Member News

ING 2016 underlying net profit EUR 4,976 million; FY 2016 dividend of EUR 0.66 per ordinary share

ING records robust commercial growth in 2016 while achieving a number one NPS score in 7 of 13 retail markets
· ING gained over 1.4 million new retail customers and grew primary relationships by 8.1% to 9.7 million
· Business growth was robust in 2016 with EUR 34.8 billion net core lending growth and EUR 28.5 billion net customer deposit inflow
ING Bank full-year 2016 underlying net profit of EUR 4,976 million, up 17.9% from full-year 2015
· Strong full-year 2016 results reflect robust commercial growth at resilient margins and a continued decline in risk costs
· 4Q16 underlying result before tax was EUR 1,955 million as income grew in line with higher business volumes
ING Group fully-loaded CET1 ratio strengthened to 14.2%; Board proposes full-year 2016 dividend of EUR 0.66 per share
· ING proposes to pay final cash dividend of EUR 0.42 per ordinary share, following August 2016 interim cash dividend of EUR 0.24



CEO statement

“ING has made significant progress in accelerating our Think Forward strategy, while consistently delivering on our customer promise,” said Ralph Hamers, CEO of ING Group. “Our success in providing an exceptional banking experience is evident in the strong set of commercial and financial results that we posted for both the fourth quarter of 2016 and for the full year.”


“In 2016, we introduced a steady wave of insightful financial tools to make banking easier and more accessible for customers, who are increasingly digital and self-directed. We also expanded the breadth of our innovation capabilities through ongoing internal eff orts and by nurturing more than 70 active fintech partnerships. These and other initiatives supported customers’ needs and drove our robust commercial growth, while underscoring our track record as a leader in digital banking.”


“ING attracted 1.4 million new retail customers over the course of 2016, bringing our global customer base to 35.8 million. Of this total, 9.7 million are primary bank customers, which is an increase of 8.1% year-on-year. Our most recent Net Promoter Scores rank ING Bank as number one relative to competitors in seven of our 13 retail markets. These achievements reflect the hard work and focus of our employees to deliver a differentiating customer experience, each and every day.”


“Business growth was robust across ING Bank in 2016, with net customer deposits increasing by EUR 28.5 billion, or 5.6%. We realised net growth in core lending of EUR 34.8 billion, which represents a 6.5% rise year-on-year. We also continued to support the transition to a greener economy, and our financing of sustainable projects and clients that are environmental outperformers rose to EUR 34.3 billion at year-end.”


“For the full-year 2016, ING Bank recorded an underlying net profit of EUR 4,976 million, up 17.9% from 2015. This strong performance was driven by robust commercial growth at resilient margins and declining risk costs, and was achieved despite higher regulatory costs. ING Bank’s full-year underlying return on equity rose to 11.6% from 10.8% in 2015. In the fourth quarter of 2016, the underlying result before tax of ING Bank was EUR 1,955 million, reflecting continued positive momentum in both Retail and Wholesale Banking. Income grew both year-on-year and sequentially in line with volume growth, while expenses and risk costs both declined year-on-year.”


“ING Group’s 2016 net result was EUR 4,651 million, or 16.0% higher than in 2015, including EUR -787 million of restructuring charges and impairments as announced on 3 October (recorded as special items after tax) and the EUR 474 million net result of the legacy Insurance business. The full-year 2016 underlying return on ING Group’s IFRS-EU equity rose to 10.1% and ING Group’s fully-loaded CET1 ratio strengthened to 14.2% at year-end 2016. We are comfortably ahead of prevailing fully-loaded requirements and well positioned for future regulatory uncertainties. We are pleased to propose a full-year 2016 cash dividend of EUR 0.66 per share, comprising the August 2016 interim dividend of EUR 0.24 and a final dividend of EUR 0.42 per share.”


“In the past year, ING took important steps to start a path of convergence towards one digital banking platform, which will enable us to keep getting better in the face of changing customer behaviour and industry dynamics. I am convinced that the acceleration of our Think Forward strategy will allow us to build on our position of strength for the benefit of our customers.”


Compliments of ING – a member of the EACCNY