2018 : Another record year for ING luxembourg
- Customer experience remains high with NPS® rising to +34 for Private Banking and +38 for Retail Banking clients
- Expanded digital features on the My ING app boost adoption rates to 80% of clients
- Continued commercial momentum in all business lines delivers an underlying net result (after taxes) of EUR 115 million
- Investing in the environment: flagship fund ING Aria Lion becomes a Socially Responsible Investment fund; ING in Luxembourg without single-use plastic
Strong business growth and excellent financial performance
2018 was another excellent year for ING in Luxembourg: fuelled by an all-time high income of EUR 315 million (+6%), ING recorded an underlying net result of EUR 115 million (+ 8%) after paying taxes in the amount of EUR 41 million. The Bank’s strategy to deliver a differentiating customer experience materialised in strong Net Promoter Score (NPS®) results, especially in Private Banking with a record score of +34, despite a challenging market environment.
Careful cost management kept the cost-income ratio at a healthy 50%. ING’s solvency remains strong at 26%, well above the regulatory minimum.
Retail Banking: convenient banking for demanding clients
In pursuit of an omni-channel experience, where the client decides when and where to do banking, the network of Retail banking branches remained unchanged: 16 branches across the Grand-Duchy to serve our clients. With an ever growing mortgage portfolio (+15% again in 2018) ING developed, as a first in Luxembourg, a feature to withdraw funds from a mortgage fully via digital means – anytime, anywhere, via desktop or mobile banking, secure and easy. This new feature has encountered great success, with a majority of clients using it.
MiFID II, RGPD, PSD2 and other regulations introduced throughout 2018 did not impair Retail Banking’s capability to offer a top notch service to clients, who rewarded these efforts with a high recommendation rate (NPS®) of +38. ING ranked 2nd among banks in the 2018 KPMG Luxembourg Customer Experience Excellence Report.
Private Banking: best-in-class performance
Private Banking expanded again its lending portfolio in 2018 totalling more than 85% growth over the past 4 years. The Bank extended further its offering by adding Switzerland to the growing list of countries in which it finances luxury residences. The proceeds from lending products made up for the decrease in income on cash deposits due to the low interest rate environment. Even with the numerous regulatory and economic challenges encountered in the year, satisfaction among Private Banking customers reached a record high of +34 NPS®.
Despite a turbulent end of year in the markets, the flagship fund of funds ING Aria Lion performed very well compared to similar competitor funds: the profile “balanced” was second best in its class while maintaining lower volatility than competition. 2018 marked the beginning of the transformation of ING Aria Lion into a Socially Responsible Investment (SRI) fund.
ING Solutions Investment Management (abbreviated ISIM), the Luxembourg management company of ING created in 2014, reached a record EUR 8 billion in assets under management last year. It currently manages out of Luxembourg funds that are distributed in 5 European countries.
ING was awarded “Private Banking/Wealth Management Company of the Year – Europe” by IFC Awards, “Best for Private Banking Services – Luxembourg” by Wealth & Finance and “Most Innovative Digital Offering” by Private Banker International during the Global Wealth Awards 2018.
Wholesale Banking: catering to the needs of local actors
The Wholesale Banking activity posted an excellent performance again in 2018: the rise in results is driven by the development of commercial relations with Private Equity firms, regulated and non-regulated funds, as well as real estate companies.
Client deposits were stable and diversified across different currencies. On the lending front, 2018 confirmed the interest of local investment funds in Capital Call Financing– a bridge lending facility developed in Luxembourg with the support of the ING Group that covers the needs of the important PE/RE actors in the Grand Duchy.
ING’s commitment to finance the local economy translated in 2018 in a growth of 20% in construction financing facilities.
ING was in the Euromoney Top 3 in Luxembourg for its excellence in “Commercial Banking Capabilities”.
ING: a proud brand and a proud member of the community
ING is well known in Luxembourg for many of its sports sponsorships and its donations to charities via the ING Solidarity Awards. In 2018, the Bank expanded its partnerships: with Casino; with Rockhal to launch the first edition of the Luxembourg Music Awards; with Abbey Neimënster to sponsor the TEDx Luxembourg City and with UNI.lu to sponsor the TEDx University of Luxembourg.
Empowering people to stay a step ahead in life and in business includes offering staff well-being and personal development workshops, health check-ups and other activities. It also means a commitment to the community by participating in D’Woch vun de Suen, offering financial information and insights emanating from the ING International Surveys, and being among the first to sign the Zero Single Use Plastic Manifesto of IMS.
Colette Dierick, CEO of ING Luxembourg, comments: “2018 was an intense year with a difficult mix of low interest rates and regulatory challenges. I am proud to say that we made progress on a number of fronts to continue to deliver a differentiating client experience with new features in our apps.
Our efforts to make banking easier for our clients and available anytime and anywhere were rewarded with growth in financials and, even more important to us, with growth in the trust our clients place on us and their willingness to recommend our services to others.
I am convinced a superior digital experience with a human touch makes all the difference, already today and certainly tomorrow. We will continue to adapt our bank and to test our solutions with our clients, who provide invaluable input and guide us in our decisions!”
ING Luxembourg’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, the same accounting principles are applied as in the 2017 ING Luxembourg Interim Accounts. All figures in this document have not yet been audited by an external auditor. 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, 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) consequences of a potential (partial) break-up of the euro, (4) the implementation of ING’s restructuring plan to separate banking and insurance operations, (5) changes in the availability of, and costs associated with, sources of liquidity such as interbank funding, as well as conditions in the credit markets generally, including changes in borrower and counterparty creditworthiness, (6) the frequency and severity of insured loss events, (7) changes affecting mortality and morbidity levels and trends, (8) changes affecting persistency levels, (9) changes affecting interest rate levels, (10) changes affecting currency exchange rates, (11) changes in customer and policyholder behaviour, (12) changes in general competitive factors, (13) changes in laws and regulations, (14) changes in the policies of governments and/or regulatory authorities, (15) conclusions with regard to purchase accounting assumptions and methodologies, (16) changes in ownership that could affect the future availability to us of net operating loss, net capital and built-in loss carry forwards, and (17) ING’s ability to achieve projected operational synergies. 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 buy, any securities.
Operating in the Grand Duchy of Luxembourg since 1960, ING is a universal and accessible bank with well-developed and user-friendly digital channels, appreciated by our retail, private and wholesale banking customer base, as well as a more personal contact through our network of branches. With over 100,000 customers, ING is one of Luxembourg’s top 5 banks and one of the country’s top 10 brands (source: 2018 KPMG Luxembourg Customer Experience Excellence Report).
Our aim is to empower people to stay a step ahead in life and in business. We believe the role of a financial institution is to support and promote economic, social and environmental progress at the same time as it generates healthy returns for shareholders.
Always at the cutting edge as regards digitisation, we were the first high-street bank to launch an online account in Luxembourg. With over 800 employees in the Grand Duchy (700 of whom are at our head office: ING Lux House) and thanks to the combination of our local presence and the strength of a robust multinational like ING, we offer our personal and business customers a wide range of solutions through the channel of their choice.
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