ING Financial Results for 2005
ING DIRECT Bancorp Announces Fourth Quarter and Year End Results
ING DIRECT Reaches $40 Billion in Deposits
2005 highlights for ING DIRECT Bancorp:
Net income grew to $176.7 million
Expense growth held to 11%
Deposits reached $40 billion, including a doubling in certificates of deposits
ING DIRECT added 1.2 million customers in 2005, a 52% increase compared to 2004
ING DIRECT Bancorp (Bancorp) today announced unaudited results for the fourth quarter and full year ended December 31, 2005.
ING DIRECT Bancorp consists primarily of ING Bank, fsb (ING DIRECT), the nation’s fourth-largest thrift by assets. In 2005, net income increased 45% to $176.7 million, up from 2004 net income of $122.1 million. For the quarter ended December 31, 2005, Bancorp net income was $42.5 million, compared to $42.8 million for the third quarter of 2005.
Year over year, net interest income increased 16% to $538.6 million, and for the fourth quarter, net interest income grew 3% to $135.8 million. Total assets ended 2005 at $53.2 billion, a 48% increase year over year and a 3% increase from the prior quarter. Despite significant increases in total assets and income for 2005, ING DIRECT was able to contain the increase in non-interest expenses to 11%. ING DIRECT added 1.2 million customers year over year, bringing its total customer base to 3.4 million, an increase of 52%.
Total deposits reached the $40 billion mark at year-end 2005, a 39% increase compared to the prior year. Included in this growth was an increase in certificates of deposits from $2.6 billion to $5.3 billion.
“2005 was a very strong year for ING DIRECT, and we are pleased with our results,” said Arkadi Kuhlmann, President and CEO, ING DIRECT. “At a time when national data indicate a negative savings rate, we have been able to attract a depositor base that is running counter to the trend. Our significant customer growth underscores Americans’ increasing enthusiasm for saving with us, and our straightforward value proposition has put more than $2.1 billion back in savers’ pockets – $1.4 billion more than would have been earned at other U.S. banks and thrifts over the same period. We look forward to continuing to make it easy and simple for consumers to save their money.” “Bancorp’s solid results were achieved despite a flattening yield curve and a continued increase in the cost of funds,” Kuhlmann noted. “Maintaining our profitability levels compared to less challenging quarters is a testament to our business. We will continue to emphasize long-term value creation for our customers and our business as we maintain our focus on cost containment in order to pass along the maximum savings to our customers.”
In 2005, real estate mortgage lending increased $3.0 billion or 30% to $12.9 billion, compared to $9.9 billion in 2004 and grew $644 million in the fourth quarter. The $12.9 billion referred to above includes the Orange Mortgage loan portfolio of $5.5 billion, a 61% increase compared to $3.4 billion in 2004.
Included in the $2.1 billion increase in Orange Mortgage balances is the origination of 10,566 single family adjustable rate Orange Mortgages, a 9% account volume increase compared to 2004. In the fourth quarter of 2005, ING DIRECT originated 3,292 single family adjustable rate Orange Mortgages, a 24% account volume increase compared to the third quarter 2005. “Borrowers are seeing the value of ING DIRECT’s lending capabilities, and we are pleased with our year over year growth in lending,” Kuhlmann continued. “ING DIRECT will continue to add services that champion customers’ needs and contribute to our bottom line.”
ING DIRECT Reaches $40 Billion in Deposits
2005 highlights for ING DIRECT Bancorp:
Net income grew to $176.7 million
Expense growth held to 11%
Deposits reached $40 billion, including a doubling in certificates of deposits
ING DIRECT added 1.2 million customers in 2005, a 52% increase compared to 2004
ING DIRECT Bancorp (Bancorp) today announced unaudited results for the fourth quarter and full year ended December 31, 2005.
ING DIRECT Bancorp consists primarily of ING Bank, fsb (ING DIRECT), the nation’s fourth-largest thrift by assets. In 2005, net income increased 45% to $176.7 million, up from 2004 net income of $122.1 million. For the quarter ended December 31, 2005, Bancorp net income was $42.5 million, compared to $42.8 million for the third quarter of 2005.
Year over year, net interest income increased 16% to $538.6 million, and for the fourth quarter, net interest income grew 3% to $135.8 million. Total assets ended 2005 at $53.2 billion, a 48% increase year over year and a 3% increase from the prior quarter. Despite significant increases in total assets and income for 2005, ING DIRECT was able to contain the increase in non-interest expenses to 11%. ING DIRECT added 1.2 million customers year over year, bringing its total customer base to 3.4 million, an increase of 52%.
Total deposits reached the $40 billion mark at year-end 2005, a 39% increase compared to the prior year. Included in this growth was an increase in certificates of deposits from $2.6 billion to $5.3 billion.
“2005 was a very strong year for ING DIRECT, and we are pleased with our results,” said Arkadi Kuhlmann, President and CEO, ING DIRECT. “At a time when national data indicate a negative savings rate, we have been able to attract a depositor base that is running counter to the trend. Our significant customer growth underscores Americans’ increasing enthusiasm for saving with us, and our straightforward value proposition has put more than $2.1 billion back in savers’ pockets – $1.4 billion more than would have been earned at other U.S. banks and thrifts over the same period. We look forward to continuing to make it easy and simple for consumers to save their money.” “Bancorp’s solid results were achieved despite a flattening yield curve and a continued increase in the cost of funds,” Kuhlmann noted. “Maintaining our profitability levels compared to less challenging quarters is a testament to our business. We will continue to emphasize long-term value creation for our customers and our business as we maintain our focus on cost containment in order to pass along the maximum savings to our customers.”
In 2005, real estate mortgage lending increased $3.0 billion or 30% to $12.9 billion, compared to $9.9 billion in 2004 and grew $644 million in the fourth quarter. The $12.9 billion referred to above includes the Orange Mortgage loan portfolio of $5.5 billion, a 61% increase compared to $3.4 billion in 2004.
Included in the $2.1 billion increase in Orange Mortgage balances is the origination of 10,566 single family adjustable rate Orange Mortgages, a 9% account volume increase compared to 2004. In the fourth quarter of 2005, ING DIRECT originated 3,292 single family adjustable rate Orange Mortgages, a 24% account volume increase compared to the third quarter 2005. “Borrowers are seeing the value of ING DIRECT’s lending capabilities, and we are pleased with our year over year growth in lending,” Kuhlmann continued. “ING DIRECT will continue to add services that champion customers’ needs and contribute to our bottom line.”
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