ING weathers 'challenging' 2023 to boost profit
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The news: ING Australia boosted profit and customers in the year ending December 2023, as the digital bank grew income across both its wholesale and retail products.
The numbers: Net profit after tax lifted 11% to $654 million compared to the prior corresponding period, while it increased its loan book by 3.9% to $73.9 billion.
The company said it had 1.1 million customers that chose ING as their primary bank, up 5.7%, as total active customers grew 3.9% to 2.23 million.
ING hiked its dividend 11.2% year on year to a total payout of $654 million.
The context: ING Australia, a wholly owned subsidiary of the multinational Dutch bank ING Group, said that 2023 was a "challenging macroeconomic environment" with an increase in the cost of funds and rising inflation. It said its double-digit profit growth was driven by balance sheet growth, asset and liability pricing, increased investment in its business and sustained risk costs.
Elsewhere, ING's wholesale bank had its best year on record, growing 3% year on year, and contributing 12% to its total NPAT. In its retail bank, digital and enhancements and credit policy changes resulted in a 19% growth in credit cards and personal loans, plus an 8% rise in income through its insurance products.
What they said: ING Australia's CEO Melanie Evans said: "Our 2023 results show we were able to successfully grow our business across a number of key metrics while supporting customers as Australia's most recommended bank".
"Importantly, we continued our strong retail customer growth with more Australians than ever choosing ING as their main financial institution," she said.
The source: ING annual report
