ING Groep NV Capital Markets Day Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Benoet PTtrarque - Kepler Cheuvreux - Analyst : Yeah, thank you for the presentation. Benoet PTtrarque from Kepler Cheuvreux. So just wanted to come back on the shift of the capital allocation. Just to understand if this is mainly can just inorganic move, so growing faster in retail versus wholesale? Or is there any kind of one-off capital allocation decision derisking actions on the wholesale bank, which will move the shift. A link to that, I think average (inaudible) talking about 4% growth. Could you help us to understand how much growth you expect from retail, I guess it's more than 4% versus wholesale probably less than 4% in terms of balance sheet growth. So that's number -- question number one. On the fee growth, yeah, very interesting. The alpha-beta distribution. On the EUR1 billion fee growth, how much is coming from beta versus alpha, will be interesting to get your views on that. And the final question will be on the cost growth. So you have a business growth impact on expenses of about EUR600 million, is the 2% CAGR. So now looking at the operational side, it seems that you are going to get to a 25% efficiency on some of the processes, which is about EUR600 million cost cutting. Is that the real figure you have in mind or just to confirm a bit this (inaudible) Thank you. Steven Van Rijswijk - ING Groep NV - Chairman of the Executive Board and the Management Board Banking, Chief Executive Officer I was tasked by being the moderator. I was tried being a moderator for this Q&A. You asked four questions, not three, and a lot. Let me -- I think we first need to talk a little bit about the capital and how we move the capital, which is largely by the way autonomously. But Tanate will talk about that. We will also then talk about the fee growth Tanate, and then I think we will move to Marnix to talk a bit about the 4 times two big wins in the operation domain. without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. JUNE 17, 2024 / 12:00PM, INGA.AS - ING Groep NV Capital Markets Day Tanate Phutrakul - ING Groep NV - Chief Financial Officer, Member of the Management Board Banking, Member of the Executive Board Okay. I think our plans in terms of risk-weighted asset shift is organic, right? But inorganic in the sense that we will consider as significant risk transfer, loan sales, turning of our balance sheet as being organic as well, right? But we don't expect incredibly large lumpy transactions in the wholesale bank to deliver that shift. It's a question of maintaining that discipline in the wholesale bank and growing as Pinar has mentioned in the retail bank. And I think the second question you had was around loan growth. I think you're right in terms of our expectations is that we expect that loan growth in Eurozone to be a bit more modest than 4%, non-Eurozone growth to be higher. And that lending in the wholesale bank to be the least growth, given the fact that we are going to turnover our balance sheet more, but the blend of it is around 4% expectations. Fee? Steven Van Rijswijk - ING Groep NV - Chairman of the Executive Board and the Management Board Banking, Chief Executive Officer There's one more on fees. Tanate Phutrakul - ING Groep NV - Chief Financial Officer, Member of the Management Board Banking, Member of the Executive Board Sorry, I was so focused on the first two, our alpha and beta, yes. Well, I think it's hard for us to distill how much is alpha and beta. But I think we are really focused on delivering on the alpha aspects of it, right? The fundamentally the key big drivers why we're confident is that we continue to have strong ambition in terms of growing the number of investment accounts. That's one big driver. The income or the risk way to improve that by 50 basis points that drives it. And then the rest of the way is really another 1 million primary mobile customer every year. These are the big drivers of our fee income. Steven Van Rijswijk - ING Groep NV - Chairman of the Executive Board and the Management Board Banking, Chief Executive Officer And then we move to the 25% that was mentioned. By the way it was 25% on these journeys. Maybe you want to elaborate a bit? Marnix Van Stiphout - ING Groep NV - Chief Operations Officer, Chief Transformation Officer, Chief Technology Officer, Member of the Management Board So, first of all, bear in mind, we're growing the bank. So this is we can either do more with the same or we can reduce it. There are two options here and both apply across what we're doing over the next couple of years. So that's point one. Point two is that look we will go through this over next period, yes, these are firm plans, but we also need to work with our stakeholders to make sure that we know exactly what we do. And so I think that's where I can I leave it today.