ING Groep N.V. (ING) Q1 2023 Earnings Call Transcript

For the period ending March 31, 2023

May 10, 2023 3:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Marianne [ph]. Welcoming you to the ING's First Quarter 2023 Conference Call. This conference is being recorded.

Before handing this conference call over to Steven van Rijswijk, Chief Executive Officer of ING Group, let me first say, that today's comments may include forward-looking statements such as statements regarding future developments in our business, expectations for our future financial performance, and any statement not including historical fact.

Actual results may differ materially from those projected in any forward-looking statement. A discussion of factors that may cause actual results to differ from those in any forward-looking statements is contained in our public filings, including our most recent Annual Report on Form 20-F filed with the United States Securities and Exchange Commission, and our earnings press release as posted on our website today.

Furthermore, nothing in today's comments constitutes an offer to sell or solicitation of any offer to buy any securities.

Good morning, Steven, over to you.

Steven van Rijswijk

Good morning, and welcome to our first quarter of 2023 results call. I hope you're all well. And as usual, I'm joined by our CFO, Tanate Phutrakul and our CRO, Ljiljana Cortan. And I'm pleased to take you through today's presentation. After that, we will take your questions.

We started 2023 with a very strong quarter in both our retail and wholesale business, by keeping focus on our customers and delivering value and demonstrating stability in their water turbulent time for the banking sector. We continue to record organic growth and add another 106,000 primary customers, we choose ING for our superior customer experience. And this is supported by our digital-only mobile-first strategy, as evidenced in the largest share of mobile-only customers.

Another achievement was a growing fully mobilized, to help our wholesale banking clients transition to a more sustainable business model. At €22 billion the volume mobilized was up by more than 25% compared to the first quarter of 2022. In our P&L, we continue to see the benefits of the current rate environment, both on our retail customer deposits, and our wholesale payments and cash management business.

This comes on top of the structurally higher fee base, a strong performance on total income, a year-on-year growth of 23%. For the quarter, we realize the strong 13% ROE, increasing our four quarter rolling average ROE to 9.7%. And all of this has enabled us to announce an additional distribution in the form of a €1.5 billion share buyback, which will kick off tomorrow.