ING Groep NV Q3 2019 Earnings Call Transcript

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

Question: Adrian Cighi - RBC Capital Markets, Research Division - Analyst : Two questions from my side, the one question on cost of risk and one follow-up on costs, please. On the cost of risk, I understand that a large part of your cost of risk in Netherlands, there's been some change in methodology in terms of the House Price Index. What would that have been under the old methodology? Would you have seen a big increase as well or have been differently? And maybe a follow-up on that, have you seen any IFRS 9 impact in the cost of risk increase? 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. OCTOBER 31, 2019 / 8:00AM, INGA.AS - Q3 2019 ING Groep NV Earnings Call And then on the costs side, the KYC investments, the EUR 50 million this quarter, how much more do you expect to have to take in the coming quarters as part of this remediation program? And is this sort of something you have visibility into?

Question: Raul Sinha - JP Morgan Chase & Co, Research Division - Analyst : May be on the replicating portfolio to start with. Could you give us some more color on what you're doing here. And how sensitive you are to the 30 basis points or so increase in the 5-year swap rate that we have seen since the lows in August. Should we start to think about that drag may be potentially alleviating a little bit?

Question: Raul Sinha - JP Morgan Chase & Co, Research Division - Analyst : Could I request for more disclosure on this, please, going forward? It would be really helpful, I think, from a market perspective to get a little bit more information around how it could impact your NII because, I think, obviously it's become quite key to the outlook into next year. Steven J. A. van Rijswijk - ING Groep N.V. - Chief Risk Officer, Member of the Executive Board & Member of Management Board Banking Okay. We'll have our Investor Relations be in touch with you there.

Question: Omar Fall - Barclays Bank PLC, Research Division - Analyst : Just a couple of things for me. Firstly, could you just quantify the amount of RWA relief from positive risk migration this quarter? Also, where is that coming from given all the metrics you've discussed on credit and the worsening macro and more broadly? Then secondly, can you just give more color on the impressive performance on commissions, even if it's just a split in performance between account-related fees and more market sensitive fees, please? And how much of that performance is related to the acts of partnership, for instance?

Question: Omar Fall - Barclays Bank PLC, Research Division - Analyst : Got it. And just as a quick follow-up on that. In terms of that split between account-related fees and then more market sensitive fees that are put within retail. Could give us sense to that?

Question: Omar Fall - Barclays Bank PLC, Research Division - Analyst : Great. That will be great. It's just that the growth is so much higher than the pace of loan growth side. So I just want to get a sense of that.

Question: Bart Jooris - Banque Degroof Petercam S.A., Research Division - Analyst : Just a follow-up question from my side. Could you give us some more quantified idea about how the TLTRO III and the positive it could help in your NII? 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. OCTOBER 31, 2019 / 8:00AM, INGA.AS - Q3 2019 ING Groep NV Earnings Call

Question: Bart Jooris - Banque Degroof Petercam S.A., Research Division - Analyst : So on the deposit tiering effect, is that already included in your NII outlook to stay flattish? Steven J. A. van Rijswijk - ING Groep N.V. - Chief Risk Officer, Member of the Executive Board & Member of Management Board Banking It's part of the outlook, indeed.

Question: Kirishanthan Vijayarajah - HSBC, Research Division - Analyst : Just quickly, firstly, a follow-up on that tiering question. Does all of the benefit get booked in the treasury unit that sits within the wholesale bank, or does it feed through into some of the other divisions through the internal transfer price? And then secondly, can I just come back to the volume decline in Belgium. I can understand about the repricing and trying to get a wider margin there. But I wonder, is there any kind of change in risk appetite in Belgium mortgages? Are there any underlying worries about the Belgian housing market? And looking forward into next year, should we expect your market share in Belgium mortgages to make it bounce back, or do you think it's still going to sort of stay more subdued lever at least grow slower than the rest of the market?