ING Q4 Net Result Rises

(RTTNews) - Dutch banking firm ING Group NV (ING) reported that its fourth-quarter net result increased to 1.015 billion euros from 750 million euros in the fourth quarter of 2016. Net result per share grew to 0.26 euros from 0.19 euros last year. The net result included the net result from Insurance Other and - when applicable - divestments, special items and the net result from discontinued operations.

The underlying net result fell by 380 million euros to 1.001 billion euros. The decline was primarily caused by lower income in Financial Markets, higher total expenses and a relatively high tax charge. Commercial momentum continued in the fourth quarter as ING welcomed 500,000 new retail customers and our core lending book recorded net growth of 6.8 billion euros.

ING's fourth-quarter 2017 underlying result before tax was 1.560 billion euros, down from 1.955 billion euros one year. The decrease was mainly caused by higher expenses, whereas income was slightly lower, primarily due to the weak Financial Markets results. Risk costs were higher on both comparable quarters, but still well below the through-thecycle average.

Total underlying income was slightly lower at 4.368 billion euros compared with 4.461 billion euros in the fourth quarter of 2016. The decline was mainly caused by lower revenues from Financial Markets and Bank Treasury activities due to lower client activity and low market volatility, as well as lower money-market results.

The 2.1% decline year-on-year was also influenced by negative CVA/DVA impacts in Wholesale Banking and in the Corporate Line: EUR -45 million in the fourth quarter of 2017 versus EUR 14 million one year ago and only EUR -1 million in the third quarter of 2017.

Net interest income rose 5.1% from a year ago, predominantly due to Financial Markets and Bank Treasury (with an off set in 'other income'), but also due to continued volume growth in customer lending. Net commission income was up 10.3%. These increases were off set by lower investment and other income. The sharp decline in other income was, in addition to the aforementioned off set with net interest income, mainly caused by lower client activity in Financial Markets.

Net commission income rose by 63 million euros, or 10.3%, to 674 million euros from 611 million euros in the fourth quarter of 2016. The increase was recorded in most segments and products, with the relatively strongest growth in Wholesale Banking, Retail Netherlands and Retail Germany.

ING grew retail customer base in the fourth-quarter of 2014 by 500,000 to 37.4 million, and primary relationships reached 10.8 million.

The Board proposes to pay a total 2017 dividend of 2.6 billion euros, or 0.67 euros per ordinary share, subject to the approval of shareholders at the Annual General Meeting in April 2018. Taking into account the interim dividend of 0.24 euros per ordinary share that was paid in August 2017, the final 2017 dividend will amount to 0.43 euros per ordinary share and will be paid in cash, shortly after the Annual General Meeting.