ING admits "confusion" in the mortgage market awaiting the reform that comes today
Consumer loans have become the entity's first source of income, which earned 163 million last year, 90% more than the previous
A few hours after the Congress validates the latest version of the new Real Estate Credit Law, the CEO of ING in Spain and Portugal, César González Bueno, has congratulated himself for this approval so that "finally there is clarity" in a market so complex and with long-term implications. The head of the entity of Dutch origin has admitted that in recent months "confusion had been created for a very long period" among customers , who did not know the terms to apply in the credits they requested in terms of initial expenses, among others many variables.
The executive acknowledges that now "a scenario of clarity opens up" after a few months of many doubts such as, for example, the liquidation of the Tax on Doculated Legal Acts (IAJD). Faced with this maze generated by Supreme Court rulings, ING decided to assume most of the initial expenses, including the appraisal. González Bueno has also admitted that although the entity "has updated" the prices of its mortgages, "it has also assumed most of these costs."
Mortgages are one of the businesses that have evolved favorably for the corporation in 2018, with revenues that have increased by 23% to 125 million euros. However, in a context marked by interest rates anchored in historical lows, ING has managed to make consumption loans hold almost a quarter of its resources. Revenue from this type of financing has grown by almost 32% to 156 million euros.
Despite the warnings from the ECB, the Bank of Spain and the European Commission to the bank to monitor the granting of personal loans, given the risk of default that may be taking, the CEO of ING has pointed out that the volume of this line of financing is still "low" compared to that of other European countries . In addition, he recalled that the defaults in this line do not reach 1% and that most of the concessions are offered to customers own of those who know the financial profile.
The net profit of the entity has improved by 90% in 2018 to reach 163 million euros despite the environment of low rates. The result without extraordinary has grown by 44% to 214 million. It has been the business of personal loans or investment products that "have allowed to compete" favorably in this context, as opposed to customer deposits, whose revenues have fallen again by 7.4% to 120 million euros. euros
The historic 'Payroll Account' continues to be the link with customers, although its profitability is minimal, as in the rest of the sector, although they have 2.2 million customers in this modality and expect to reach 200,000 more per year.
The ING executive in Spain and Portugal has anticipated the possibility of the company joining the Bizzum payment platform, where most of the sector is located; and takes for granted the maintenance of the agreement with Popular, integrated in Santander, so that its customers can use those ATMs.