ING Groep (INGA) investor relations material

Financial targets and outlook

• Upgraded ROE targets for 2026 and 2027 to above 15% and 16%, driven by strong business momentum, profitable loan and deposit growth, and efficiency improvements.

• Retail banking segments are outperforming initial expectations, with notable uptick since Capital Markets Day 2024.

• Wholesale banking shows strong loan growth with modest RWA increases, aided by capital velocity and SRTs.

• Liability margin expected to remain above 100–110 bps in 2027–2028, supported by replication portfolio tailwinds and deposit growth.

• Long-term liability margin expected to normalize as competition increases and deposit mix evolves.

Deposit and lending strategies

• Focus on growing mobile primary customers to deepen relationships and drive current account growth.

• In Germany, despite aggressive competition, deposit franchise continues to grow profitably, supported by strong customer loyalty.

• Dutch market remains competitive but less reliant on promotional campaigns; growth driven by value proposition rather than price.

• Deposit campaigns are increasingly data-driven and targeted, contributing to €100 billion net deposit growth over 2.5 years.

• Lending margin has trended down to 124 bps due to portfolio mix shift toward lower-risk segments, not increased competition.

Growth, capital allocation, and M&A

• Loan and deposit growth rates have exceeded 5% medium-term targets, with a balanced long-term growth outlook around 5%.

• Wholesale banking capital allocation optimized via SRTs and focus on originate-and-distribute, with cross-sale and cash management mandates increasing.

• Organic growth prioritized, but selective M&A considered for capability expansion, as seen with Singular Bank in Spain.

• Non-strategic stakes in TMBThanachart Bank and Bank of Beijing are being reduced to reallocate capital.

• Stakes in Van Lanschot Kempen and Singular Bank add value and internal competition, supporting long-term shareholder value.