The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Raul Sinha - JPMorgan Chase & Co, Research Division - Analyst
: I guess the first one is around capital distributions. Thank you for the new slide on the withholding tax mechanics and also further clarity on the
next decision date. I guess my question is around how do you decide the size, this is the right size of the buyback? Just it looks like you seem to
have a good [problem] in that your capital ratio is not changing much even after a 50% dividend accrual and the share buyback. So are you expecting
a rebound in RWA growth or capital consumption later in the year? I guess they're all related.
And the second question is just on costs. You had 55% cost income in Q1. And obviously, you're not reiterating this 55%, 56% that you said last
quarter for the year. I was just wondering how to read this. It looks like it's a bit easier now for you to get to your 50% to 52%. And is that why you're
not reiterating the 55%, 56% because you're already in the lower end?
Question: Raul Sinha - JPMorgan Chase & Co, Research Division - Analyst
: And RWA growth, are you expecting a rebound?
Question: Kirishanthan Vijayarajah - HSBC, Research Division - Analyst
: A couple of questions from my side. So firstly, coming back to core lending group slide, which, if I look at it annualized, is running at less than 1%.
And given last year, you added over 0.5 million new primary customers, and I think it was another 0.5 million the year before that as well. So my
question is, how come all of that kind of primary customer growth isn't translating into better lending volumes, particularly when I look at the retail
and challengers growth segments on that slide of your core lending growth?
And then linked to that, with the deposit margin recovering quite nicely, I was wondering, is that feeding through more meaningfully into rising
customer acquisition costs as you add these extra primary customers, particularly in those markets where maybe some of your competitors might
be a bit more deposit-driven in terms of their growth strategies that that's pushing up your customer acquisition costs across your retail markets?
Those are my 2 questions, please.
Question: Kirishanthan Vijayarajah - HSBC, Research Division - Analyst
: Okay. So that ramp-up in marketing flatting for 1Q, are you anticipating more of a pickup then on the lending -- retail lending side maybe for the
back end of the year?
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MAY 11, 2023 / 7:00AM, INGA.AS - Q1 2023 ING Groep NV Earnings Call
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