ING continues pace of commercial growth,
attracting more customers and increasing core lending |
· |
ING grew
primary customer base in 1Q18 by 170,000 to 11.2 million; total
retail customers reached 37.8 million |
· |
Net core
lending in 1Q18 increased by €12.3 billion; net customer deposit
inflow amounted to €2.4 billion |
ING 1Q18 underlying pre-tax result of €1,686
million, up 2.1% year-on-year |
· |
Good
result reflects continued loan growth and lower risk costs, whereas
expenses remained under control |
· |
ING's
1Q18 four-quarter rolling underlying ROE was 10.3%; fully loaded
CET1 ratio at 14.3% |
|
CEO statement
"We delivered solid profitability in the first quarter, at the same
time providing a differentiating experience for customers and
innovating to stay relevant for them in the future," said Ralph
Hamers, CEO of ING Group. "We attracted new customers and deepened
the relationship with existing ones. Overall customer numbers were
up more than 400,000 during the quarter to 37.8 million. Primary
relationships grew by 170,000 to 11.2 million, boosted by inflows
in our Challengers & Growth Markets, particularly in Australia.
We are on track to achieve our goal of 14 million primary
relationships by 2020."
"We rolled out new products and services in the first quarter to
create an easier experience and empower customers in new ways.
These included ING Global Index Portfolios, developed jointly in
the Netherlands, Austria, Germany, Belgium and Luxembourg, with
each unit contributing vital parts to the whole. This low-cost and
easy-to-use investment product expands our offering in those
markets and provides customers with an alternative to savings
accounts."
"We took an important step to become the preferred platform for
business customers by acquiring a 75 percent stake in Payvision, an
innovative service that connects merchants and payments providers
by facilitating more than 80 payment methods in 150 currencies.
This technological leap will strengthen and expand ING's digital
payments business, especially in e-commerce."
"And we achieved a milestone in the first quarter when our Yolt
open-banking platform in the UK passed the 250,000 user mark. Yolt
empowers by giving people better insights into their finances with
the help of tools to manage their money across financial
institutions. Yolt taps into the disruption ushered in by the
European PSD2 open payments directive with a multi-bank value
proposition that we at ING feel will be a key element of the go-to
banking platforms of the future."
"We've set ambitious targets for responsible finance. We focus on
financing companies and sectors whose activities counter global
warming and have a positive social impact, as well as working
together with environmental, social and governance (ESG) industry
leaders. This includes helping others to secure sustainable
finance, which we also did in the first quarter when we acted as
Sustainability Coordinator for the revolving credit facility for
global agri-business Olam International Ltd, Asia's first
sustainability-linked club loan deal. We also made good progress in
1Q18 building a reputation for placing green bonds; during the
quarter ING led eight green bond issues for clients."
"Overall, our commercial momentum remained strong. We recorded
€12.3 billion of core lending growth in the quarter. Risk costs
remained low, and we demonstrated good cost control in the first
quarter. Expenses were down from the fourth quarter of 2017 when
costs were higher due to investments in growth and non-recurring
items. I'm pleased with the progress on the merger of Record Bank
into ING Belgium, which we expect to be completed in the first half
of 2018. We remain on track to achieve the €900 million
cost-savings goal we set as part of our Think Forward strategy by
2021."
"As we transform ING, we have to ensure the highest standards in
our daily operations. That includes further strengthening
non-financial risk areas, such as customer due diligence, cyber
security and anti-money laundering."
"We have successfully adopted the new IFRS 9 accounting standard,
which came into effect at the beginning of this year. Now that we
can better assess the potential impact of Basel IV and IFRS 9 on
capital and earnings, we have been able to complete ING Group's
financial ambitions with a CET1 ratio of around 13.5 percent and an
underlying ROE ambition between 10 and 12 percent. We continue to
expand our digital leadership and to attract customers that see us
as the go-to bank, as well as delivering attractive returns to
shareholders." |
|
Further information
All publications related to ING's 1Q18 results can be found at
www.ing.com/1q18, 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 9 May 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 9 May 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 51,000 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.
Projects related to the integration of Record Bank in Belgium are
still subject to regulatory approval.
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. |