ING
recorded strong commercial momentum with continued growth in
primary customers and core lending |
· |
Primary customer base
increased in 3Q18 by 200,000 to 12.2 million and the total retail
customer base stood at 38.0 million |
· |
Net core lending was well
diversified and grew by €6.8 billion in 3Q18; net customer deposit
inflow amounted to €3.4 billion |
|
ING 3Q18
underlying pre-tax result of €2,124 million; Net result was €776
million after €775 million settlement amount |
· |
3Q18 result reflects
continued business growth at resilient margins, low level of risk
costs and expense control |
· |
3Q18 net result includes
€775 million settlement agreement with the Dutch authorities as
announced on 4 September 2018 |
· |
ING's 3Q18 four-quarter
rolling average underlying ROE was 10.7% and the fully loaded CET1
ratio remained strong at 14.0% |
CEO
statement"The third quarter of 2018 for ING was deeply marked by
the settlement agreement with the Dutch Public Prosecution Service.
As a bank, we have the responsibility to ensure that our operations
meet the highest standards, especially when it comes to securing
the integrity of our own operations and that of the financial
system," said Ralph Hamers, CEO of ING Group. "Not meeting these
standards is unacceptable. It is sincerely regrettable that the
investigations identified serious shortcomings in the execution of
policies to prevent financial economic crime at ING Netherlands. We
take this very seriously and accept full responsibility. Under the
terms of the agreement, ING has paid a fi ne of €775 million in the
third quarter of 2018. "We are committed to conducting our business
with integrity, and are taking a number of robust measures to
strengthen our management of compliance risks and support a
stronger risk awareness culture. We are enhancing our customer due
diligence fi les where necessary and are working on various
structural improvements in our compliance policies, tooling,
monitoring and governance. To embed these improvements thoroughly
and sustainably across the organisation, we will give continuous
attention to fostering a stronger compliance risk management
mindset. Regulatory compliance is a key priority which we will
advance on through clear leadership communication, training
courses, integrity dilemma workshops and behaviour risk
assessments. Integrating regulatory compliance more deeply into our
DNA will support sustainable results. Last, but not least, we find
it very important to continue our collaborations with public and
private entities, including our supervisors and regulators, to
achieve better structural outcomes in this area. "Commercial
momentum was strong in the third quarter of 2018 and ING recorded
continued business growth at resilient margins. The underlying
result before tax was €2,124 million, up both year-on-year and
sequentially. Net core lending growth in the third quarter was
robust at €6.8 billion and was well diversified across Retail and
Wholesale Banking. We gained 200,000 primary customers during the
quarter, bringing the total to 12.2 million, while our total global
customer base was 38.0 million at the end of the quarter. Expenses
remained under control and were only slightly higher than a year
ago. Compared with the previous quarter, expenses were 1.7% lower.
Risk costs amounted to an annualised 27 basis points of average
risk-weighted assets, well below the through-the-cycle average,
notwithstanding broader financial market volatility including
events in Turkey. The underlying return on equity on a four-quarter
rolling average basis rose to 10.7%. The quarterly net result was
€776 million, including the settlement amount, which was recorded
as a special item after tax. ING Group's fully loaded CET1 ratio
remained strong at 14.0%. "Banks also have a responsibility to
finance positive change and we are stepping up to that. In the
third quarter, we announced ING's commitment to steer our lending
portfolio toward the well-below 2-degree goal of the Paris Climate
Agreement. This will be done using an innovative measurement
approach, which we are co-developing with the 2 Degrees Investing
Initiative. We are pleased to be the first global bank to commit to
using science-based scenarios to steer our business strategy. "The
settlement did have an impact on our reputation and quarterly
results. We remain focused on the execution of our Think Forward
strategy and our commitment to our customers, shareholders,
supervisors, regulators and other stakeholders. Our transformation
plans are on track to reach the milestones set out in our strategy.
We move ahead with a heightened resolve to strengthen our
compliance risk management framework and further embed compliance
into our corporate DNA. This will guide us as we build a
sustainable future for ING." |
|
Further
information All publications related to ING's 3Q18 results can be
found at www.ing.com/3q18, 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 1 November 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 1 November 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. |