• November 03, 2016
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ING third quarter 2016 underlying net result EUR1,336 million

ING Bank 3Q16 underlying net result EUR 1,336 million, up 22.3% year-on-year, refl ecting solid commercial momentum

• ING Bank recorded EUR 3.6 billion of net core lending growth and attracted EUR 2.0 billion of net customer deposits in 3Q16
• Performance refl ects continued loan growth at healthy margins, as well as higher commission and fee income
• Operating expenses declined slightly year-on-year and sequentially; risk costs remained relatively low at 34 bps of average RWA

ING Group 3Q16 net result EUR 1,349 million (or EUR 0.35 per share); robust ING Group CET1 ratio and ING Bank ROE

• ING Group fully-loaded CET1 ratio rose to 13.5%; ING Bank underlying ROE of 11.3% for the fi rst nine months of 2016

CEO statement
“ING delivered another quarterly result that exemplifi es our Think Forward strategy in action,” said Ralph Hamers, CEO of ING Group. “We again recorded solid commercial growth and introduced several new innovations. Year-to-date, we have established over 400,000 new primary customer relationships. To foster further growth and maintain our standing as a leading European bank, we strive to keep getting better every day, while managing the pressure on returns from the continuous
regulatory burden and the low interest rate environment. In this context, I am convinced that our recently announced investment programme and intention to converge towards a single digital banking platform are necessary steps to enable ING to evolve with changing customer expectations and to increase operational effi ciency.”

“ING Bank recorded EUR 3.6 billion of net core lending growth and attracted EUR 2.0 billion of net customer deposits in the third quarter. Lending growth was well diversifi ed across Retail and Wholesale Banking. We also continued to facilitate our clients’ sustainable transitions through deals that support recycling, the circular economy and renewable energy. We are proud that our integrated sustainability approach earned ING the number-one ranking among global listed banks by Sustainalytics in August. We also achieved a signifi cant year-on-year improvement in our Dow Jones Sustainability Index ranking, and received the highest possible score in CDP’s annual review for our performance and disclosure related to our climate change strategy.”

“During the third quarter, we introduced another wave of innovative and insightful fi nancial tools that empower customers. In Spain, the launch of Twyp Cash provides customers with greater convenience by enabling them to withdraw cash using their smartphones when making purchases at more than 3,500 supermarkets and petrol stations. In Wholesale Banking, we developed Virtual Cash Management, an advanced application that allows companies to manage their cash across banks and
borders. It provides corporate treasurers with enhanced cash visibility, access and control, anytime and anywhere.”

“More recently, we created and launched the money management platform Yolt as a next step in digitalisation and in preparation for upcoming European regulation that will open the payment services market to new players in 2018. Yolt gives users insight into their account information from diff erent banks in one easy overview, helping customers stay on top of their fi nances. The app is currently being tested only in the United Kingdom, but we will explore opportunities for expansion.”

“ING’s third-quarter underlying result before tax was EUR 1,878 million, refl ecting continued loan growth at healthy margins, eff ective cost control and a relatively low level of risk costs. Challengers & Growth Markets delivered another record quarterly result on the back of further organic growth. Retail Benelux showed resilience, as the performance of the Netherlands compensated for the decline in results at Retail Belgium, which were down 16.5% year-on-year. ING Group’s fully-loaded CET1
ratio rose to 13.5%. ING Bank’s underlying ROE was 11.3% for the fi rst nine months of 2016.”

“As announced on 3 October, we intend to invest EUR 800 million over the next fi ve years to create a scalable banking platform to cater for continued commercial growth, an improved customer experience and a quicker delivery of products. Regrettably, our intended transformation will impact many of our employees, particularly in Belgium and the Netherlands. We will do our utmost to build on our track record of helping colleagues who are or could be aff ected to fi nd new job opportunities. All of those aff ected will be treated with respect and care.”

“I fully appreciate the hard work of our employees that is refl ected in our quarterly results. While change is not easy, it is essential to build on our position of strength. I have complete confi dence in our ability to execute on our strategy and truly believe that the measures we intend to implement will ensure that we continue to empower customers to stay a step ahead.”

Re-disseminated by The Asian Banker