ING Groep NV Q1 2022 Earnings Call Transcript

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

Question: Kirishanthan Vijayarajah - HSBC, Research Division - Analyst : A couple of questions from my side. When I look at the RWA and the ratings migration there, it looks like you've actually had positive ratings migration if you exclude what you've done for the Russia exposure. So I wonder if you could talk a little bit about which portfolios outside of Russia have driven that kind of positive rating migration. And really, what's the risk that reverses in the next few quarters, just given what we're seeing in the macro? And then just coming back to the fees, the growth this quarter is obviously heavily skewed towards the wholesale bank. But focusing on just the retail fees, do you think you can replicate the same kind of double-digit momentum you posted last year? And in your mind, which are the retail markets where you think you're still sort of punching below your weight in terms of particularly kind of investment product penetration? Just sort of more forward-looking commentary there on retail fee would be helpful.

Question: Raul Sinha - JPMorgan Chase & Co, Research Division - Analyst : A couple of follow-ups from my side. I guess the first one is just your thinking around the mix of distributions between dividends and share buybacks going forward. Just given what you flagged to us on the Dutch withholding tax and how that has led to, obviously, the mix of dividend and share buybacks. How should we think about the mix maybe for outer years when we think about how you would look to Dutch further capital distributions? That's the first question. The second one, I guess, a little bit more broad-based. I'm wondering what you think the impact of stagflation would be on the bank? I'm sure you're running internal scenarios, particularly from a stress testing perspective. How do you think ING will behave in a sort of stagflation environment in your core economies?

Question: Raul Sinha - JPMorgan Chase & Co, Research Division - Analyst : If I could just start on that. What do you think is the impact on the cost of risk relative through-the-cycle guidance that you've given if we were to get into this sort of economic scenario?

Question: Omar Fall - Barclays Bank PLC, Research Division - Analyst : Could you just discuss loan growth specifically in wholesale, please? Even outside of FM, there wasn't any. And presumably, that's not just in Russia related. So what's the outlook here? Especially, previously, you said the resumption of corporate lending was a key driver for you both in the next couple of years. Then second, thanks for the helpful guidance for this year on NII. But the only place has been actual meaningful sequential increase in NII is basically Poland given the policy rate rises there. So what would be most helpful is to finally get some actual sensitivities like your peers are giving over a longer time frame because these effects of higher rates are exponential in future years. So would it be possible to get this at some point even if it's at your Investor Day? Then finally, sorry, (inaudible) but what -- could you give us a sense of the value or scope of the impact of lower prepayment fees in the Netherlands given the drop there is quite large in NII? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 06, 2022 / 7:00AM, INGA.AS - Q1 2022 ING Groep NV Earnings Call

Question: Omar Fall - Barclays Bank PLC, Research Division - Analyst : That's very helpful, especially that we'll hear more on the sensitivities at the Investor Day.