ING Groep N : Results Presentation 2Q2023

Second quarter 2023 results

ING posts net result of €2,155 mln

Steven van Rijswijk, CEO of ING

3 August 2023

Delivering strong value in 2Q2023

Continued primary customer growth

+227,000

versus +106,000 in 1Q2023

Strong total income growth

23%

year-on-year

High share of	Growing volume mobilised2)
mobile-only customers1)	to finance the transition
60%	€25.0 bln
versus 57% in 1Q2023	versus €21.9 bln in 1Q2022

Increasing return on equity3)	Attractive shareholder return
11.7%	€4.5 bln
4-quarter rolling	distributed YTD4)

1)	Retail customers who used the mobile channel at least once in the last quarter
2)	Volume mobilised for WB clients; includes loan products, capital markets, derivatives and advisory propositions that support clients by financing their sustainable activities and in the
transition to a more sustainable business model. In case of an ESG lead role the pro-rata share of the transaction is included, otherwise our final take is included
3)	ING Group return on equity is calculated using IFRS-EU shareholders' equity after excluding amounts reserved for future distribution	2
4)	Based on payment date, including announced interim dividend over 1H2023 and the total amount of the ongoing €1.5 bln share buyback

We are executing our strategy

Our purpose

Empowering people to stay a step ahead in life and in business

Our strategic priorities

Superior customer experience

Sustainability

Straight-through-processing of	Organised our first internal
Retail customer journeys improved to 69%1)	Global Sustainability Week

2Q2023 highlights

63% digital onboarding of new customers	Launch of an eco-renovation loan
in the Netherlands	for Business Banking clients in Belgium

1) Average of straight-through-processing (STP) rates of 291 Retail customer journeys; STP rate is the percentage of a customer journey that is handled without manual intervention

3

ING's strengths are amplified in a positive rate environment

Total income excluding incidental income items (in € bln)1)

					Low rate environment								Positive rate environment
																	10.1	11.4
8.9	9.1	9.0			9.1	9.2							9.1	9.5	1.2
				8.7		8.8	1.1
		0.9				1.2	0.6
0.7	0.8	0.7			0.7			0.6		0.7	0.9	0.5	1.8
0.3	0.3			0.3	0.5				0.5	0.6	1.8
0.4	1.4			1.5			0.4		0.5
1.4	1.4			1.5			1.5		1.7	1.8	1.8		4.1
																	4.2
4.3	4.5	4.5			4.7	4.6			4.6		4.6	4.7	4.4
2.1	2.2	2.1			1.9	1.7			1.5		1.3	1.3	1.4	2.5	3.6
1H2018	2H2018	1H2019	2H2019		1H2020		2H2020	1H2021		2H2021	1H2022	2H2022	1H2023
					Liability NII		Lending NII		Fees			Financial Markets2)		Treasury & Other2)

• Focus on income diversification has resulted in structural fee income growth and resilient total income during a low rate environment
• Attractive funding structure with 61% of the growing balance sheet funded by customer deposits
• ~55% of our replicating portfolio is reinvested longer than 1 year, creating a long-term support of our liability NII
• Return of loan demand and improved asset margins will be a catalyst for future income growth

1. Incidental income items (corresponding with 'other volatile income items' as presented on slide 18) excluded: €198 mln in 1H2019; €-42 mln in 1H2020; €-230 mln in 2H2020; €388 mln in 1H2021; €141 mln in 2H2021; €-223 mln in 1H2022; €-824 mln in 2H2022 (including €-288 mln to unwind a hedge in Belgium); and €-75 mln in 1H2023

2) Excluding fees

4

Well on track towards our 2025 targets

Financial target	2Q2023	2025 target	Drivers
			▪	Primary customer growth
Fee income1)	2.7%	5-10%	▪	Increasing package and service fees in daily banking to better reflect cost of service
annual growth	▪	Growing base in investment products, both in number of accounts as well as AuM
			▪ Global footprint to capture loan growth
			▪ Continued tailwind from a positive rate environment on the replicating portfolio
Total income1,2)	+19.2%	4-5% CAGR	▪	Liability NII growth depending on central bank rate increases, deposit tracking and customer behaviour
			▪ Lending NII growth depending on demand and pricing discipline in the market
			▪	Fee growth
			▪	Total income growth
Cost/income ratio3)	54.4%	50-52%	▪	Costs including full-year inflationary effects and continued investments in our business for growth
			▪ Lower regulatory costs once funds required for the DGS and SRF are filled4)
			▪ Intention to converge to our target level in roughly equal steps through pay-out ratio of 50% of
CET1 ratio	14.9%	~12.5%5)		resilient net profit and additional distributions
▪ The next steps to converge to our ~12.5% CET1 ratio target will reflect the strong capital generation
				and capital discipline and we will update the market with the 3Q2023 results
			▪ Continued income growth and cost control
Return on equity3)	11.7%	12%	▪	Improved income / risk-weighted assets in Wholesale Banking
			▪ Strong diversified asset book and low Stage 3 ratio protects P&L
			▪ ~12.5% CET1 ratio target level
1) Year-on-year comparison
2) Total income excludes net TLTRO impact and hyperinflation accounting in Turkey
3) Based on 4-quarter rolling average. RoE is calculated using IFRS-EU shareholders' equity after excluding amounts reserved for future distribution
4) Formal build-up phase of several local Deposit Guarantee Schemes (DGS) and European Single Resolution Fund (SRF) are scheduled to be completed by 2024	5
5) Implies management buffer (incl. Pillar 2 Guidance) of ~180 bps over fully loaded CET1 requirement of 10.70%