Ing Groep N.v. · EURONEXT:INGA
Ing Groep — ING Group — Investor Day (October 2016)
22 slides from Ing Groep's investor day presentation, Oct 3, 2016
Slide 1: Challengers & Growth Markets
Challengers & Growth Markets ING Group Investor Day 2016 Aris Bogdaneris, Head of Challengers & Growth Markets, Amsterdam, 3 October 2016 Member Management Board Banking
Slide 2: Key points
Key points • We have a strong franchise in the Challengers & Growth Markets built on highly satisfied clients • ING is recognised as an NPS leader in most markets and primary customers are growing fast • Challengers & Growth Markets are an increasingly important profit contributor: • Core lending gr
Slide 3: Think Forward strategy at work
Think Forward strategy at work 3
Slide 4: C&GM serves 25 million customers in 10 different countries
C&GM serves 25 million customers in 10 different countries Challengers & Growth Markets footprint* C&GM share in Bank totals (1H16) Number of 30% 23% individual customers 35.1 mln 22% 25% GE PL Customer lending 64% 17% CZ FR AT EUR 13% 551 bln IT RO 6% SP Customer deposits 54% 24% TR EUR 520 bln 16%
Slide 5: We've expanded rapidly and have highly satisfied customers
We’ve expanded rapidly and have highly satisfied customers We are rapidly adding clients... ...and we are highly recommended... ...which increasingly earns us the Individual clients Net Promotor Score Rank 2Q16 primary relationship Challengers & Growth Markets Primary customers* (in mln) Challengers
Slide 6: Ongoing investments to attract primary clients are paying off
Ongoing investments to attract primary clients are paying off Customer value = Number of customers Share of Primary Cross-buy Product value Virtuous circle of primary bank relationships Significant growth potential in primary customers Primary vs. non-primary customers in Challengers & Growth Market
Slide 7: Sustainable profit growth reflects balance sheet optimisation
Sustainable profit growth reflects balance sheet optimisation Total assets* (in EUR bln) Consumer & SME lending growth… Challengers & Growth Markets • Value proposition focuses on speed and digital 266 271 delivery on the back of pre-approved offers 260 246 • Increased attention to attract "new-to-b
Slide 8: Low interest rates are not impacting savings volumes
Low interest rates are not impacting savings volumes Retail customer deposits by country (in EUR bln) Total customer deposits (in EUR bln) Germany* Spain Challengers & Growth Markets 113 115 29 30 99 106 CAGR +6% 25 23 233 239 206 220 1.00% 1.00% 0.35% 0.20% 2013 2014 2015 1H16 2013 2014 2015 1H16 2
Slide 9: NII and NIM are growing despite low interest rate environment
NII and NIM are growing despite low interest rate environment Net interest income and net interest margin Focus on relatively higher-yielding lending (in EUR bln)… Challengers & Growth Markets Challengers & Growth Markets CAGR +24% 46 CAGR +10% 4,227 27 CAGR +9% 3,841 27 33 3,476 2013 1H16 Retail Ba
Slide 10: Good underlying fee trend with potential for improvement
Good underlying fee trend with potential for improvement Commission income distribution* (in EUR mln) Comments Challengers & Growth Markets • Regulatory caps on interchange fees negatively impacting Fee growth > NII growth payment fees • Strong loan production continues to support fee growth 25% • S
Slide 11: Improving cost efficiency and prudent risk profile support results
Improving cost efficiency and prudent risk profile support results Cost efficiency continues to develop favourably… Comments 57% • Regulatory costs continue to increase and weigh heavily 54% on the expense base (from 4% of total costs in 2013 to 53% 52% 14% in 1H16) 54% • We are actively managing th
Slide 12: C&GM generates an increasing contribution to ING Group profits
C&GM generates an increasing contribution to ING Group profits Underlying result before risk costs (in EUR mln) Challengers & Growth Markets % of total Bank Germany* CAGR+29% 1,229 2013 CAGR 934 +5% 29% 744 600 629 +15% 2,522 2,184 2013 2014 2015 1H15 1H16 1,902 Other Challengers +19% 2015 CAGR+6% 3
Slide 13: Driving business model convergence
Driving business model convergence 13
Slide 14: We will move towards a globally scalable banking platform
We will move towards a globally scalable banking platform Empowering people to stay a step ahead in life and in business The ING brand Creating a differentiating customer experience Market Leaders Challengers Germany Wholesale 1 “Orange Bridge” 2 “Model Bank” 3 “Welcome” 4 “WB TOM” (already running)
Slide 15: Convergence in customer behaviour trends in C&GM
Convergence in customer behaviour trends in C&GM Mobile interactions picking up pace… …and it is evolving fast across our different markets Total contacts per channel (in mln) per quarter % active customers with mobile contacts + 24% 49% 611 39% 493 34% 33% 51% 26% 25% 24% 23% 19% 20% 13% 14% 9% 8%
Slide 16: Spain leveraging increased mobile traffic to grow sales
Spain leveraging increased mobile traffic to grow sales Mobile contacts picking up pace… ...leading to more sales via mobile… …including product diversification Total contacts per channel (in mln) % Mobile / Total contacts Personal loans production 260 Jun ’15 9% Jun ‘16 28% CAGR +27% 212 60% 177 Br
Slide 17: Spanish-inspired digital platform in Poland had immediate impact
Spanish-inspired digital platform in Poland had immediate impact Leveraging Spain’s digital platform contributes to reduced …as well as quick adoption and growth realisation in an time to market and cost of development… early stage x3 74% Poland Moje adoption, % of primary Spain Genoma Poland Moje c
Slide 18: Model Bank delivers standardised banking platform for the Challengers
Model Bank delivers standardised banking platform for the Challengers Model Bank platform Enhanced digital capabilities and increased agility... • To capture digital traffic and convert to sales 6 million customers • To enable the launch of new products and segments • France: consumer lending, Robo
Slide 19: Germany will take integrated approach to digital leadership
Germany will take integrated approach to digital leadership • Project Welcome digitises Germany’s banking platform and gives ING Germany room for business growth • This is achieved through digital investment and builds scalable growth capacity Innovations (“Wow” the customer) Technical Enablers Oper
Slide 20: Moreover, we continue to deliver innovative solutions…
Moreover, we continue to deliver innovative solutions… Instant lending and pre-approved offers Video identification • Use of advanced analytics to pre-approve existing • ING is first major German bank to offer video identification customers in order to get a consumer loan offer in minutes • More tha
Slide 21: …and develop new platforms to empower all ING customers
…and develop new platforms to empower all ING customers Payment innovation: Twyp, Twyp Cash Investment products: My Money Coach, Robo advice • Peer-to-peer payments app Twyp has more than 220,000 • My Money Coach is a new Digital Financial Advisor for users in Spain. Twyp Cash launched a new service
Slide 22: Important legal information
Important legal information ING Group’s annual accounts are prepared in accordance with International Financial Reporting Standards as adopted by the European Union (‘IFRS-EU’). In preparing the financial information in this document, except as described otherwise, the same accounting principles are