ING Credit Update 1Q2021
ING Investor Relations
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 | +63% | |||
150 | ||||
+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 05:34:03 UTC.