First quarter 2021 results

ING posts 1Q2021 net result of €1,005 mln

Steven van Rijswijk, CEO of ING

6 May 2021

Key points

  • We continue to provide support to customers, employees and society in coping with the effects of the Covid-19 pandemic. With vaccination programmes progressing globally, we look forward to return to more normal circumstances in the near future
  • At the same time, we continue our efforts to build a future proof company for the long term, which is reflected in our focus on continued digitalisation and ESG
  • Our geographical and product diversification enables us to have stability in income and allows us to capture areas of growth as economies recover. Combined with the ongoing optimisation of our business, we are well positioned to return to an ROE in line with our 10-12% ambition
  • Pre-provisionresult was resilient, supported by the inclusion of the TLTRO III benefit in NII, continued strong fee growth and cost control, despite margin pressure on customer deposits
  • After a net decrease in 2020, net core lending grew by €17.8 bln, mainly reflecting TLTRO III eligible lending, while net deposit inflow continued to be high at €8.1 bln
  • Fee growth was strong, as higher fees on investment products and daily banking packages more than compensated for the impact of the Covid-19 pandemic on fees related to payments and lending
  • Risk costs were €223 mln. The Stage 3 ratio declined to 1.6% and we are confident about the quality of our loan book
  • 1Q2021 CET1 ratio was stable at 15.5%, with 50% of 1Q2021 resilient net profit reserved outside of CET1 capital for distribution

2

We continue with our modular approach to support our digital-only,mobile-first strategy

% of mobile-only active customers*

CAGR +43%**

37%

40%

43%

19%

26%

12%

2016

2017

2018

2019

2020

1Q2021

Annual mobile non-deposit sales per 1,000 active customers

CAGR +56%

74

84

62

28

46

9

2016

2017

2018

2019

2020

1Q2021

annualised

Our Touch Point (TP) technology platform enables the shift from local to scalable business propositions

  • TP technology offers services and modular components, that enable us to easily build and re-use propositions across ING, including
    • Unified design and user experience
    • One solution for customer authentication, consent and security
    • API & stream management solutions
    • Unified access to customer agreements and permissions
  • Through this we build a scalable tech foundation, to be rolled out globally, which enables local value propositions to become global solutions
  • Next step is to accelerate the implementation of the TP technology by our countries
  • As we continue to make progress, we will benefit through
    • Shorter time to market, as more services are provided through TP
    • Shorter time to volume, as more apps and customers are connected

* Definition: Retail customers who used the channel at least once in the last quarter

3

** CAGR for number of mobile-only customers among active customers who contact us

Our ESG focus supports a future proof ING and drives long-term value creation

A strong governance structure

drives the right behaviour,

delivers on evolving regulatory requirements and protects our employees, customers and society

Behavioural Risk Management

KYC Enhancement Program

Orange Code

A diverse and engaged workforce

makes us more adaptive and

inventive, and enables us to better serve our diverse customer base

70% principle for teams

Workplace Pride Founder & Ambassador

OHI* survey

A focused approach to the

environmental and social transition

enables us to capture opportunities

and manage risks related to

climate change and human rights

Terra approach

Sustainable Finance

Environmental & Social Risk policy (ESR)

A sustainable and trusted company

attracts talent, clients and a long-term focused investor base

* Organisational Health Index

4

Future proofing the business drives performance at ING in Poland

A strong digital proposition…

And scoring well on ESG factors…

Leading to excellent results

Our Moje ING app is amongst the highest rated apps in the banking sector

A diverse organisation with a high % of women (2020)

Satisfied customers with a continuous improvement of the NPS score

4.94.8

iOSGoogle

66%

50% 38%

#1 NPS position

Reflected by a growing share of primary customers

Visible in a continuous increase of the share of mobile-onlyactive customers*

64%

17%

2016

2020

And also reflected by a decreasing number of branches

383

290

2016

2020

Total Managers Board**

With engaged employees, reflected by a high OHI scores and a low voluntary turnover rate compared to the sector

68

84

6.2%

3.6%

OHI score (2019) Voluntary turnover rate (2020)

And focus on sustainable finance

11

PLN 0.4 bln

Sustainable finance

green covered bond

deals in 2020

issued in 2019

37%

45%

2016

2020

And operating efficiency improvements***

175

150

+63%

+44%

125

+26%

100

2016

2017

2018

2019

2020

Customer balances Total income

Total expenses excl. regulatory costs

* Retail customers who used the channel at least once in the last quarter

** Based on ING Bank Slaski Management Board per 1 January 2021

5

*** Indexed numbers for the period 2016-2020; customer balances is the sum of customer lending and customer deposits (incl. AuM)

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ING Groep NV published this content on 06 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 May 2021 05:04:07 UTC.