheet positions)
2)
Other includes €87 bln Retail-related Treasury lending and €5 bln Other Retail Lending
31
ING Group Retail Banking Wholesale Banking
9%
11%
8%
10%
12%
18%
30%
2%
Real Estate, Infra & Construction
Commodities, Food & Agri
TMT & Healthcare
Transportation & Logistics
Energy
Diversified Corporates
Financial Institutions
Other
15%
11%
21%
24%
10%
2%
17%
Japan
China
Hong Kong
Singapore
South Korea
India
Rest of Asia
Loan portfolio is well diversified across geographies…
Wholesale Banking
Wholesale Banking Asia
13%
10%
8%
14%
6%
8%
8%
1%
16%
2%
13%
1%
NL
Belux
Germany
Other Challengers
Growth Markets
UK
European network (EEA)
European network (non-EEA)
North America
Americas (excl. North America)
Asia
Africa
Wholesale Banking lending credit outstandings
1)
32
€259
bln
€34
bln
€259
bln
…and sectors
Wholesale Banking
1)
Lending and money market credit outstandings, including guarantees and letters of credit, excluding undrawn committed exposures (off-balance sheet positions)
2)
European Economic Area
3)
Excluding our stake in Bank of Beijing (€1.6 bln at 30 June 2023)
4)
Lending credit outstandings, money market, investment and pre-settlement, including guarantees and letters of credit, excluding undrawn committed exposures (off balance positions)
Selected countries/sectors
Russia
▪ €1.7 bln offshore exposure
4)
, of which €0.6 bln with ECA or CPRI cover
▪ Equity-at-risk Russian subsidiary €0.3 bln
▪ ~€0.9 bln has already been included in CET1 capital to cover for
expected and unexpected losses through LLP (~€0.3 bln) and RWA
(€0.6 bln equivalent of €4.7 bln CRWA at 12.5%)
2)
3)
2Q2023 provisioning per Stage
33
1)
Stage 1 includes off-balance sheet provisioning; Stage 2 includes modifications
2)
Wholesale Banking provisioning includes Corporate Line
Stage 3 provisioning (in € mln)
2)
Stage 2 provisioning (in € mln)
1,2)
Stage 1 provisioning (in € mln)
1)
11
35
31
1
6
6
2
21
-15
17
16
37
52
-14
23
2Q2022 3Q2022 4Q2022 1Q2023 2Q2023
Retail Banking Wholesale Banking
33
98
4
86
-9
-78
-50
-194
-117
-39
-45
48
-190
-31
-48
2Q2022 3Q2022 4Q2022 1Q2023 2Q2023
Retail Banking Wholesale Banking
70
141
167
155
116
161
177
239
43
8
230
318
407
197
124
2Q2022 3Q2022 4Q2022 1Q2023 2Q2023
Retail Banking Wholesale Banking
Main drivers
▪ Stage 1 mainly driven by overlays and
an update of the macro-economic
forecast
Main drivers
▪ Release on our Russia-related portfolio,
mainly reflecting lower Russia-related
exposure
Main drivers
▪ Collective Stage 3 provisions, primarily
in Retail Banking
▪ Limited additions to individual files in
Wholesale Banking
34
Appendix
Issuance entities under our approach to resolution
35
Issuance entities
ING Groep N.V.
ING Bank N.V.
