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MarketScreener Homepage  >  Equities  >  Euronext Amsterdam  >  ING Groep N.V.    INGA   NL0011821202

ING GROEP N.V.

(INGA)
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ING Groep N : Analyst presentation 3Q2020

11/11/2020 | 04:13pm EST

Third quarter 2020 results

ING posts 3Q2020 net result of €788 mln

Steven van Rijswijk, CEO of ING

5 November 2020

Key points

  • In line with our purpose, we continue to take actions to support our customers, employees and society in coping with the effects of the Covid-19 pandemic. At the same time, countering financial and economic crime remains a priority
  • The current environment underscores the strength of our digital business model. We continued to grow primary customers, as they choose us as their go-to bank, while mobile interactions further increased
  • Pre-provisionresult was resilient, supported by disciplined pricing, good fee income and cost control, despite increased margin pressure on customer deposits and impairments
  • Risk costs declined sharply, reflecting much lower Stage 3 provisions and a €552 mln management overlay, to compensate for the effect of an IFRS 9 driven release and to increase provisioning related to payment holidays
  • A growing number of Covid-19 cases and renewed lockdown measures are increasing uncertainty. We maintain vigilance on margins and asset quality. We are also taking steps to focus our activities, which impacts our geographical footprint, projects and operations
  • 3Q2020 CET1 ratio was strong at 15.3%. The full 3Q2020 net profit is kept outside of regulatory capital
  • We have adjusted our long-term CET1 ratio ambition to ~12.5% (~200 bps above MDA), reflecting lower capital requirements and more visibility on expected remaining regulatory RWA impact. Given the current uncertainty caused by the Covid-19 pandemic, we will manage our CET1 ratio at a level well above 12.5% until there is more clarity on how the economy will emerge from the Covid-19 pandemic
  • We have adjusted our distribution policy to a 50% pay-out ratio of resilient net profit

2

The pandemic underscores our digital success and requires increased focus

Primary customer* base (in mln)

29.2%

30.5%

32.8%

34.3%

35.0%

16.5

12.5

13.3

13.7

10.4

11.4

2016

2017

2018

2019

3Q2020

Ambition

Primary as a % of total retail customers

2022

% mobile in interactions with ING

CAGR +37%**

82%

87%

63%

73%

52%

2016

2017

2018

2019

3Q2020

2.5

3.0

3.7

4.5

5.2

Number of total interactions YTD with ING (in bln)

  • Our primary customer base has increased by 3.3 million since we accelerated our Think Forward strategy in 2016. 213,000 new primary customers were added in 3Q2020, while the number of mobile interactions continued to grow
  • With the challenging external environment, we are refocusing our activities, leading to some adjustments
    • Focus on core clients and simplification of our geographical footprint in Wholesale Banking
    • Reduced scope of the Maggie programme in Retail Banking
  • These measures will result in a combined reduction of ~1,000 FTEs by the end of 2021. A redundancy provision will be taken in 4Q2020
  • Going forward, we will continue to monitor developments and critically review our activities and expenses

* Definition: active payment customers with recurring income and at least one extra active product category

3

** CAGR for number of mobile interactions with ING (annualised for 2020)

Building on our data-driven digital leadership

Client interactions

Product & Services

Underlying capabilities

Standardisation

Customer Engagement Platform Digitalisation

Reusability

Scalability

Product Platforms

Local solutions

Insurance

Etc

Efficiency

Service

Service

Service

Service

Investments

Digitalisation

Simplification

Robotisation

Consumer lending

/

/

/

/

ROE Enhancement

Product

Product

Product

Product

Foundation

Cloud

TPA

Data Lakes

Risk Models

Standardisation

Consolidation

Scalability

  • One App / One Web already services retail customers in the Netherlands and Germany. By 3Q2020 nearly all active private customers of ING Belgium have been onboarded
  • The cross-border integration of local product solutions has been discontinued (programme Maggie)
  • Through our foundation, including our Touch Point Architecture (TPA), we focus on building modular elements which can be re-used, using one way of coding as well as standardised data capturing
  • This foundation allows for modular solutions for local product and service solutions. It further supports the roll- out of cross border platform initiatives and partnerships, such as our collaboration with
    AXA

4

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

ING Groep NV published this content on 05 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 November 2020 21:12:05 UTC


© Publicnow 2020
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Financials
Sales 2020 17 780 M 21 616 M 21 616 M
Net income 2020 2 246 M 2 730 M 2 730 M
Net Debt 2020 - - -
P/E ratio 2020 12,5x
Yield 2020 3,53%
Capitalization 28 713 M 34 821 M 34 908 M
Capi. / Sales 2020 1,61x
Capi. / Sales 2021 1,62x
Nbr of Employees 56 492
Free-Float 100,0%
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Consensus
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Mean consensus OUTPERFORM
Number of Analysts 24
Average target price 9,09 €
Last Close Price 7,36 €
Spread / Highest target 76,6%
Spread / Average Target 23,5%
Spread / Lowest Target -23,3%
EPS Revisions
Managers and Directors
NameTitle
Steven van Rijswijk Chief Executive Officer
Gerardus Johannes Wijers Chairman-Supervisory Board
Tanate Phutrakul Chief Financial Officer
Mariana Gheorghe Member-Supervisory Board
Margarete Haase Member-Supervisory Board
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