ING recorded strong commercial momentum with
continued growth in primary customers and core lending |
· |
Primary
customer base increased in 3Q18 by 200,000 to 12.2 million and the
total retail customer base stood at 38.0 million |
· |
Net core
lending was well diversified and grew by €6.8 billion in 3Q18; net
customer deposit inflow amounted to €3.4 billion |
|
ING 3Q18 underlying pre-tax result of €2,124
million; Net result was €776 million after €775 million settlement
amount |
· |
3Q18
result reflects continued business growth at resilient margins, low
level of risk costs and expense control |
· |
3Q18 net
result includes €775 million settlement agreement with the Dutch
authorities as announced on 4 September 2018 |
· |
ING's
3Q18 four-quarter rolling average underlying ROE was 10.7% and the
fully loaded CET1 ratio remained strong at 14.0% |
CEO statement
"The third quarter of 2018 for ING was deeply marked by the
settlement agreement with the Dutch Public Prosecution Service. As
a bank, we have the responsibility to ensure that our operations
meet the highest standards, especially when it comes to securing
the integrity of our own operations and that of the financial
system," said Ralph Hamers, CEO of ING Group. "Not meeting these
standards is unacceptable. It is sincerely regrettable that the
investigations identified serious shortcomings in the execution of
policies to prevent financial economic crime at ING Netherlands. We
take this very seriously and accept full responsibility. Under the
terms of the agreement, ING has paid a fi ne of €775 million in the
third quarter of 2018.
"We are committed to conducting our business with integrity, and
are taking a number of robust measures to strengthen our management
of compliance risks and support a stronger risk awareness culture.
We are enhancing our customer due diligence fi les where necessary
and are working on various structural improvements in our
compliance policies, tooling, monitoring and governance. To embed
these improvements thoroughly and sustainably across the
organisation, we will give continuous attention to fostering a
stronger compliance risk management mindset. Regulatory compliance
is a key priority which we will advance on through clear leadership
communication, training courses, integrity dilemma workshops and
behaviour risk assessments. Integrating regulatory compliance more
deeply into our DNA will support sustainable results. Last, but not
least, we find it very important to continue our collaborations
with public and private entities, including our supervisors and
regulators, to achieve better structural outcomes in this
area.
"Commercial momentum was strong in the third quarter of 2018 and
ING recorded continued business growth at resilient margins. The
underlying result before tax was €2,124 million, up both
year-on-year and sequentially. Net core lending growth in the third
quarter was robust at €6.8 billion and was well diversified across
Retail and Wholesale Banking. We gained 200,000 primary customers
during the quarter, bringing the total to 12.2 million, while our
total global customer base was 38.0 million at the end of the
quarter. Expenses remained under control and were only slightly
higher than a year ago. Compared with the previous quarter,
expenses were 1.7% lower. Risk costs amounted to an annualised 27
basis points of average risk-weighted assets, well below the
through-the-cycle average, notwithstanding broader financial market
volatility including events in Turkey. The underlying return on
equity on a four-quarter rolling average basis rose to 10.7%. The
quarterly net result was €776 million, including the settlement
amount, which was recorded as a special item after tax. ING Group's
fully loaded CET1 ratio remained strong at 14.0%.
"Banks also have a responsibility to finance positive change and we
are stepping up to that. In the third quarter, we announced ING's
commitment to steer our lending portfolio toward the well-below
2-degree goal of the Paris Climate Agreement. This will be done
using an innovative measurement approach, which we are
co-developing with the 2 Degrees Investing Initiative. We are
pleased to be the first global bank to commit to using
science-based scenarios to steer our business strategy.
"The settlement did have an impact on our reputation and quarterly
results. We remain focused on the execution of our Think Forward
strategy and our commitment to our customers, shareholders,
supervisors, regulators and other stakeholders. Our transformation
plans are on track to reach the milestones set out in our strategy.
We move ahead with a heightened resolve to strengthen our
compliance risk management framework and further embed compliance
into our corporate DNA. This will guide us as we build a
sustainable future for ING." |
|
Further information
All publications related to ING's 3Q18 results can be found at
www.ing.com/3q18, including a video with Ralph Hamers. The video is
also available on YouTube. Additional financial information is
available at www.ing.com/qr:
· ING Group historical trend data (PDF, XLS)
· ING Group analyst presentation (PDF, also available via
SlideShare)
For further information on ING, please visit www.ing.com. Frequent
news updates can be found in the Newsroom or via the @ING_news
Twitter feed. Photos of ING operations, buildings and its
executives are available for download at Flickr. Footage (B-roll)
of ING is available via ing.yourmediakit.com or can be requested by
emailing info@yourmediakit.com. ING presentations are available at
SlideShare. |
|
Investor conference call, Media conference call and
webcasts
Ralph Hamers, Koos Timmermans and Steven van Rijswijk will discuss
the results in an Investor conference call on 1 November 2018
at 9:00 a.m. CET. Members of the investment community can join the
conference call at +31 20 531 5821 (NL),
+44 203 365 3209 (UK) or
+1 866 349 6092 (US) and via live audio webcast at
www.ing.com.
