ING Belgium builds on strong results with €608 million profit after first half of 2024
Strong half-year results and rollout of new strategic chapter fuel growth ambitions
Brussels - With a pre-tax profit of €608 million after the first six months of 2024, ING Belgium is building on a historically strong 2023. Significant growth in revenues from investment products, among others, more than compensated for the slightly lower interest income. The bank continues to play its societal transformation role to the fullest and saw its total loan portfolio grow to €114.5 billion. Increasingly recognised as the go-to bank for savings and investments, ING saw nearly 70,000 new current accounts opened from January to June.
For more than three years, we’ve been on a strong trajectory that we are extending into 2024. Now that the foundations of our bank have been significantly strengthened, our ambition is to grow further. During the first half of 2024, we saw significant growth in our commission income across investments, insurance and Private Banking Peter Adams, CEO of ING Belgium
Total loan portfolio grows to €114.5 billion
ING Belgium continued to fully play its role as a credit provider to the Belgian economy in the first half of 2024. Thanks to significant lending to companies, our loan portfolio grew by more than €4 billion to €114.5 billion. The decline in customer deposits was more than offset by a strong rise in investment products. This positive commercial momentum ensured that the first half of 2024 ended with a strong pre-tax result of €608 million, €28 million more compared to the same period a year earlier.
Strong increase in commission income
The bank’s overall income remains at 2023 levels. The slight decrease in interest income is partly due to the competitive savings offer for our customers, but is more than offset by higher commission income from investment products.
On the cost side, the slight increase in operating costs remains well below last year's inflation, showing that cost control remains important in 2024. With risk costs of just €55 million in the first half of the year, we are reinforcing our expertise in healthy lending.
The growth of more than €4 billion in outstanding loans, in particular to businesses, underlines our ambition for growth. Thanks to our attractive savings and investment offer, more and more customers are recognising ING Belgium as the go-to bank in this field. I’m delighted that this positive commercial momentum is also translating into strong financial figures with robust commission results as a highlight. In this first half of the year, we’re doing better than in the first half of our record year 2023 Hans De Munck, CFO of ING Belgium
Ambition to become the go-to bank for savings and investments
Thanks to our attractive savings and investment offer, nearly 70,000 new current accounts were opened from January to June. Investors also easily found their way to ING Self Invest and ING Easy Invest over the past six months, two fully digital investment solutions. ING Self Invest welcomed 18% more active investors. While ING Easy Invest, the solution for new investors, saw an impressive three-fold increase in the number of investment accounts opened.
In the Private Banking segment, commission income grew by 15% compared to the same period last year. Our renewed focus on Private Banking allows us to fully realise the synergies with Business Banking.
ING and insurer NN have strengthened their partnership so that private customers can continue to count on a modern insurance offer at an attractive price for ten years longer. A strong signal that both partners aspire to grow in the market.
Capturing state bond billions is a priority
ING is marketing a promotional term account as a flagship offer. Customers can register to receive a bonus of 0.20% gross annual interest on top of interest rates to be announced later. The pre-registration is completely flexible and carries no obligation.
To reinforce our growth ambition, capturing the billions from the state bond is our absolute priority. At stake is the largest maturity in our country's financial history. We’re going for nothing less than the most attractive offer on the market Peter Adams, CEO of ING Belgium
Together for Progress as a new strategic chapter: creating impact in the Belgian economy and addressing various societal challenges
As a financier of the economy, ING wants to do more than its ‘fair share’. More than ever, the bank aims to keep its finger on the pulse of what is going on in society by strengthening the competitiveness of its businesses, co-financing the energy transition, and safeguarding the financial independence of current and future generations. The bank feels a responsibility to protect and strengthen customer, the economy and society.
Supporting companies on their path to improved competitiveness
We continue to record strong growth (+9%) in lending volumes compared to the first half of 2023. This shows that we are assuming our role in supporting the Belgian economy and contributing to the further development of both small and large businesses.
The Belgian business community is facing a major challenge in terms of (inter)national competitiveness. We want to support companies in this respect. We proactively approached more than 15,000 of our clients to support them in investing in further improving their competitiveness Peter Adams, CEO of ING Belgium
We ensured that businesses could apply for their short-term loans (<1 year) entirely digitally. Both initiatives have led to an increase in the number of Instant Business Credits granted in the first half of this year. Compared to the first half of 2023, both the number of Instant Business Credits granted and the respective loan volumes tripled, meaning that 1 out of 4 loans granted under €100,000 is in the company's account the following day.
In addition to providing support through quick credit solutions, ING also offers solutions for sustainable business. Think of classic financing of a more environmentally friendly vehicle fleet or interventions that make corporate real estate more energy efficient. In the first half of 2024, ING recorded growth of 87% in sustainable loans granted to companies, compared to the full year 2023.
Supporting families' energy transition
Another pillar of our strategy is to take the lead in the household energy transition. Since the end of March, ING has been offering the possibility of a 30-year mortgage loan. In the wake of its launch, the bank has received 7 times more applications for loans with a term longer than 25 years in the second quarter of 2024 compared to the first quarter. In certain cases, it is also possible to borrow up to 100% for the purchase of a home. Both options have a positive impact on customers' financing capacity. Young people and single individuals now have more opportunities to finance the purchase of their dream home, while keeping enough buffer for energy-efficient renovations.
Giving customers more insight into their budgets
As a final pillar, we want to better equip our customers to secure themselves financially for the future. One example is the ING Banking app, where customers can find a range of financial health features, including ‘ING Save Up’ and ‘Your Budget’.
About ING
ING Belgium is a universal bank offering financial services to private, corporate and institutional customers. ING Belgium S.A./N.V. is a subsidiary of ING Group N.V. through ING Bank N.V. (www.ing.com).
ING is a global financial institution with a strong European presence offering banking services through its operating company ING Bank. ING's goal is to enable people to stay one step ahead, both privately and professionally. ING's more than 60,000 employees provide retail and commercial banking services to customers in over 40 countries.
ING Group shares are listed on the Amsterdam (INGA NA, INGA.AS), Brussels and New York Stock Exchanges (ADRs: ING US, ING.N).
Sustainability is an integral part of ING's strategy, as evidenced by ING's leading position in sector benchmarks. ING's Environmental, Social and Governance (ESG) rating by MSCI was affirmed with 'AA' in July 2023. As of December 2023, Sustainalytics considers ING's management of material ESG risks as 'strong'. ING Group shares are also included in key sustainability and ESG index products from leading providers Euronext, STOXX, Morningstar and FTSE Russell.
Press Office ING Belgium
