ING Groep NV

AEX:INGA

Earnings Call Transcript 2022-Q3

[Rogier van der Zwaan]

Hi, Steven.

[Steven van Rijswijk, executive]

Hi, Rogier.

[Rogier van der Zwaan]

This quarter, in less than 10 words.

[Steven van Rijswijk, executive]

In certain environments, we did well and committed to clients.

[Rogier van der Zwaan]

That's 8.

[Steven van Rijswijk, executive]

What impressed me most? The Net Promoter Score, we came out #1 in 7 of our 10 retail markets, up from 5 the last quarter. And Net Promoter Score is a measure whether customers promote us with other customers. So that's a great complement. And secondly, we had a healthy increase in deposits and lending, and the latter mostly with wholesale banking.

[Rogier van der Zwaan]

How we feel spiking inflation and energy prices?

[Steven van Rijswijk, executive]

Clearly, the environment has become more uncertain, and you also see that in the risk costs that have increased compared to the previous quarter. It also means that we need to continue to stay close to our clients even more now so in challenging circumstances, always with the 2 pillars of our strategy in mind, customer experience and sustainability.

[Rogier van der Zwaan]

Next payment trick with my mobile?

[Steven van Rijswijk, executive]

Well, we are partnering an app in the Netherlands, which we developed together with CCV, that's a payment solutions provider. And what it at does, it converts the mobile phone into a payment terminal for contactless payments. And we partnered that with HEMA, that's a big department store company.

[Rogier van der Zwaan]

I love HEMA. Rising interest rates, good news or bad news?

[Steven van Rijswijk, executive]

It's a mixed bag. Negative interest rates were not normal. In principle, positive interest rates in the long term are good for the economy. If we look at our customers, they receive more money on their savings accounts, but borrowing becomes more expensive. If we look at the bank, higher interest income but also more uncertainty and lower investment [ produce ] income. So again, a mixed bag.

[Rogier van der Zwaan]

Why we're still in business with the steel industry?

[Steven van Rijswijk, executive]

Well, steelmaking is an important economic activity and steel is also material for other sectors. But steel is also very CO2-intensive and this has a lot of CO2 emissions. And that's why we need to decarbonize the sector quickly. Therefore, together with 5 other banks, we signed the sustainable steel principles. And with that, we measure emission levels of our steel loan portfolio and how that compares to getting to net zero.

[Rogier van der Zwaan]

So green steel, it is possible?

[Steven van Rijswijk, executive]

Yes. As a matter of fact, we're part of a project in one of the largest new green steel plants in Northern Sweden. And with that, CO2 emissions will decrease by 95% because it is hydrogen-based. And the plant will be operative in 2026.

[Rogier van der Zwaan]

Times are uncertain. This gives me hope.

[Steven van Rijswijk, executive]

I mean the engagement that all of our people have in helping the economy to transition. And I see that in the impact that people, our colleagues, want to make on the personal front. I see that on the impact that people want to make in our own footprint. And I see that how our people engage with our customers to help them to transition. And I think that's fantastic. And I see that everywhere I go.

[Rogier van der Zwaan]

Thank you very much. Keep going.

[Steven van Rijswijk, executive]

Thank you. See you next year.