Designated
resolution
entity
ING
Belgium
ING
Australia
ING
Germany
Other ING
subsidiaries
Eligible instruments for TLAC/MREL
TLAC MREL
▪ Own funds (CET1 / AT1 / Tier 2)
✓ ✓
▪ Senior unsecured debt (> 1 year)
✓ ✓
▪ Own funds
✓ ✓
▪ Secured funding & senior unsecured debt
(> 1 year)
X X
▪ Secured funding
X X
▪ Operational funding needs
(un)-secured debt
X X
ING
Slaski
Comfortable buffer to Additional Tier 1 trigger
36
48.1
22.6
2Q2023
CET1 capital
7% CET1
AT1 conversion trigger
Buffer to AT1 trigger (in € bln)
30 June 2023
▪ ING Group capital buffer to conversion trigger (7% CET1) is high at €25.5 bln, or 7.9% of RWA
€25.5 bln
7.9pp
1)
1)
Difference between 14.9% ING Group CET1 ratio in 2Q2023 and 7% CET1 equity conversion trigger
Outstanding benchmark capital securities
37
Tier 2 securities issued by Bank
Currency
Issue date
First call date
Coupon
Outstanding (mln)
2)
Maturity
USD
Sep-
13
n/a
5.80%
811
Sep-
23
Tier
2 securities issued by Group
Currency
Issue date
First call date
Coupon
Outstanding (mln)
2)
Maturity
GBP
Feb-
23
Feb-
28
6.25%
750
May-
33
EUR
Feb-
23
Nov-
29
5.00%
500
Feb-
35
EUR
Aug-
22
Aug-
28
4.125%
1,000
Aug-
33
EUR
Nov-
21
Aug-
27
1.00%
1,000
Nov-
32
EUR
June-
21
June-
27
0.875%
500
June-
32
EUR
May-
20
Feb-
26
2.125%
1,500
May-
31
EUR
Nov-
19
Nov-
25
1.00%
1,000
Nov-
30
EUR
Mar-
18
Mar-
25
2.00%
750
Mar-
30
EUR
Sep-
17
Sep-
24
1.625
%
1,000
Sep-
29
EUR
Feb-
17
Feb-
24
2.50%
750
Feb-
29
(Additional) Tier 1 securities issued by Group
Currency
Issue date
First call date
Coupon
Outstanding (mln)
2)
Reset spread
USD
Feb-
23
May-
28
7.500%
1,000
UST + 371bps
USD
1)
Sep-
21
May-
27
3.875%
1,000
UST + 286bps
USD
1)
Sep-
21
May-
31
4.250%
1,000
UST + 286bps
USD
Feb-
20
May-
29
4.875%
750
UST + 351bps
USD
1)
Sep-
19
Nov-
26
5.750%
1,500
UST + 434bps
USD
Feb-
19
Apr-
24
6.750%
1,250
USSW + 420bps
USD
1)
Apr-
15
Apr-
25
6.500%
1,250
USSW + 445bps
1)
SEC registered
2)
Amount outstanding in original currency
Green bond
HoldCo Senior transactions in past 12 months
38
ISIN
Issue date
First call date
Maturity
Tenor
Coupon
Issued (mln)
1)
Reset spread
EUR
XS2624976077
May
-23 May-
28
May-
29
6NC5
4.5%
1,500
3mE+160
XS2624977554
May
-23 May-
33
May-
34
11NC10
4.75%
1,500
3mE+190
XS2554746185
Nov
-22 Nov-
26
Nov-
27
5NC4
4.874%
1,250
3mE+185
XS2554745708
Nov
-22 Nov-
32
Nov-
33
11NC10
5.25%
1,000
3mE+215
GBP
XS2526852350
Aug
-22 Aug-
25
Aug-
26
4NC3
5%
300
UKT + 250
Please note with regards to IBOR replacement:
ING has a limited outstanding amount of fixed to float public securities and private placements referring to an IBOR related reset rate with a maturity date beyond the respective IBOR
cessation date. The majority of the documentation pertaining to these instruments contain appropriate discontinuation language. Discontinuation language refers to the appointment of an
Independent Advisor to determine an appropriate Successor Rate, failing which an Alternative Rate, and in either case an Adjustment Spread and any Benchmark Amendments (as
applicable).
HoldCo USD issues are SEC registered unless mentioned otherwise
1)
Original currency
Green bond
Current Indexed LTVs
1)
Redemption type
1)
55%
4%
5%
29%
3%
3%
1%
Interest Only
Investment
Savings
Amortising
Life insurance
Hybrid
Other
94%
6%
Fixed
Floating
15%
5%
21%
35%
19%
3%
2%
NHG
0-20%
20-40%
40-60%
60-80%
80-90%
90-100%
>100%
Interest rate type
1)
Portfolio characteristics
1)
Net principal balance
€25,165 mln
Outstanding bonds
€20,266 mln
# of loans
128,615
Avg. pri
ncipal balance (per borrower) €
195,660
WA current interest rate
2.57%
WA remaining
maturity
18.02 years
WA remaining time
to interest reset
7.49 years
WA seasoning
11.62 years
WA current
indexed LTV
50.88%
Available statutory CRR OC
123.96%
▪ ING Bank NV €30 bln Hard and Soft Bullet Covered Bonds programme
▪ UCITS, CRR and ECBC Label compliant. Rated Aaa/AAA/AAA (Moody’s/S&P/Fitch)
▪ This programme is used for external issuance purposes. There is a separate €15 bln Soft Bullet
Covered Bonds programme for internal transactions only and it is not detailed on this slide
▪ Cover pool consists of 100% prime Dutch residential mortgage loans, all owner-occupied and in
euro only. As per 30 June 2023, no arrears > 90 days in the cover pool
▪ Strong Dutch legislation with minimum legally required over-collateralisation (OC) of 5% and LTV
