ING Groep N.V. · EURONEXT:INGA
ING Groep — Investor Day (April 2009)
14 slides from ING Groep's investor day presentation, Apr 9, 2009
Slide 1: Reinventing Retail in the Netherlands
Reinventing Retail in the Netherlands ING Investor Day Nick Jue CEO ING Retail the Netherlands Rotterdam – 9 April 2009 www.ing.com
Slide 2: Key Messages
Key Messages • A consistently solid performance • ING Retail NL reinvented • Maximise share of wallet • Lean and flexible cost structure • Integration is ahead of schedule • Current market developments and future performance ING Investor Day, 9 April 2009 2
Slide 3: Consistent solid financial performance
Consistent solid financial performance Revenue ING Retail NL '02-'08 * (EUR mln) Cost ING Retail NL '02-'08 * (EUR mln) CAGR: 2.8% CAGR: 2.0% 4,567 4,705 2,781 2,820 2,826 3,953 4,388 4,346 2,513 2,624 2,561 2,660 3,694 3,841 2002 2003 2004 2005 2006 2007 2008 2002 2003 2004 2005 2006 2007 2008 Prof
Slide 4: Case for change - new model to capture revenue and cost opportunities
Case for change - new model to capture revenue and cost opportunities • End of 2006 Postbank and ING Bank Netherlands (IBN) were successful, but competitors were also making progress • ING Bank Netherlands was subscale with limited further growth potential • Postbank model unable to continue high pr
Slide 5: New business model structured to maximise share of wallet
New business model structured to maximise share of wallet Postbank ING Bank Huge customer An advice brand database + + Physical outlets for Central steering sale + + High customer Specialised sales contact frequency forces (NEW) (Direct) + Process orientation ING Investor Day, 9 April 2009 5
Slide 6: New business model: lean and flexible cost structure
New business model: lean and flexible cost structure Postbank ING Bank ING Bank Post Offices Branches + + Centralised Decentralised product product administration administration + + Staff Staff Centralised business model Efficient multi channel distribution mix with low fixed cost ING Investor Day,
Slide 7: Integrating ING Bank and Postbank ahead of plan
Integrating ING Bank and Postbank ahead of plan P&L impact before tax (EUR mln) Annual financial impact of integration programme 440 2007 2008 2009 2010 2011 Plan 270 Cost savings 0 30 140 160 280 160 Additional revenues 0 40 70 120 160 -299 -39 20 Non-recurring costs -300 -110 -190 -120 -170 Profit
Slide 8: Current market impact on revenues
Current market impact on revenues Savings and deposits New mortgage production (EUR bln) (excl mid-corporates, EUR bln) 40 120 68 200 30 90 64 150 20 60 60 100 56 50 10 30 52 0 0 0 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 Savings and deposits Spread (bps, rhs)
Slide 9: Mature, but dynamic market with opportunities for growth
Mature, but dynamic market with opportunities for growth A mature market ….. but dynamic, with significant flows to capture • With flow stock ratio’s from 10-120 % in the Dutch Consumer Banking: revenue pools (EUR bln) consumer market there is significant room for ING to grow Savings 600 Mortgages 2
Slide 10: Competitive advantage: costs in 2009 moving towards level of 2002
Competitive advantage: costs in 2009 moving towards level of 2002 Cost development ING Retail NL* Strong Cost Leadership (in EUR mln) 3.000 • Cost level 2009 will be comparable to 2002, despite inflation, salary 2.800 increases and higher volumes 2.600 • Combining ING Bank and Postbank 2.400 will si
Slide 11: Mortgages: Risk costs will increase but remain manageable
Mortgages: Risk costs will increase but remain manageable ING Group: 22% market share in Dutch Dutch mortgage market: Less risky than mortgages (outstanding) perceived 20% 16%: EUR 100 bln Four main features provide structural support: 6% • Fiscal system: tax-deductible interest payments 7% • Supply
Slide 12: Closing Remarks
Closing Remarks • Timing of decision to integrate just right and business model offers opportunities for the future • Accelerated cost savings cover impact of liquidity crisis on income • Risk cost will increase but under control • Current business model provides us with an excellent structure in ch
Slide 13: Detailed information will be delivered during the break outs
Detailed information will be delivered during the break outs Value drivers Key objective Our priorities in challenging 2009 Break-out for long-term session profitability • Revenue • Clients: improved service levels for clients based on improved processes Revenues Improvement • Savings: inflow and in
Slide 14: Forward-looking statements disclaimer
Certain of the statements contained herein are statements of future expectations and other forward-looking statements. These expectations are based on management's current views and assumptions and involve known and unknown risks and uncertainties. Actual results, performance or events may differ ma