ING DIRECT Australia today announced a record net profit after tax of $314.7 million for the 12 months to 31 December 2015, an increase of six per cent on the previous year.
ING DIRECT CEO, Vaughn Richtor says industry leading customer advocacy is responsible for strong customer growth across all products, particularly the Orange Everyday payment account.
“A third of the growth in Orange Everyday accounts is coming from the recommendations of existing customers,” Mr Richtor said.
“It is particularly satisfying to see so many customers recommending ING DIRECT to family and friends.”
Mr Richtor says the strong growth in Orange Everyday payment accounts underpins ING DIRECT’s primary bank strategy.
“Having an Orange Everyday account increases our customers’ propensity to also have their savings account, a mortgage and superannuation with us,” Mr Richtor said.
ING DIRECT Living Super FUM grows by 45 per cent
In 2015 the number of ING DIRECT Living Super accounts grew by 36 per cent, boosting funds under management to $1.6bn, a year on year increase in FUM of 45 per cent.
Mark Woolnough, Head of Third Party Distribution at ING DIRECT, said the launch of the Living Super adviser portal in 2015 had been a key milestone for the product:
“In the past 12 months we’ve accredited 528 advisers, launched a national advice referral pilot program with the FPA and established a Living Super referral program for mortgage brokers.
“These key initiatives have boosted uptake of Living Super, particularly among the over-45 age group who tend to be more engaged with their superannuation and are looking for control over their super investments without the burden of administration.”
Over-45s accounted for 20 per cent of new Living Super customers in 2015.2015 highlights include:
- Orange Everyday (payment account) customers up more than 47% to 144,869 (Total 418,049)
- Personal savings up by $2.1bn or 9.9%
- Total deposits up $0.9bn or 2.8%
- Branded mortgages up $3.8bn or 10.8%
- Total mortgages up 2.6% to $39.8bn
- Superannuation funds under management up 45% to $1.6bn
- Number 1 Net Promoter Score in the industry (customers willing to promote the bank tofriends and family)
Mr Richtor, who was the founding CEO of ING DIRECT, announced his retirement from the business and will be leaving in June.
“I am immensely proud of the business and what has been achieved since our launch in 1999,” Mr Richtor said.
“Our business model challenged how banking was done and, while some doubted we would succeed, the provision of value for money products and exceptional customer service has proved a winning formula.”
“Creating the right culture in an organisation is the best way of ensuring the business does the right thing by the customer,’ added Mr Richtor.