cut-off rate of 80%
▪ Latest investor reports are available on www.ing.com/ir
ING Bank’s covered bond programme…
39
1)
As per 30 June 2023
-60
-30
0
30
…benefits from a continued strong Dutch housing market, although
macro environment is increasingly challenging
40
30
40
50
60
70
0
5
10
15
Netherlands eurozone
Dutch Purchasing Managers Index (PMI) indicates industrial
contraction as it decreased to 43.8
Dutch unemployment rates (%) continue to decrease since
August 2020
Dutch consumer confidence has been affected since the
invasion in Ukraine
Dutch house price increases in the last six years are not
credit driven
1)
Source: Central Bureau for Statistics for all data except for the Dutch PMI (IHS Markit) and eurozone unemployment (Eurostat)
1)
Reflects latest available data as of 1Q2023
2012 2013 2014 2015 2016 2017 2018 2019 20212020
80
100
120
140
160
House prices Total mortgage debt
2022 2023
2012 2013 2014 2015 2016 2017 2018 2019 20212020 2022 2023
2012 2013 2014 2015 2016 2017 2018 2019 20212020 2022 2023
2012 2013 2014 2015 2016 2017 2018 2019 20212020 2022 2023
▪ Growing earnings per share and strong return on equity on elevated capital levels
▪ We have returned over €18 bln to shareholders since 2018, including the interim dividend 2023 of €0.35 per share (to be paid out on
14 August 2023) and the ongoing €1.5 bln share buyback
▪ We intend to converge the CET1 ratio to our target level of ~12.5% by 2025. The next steps to converge to our target ratio will reflect
the strong capital generation resulting in a >100% pay-out ratio
0.60
0.58
0.74
0.41
0.70
0.50
0.67
0.68
1.01
1.28
1.24
5.4%
6.7%
9.4%
12.5%
2018 2019 2020 2021 2022 2023 YtD
Attractive and growing shareholder return
41
Dividend
ban
Regular dividend per share (in €)
Additional distribution per share (in €)
Return
3
)
Increasing earnings per share
Attractive shareholder return
Based on (announced) payment date
1)
1H2023 EPS multiplied by 2, divided by the average number of shares in 1H2023. 1H2023 ROE
2)
Amount based on average number of shares in 1H2023, return including the 1H2023 interim dividend and the total amount of the ongoing share buyback and based on the average
share price in 1H2023
3)
Based on average market value (share price * number of shares outstanding at the end of each quarter)
2)
10.7%
YTD
1.21
1.23
0.64
1.27
1.02
2.07
11.2%
9.4%
4.8%
9.2%
7.2%
15.3%
2018 2019 2020 2021 2022 2023
annualised
Earnings per share (in €)
Return on equity
1)
Long-term benefit from replicating portfolio
42
Continued tailwind from a positive rate environment with
~55% of the replicating portfolio repricing at higher rates
Drivers of liability NII
▪ Liability income is driven by replicating portfolio,
deposit pass-through and volumes
▪ Retail eurozone replicating portfolio of €~480 bln
▪ ~45% is <1 year, which has helped to quickly restore
liability margins once interest rates turned positive
▪ ~55% is >1 year and will continue to reprice in the
coming years, providing a prolonged tailwind to NII
▪ Pass-through dependent on market developments
▪ Actual average pass-through during 2Q2023 was ~20%
(~65 bps)
▪ Every 10 bps of pass-through has a ~€-350 mln impact
on NII
2Q2023 results overview
43
In € mln
Reported P&L
Volatile items
P&L excluding volatile items
Net interest income
4,061
2
4,059
Net fee and commission income
912
0
911
Investment income
1
-0
2
Other income
785
-
23
807
Total income
5,759
-
21
5,779
Expenses excl. regulatory costs
2,534
6
2,528
Regulatory costs
91
0
91
Operating expenses
2,626
6
2,620
Gross result
3,133
-
27
3,160
Addition to loan loss provisions
98
0
98
Result before tax
3,035
-
27
3,062
Taxation
818
Non
-controlling interests
62
Net result
2,155
Volatile income and expense items
44
Volatile items (in € mln)
2Q2022
3Q2022
4Q2022
1Q2023
2Q2023
WB/FM
–
valuation adjustments
90
-
15
-
2
-
10
33
Capital gains/losses
8
-
3
0
15
-
0
Hedge ineffectiveness
1)
-
31
-
431
-
71
35
-
46
Other items income
2)
-
155
-
218
-
319
-
69
-
6
Total volatile items – income -
89
-
668
-
392
-
29
-
21
Incidental items - expenses
3)
-
159
-
85
-
82
-
4
-
6
Total volatile items -
247
-
753
-
473
-
34
-
27
1)
3Q2022: includes €
-288 mln to unwind a macro fair value hedge of deposits in Belgium
2)
2Q2022: €76 mln TLTRO III benefit and €
-231 mln due to hyperinflation accounting in Türkiye
