ING
continued to achieve strong commercial momentum |
· |
Retail customer base grew
to 38.4 million in 4Q18, and primary customer relationships grew by
300,000 to reach 12.5 million |
· |
Net core lending increased
by €3.2 billion in 4Q18; net customer deposit inflow amounted to
€7.7 billion |
|
ING 4Q18
underlying pre-tax result of €1,692 million; full-year 2018
underlying pre-tax result up 4.5% on 2017 |
· |
Results reflect continued
business growth at resilient margins, higher net commission and fee
income, and lower risk costs |
· |
Full-year underlying ROE
rose to 11.2% and fully loaded CET1 ratio is strong at 14.5%;
FY2018 dividend of €0.68 per share |
CEO
statement"This past year has been filled with both achievements to
be proud of and challenges to overcome and learn from," said Ralph
Hamers, CEO of ING Group. "Following the settlement we reached with
Dutch authorities in September 2018, we are continuing our know
your customer (KYC) enhancement programme, emphasising regulatory
compliance as the key priority. The organisation continues to work
hard on enhancing our customer due diligence files and on a number
of structural solutions to bring our anti-money laundering
activities to a sustainably better level. We're committed to
conducting our business with integrity, and regulatory compliance
remains the priority for 2019 and beyond. "At the same time, we've
maintained the focus on our customers by continuing to create
innovative products and services while transforming internally so
we can provide customers with a differentiating and efficient
banking experience. As we work to accelerate the pace of
innovation, fintech fund ING Ventures made several investments. We
invested in multibank platform Cobase, for example, which makes it
easier and more efficient for international corporate clients to
work with multiple banks. We also invested, together with
UniCredit, in Axyon AI, an Italian company that helps banks offer
better and faster advice to their clients by using artificial
intelligence to identify investors most likely to participate in a
syndicated loan, for example. "We continued to attract new
customers. Our global customer base grew by one million customers
over the year to reach 38.4 million, and the number of primary
customers increased 9.9% to 12.5 million. Our most recent net
promoter scores among customers rank us first in six of our 13
retail markets. Our customer focus is also reflected in our strong
commercial results in 2018. Net growth in core lending amounted to
€36.6 billion, while net growth in customer deposits was €19.3
billion. ING's full-year underlying pre-tax result rose 4.5% to
€7,524 million, reflecting continued business growth at resilient
interest margins, despite heightened competition in some of our
markets; higher net commission and fee income; and somewhat lower
risk costs. ING's full-year underlying return on equity increased
from 2017 to 11.2% and the fully loaded CET1 ratio came in strong
at 14.5%. We propose a full-year 2018 cash dividend of €0.68 per
share, comprising the interim dividend of €0.24 paid in August 2018
and a final dividend of €0.44 per share. "Fourth-quarter underlying
operating expenses fell 1.9% year-on-year, but they rose 11.3% from
the third quarter, mainly due to higher regulatory costs related to
the Dutch banking tax. We stepped up our cost-saving measures,
resulting in a four-quarter rolling average cost-to-income ratio of
54.8%. We see a need for further cost discipline as we expect lower
lending growth in Wholesale Banking, possible increases in
regulatory expenses as well as due to the fact that Financial
Markets profitability continues to be challenging. "As we take
steps to build a sustainable future for our company and our
customers, we've achieved a milestone in our ambition to steer our
€600 billion loan book towards the well-below two-degree goal of
the Paris Agreement. I'm proud that four major global banks have
already joined us in our pledge - together, we have a combined loan
book of €2.4 trillion. We believe that banks have a vital role to
play in scaling, accelerating and financing the transition towards
a low-carbon economy. Together, we are stronger. Supporting this
transition, ING successfully issued the largest ever green bond
transaction certified under the Climate Bonds Standard, and the
largest ever from a European bank. The bonds will fund a green loan
portfolio of new and existing loans in renewable energy and green
buildings. "We've started 2019 with total dedication to our
regulatory and compliance commitments, while always remembering who
we're here for - our customers. Empowering them to stay a step
ahead in life and in business remains our guiding purpose." |
|
Further
informationAll publications related to ING's 4Q/FY2018 results can
be found at www.ing.com/4q18, including a video with Ralph Hamers.
The video is also available on YouTube. Additional financial
information is available at www.ing.com/qr: · Full ING Group
FY/4Q2018 press release (PDF) · ING Group analyst presentation
(PDF, also available via SlideShare)· ING Group historical trend
data (PDF, XLS) 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 webcastsRalph Hamers,
Koos Timmermans and Steven van Rijswijk will discuss the results in
an Investor conference call on 6 February 2019 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 meeting
6 February 2019 at 11:00 a.m. CET. Journalists are welcome at
ING Amsterdamse Poort, Bijlmerplein 888, Amsterdam. Alternatively,
they can dial-in in listen-only mode via +31 20 531 5871 (NL) or
+44 203 365 3210 (UK). The Media meeting can also be followed via
live audio webcast at www.ing.com. |
|
Investor
enquiriesT: +31 20 576 6396E: investor.relations@ing.com
Press enquiriesT: +31 20 576 5000E: media.relations@ing.com |
|
ING
ProfileING 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 INFORMATIONElements 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. The Financial
statements for 2018 are in progress and may be subject to
adjustments from subsequent events. 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. |