ING Groep NV Q4 2020 Earnings Call Transcript

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

Question: Omar Fall - Barclays Bank PLC, Research Division - Analyst : So I just want to go back to NII, please. Assuming you hit the TLTRO bonus threshold and the new -- the incremental negative charging effect, that looks like a benefit of around EUR 400 million or so. The replication portfolio drag should be pretty close to that amount on an annual basing -- on an annual basis, I'm guessing if you're investing around EUR 500 billion at the 5-year swap rate. Is that the right way to look at it, that these 2 elements kind of offset each other? I know you don't want to give a -- you don't want to say how confident you are about hitting the TLTRO bonus threshold. But do these effects kind of offset each other, which basically means that should you return to volume growth and asset margins continue at the current positive trend, doesn't that mean that NII has a pretty good chance of rising this year? Set to aspire for rates, of course. And then the second question is just if you could give us a bit more sense of the glide path on fees. Obviously, we had the big jump in investment-driven products. How much product-related fees? How much more momentum do you think there's been -- there is? Has the year started well? Are you seeing further evidence of, say, deposit transformation into fee-driven products, for instance? That would be great. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 12, 2021 / 8:00AM, INGA.AS - Q4 2020 ING Groep NV Earnings Call

Question: Raul Sinha - JPMorgan Chase & Co, Research Division - Analyst : I've got a question on Basel IV capital. You're choosing not to disclose a ratio on the slides. And I just wanted to ask why that might be the case, given your ambition clearly is Basel IV fully loaded 12.5% long term. And if you could give us perhaps some of the moving parts that are still remaining to get from your current 15.5% down to a fully loaded Basel IV, that will be quite helpful. The second question is a broader question on mortgages. If I look at the loan book growth trajectory at ING, clearly, one of the features of this crisis has been the pickup in mortgage loan growth across your markets. And that clearly has helped offset some of the other books that have been shrinking quite dramatically. What do you think is the outlook for mortgage growth into '21? Are you worried that this might start to slow down? Or do you think there are enough, say, positive structural drivers that could still continue to drive positive loan growth for you on the mortgage side?

Question: Raul Sinha - JPMorgan Chase & Co, Research Division - Analyst : And what is the sort of, let's say, the remaining part? I mean I guess, TRIM is more or less done. But in terms of portfolios, perhaps maybe the Dutch mortgages, is there anything else we should keep in mind in terms of the moving parts?

Question: Raul Sinha - JPMorgan Chase & Co, Research Division - Analyst : Got it.

Question: Kirishanthan Vijayarajah - HSBC, Research Division - Analyst : Yes. Couple of questions from my side. Firstly, in the Wholesale Bank and the loan growth or rather the loan shrinkage there, looks like it's moderating. So where are we on that? Are we coming towards the end of that derisking process in areas like leveraged finance? And is the ambition, therefore, to start regrowing again more meaningfully in the Wholesale Bank as things recover? So is the message you're back in growth mode in wholesale for 2021? That's the first question. And then secondly, just coming back to the higher fee packages. I was just wondering, are there any particular geographies which have got more room to catch up in terms of the repricing effort? And also, kind of which geographies are you finding it harder to put fee increases through? So some color on that would be useful. Because, obviously, Germany is a big success story, but really on the other end of the spectrum, where are you finding the challenges on the fee side?