3Q2022: €71 mln TLTRO III benefit, €
-343 mln impact Polish mortgage moratorium, €+100 mln from the transfer of our investment business in France, €-31 mln hyperinflation impact
and €
-15 mln impairment on our equity stake in TTB
4Q2022: €
-315 mln net TLTRO III impact, €+14 mln from the transfer of our investment business in France and €-17 million hyperinflation impact
1Q2023: €
-69 million hyperinflation impact
2Q2023: €
-6 million hyperinflation impact
3)
2Q2022: €97 mln restructuring costs in RB Belgium and €18 mln in Retail OC&GM and €43 mln hyperinflation impact (o.w. €32 mln
impairment)
3Q2022: €75 mln for adding interest
-on-interest to compensation for certain Dutch consumer credit products and €10 mln hyperinflation impact
4Q2022: €43 mln restructuring costs, €30 mln energy allowances for employees and €9 mln hyperinflation impact
1Q2023: €4 mln hyperinflation impact
2Q2023: €6 mln hyperinflation impact
Impact on results (in € mln)
1Q2023
2Q2023
Profit or loss
Net interest income
1
2
Net fee and commission income
0
0
Investment income
0
0
Other income
-
70
-
9
Total income
-
69
-
6
Expenses excl. regulatory costs
4
6
Regulatory costs
0
0
Operating expenses
4
6
Gross result
-
73
-
12
Addition to loan loss provisions
0
0
Result before tax
-
73
-
13
Taxation
-
6
1
Net result
-
68
-
14
Hyperinflation accounting in Türkiye
45
Application of IAS 29 to consolidation of ING in Türkiye
▪ We applied IAS 29 (‘Financial Reporting in Hyperinflationary
Economies’) to the consolidation of our subsidiary in Türkiye,
effective as of 1 January 2022, as cumulative inflation in
Türkiye over the preceding three years had exceeded 100%
▪ The application of IAS 29 resulted in a negative accounting
impact on ING net result in 2Q2023 of €-14 mln, reflecting
the adjustments for changes in the general purchasing
power of the Turkish lira
▪ Resilient net profit and shareholders’ distribution has not
been affected as the total quarterly P&L impact of €-14 mln
was treated as a significant item not linked to the normal
course of business, in line with ING’s distribution policy
Accounting asymmetry impacting net interest income
46
Treasury interest rate differential (in € mln) WB Financial Markets (in € mln)
-15 -102
-137
-234
-225
41
120
184
267
261
26
18
47
33
36
2Q2022 3Q2022 4Q2022 1Q2023 2Q2023
NII Other
78
78
50
-37
-141
19
27
22
41
47
346
176
215
345
452
443
282
287
349
359
2Q2022 3Q2022 4Q2022 1Q2023 2Q2023
NII Fees Investment & Other
▪ Financial Markets benefited from good client flow and market
volatility, supporting total income
▪ Increasing interest rates led to higher funding costs, resulting
in a reduction in net interest income, while other income,
related to the opposite position, rose significantly
▪ This accounting asymmetry is more pronounced in a positive
rate environment and is also influenced by product mix
developments
▪ Treasury benefited from favourable market opportunities
through money market and FX transactions
▪ These activities had a negative impact on net interest income,
which was more than offset by a positive impact in other
income
▪ The magnitude of this accounting asymmetry depends on
the volume of trades and the interest rate differential
between euro and other currencies (mostly US dollar)
4Q2022
2Q2023
2025 targets
Workload on (private) cloud
52%
57%
>70%
Customer online traffic using Touchpoint
61%
61%
>90%
Adoption of shared engineering platform
48%
55%
>90%
Digi index score
1)
67%
69%
>75%
Inbound call reduction (versus 2021)
12%
14%
>30%
KYC workforce in hubs
49%
54%
~60%
Operations workforce in hubs
32%
34%
~50%
W
omen in senior management
29%
30%
>30%
Developments in our strategy enablers
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1)
Average of STP rates of 291 Retail customer journeys; STP rate is the percentage of a customer journey that is handled without manual intervention. The Digi-Index has been
“re-baselined” to enhance the consistency and comparability of the Digi Index, including only global processes
Seamless digital experience
Scalable Tech & Operations
Safe & secure bank
Our people
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 applied as in the 2022 ING Group consolidated annual accounts. All figures in this
document are unaudited. Small differences are possible in the tables due to rounding.
