May 17, 2019 ING Luxembourg surprised by its good results

LUXEMBOURG - The lion bank has achieved satisfactory financial results in 2018, despite an environment deemed very difficult.

"2018 was even better than 2017, which was a record year," said Colette Dierick, CEO of ING Luxembourg, on Wednesday, when presenting the annual results. The lion bank posted a net profit of 115 million euros for the past financial year, up 8% year-on-year. The leader has even been somewhat surprised by these results.

"For five years, the rates are terribly low, it is a problem that must be answered by making more credits at lower margins. The prospects are not good, even if we do not necessarily see it in the figures because we find other services, other products. We are creative but there is a limit to creativity. Basically, the rates are very low and the pressure on costs is high, between indexation, regulatory costs, etc. ", Colette Dierick developed.

"The cost / income ratio is quite remarkable"

Costs increased by 4% over one year to -157 million euros and taxes amounted to 41 million euros (+ 13%). ING Luxembourg was able to cope by recording more volumes. Mortgage loans rose by 15% to 2.4 billion euros. "A novelty was introduced last year, a computer tool to do everything online in terms of invoices to prove expenses, which was rather tedious before. Our method remains a good combination of physical and digital comfort, "adds the CEO.

The private banking business is also doing well, with 85% growth in the loan portfolio over the past four years, and the financing of luxury residences abroad extended to Switzerland.

In the end, "the ratio costs / income remains at 50% which, for the market, is quite remarkable," said Philippe Gobin, Chief Financial Officer. However, "I do not expect better next year, we are almost sure to have worse results this year," concluded Colette Dierick, which claims 130,000 customers, including 41% consider ING Luxembourg as main bank