ING Investor Relations

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

Well-diversified business mix with many profitable growth drivers

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 corporates, multinational corporations, financial institutions, governments and supranational bodies

Total income*

FY2020

Retail BankingWholesale Banking

Total income*

FY2020

RWA (end of period)*

4Q2020

13% 12%12%

NetherlandsBelgiumGermanyOther ChallengersGrowth MarketsWB Rest of World

* Segment "Other" is not shown on the slide. For this segment (Corporate Line and Real Estate run-off portfolio), total income was €23 mln in FY2020 and RWA was €2.6 bln as per 31 December 2020

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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 11:00:00 UTC.