ING 1Q2023 Financial Targets Update
Strong NII momentum and higher NIM
Net interest income (in € mln)
Lending and deposit margin (in bps)
Net interest margin (in bps)
159
3,415 3,465
82
3,332
71
3,545
4,012
76
145
135
129
127
128
148
3,333 3,389
3,604
3,860
139
114
137
137
136
94
140
137
-
136
71
135
134
134
52
133
45
128
-343 -315
1Q2022 202022 3Q2022 4Q2022 1Q2023
Net TLTRO impact
Polish mortgage moratorium
1Q2022 2Q2022 3Q2022 4Q2022 1Q2023
Average lending margin (in bps)
Average deposit margin (in bps)
1Q2022 2Q2022 3Q2022 4Q2022 1Q2023
NIM
NIM excl. net TLTRO impact and Polish moratorium
NIM 4-quarter rolling average
■ Excl. the TLTRO impact, NII increased 20.4% YoY, primarily driven by the strong recovery of liability margins reflecting higher interest
rates. This more than offset pressure on mortgage margins due to rising funding costs, with a delay in tracking in client rates, as well
as declining income from prepayment penalties. Furthermore, NII was negatively impacted by a temporary shift from NII to other
income in Treasury 1), reflecting activities to benefit from prevailing favourable FX swap interest rate differentials, as well as in FM,
reflecting the impact of rising rates on hedge positions
Sequentially, excluding the net TLTRO impact, NII increased by 3.9%. Higher net interest income on liabilities more than compensated
for the aforementioned temporary shift from NII to other income in both Treasury 1) and FM, while the lending margin stabilised
■NIM rose 11 bps to 159 bps, reflecting a further increase of the liability margin while the lending margin remained stable
1) Impact on NII 4Q2022 €-137 mln, 1Q2023 €-234 mln; Impact on Other Income 4Q2022 €+184 mln, 1Q2023 €+267 mln; negligible impact in 1Q2022
9View entire presentation