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. |
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