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ING posts 2Q2019 net result of €1,438 million |
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ING continues to record growth in primary customers and
core lending |
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Retail primary
customers rose in 2Q2019 by 300,000 to 12.9 million; total retail
customer base reaches 38.6 million |
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Net core lending
in 2Q2019 grew by €7.4 billion; net customer deposit inflow
amounted to €11.7 billion |
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ING 2Q2019 underlying pre-tax result of €2,005 million; ING
declares interim cash dividend of €0.24 per share |
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Result reflects
well-diversified loan growth at resilient margins, despite margin
pressure on customer deposits, as well as stable fee income and a
relatively low level of risk costs |
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Four-quarter
rolling underlying ROE was 10.8%; ING Group CET1 ratio remained
robust at 14.5% |
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CEO statement“We achieved good results in the second
quarter, with solid profitability and healthy growth in both
lending and deposits. We added more than 300,000 primary customers
in 2Q2019, which demonstrates that our customer experience
continues to be differentiating and drive growth,” said Ralph
Hamers, CEO of ING Group. “Higher volumes and resilient lending
margins supported earnings despite the ongoing low interest rate
environment. Looking ahead, we expect that persistently low
interest rates will put pressure on net interest income. “We took
further steps in the second quarter to improve the way we manage
non-financial risks. The number of FTEs working in KYC-related
activities, including our global know your customer (KYC)
enhancement programme has increased to over 3,000. File enhancement
and transaction look-back operations are resulting in improved
reporting of suspicious or unusual activity to authorities in
various countries. Our increased focus on KYC and our efforts to
streamline our operations are leading to an increased number of
accounts that are being closed, including inactive accounts or
accounts of which the customers were insufficiently responsive to
information requests. And we have started a re-evaluation of
certain client and business relationships. We’re also working on
promising tools that use machine learning and artificial
intelligence to increase the effectiveness of our KYC operations. At
the same time, we welcome steps by the Dutch and other authorities
to achieve wider cooperation between banks, law enforcement and
regulators on both a national and European level to strengthen the
financial system’s resilience in the fight against financial
economic crime. “We continued to innovate to improve the digital
customer experience and to strengthen our mobile-first approach. In
Germany and Poland, we now offer features that help customers to
better manage their money by notifying them of upcoming payments,
similar to the ‘Kijk Vooruit’ feature in the Netherlands. We’ve
enhanced the experience of our mobile app users by adding Apple Pay
in the Netherlands, Romania and Spain. Interhyp, ING’s independent
mortgage brokerage platform in Germany and Austria, which offers
access to over 450 mortgage lenders, had a record quarter and is on
track for a 10% market share in Germany. “We empowered customers
through new beyond banking services that help them stay a step
ahead in life and in business. Within our global partnership with
AXA, we’ve launched our first products in two countries. “The 26
sustainable bond transactions and 12 sustainable loan transactions
in 2Q2019 showed that ING’s commitment to sustainable and green
financing is achieving good commercial results. Among them we
supported a €750 million green innovation bond for Philips and a
€1.55 billion loan to Merlin Properties, Europe’s largest
sustainability improvement loan for the real estate sector. And ING
is one of the founding banks of the Poseidon Principles, which aim
to reduce greenhouse gasses from shipping by 50% by 2050, aligning
our shipping financing with our Terra approach. “We are making good
progress transforming our business so we can continue to deliver a
differentiating customer experience. At the same time, we took
important steps in the second quarter to strengthen our management
of non-financial risks, particularly in the areas of KYC and
anti-money laundering. We are committed to maintaining the highest
standards in these areas, now and in the future.” |
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Further information All publications related to
ING’s 2Q2019 results can be found at www.ing.com/2q2019, including
a video with Ralph Hamers. The video is also available on YouTube.
Additional financial information is available at
www.ing.com/qr:• Full ING Group 2Q2019 press
release (PDF) • ING Group analyst presentation
(PDF, also available via SlideShare) • ING Group
historical trend data (PDF, XLS) 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. |
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Investor conference call, Media conference call and
webcasts Ralph Hamers, Tanate Phutrakul and Steven van
Rijswijk will discuss the results in an Investor conference call on
1 August 2019 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, Tanate Phutrakul and Steven van Rijswijk
will also discuss the results in a media conference call on
1 August 2019 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. |
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Investor enquiries T: +31 20 576 6396 E:
investor.relations@ing.com Press enquiries
T: +31 20 576 5000 E: media.relations@ing.com |
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| 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 53,000 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 Leader in the banks
industry group by Sustainalytics and ‘A’ rating in MSCI’s ratings
universe. ING Group shares are included in major sustainability and
Environmental, Social and governance (ESG) index products of
leading providers STOXX, Morningstar and FTSE Russell. |
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| 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 2018 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 the United Kingdom leaving
the European Union or a break-up of the euro, (4) changes in the
fiscal position and the future economic performance of the US
including potential consequences of a downgrade of the
sovereign credit rating of the US government, (5) potential
consequences of a European sovereign debt crisis, (6) changes in
the availability of, and costs associated with, sources of
liquidity such as interbank funding, (7) changes in conditions in
the credit and capital markets generally, including changes in
borrower and counterparty creditworthiness, (8) changes affecting
interest rate levels, (9) inflation and deflation in our principal
markets, (10) changes affecting currency exchange rates, (11)
changes in investor and customer behaviour, (12) changes in general
competitive factors, (13) changes in or discontinuation of
‘benchmark’ indices, (14) changes in laws and regulations and the
interpretation and application thereof, (15) changes in compliance
obligations including, but not limited to, those posed by the
implementation of DAC6, (16) geopolitical risks, political
instabilities and policies and actions of governmental and
regulatory authorities, (17) changes in standards and
interpretations under International Financial Reporting Standards
(IFRS) and the application thereof, (18) 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, (19) changes in ownership that could affect the future
availability to us of net operating loss, net capital and built-in
loss carry forwards, (20) changes in credit ratings, (21) the
outcome of current and future legal and regulatory proceedings,
(22) operational risks, such as system disruptions or failures,
breaches of security, cyber-attacks, human error, changes in
operational practices or inadequate controls including in respect
of third parties with which we do business, (23) risks and
challenges related to cybercrime including the effects of
cyber-attacks and changes in legislation and regulation related to
cybersecurity and data privacy, (24) the inability to protect our
intellectual property and infringement claims by third parties,
(25) the inability to retain key personnel, (26) business,
operational, regulatory, reputation and other risks in connection
with climate change, (27) ING’s ability to achieve its strategy,
including projected operational synergies and cost-saving
programmes and (28) the other risks and uncertainties detailed in
this 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. (29) This
document may contain inactive textual addresses to internet
websites operated by us and third parties. Reference to such
websites is made for information purposes only, and information
found at such websites is not incorporated by reference into this
document. ING does not make any representation or warranty with
respect to the accuracy or completeness of, or take any
responsibility for, any information found at any websites operated
by third parties. ING specifically disclaims any liability with
respect to any information found at websites operated by third
parties. ING cannot guarantee that websites operated by third
parties remain available following the publication of this
document, or that any information found at such websites will not
change following the filing of this document. 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. |