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ING profits bolstered by 11% loan growth

An 11 per cent increase to the non-major’s mortgage book has helped drive 15 per cent growth in ING’s net profit after tax.

ING Australia has reported lending growth of 11 per cent in the 2018 calendar year, expanding its portfolio by $5.5 billion, from $52.5 billion to $58 billion.

The bank also reported business lending growth of 11 per cent, rising to $4.5 billion, with ING’s wholesale banking portfolio also increasing, jumping by 36 per cent to $4.9 billion.

Over the same period, ING added more than 400,000 new-to-bank customers, 500,000 new Orange Everyday payment accounts, and a 57 per cent increase in primary bank customers, which now totals 645,000.

Savings accounts under ING’s management also grew, rising by 9 per cent to $43.4 billion.

As a result of its performance over the 2018 calendar year, ING’s net profit after tax rose by 15 per cent, from $348 million to $401 million.

ING Australia CEO Uday Sareen welcomed the result amid challenging market conditions.

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“There is a real momentum behind customer growth that is transforming the business,” he said.

“We have more than doubled the number of customers who use ING as their main bank over the past three years.

“ING has performed strongly in what has been a difficult year for banking. Our continuing focus on customer advocacy is driving results.”

Mr Sareen also noted the contribution of ING’s diversification strategy to the overall result.

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

ING’s 15 per cent profit growth has been reported despite the continued wholesale funding cost pressures, which prompted the lender to lift mortgage rates by 10 basis points in the second half of 2018 and by 15 basis points in February.  

 [Related: YBR reports $34m loss after writing off goodwill]

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