Czech Republic

Czech Republic

ING Wholesale Banking

ING 1Q16 underlying net result EUR 842 million

ING's Think Forward strategy continues to improve the customer experience and drive commercial growth

  • Strengthened focus on innovation with further investments in proprietary technologies and collaborations with fintechs
  • ING Bank attracted EUR 8.8 billion of net customer deposits and recorded EUR 7.1 billion of net core lending growth in 1Q16


ING Bank 1Q16 underlying net result EUR 842 million despite significant increase in regulatory expenses

  • Underlying pre-tax result EUR 1,186 million; or EUR 1,682 million before EUR 496 million of regulatory costs in the quarter
  • Net interest result increased, driven by volume growth and a higher interest margin; commission income held up well
  • Quality of loan book improved: risk costs continue to decline and the NPL ratio decreased to 2.3%


ING Group 1Q16 net result EUR 1,257 million (EUR 0.32 per share) including profit on sales of NN Group shares in January

  • Group's restructuring and strategic repositioning completed through the final sales of NN shares in January and April 2016
  • Strong Group fully-loaded common equity Tier 1 (CET1) ratio of 12.9%, up from 12.7% at the end of December 2015


CEO statement

"The digital banking landscape has never been more dynamic than it is today," said Ralph Hamers, CEO of ING Group. "Customers are changing the way they bank, which requires us to be flexible and agile. Our Think Forward strategy has enabled us to rise to this challenge and deliver a differentiating experience to our more than 34 million customers around the world."

"ING Bank's most recent Net Promoter Scores rank us as number one relative to our competitors in seven countries. This recognition underscores that ING is delivering on the customer promise that is at the heart of our strategy. It also motivates us to keep getting better as we strive to achieve our purpose of empowering people in life and in business."

"In the first quarter of 2016, we made further investments in customer-friendly technologies and outside collaborations. We became the first bank in France to introduce a digital financial advisor, 'Coach Epargne', which helps customers to make more informed savings and investment choices. In the Netherlands, we started working with small enterprises in our 'Ondernemerslab' facility to co-develop new services that meet their business needs in areas such as finance and marketing. In Wholesale Banking, we added new services to our InsideBusiness digital banking platform and expanded the platform's availability to the UK and Ireland, empowering clients in these countries to manage their finances anytime and anywhere."

"We actively monitor advances in the fintech space and are able to respond quickly to opportunities that have the potential to improve the customer experience. We are currently partnered with around 45 fintechs dedicated to creating innovative solutions for banking needs, such as money management, payments, lending and mobile on-boarding. For example, seven start-ups are working on their 'proof-of-concept' through the ING Fintech Village initiative in Belgium, and four through the Innovation Studio in the Netherlands. These open, collaborative programmes involve multiple partners and provide access to their respective networks, allowing the start-ups to accelerate their development."

"Our strong customer focus reinforces the commercial momentum of our business. During the first quarter of 2016, customers entrusted ING with an additional EUR 8.8 billion of net deposits and we extended EUR 7.1 billion of net core lending. Margins remained healthy, supporting the higher quarterly interest result. The quality of the loan book also improved, as evidenced by lower risk costs and a further decline in the NPL ratio. The Bank's solid underlying pre-tax result of EUR 1,186 million reflects these factors and EUR 496 million of regulatory costs. In 2016, regulatory costs are expected to increase by over EUR 300 million to approximately EUR 960 million, impacting our cost/income ratio as we look for ways to offset these higher costs."

"In January and April 2016, we sold our remaining stake in NN Group, marking the completion of our divestment programme and the last step in our strategic repositioning. Including the net profit from the sales of NN Group shares in January, ING Group's first-quarter net result was EUR 1,257 million. ING Group ended the quarter with a strong fully-loaded CET1 ratio of 12.9%, excluding the first-quarter net profit and the impact of the NN share sale in April. With our robust capital and liquidity position, we are well-placed to adapt to the ever-changing regulatory environment."

"Looking ahead, our focus is to accelerate the execution of our Think Forward strategy. I am grateful to our employees for their dedication to serving our customers to the best of our ability. Our priorities are clear, and I am confident that ING's strong portfolio of businesses will enable us to continue empowering our customers and deliver sustainable shareholder returns."