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!”