Czech Republic

Czech Republic

ING Wholesale Banking

ING posts 2Q2019 net result of €1,438 million

ING continues to record growth in primary customers and core lending

  • Retail primary customers rose in 2Q2019 by 300,000 to 12.9 million; total retail customer base reaches 38.6 million
  • Net core lending in 2Q2019 grew by €7.4 billion; net customer deposit inflow amounted to €11.7 billion


ING 2Q2019 underlying pre-tax result of €2,005 million; ING declares interim cash dividend of €0.24 per share

  • Result reflects well-diversified loan growth at resilient margins, despite margin pressure on customer deposits, as well as stable fee income and a relatively low level of risk costs
  • Four-quarter rolling underlying ROE was 10.8%; ING Group CET1 ratio remained robust at 14.5%


CEO statement

“We achieved good results in the second quarter, with solid profitability and healthy growth in both lending and deposits. We added more than 300,000 primary customers in 2Q2019, which demonstrates that our customer experience continues to be differentiating and drive growth,” said Ralph Hamers, CEO of ING Group. “Higher volumes and resilient lending margins supported earnings despite the ongoing low interest rate environment. Looking ahead, we expect that persistently low interest rates will put pressure on net interest income.

“We took further steps in the second quarter to improve the way we manage non-financial risks. The number of FTEs working in KYC-related activities, including our global know your customer (KYC) enhancement programme has increased to over 3,000. File enhancement and transaction look-back operations are resulting in improved reporting of suspicious or unusual activity to authorities in various countries. Our increased focus on KYC and our efforts to streamline our operations are leading to an increased number of accounts that are being closed, including inactive accounts or accounts of which the customers were insufficiently responsive to information requests. And we have started a re-evaluation of certain client and business relationships. We’re also working on promising tools that use machine learning and artificial intelligence to increase the effectiveness of our KYC operations. At the same time, we welcome steps by the Dutch and other authorities to achieve wider cooperation between banks, law enforcement and regulators on both a national and European level to strengthen the financial system’s resilience in the fight against financial economic crime.

“We continued to innovate to improve the digital customer experience and to strengthen our mobile-first approach. In Germany and Poland, we now offer features that help customers to better manage their money by notifying them of upcoming payments, similar to the ‘Kijk Vooruit’ feature in the Netherlands. We’ve enhanced the experience of our mobile app users by adding Apple Pay in the Netherlands, Romania and Spain. Interhyp, ING’s independent mortgage brokerage platform in Germany and Austria, which offers access to over 450 mortgage lenders, had a record quarter and is on track for a 10% market share in Germany.

“We empowered customers through new beyond banking services that help them stay a step ahead in life and in business. Within our global partnership with AXA, we’ve launched our first products in two countries.

“The 26 sustainable bond transactions and 12 sustainable loan transactions in 2Q2019 showed that ING’s commitment to sustainable and green financing is achieving good commercial results. Among them we supported a €750 million green innovation bond for Philips and a €1.55 billion loan to Merlin Properties, Europe’s largest sustainability improvement loan for the real estate sector. And ING is one of the founding banks of the Poseidon Principles, which aim to reduce greenhouse gasses from shipping by 50% by 2050, aligning our shipping financing with our Terra approach.

“We are making good progress transforming our business so we can continue to deliver a differentiating customer experience. At the same time, we took important steps in the second quarter to strengthen our management of non-financial risks, particularly in the areas of KYC and anti-money laundering. We are committed to maintaining the highest standards in these areas, now and in the future.”