ING DIRECT Australia today announced a net profit after tax of A$133.1 million for the six months to June 30 2010, down $7 million on the profit achieved in the corresponding period in 2009.
ING DIRECT CEO Don Koch said the rising cost of funding had compressed margins and slowed profit growth in the first six months of 2010.
“The global financial crisis has left a stubbornly higher cost of funding”, Mr Koch said.
Mr Koch, said excellent growth in customer numbers and solid growth in savings and mortgages had contributed to the result.
Year on year to 30th June 2010:
| SAVINGS | ^ $700 million |
| MORTGAGES | ^ $1.1 billion |
| NEW TO BANK CUSTOMERS | ^ 81,745 |
ING DIRECT plans to further diversify its funding sources with a new move into the securitisation market in 2010.
“Our deposit base is the core strength in our funding mix but we also need to take advantage of alternative funding sources as they become more attractive,” Mr Koch said.
“Despite the higher cost of funding we are determined to continue to offer a competitive alternative in the Australian banking market.”
Mr Koch said he was particularly pleased with the success of the launch of the Orange Everyday transactional account.
“We have more than 70,000 Orange Everyday accounts opened so far with many of those new to bank customers,” Mr Koch said. “People are able to save with us, get their home loan with us and deposit their salary and pay their bills with us – we can now be their primary bank.”
ING DIRECT, Australia’s 5th largest retail bank, has a retail deposit base of $21b and a retail mortgage book of $37b.
ING DIRECT has more than 1.4 million customers and the highest customer satisfaction of all banks in Australia*.
For further information, please contact:
David Breen
ING DIRECT
T: 02 9028 4347
M: 0412 933 060
About ING DIRECT
ING DIRECT began operating in Australia in 1999. By doing business online, over the phone and through intermediaries, ING DIRECT keeps it overheads low and passes the savings onto customers in the form of competitive rates. Today, it has grown to become Australia’s fifth largest retail bank, with around $21 billion in deposits, more than $37 billion in loans and more than 1.4 million customers.
* Nielsen Financial Services Monitor Q1 2010