ING continues to record
commercial growth in 1Q17 with consistent focus on innovation and
sustainability |
· |
Primary
customer numbers up: EUR 5.7 billion net core lending growth and
EUR 6.7 billion net customer deposit inflow |
· |
ING's
innovative new products and services as well as sustainability
initiatives are increasingly being adopted by the market |
|
ING 1Q17 underlying pre-tax result of EUR
1,652 million, up 39.3% year-on-year |
· |
Strong
result reflects robust loan growth at resilient margins, improved
performance in Financial Markets and lower risk costs |
· |
ING Group
fully-loaded common equity Tier 1 (CET1) ratio of 14.5%, up from
14.2% at year-end 2016 |
|
CEO statement
"ING had a strong first quarter supported by continued commercial
growth," said Ralph Hamers, CEO of ING Group. "ING's underlying
pre-tax result rose 39.3% to EUR 1,652 million from a year ago,
reflecting continued loan growth, good cost control and relatively
low risk costs. Wholesale Banking's contribution was particularly
strong, led by higher income from Financial Markets and
commissions. While the first-quarter net result declined to EUR
1,143 million from EUR 1,257 million a year ago, this is explained
by a EUR 506 million profit from the sale of shares in NN Group in
the first quarter of 2016."
"We continued to innovate in Wholesale Banking, where Easy Trading
Connect reached a milestone by successfully completing the first
test of a large oil trade using blockchain technology, in
cooperation with one of our clients and a major French bank. This
proves that the commodity trade finance sector, where processes are
largely paper-based and labour intensive, can be digitalised. We
also collaborated with our client Royal Philips, acting as
Sustainability Coordinator in the creation of the first syndicated
loan where the pricing is linked to the client's Sustainalytics
rating. If the rating goes up, the interest rate on the EUR 1
billion revolving credit facility goes down-and vice versa. This is
an example of how companies are increasingly integrating
sustainability into their business objectives."
"We're innovating across other areas of the bank as well. For
example, with Payconiq, the mobile payments platform developed by
ING, launched in Belgium in 2015 and now supported by two other
Belgian banks. The number of Belgian retailers using the service
has increased to 25,000 from 6,500 in July of last year. Following
this success, ING and five other Dutch banks announced plans to
launch Payconiq in the Netherlands this summer."
"I am proud that all of the innovations highlighted above were
developed by ING and then adopted by other banks. This underscores
our record as a digital banking leader and shows that we're able to
provide an experience for customers that makes us stand out from
our competitors. This approach is just one of the reasons why our
Net Promoter Score has improved to number one in eight countries,
up from seven countries last quarter. ING had 36.1 million
customers as at 31 March 2017, including 9.85 million primary bank
customers, which is an increase of 8.4% year-on-year."
"Our net core lending grew by EUR 5.7 billion in the quarter, well
diversified across Retail and Wholesale Banking, and net customer
deposits increased by EUR 6.7 billion. Stable margins and higher
commissions helped drive a 39.5% increase in the underlying net
result compared with the first quarter of 2016. Operating expenses
were well controlled, despite seasonally high regulatory costs,
while risk costs remained low. ING Group's fully loaded CET1 ratio
increased by 0.3 percentage point to 14.5% at the end of March
2017, while the four-quarter underlying return on equity improved
to 10.8% from 8.1% a year ago."
"As we announced in October 2016, ING is uniting people, platforms
and processes to build the bank of the future. In Belgium, ING and
our trade union partners agreed on a Social Plan that supports
employees whose jobs may be impacted and results in a lower number
of compulsory lay-offs, while staying in line with the financial
impact we estimated in October."
"We said farewell to CFO Patrick Flynn this week and will do the
same for CRO Wilfred Nagel in August. I'm grateful for all that
they have done for ING and for me personally over the years. As of
this week, we welcome Koos Timmermans and Steven van Rijswijk to
the Executive Board, and Roland Boekhout to the Management Board
Banking. Their leadership will help drive ING's transformation into
the digital bank of the future as we focus on remaining relevant
for our customers, thereby ensuring our own sustainable
success." |
|
Further information
All publications related to ING's 1Q17 results can be found at
www.ing.com/1q17, 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 Wilfred Nagel will discuss the
results in an Investor conference call on 10 May 2017 at 9:00
a.m. CET. Members of the investment community can join the
conference call at +31 20 341
8241 (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 Wilfred Nagel will also discuss
the results in a media conference call on 10 May 2017 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 Media conference 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 corporate strategy,
which is evidenced by ING Group shares being included in the
FTSE4Good index and in the Dow Jones Sustainability Index (Europe
and World) where ING is 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 may be subject to regulatory approvals. Insofar as they
could have an impact in Belgium, all projects described are
proposed intentions of the bank. No formal decisions will be taken
until the information and consultation phases with the Work Council
have been properly finalised.
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 2016 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) ING's ability to achieve its strategy,
including projected operational synergies and cost-saving
programmes and (17) the other risks and uncertainties detailed in
the most recent 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. |