ING Groep (INGA) CMD 2024 summary

Strategic direction and growth plans

• Aims to be the best European bank by accelerating growth, increasing impact, and delivering value, focusing on digital leadership, customer-centricity, and sustainability.

• Strategic priorities include growing mobile primary customers by 1 million annually, expanding in key markets (Germany, Belgium, Italy, Spain, Australia, Netherlands), and deepening customer relationships.

• Capital allocation is shifting toward Retail Banking (targeting 55% of group capital), with Wholesale Banking focusing on capital-light, fee-generating activities and sector expertise.

• Business Banking and Private Banking are formalized as growth engines, with plans to export digital models to new markets and build Private Banking as a third pillar targeting NextGen wealth inflows.

• Insurance and investment products, along with digital journeys and new partnerships, are key drivers for future fee growth across markets.

Sustainability and ESG commitments

• Sustainability is central, with a target to mobilize €150 billion in sustainable finance per annum by 2027 and to phase out upstream oil and gas financing by 2040.

• Aims to triple annual renewable energy financing to €7.5 billion by 2025 and manage the portfolio towards net-zero by 2050 using a science-based sector approach.

• Maintains strong ESG ratings, with 'AA' from MSCI and 'strong' risk management by Sustainalytics as of 2023.

• Commitment to ESG includes comprehensive frameworks for climate, operational resilience, and responsible AI adoption.

Financial guidance and targets

• Targets 4-5% CAGR in total income from 2024-2027, with fee income reaching €5 billion by 2027 and a cost/income ratio of 52-54%.

• Return on equity is set to improve to 14% by 2027, with Retail Banking expected to exceed 20% and Wholesale Banking above 12%.

• CET1 capital ratio target reaffirmed at approximately 12.5% by end-2025, with a 50% annual payout of resilient net profit and additional distributions from excess capital.

• Net interest margin is expected to remain around 150 basis points, with loan and liability growth targeted at 4% annually.

• Positive jaws and operational leverage are expected, with >10% improvement in FTE over customer balances by 2027.