ING Groep

The birth of ING may be traced back to a merger of two Dutch financial institutions in 1989: the NMB and the Postbank. It wasn't until a year later that the Authorities finally allowed insurance and banking giants to merge, The NMB Postbank Groep and Nationale-Nederlanden Insurance Company commenced the proposed merger. Following the merger, they changed their name to the Internationale Nederlanden Groep. The initials "ING" were quickly adopted by the markets, initiating the rebranding of the company as ING Groep N.V.

The ING Group is a global Dutch financial services and bank organization headquartered in Amsterdam. Retail banking, direct banking, commercial banking, investment banking, wholesale banking, private banking, asset management, and insurance services are its core operations. With a net value of $1,100 billion, that's one of the world's biggest banks and ranks third among the top 30 largest banks worldwide and is one of the ten largest organizations in Europe by revenue.

Importantly, In January 2016, ING retitled its Commercial Banking operations Wholesale Banking. The new name more accurately represents the business' predominantly worldwide, major corporate and commercial nature. Wholesale Banking is subdivided into Structured Finance, Financial Markets, Transaction Services, and Corporate Finance, among others.

Wholesale Banking achieved a solid set of results as a consequence of continuing impressive service in Industry Loaning, solid volume increase, and improved results in Worldwide Finance. The underlying result before taxes increased by 28.9% from 2014 to 2,560 million euros. Excluding CVA/DVA effects, the outcome was 8% greater.

Today, ING runs in many countries such as Australia, Singapore, the USA, the UK, Ireland, Europe, Canada, and many countries. Today, with over USD $1 Trillion in assets, 40 million customers in more than 40 countries, and approximately 60,000 employees, ING is a major global financial player.

As of the previous year’s performance, the Full-year 2022 net profit of €3,674 million, underpinned by a rising client base and growth in banking and depositing.

• major client base expanded by 585,000 during the course of the entire year.

• 18 billion euro net growth in core lending and 25 billion euro net growth in total deposits in 2022.

• the net income was €3,674 million, and a €0.389 per share dividend was suggested for 2022.

 

When the world economy collapsed in 2008, in the month of October the Dutch government stepped in with $13.4 billion in aid, The declaration was made after regulators at the central bank feared the company would fall, and ING shares fell more than 27% after the bank announced it expects a third-quarter loss of 500 million euros due to 1.6 billion euros in write-downs. As part of the agreement, ING promised to settle up with a premium of up to 50% on loan repayment and the other condition was if a dividend is given to ordinary shareholders, then only ING is required to pay interest on the aid.

In January 2009 ING Group and the Ministry of Finance announced that the Dutch government would carry 80 per cent of the risk on a big package of US Alt-A mortgage bonds. The Alt-A portfolio's value rose steadily in 2012, due to a considerably better financial tide in the United States.

In December 2009, ING initiated reimbursing the Dutch government, which had paid its final payment in November 2014. The Nederlandsche Bank (DNB), the Dutch central bank, has sanctioned all transactions. Payments on the Dutch government's core Tier 1 securities totalled
EUR 13.5 billion, this yields a return of 12.7 per cent per year for the State and consists of EUR 10 billion in principle plus EUR 3.5 billion in interest and premiums.

 

Dutch open probe into ING corruption, money laundering

In 2018 ING was fined $900 million for failing to spot money laundering as Dutch Giants admitted that lawbreakers had been able to launder money through ING and they agreed the settle the case for $900 million which is 775 million euros, According to Dutch financial crime prosecutors, this has prompted inquiries from American regulators, Authorities in the Netherlands said they began looking into ING in 2016 after discovering that repeated violations might indicate systemic issues.

They gave specific instances of criminal activity involving ING accounts, highlighting the telecoms company VEON (previously VimpelCom) in Uzbekistan for paying bribery. By 2016, VEON had paid $835 million to resolve allegations in the United States and the Netherlands. as a result, The CFO of ING resigned after being implicated in the bank's compliance lapses, which allowed firms to launder hundreds of millions of euros and pay bribes.

ING's Know Your Customer (KYC) policy was implemented to safeguard against money laundering, and businesses they know to be reliable. This entails doing things like checking up on consumers, keeping their records up to date, screening them and their transactions, keeping tabs on everything, and reporting anything suspicious.

References

 

KERR, W. R., GABRIELI, F. & MOLONEY, E. 2018. Transformation at ing (a): Agile. Harvard Business Review, 1-19.

state aid for ING: the facts and figures, available at 

https://www.ing.com/Newsroom/News/Features/Feature/State-aid-for-ING-the-facts-and-figures.htm (accessed on: 22 February 2023)

 4Q/2022 RESULTS, Available at 

https://www.ing.com/Investor-relations/Financial-performance/Quarterly-results/2022.htm

(accessed on: 22 February 2023)

 the Netherlands to provide $13 billion to the ING group, available at 

https://www.nytimes.com/2008/10/20/business/worldbusiness/20ing.html#:~:text=Oct.%2019%2C%202008%20PARIS%20%C2%97%20The%20Dutch%20government,%E2%80%9Ctier-1%20securities%2C%E2%80%9D%20works%20out%20to%20about%20%2413.4%20billion.

(accessed on 22 February 2023)