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Customer influx bolsters ING profits

The non-major has reported a 9.7 per cent increase in its statutory net profit, helped by strong customer growth that contributed to a $3.1 billion rise in its mortgage portfolio.

ING Australia has released its financial results for the 2019 calendar year (CY19), posting a statutory net profit after tax (NPAT) of $440 million, up 9.7 per cent from $400 million in CY18.

ING attributed its earnings performance to continued growth in its consumer-facing business, with the bank reporting strong retail deposit and lending growth.

ING’s retail deposits grew 9.7 per cent to $37 billion, with the bank attracting more than 450,000 new Orange Everyday transaction accounts. This included a 30 per cent increase in primary customers to 833,000.  

The bank’s mortgage portfolio increased 6.3 per cent from $48.9 billion to $52 billion, while its business lending book increased 9.2 per cent to $4.9 billion.

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ING also bolstered its personal loan book to over $245 million and grew wholesale banking by 13.3 per cent to $5.7 billion.

In total, ING attracted approximately 435,000 new customers, taking its total to 2.6 million.

Reflecting on the result, ING Australia CEO Uday Sareen said that growth of both retail deposits and retail mortgages has been “above industry average”.

Mr Sareen added that the bank’s digital proposition has particularly helped attract new business.

“People want the ability to do their banking 24/7 in a simple and easily accessible way. The digital experience must be simple, faultless, effective and engaging,” he said.  

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“Our mobile app drives more than 800,000 customer interactions per day. More than a third of our customers deal with us only through the mobile app; for these people the app is the bank.

“The desire for a seamless digital experience is increasingly the reason for people to change banks.”

The ING CEO also made particular reference to the ING’s wholesale banking business, which he said has helped the bank deliver on its commitment to the broader community.  

“What’s been particularly pleasing about this growth is our increased financing of renewable energy projects like the Kiamal Solar Farm in Victoria – the state’s largest – and the Snowtown 2 Wind farm in regional South Australia,” he said.

“We aim to be a leader in sustainable finance and are committed to taking climate action by aligning our lending to the Paris Agreement goals.

“We continue to leverage our international expertise in wholesale banking to help clients fund renewable energy, infrastructure, natural resources, power and utilities, and food and agriculture.”

[Related: Macquarie, NG among a host of lenders to slash rates]

Customer influx bolsters ING profits
ING Australia CEO Uday Sareen
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