Ralph Hamers, Koos Timmermans and Steven van Rijswijk will also
discuss the results in a media conference call on 1 November
2018 at 11:00 a.m. CET. Journalists are welcome to join the
conference call via +31 20 531 5871 (NL) or
+44 203 365 3210 (UK). The call can also be followed
via live audio webcast at www.ing.com. |
|
Investor enquiries T:
+31 20 576 6396
E: investor.relations@ing.com
Press enquiries T: +31 20
576 5000
E: media.relations@ing.com |
|
ING
Profile
ING is a global financial institution with a strong European base,
offering banking services through its operating company ING Bank.
The purpose of ING Bank is empowering people to stay a step ahead
in life and in business. ING Bank's more than 52,000 employees
offer retail and wholesale banking services to customers in over 40
countries.
ING Group shares are listed on the exchanges of Amsterdam (INGA NA,
INGA.AS), Brussels and on the New York Stock Exchange (ADRs: ING
US, ING.N).
Sustainability forms an integral part of ING's strategy, evidenced
by ING's ranking as a leader in the banks industry group by
Sustainalytics. ING Group shares are included in the FTSE4Good
index and in the Dow Jones Sustainability Index (Europe and World),
where ING is also among the leaders in the banks industry
group. |
|
IMPORTANT
LEGAL INFORMATION
Elements of this press release contain or may contain information
about ING Groep N.V. and/ or ING Bank N.V. within the meaning of
Article 7(1) to (4) of EU Regulation No 596/2014.
ING Group's annual accounts are prepared in accordance with
International Financial Reporting Standards as adopted by the
European Union ('IFRS-EU'). In preparing the financial information
in this document, except as described otherwise, the same
accounting principles are applied as in the 2017 ING Group
consolidated annual accounts. All figures in this document are
unaudited. Small differences are possible in the tables due to
rounding.
Certain of the statements contained herein are not historical
facts, including, without limitation, certain statements made of
future expectations and other forward-looking statements that are
based on management's current views and assumptions and involve
known and unknown risks and uncertainties that could cause actual
results, performance or events to differ materially from those
expressed or implied in such statements. Actual results,
performance or events may differ materially from those in such
statements due to a number of factors, including, without
limitation: (1) changes in general economic conditions, in
particular economic conditions in ING's core markets, (2) changes
in performance of financial markets, including developing markets,
(3) potential consequences of European Union countries leaving the
European Union or a break-up of the euro, (4) changes in the
availability of, and costs associated with, sources of liquidity
such as interbank funding, as well as conditions in the credit and
capital markets generally, including changes in borrower and
counterparty creditworthiness, (5) changes affecting interest rate
levels, (6) changes affecting currency exchange rates, (7) changes
in investor and customer behaviour, (8) changes in general
competitive factors, (9) changes in laws and regulations and the
interpretation and application thereof, (10) geopolitical risks and
policies and actions of governmental and regulatory authorities,
(11) changes in standards and interpretations under International
Financial Reporting Standards (IFRS) and the application thereof,
(12) conclusions with regard to purchase accounting assumptions and
methodologies, and other changes in accounting assumptions and
methodologies including changes in valuation of issued securities
and credit market exposure, (13) changes in ownership that could
affect the future availability to us of net operating loss, net
capital and built-in loss carry forwards, (14) changes in credit
ratings, (15) the outcome of current and future legal and
regulatory proceedings, (16) operational risks, such as system
disruptions or failures, breaches of security, cyberattacks, human
error, changes in operational practices or inadequate controls
including in respect of third parties with which we do business,
(17) the inability to protect our intellectual property and
infringement claims by third parties, (18) the inability to retain
key personnel, (19) business, operational, regulatory, reputation
and other risks in connection with climate change, (20) ING's
ability to achieve its strategy, including projected operational
synergies and cost-saving programmes and (21) the other risks and
uncertainties detailed in the 2017 annual report of ING Groep N.V.
(including the Risk Factors contained therein) and ING's more
recent disclosures, including press releases, which are available
on www.ING.com. Many of those factors are beyond ING's
control.
Any forward looking statements made by or on behalf of ING speak
only as of the date they are made, and ING assumes no obligation to
publicly update or revise any forward-looking statements, whether
as a result of new information or for any other reason.
This document does not constitute an offer to sell, or a
solicitation of an offer to purchase, any securities in the United
States or any other jurisdiction. |