ING Names Insider Van Rijswijk as CEO to Drive Online Push
ING Appoints Steven van Rijswijk to Succeed Ralph Hamers as CEO
(Bloomberg) -- ING Groep NV appointed risk head and ex-investment banker Steven van Rijswijk chief executive officer, electing an insider to steer the Dutch bank through the recession and boost profitability from its push into digital banking.
Van Rijswijk succeeds Ralph Hamers, who is leaving this month before taking over as UBS Group AG CEO in November. The 25-year ING veteran rose through the ranks in a variety of roles before joining the executive board in 2017.
Van Rijswijk takes over as the lender confronts a deep recession sparked by the pandemic and struggles to improve profitability in online banking after Hamers addition of millions of digital customers failed to significantly boost the bottom line. Its also trying to move past a legacy of money laundering and compliance issues that plagued the bank under the departing CEO.
While Van Rijswijk has mostly investment banking experience as opposed to the retail-focused Hamers, the new chief said on the lender’s website that he’s unlikely to radically change the bank’s strategy, having served on the executive board for some years and undertaken a number of corporate roles at the lender.
The appointment “is sure to satisfy the regulator, and fits the bank’s current focus given the mounting loan-loss provisions coming out of the current crisis,” KBC Group analyst Jason Kalamboussis said in a note. However, Van Rijswijk’s ability to handle a digital bank remains to be seen, he wrote.
ING rose as much as 2.1% in Amsterdam trading and was down 0.5% at 6.39 euros as of 11:55 a.m. The stock is down about 40% this year in line with the Euro STOXX Banking Index.
Bottom Line
“Steven has shown to have the right combination of experience, leadership skills and deep understanding of our business to lead ING into the next phase of our strategic direction,” Chairman Hans Wijers said in the statement.
READ MORE: ING’s Surging Compliance Costs Overshadow Lending Gain
Like lenders across Europe, ING reported a jump in loan-loss provisions in the first quarter due to the fallout from the virus. However the hit to profit was smaller than expected and the shares rose sharply following its earnings report in May.
In 2018, ING paid a record $900 million fine to settle money laundering accusations with Dutch prosecutors. Public criticism on ING’s compliance issues led to the resignation of Chief Financial Officer Koos Timmermans.
Van Rijswijk played a role in ING’s efforts to win back public trust with a repentant appearance at a Dutch Parliament hearing on money laundering. He has also taken the lead with other public appearances such as shareholder meetings and press conferences.
Van Rijswijk becomes CEO in a country where banking executives operate under a microscope. With restrictions on pay and tough scrutiny from politicians, analysts expected ING to pick an insider and the chief risk officer has long been considered a leading candidate.
The selection process for a new chief risk officer is underway, the bank said. Chief Financial Officer Tanate Phutrakul, will temporarily be responsible for risk. Day-to-day risk management activities will be handled by Karst Jan Wolters, currently chief risk officer at ING’s wholesale bank.
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