ING Groep (INGA) Bank of America 31th Annual Financials CEO Conference summary

Strategic and financial performance

• Upgraded ROTE target to over 16% by 2027, with revenue guidance raised by €1 billion and cost guidance lowered by €300 million compared to previous plans.

• Achieved strong growth in lending (8% annualized) and deposits (€100 billion increase over 2.5 years), with fee income targets for 2027 already reached in 2026.

• Maintained disciplined capital management, shifting risk-weighted assets toward retail, now at 56% retail vs. 44% wholesale, ahead of schedule.

• Continued regular share buybacks and record income for a third consecutive year.

• No increase in bank levies or corporate tax rates in the latest Dutch budget, supporting a stable fiscal environment.

Retail and business banking growth

• Mortgage market share in the Netherlands increased, with production share at 18-19% versus a 14% bank book share.

• AI and digitalization reduced mortgage approval times and improved customer experience, supporting growth.

• Business banking expanded beyond Benelux and Poland, now rolling out in Germany, Italy, Spain, and Australia.

• Fee growth driven by increased investment customers and insurance distribution, with new product packages and credit card offerings being introduced.

• Deposit strategy shifted from broad campaigns to targeted micro-campaigns, leveraging data to attract and retain primary customers.

Operational efficiency and technology

• Scalability achieved through centralized operations, cloud technology, and unified engineering pipelines, enabling cost control despite growth.

• AI adoption includes agentic mortgages, conversational banking, and chatbots, with 600 AI specialists and Google as a key partner.

• Operational cost CAGR maintained at 3%, with further scalability expected from unified platforms and product offerings.

• Investments focused on growth and diversification, not just cost reduction.