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. |