Despite this context, there was an increase in client balances (+14%) and a growth in revenue (+1.6%), while net income was down at €48 million (-10% compared to the first half of 2015). This was primarily due to new regulatory costs of €4.1 million in the first half of 2016, of which there were none in the first half of 2015.

While securities deposits increased (+32%), cash deposits were down (-6%), although loan activity grew strongly (+16%), moving the ING Luxembourg loan to deposit ratio from 39% to 48%.

Evolution for each business line
Despite the drop in the interest margin, Retail Banking, which combines the bank’s retail businesses, saw its revenue remain at a level similar to that of the previous year, thanks primarily to an increase in loan activity. However, profits declined, essentially as a result of the accounting of all 2016 regulatory costs for the creation of the deposit guarantee fund.

Private Banking profit was down, notably due to the Brexit outlook which weighed on the securities activity at the end of the semester, resulting in an overall decrease in transaction volumes.

Despite the difficult environment, Wholesale Banking recorded a slightly higher than expected profit in the first semester. Negative interest rates and their impact on margin were offset by good sales activity.
This good performance was tied to growth in all assets (deposits, loans and securities) and to a significant increase in payment transactions (+30%). The number of new account openings continued to increase satisfactorily (+4%).

ING Luxembourg: international bank, local presence!

• Once again, a “Great Place to Work Luxembourg”!

ING Luxembourg is very proud to announce that it was once again awarded “Great Place to Work” on 3 March 2016, following a survey carried out by the “Great Place to Work Institute”. Already awarded “Great Place to Work” five times between 2011 and 2015, ING was ranked sixth amongst the winners this year.
ING Luxembourg can be particularly proud of this distinction as it is this year again in the first place among companies with more than 500 employees, and first among financial industry companies.

• ING Night Marathon Luxembourg: eleven and counting…!

This year, the Marathon was held for the eleventh time. It was a great success, like the 10 previous editions. ING reaffirmed its brand’s presence in the Grand Duchy with the orange wave that flooded Luxembourg-City last 28 May, attracting nearly 12,000 runners and over 100,000 spectators.

• ING confirmed its support for culture and local artists with a new exhibition at Neumënster

On Thursday 12 May, ING Luxembourg had the pleasure of launching the ING Unseen Talent Award, the first-ever exhibition organised by ING Luxembourg at Neumünster Abbey, in close cooperation with Neumënster and the Art Management Department of ING Amsterdam. The exhibition presented the work of emerging young photographers who have won the international ING Unseen Talent Award contest. The contest is supported by ING Bank and the organisers of Unseen Photo Fair Amsterdam (23-25 September 2016). The exhibition brought together all of the nominees and winners of the last three years. To continue its support for young talents, an exclusive area of the exhibition featured the recent work of Luxembourg photographer Sophie Jung, the winner of the latest edition.

Conclusion
The retreat experienced during the first half was due to a bearish market and the major macroeconomic uncertainty which has marked the year so far. In addition, the unprecedented situation the sector is currently facing—that is, extremely low interest rates and rising regulatory costs— continues to weigh heavily on ING Luxembourg’s margins.
Despite these unfavourable conditions, the Bank was able to maintain virtually the same performance level as last year thanks to strict cost management, accelerated implementation of its “Think Forward” strategy and employee commitment.