Annual Review 2014
1. ING in 2014
This section contains all the key facts and figures and general information about ING in 2014 as well as an account of the market and regulatory conditions that affected the company during the year.
Who we are
We are a global financial institution with a strong European base offering banking services. Our customers are at the heart of what we do.
Our customers32 million+
Where we operate
We operate in more than 40 countries in Europe, North America, Latin America, Asia and Australia.
Netherlands, Belgium, Luxembourg
Germany, Austria, Spain, Italy, France, Australia
Poland, Turkey, Romania and business units in Asia
At ING, we have defined three categories of markets: market leaders, challengers and growth markets.
Headline financial results
Underlying net result ING Bank
+ 9 %
Fully loaded CET 1 ratio ING Bank
ING Bank’s underlying Return on Equity9.9 %
Underlying cost/income ratio ING Bank58.7 %
|Our financial goals|
|Common Equity Tier 1 ratio fully loaded ING Bank||>10%||11.4%||10.0%||n/a|
|Leverage ratio ING Bank (1)||~4%||4.1%||3.9%||n/a|
|Underlying cost/income ratio ING Bank||50-53%||58.7%||56.8%||60.3%|
|Underlying return on equity ING Bank||10-13%||9.9%||9.0%||7.0%|
|Dividend pay-out ING Group||≥40%||38%||n/a||n/a|
|(in EUR million)||2014||2013||2012|
|Addition to loan loss provision||1,594||2,288||2,121|
|Underlying result before taxation||4,724||4,323||3,554|
|Underlying net result Banking||3,424||3,155||2,450|
|Net result Banking||2,606||3,031||3,134|
|Legacy insurance business||-1,355||515||1,228|
|Net result attributable to ING Group's shareholders||1,251||3,545||4,362|
|(in EUR billion, year-end)||2014||2013||2012|
|Total assets ING Groep N.V.||993||1,081||1,165|
|Shareholders’ equity ING Groep N.V.||50||46||51|
|Core Tier 1 securities ING Groep N.V.||0||1.5||2.3|
|Customer lending ING Bank N.V.||508||493||520|
|Customer deposits ING Bank N.V.||489||475||460|
|Effective underlying tax rate (in %) Banking||25.8||24.9||28.5|
|Risk-weighted assets ING Bank (EUR billion, year-end)||296||283||279|
|Underlying risk costs in bps of average RWA||55||83||74|
|Non financials key figures|
|Net Promoter Score Retail Banking (number of countries with number one ranking)||9(2)||6||7|
|Total number of Retail Banking primary relationships (in million)||8.2||7.7||n/a|
|Sustainable transitions financed (in EUR billion)||19.5||n/a||n/a|
|Sustainable assets under management (in EUR million)||1,538||886||673|
|Employee engagement score||75%||74%||73%|
|Total extrapolated CO2 emissions (in kilotonne)||102||127||n/a(3)|
Best Bank Western Europe
Global Finance magazine
Best Social Media Company
Social Media Monitor
Most popular bank
Mozo People’s Choice Awards
Depositary receipts for ING Group ordinary shares are listed on the stock exchanges of Amsterdam, Brussels and New York (NYSE). Options on ING Group ordinary shares (or the depositary receipts thereof) are traded on the NYSE Euronext Amsterdam Derivative Markets and the Chicago Board Options Exchange.
ING proposes to pay a final 2014 dividend of EUR 0.12 per share, subject to the approval of shareholders at the Annual General Meeting in May 2015. ING intends to pay a minimum of 40% of ING Group’s annual net profits to shareholders, through dividends, with effect from 2015.
Geographical distribution of ING depository shares in %*
Development of ING depository receipts for shares 2014
ING share price
Annual General Meeting of shareholders11 May 2015
Market and regulatory context
Three key factors combine to shape our competitive environment. Macroeconomic trends influence our performance; we face increased regulatory scrutiny; and digitisation is changing customer behaviour.
Read more about market and regulatory context
The shifting competitive landscape
Technology is collapsing barriers to entry. Payment specialists, retailers, telecommunication companies, crowd funding initiatives and aggregators are all encroaching on traditional banking services.
In the main, they don’t want to become banks – our industry is highly regulated. Banks remain well placed. Our broad-ranging relationships with customers make it easier to act in their full interests. ING is well placed. We have a long legacy as a financial institution. We believe we are a leader in digital innovation in the banking sector.
As competition intensifies, we need to become faster, more agile and more innovative. We are investing at scale to deliver targeted, state-of-the-art services for our customers whilst respecting their privacy. We are working hard to earn the trust of our stakeholders with clearer communications and more transparency.
The diagram below shows what we perceive our strengths, weaknesses, opportunities and threats to be.
- Presence in Challengers and Growth market countries with moderate to strong economic growth.
- Well-known, strong brand with positive recognition from customers in many countries.
- Strong financial position.
- Omnichannel distribution strategy.
- International network.
- Sustainable leader in the category 'diversified financials'.
- One of the leaders in digital banking.
- Currently low/subdued economic growth in markets where ING has significant market positions.
- Some legacy IT/operational systems in Market Leader countries.
- Need for more agility.
- Suboptimal work processes regarding efficiency and teamwork.
- Diversity challenges.