ING continues to record growth in
customers and core lending; Think Forward transformation programmes
progressing well |
· |
Primary
customer base increased in 2Q18 by 400,000 to 12.0 million; total
number of retail customers reached 38.2 million |
· |
Net core
lending in 2Q18 grew by €14.2 billion; net customer deposit inflow
amounted to €5.8 billion |
|
ING 2Q18 underlying pre-tax result of €2,022
million; ING declares interim cash dividend of €0.24 per
share |
· |
2Q18
result reflects well-diversified loan growth, solid net fee and
commission income, and low level of risk costs |
· |
ING's
2Q18 four-quarter rolling underlying ROE was 10.4%; ING will pay an
interim cash dividend of €0.24 per ordinary share |
CEO statement
"Our drive to constantly innovate and offer a differentiating
customer experience contributed to our strong commercial
performance in the second quarter of 2018," said Ralph Hamers, CEO
of ING Group. "Our global customer base reached 38.2 million, of
which 12.0 million are primary customers. We are grateful for the
trust our customers place in us and are committed to serving them
to the best of our ability. Our employees consistently make
customers their highest priority while adapting to the many changes
brought by our ongoing transformation programmes, which will
further improve our service proposition and operational
efficiency.
"In the second quarter, we undertook several initiatives to build
on our ambition to become the 'go-to' place for all the financial
needs of customers. We partnered with French insurer AXA to create
personalised insurance products and services for customers.
Together, we aim to disrupt the insurance market with a digital
platform that will offer property & casualty, health and
protection insurance in six of our Challengers markets, in a clear
and easy way.
"We also worked on innovative digital solutions that empower small
businesses and entrepreneurs to find the best funding for their
specific needs. We partnered with Funding Options in the
Netherlands and invested in FinCompare in Germany - two digital
platforms that offer small and medium-sized enterprises (SMEs)
access to a wide range of financing options that they can easily
compare and select. In Poland, we launched Invoice Financing, a
digital microfactoring solution for SMEs that we developed
in-house. It puts SME customers in control over which invoices they
want to finance and when.
"The second quarter also marked the completion of a key milestone
in ING's transformation with the merger of Record Bank into ING in
Belgium. Record Bank customers were successfully migrated to ING's
platform, now enabling all customers in Belgium to benefit from one
consistent client-service model that is digitally enabled and
supported by our branch network. But we aren't finished yet; our
next priorities are to rationalise our product assortment and to
unite the IT platforms of Belgium and the Netherlands. These
initiatives are integral to unifying our cross-border organisation
and unlocking synergies in two of our largest markets for the
benefit of customers.
"Our net core lending book increased by €14.2 billion in the second
quarter through well-diversified and disciplined growth across both
Retail and Wholesale Banking. Despite the low interest rate
environment, the net interest margin held up well. We remain
conscious of maintaining a healthy balance between risk and
returns. ING Group's second-quarter 2018 underlying result before
tax was €2,022 million, reflecting our continued loan growth and
solid net fee and commission income. Risk costs remained low at 15
basis points of average risk-weighted assets. The underlying return
on equity on a four-quarter rolling average basis was
10.4%.
"ING Group's fully loaded CET1 ratio was 14.1% at the end of June
2018, as the second-quarter capital generation was outpaced by an
increase in RWA, mainly stemming from business growth and a
macro-prudential add-on. In the second quarter, we reserved €0.9
billion of the quarterly net profit for future dividend payments,
as we did with the first-quarter net profit. ING will pay an
interim cash dividend of €0.24 per ordinary share over the first
six months of 2018. We remain committed to maintaining a strong
capital position and reiterate our aim to pay a progressive
dividend.
"Our second-quarter performance confirms that we're living up to
our Customer Promise every day. Looking ahead, we continue to focus
on managing expenses, optimising operational excellence, enhancing
our compliance and non-financial risk practices, and executing our
digital strategy. I'm confident that our efforts will further
strengthen our company and enable sustainable success for the
long-term benefit of all stakeholders." |
|
Further information
All publications related to ING's 2Q18 results can be found at
www.ing.com/2q18, 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 2 August 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 2 August
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. |