ING Groep N.V. American Depositary Shares Barclays 24th Annual Global Financial Services Conference

Thank you for having me.

Yes, absolutely. Indeed, we updated the target and the outlook in line with our second quarter results, and it's really driven by the development that we're seeing in the business year to date. We continue to see strong business momentum across the segment, across the geographies where we operate, but also across the different product areas where you see continued strong profitable loan growth, continued strong deposit growth, and we also see a very strong growth in fee income. All of that in combination with the very strong efficiency that we're seeing also across the board will give us good comfort that we will be able to deliver on the renewed outlook, which is an improved outlook as well.

Well, the targets for 2027 were set at the Capital Markets Day in 2024. As you can see from the numbers, we are well on our way to deliver on those targets and also above those targets in some areas. If you look at retail banking, we see a very strong progress in all the different segments and an uptick that is stronger than what we anticipated moving out of the Capital Markets Day. On wholesale banking, I would also point to the strong deliveries that we are seeing, not the least in terms of capital velocity and the continued strong loan growth, but with a very modest growth in Risk-Weighted Assets over the past few years. So I think we can just say that we are well on our way to deliver on the targets set there or above those targets.

Then I promise you to update you once we decide on renewing those targets. We will keep you updated.

Yes. Well, what we're saying is that when we look at the liability margin today, we've indicated historically that we believe that we will be between 100 and 110 basis points. In the second quarter, we said that we would most likely for 2026 be slightly higher, in the higher end of that or higher-mid end of that range. Then beyond in 2027, 2028, we're also seeing, due to the strong deliveries that we still see in terms of tailwind on the replication portfolio, the continued strong development we see in volume growth on deposits, as well in terms of our ability to continue growing mobile primary customers, which should also support current account growth. We've said that we expect to be above that range, in 2027, 2028. Also, of course, given the macroeconomic development around us and not least interest rates.

But we see a good kind of tailwind still related to the replication. If you look at both the long end of those replication portfolio and the shorter end, both are actually now benefiting from higher interest rates, and therefore, we continue to see a good momentum there. Then the question is also, which you rightly challenge us on, is where would you expect the liability margin to end up, and why are you only saying that it will be there temporarily for a number of years and then trending back? Then you really need to look at the composition of our portfolio. Then in terms of the deposit portfolio, where the absolute majority sits in savings accounts, which has historically shown a trend to be competed down to more normalized levels.

What are normalized levels given any interest rate levels going forward? We expect in terms of what we are seeing today and also the structural shifts that we are seeing impacting deposits overall, the continued strong competition that we see across the markets where we operate. We then say that from where we sit today and what we are seeing, we expect it to potentially come down to 100 and 110 basis points, which has been the more normalized levels. Also, of course, depending on our ability to continue growing current accounts. That is really an area that we also need to continue focusing on.