Certain of the statements contained herein are not historical facts, including, without limitation, certain statements made of future expectations and other forward-looking
statements that are based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or
events to differ materially from those expressed or implied in such statements. Actual results, performance or events may differ materially from those in such statements due to a
number of factors, including, without limitation: (1) changes in general economic conditions and customer behaviour, in particular economic conditions in ING’s core markets,
including changes affecting currency exchange rates and the regional and global economic impact of the invasion of Russia into Ukraine and related international response measures
(2) ongoing and residual effects of the Covid-19 pandemic and related response measures on economic conditions in countries in which ING operates (3) changes affecting interest
rate levels (4) any default of a major market participant and related market disruption (5) changes in performance of financial markets, including in Europe and developing markets
(6) fiscal uncertainty in Europe and the United States (7) discontinuation of or changes in ‘benchmark’ indices (8) inflation and deflation in our principal markets (9) changes in
conditions in the credit and capital markets generally, including changes in borrower and counterparty creditworthiness (10) failures of banks falling under the scope of state
compensation schemes (11) non-compliance with or changes in laws and regulations, including those concerning financial services, financial economic crimes and tax laws, and the
interpretation and application thereof (12) geopolitical risks, political instabilities and policies and actions of governmental and regulatory authorities, including in connection with the
invasion of Russia into Ukraine and the related international response measures (13) legal and regulatory risks in certain countries with less developed legal and regulatory
frameworks (14) prudential supervision and regulations, including in relation to stress tests and regulatory restrictions on dividends and distributions (also among members of the
group) (15) ING’s ability to meet minimum capital and other prudential regulatory requirements (16) changes in regulation of US commodities and derivatives businesses of ING and
its customers (17) application of bank recovery and resolution regimes, including write down and conversion powers in relation to our securities (18) outcome of current and future
litigation, enforcement proceedings, investigations or other regulatory actions, including claims by customers or stakeholders who feel misled or treated unfairly, and other conduct
issues (19) changes in tax laws and regulations and risks of non-compliance or investigation in connection with tax laws, including FATCA (20) operational and IT risks, such as system
disruptions or failures, breaches of security, cyber-attacks, human error, changes in operational practices or inadequate controls including in respect of third parties with which we do
business (21) risks and challenges related to cybercrime including the effects of cyberattacks and changes in legislation and regulation related to cybersecurity and data privacy (22)
changes in general competitive factors, including ability to increase or maintain market share (23) inability to protect our intellectual property and infringement claims by third
parties (24) inability of counterparties to meet financial obligations or ability to enforce rights against such counterparties (25) changes in credit ratings (26) business, operational,
regulatory, reputation, transition and other risks and challenges in connection with climate change and ESG-related matters, including data gathering and reporting (27) inability to
attract and retain key personnel (28) future liabilities under defined benefit retirement plans (29) failure to manage business risks, including in connection with use of models, use of
derivatives, or maintaining appropriate policies and guidelines (30) changes in capital and credit markets, including interbank funding, as well as customer deposits, which provide the
liquidity and capital required to fund our operations, and (31) the other risks and uncertainties detailed in the most recent annual report of ING Groep N.V. (including the Risk Factors
contained therein) and ING’s more recent disclosures, including press releases, which are available on www.ING.com.
This document may contain inactive textual addresses to internet websites operated by us and third parties. Reference to such websites is made for information purposes only, and
information found at such websites is not incorporated by reference into this document. ING does not make any representation or warranty with respect to the accuracy or
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information found at such websites will not change following the filing of this document. Many of those factors are beyond ING’s control.
Any forward looking statements made by or on behalf of ING speak only as of the date they are made, and ING assumes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information or for any other reason.
This document does not constitute an offer to sell, or a solicitation of an offer to purchase, any securities in the United States or any other jurisdiction.
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