Steven van Rijswijk, CEO of ING

12 February 2021

Key points

  • ▪ 2020 was a year marked by the Covid-19 pandemic and the unprecedented challenges it presented to our customers, employees and society. We continue to take actions to provide support and with vaccination programmes being rolled out globally, we look forward to return to more normal circumstances in the near future

  • ▪ We continue our efforts to build a sustainable company, also reflected in our strong ESG profile

  • ▪ 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-provision result was resilient, though the impact from Covid-19 is visible, most notably on lending and savings. After years of growth, 2020 net core lending was down by €2.5 bln, while net deposit inflow was high at €41.4 bln

  • ▪ Fee growth was good, as our actions on investment products and daily banking more than compensated for the impact of the Covid-19 pandemic on fees for payments and lending

  • ▪ 2020 risk costs were €2.7 bln with ~30% in Stage 1 and 2, mainly due to Covid-19, reflecting IFRS 9 related provisions and management overlays. For 2021 we expect to move close to our through-the-cycle average of ~25 bps

  • ▪ The Stage 3 ratio remained low at 1.7% and we are confident on the quality of our loan book, supported by a proven risk management framework with a strong track record, also compared to peers

  • ▪ 4Q2020 CET1 ratio improved to 15.5%, with 4Q2020 net profit almost fully kept outside of regulatory capital. We will distribute a delayed interim cash dividend over 2020 of €0.12 per share, in line with ECB recommendations

  • ▪ Our geographical and product diversification enables us to have stability in income and positions us very well to capture areas of growth when economies recover

We are recognised as an industry leader on ESG topics

Environment

  • ▪ Second Terra report* published

  • ▪ First Climate risk report* published

  • ▪ Supported our clients with Sustainable Finance solutions

    • ▪ 39 Green and Sustainability improvement loans in 2020

    • ▪ 52 Green and Sustainable bonds in 2020

  • ▪ $1 bln Green bond issued for ING Group N.V.

  • ▪ Highest sustainability rating (BREEAM Outstanding) for our head office

Social

  • ▪ Support in coping with the effects of the Covid-19 pandemic

    • ▪ Payment holidays for customers

    • ▪ Enabled employees to work from home

    • ▪ Donated laptops for home schooling

    • ▪ Global ING fund to support societies with short term relief and longer term recovery

  • ▪ Joint bookrunner on Europe's first Covid-19 related bond

  • ▪ Annual Human rights report* including Covid impact published

Governance

  • ▪ Revised remuneration policy for EB and SB, formulated with stakeholder feedback and a strong link between variable pay and sustainability performance

  • ▪ Continued global progress on strengthening our management of compliance risks

  • ▪ Our Behavioural Risk Management team developed Dialogue Starter, a method to support teams in mitigating behavioural risks

* The reports can be found onhttps://www.ing.com/Sustainability/The-world-around-us-1/Reporting.htm

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ING Groep NV published this content on 12 February 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 February 2021 10:50:00 UTC.