ING Direct today reported a pre-tax profit of $9.5 million for the year ending December 31, 2001, followed by the first quarter 2002 pre-tax earnings, which have exceeded the full 2001 number.

“The proof is in the profit,” said Paul Bedbrook, president and CEO of ING. “We thought we had a banking model that would work, but you have to execute it to prove it. Our model is that of a virtual bank that can keep its costs low, and in return pay customers more than five times the interest on their savings that they would earn from the big banks, all with no fees. Now, with over 500,000 Canadians banking with us, and being profitable, we’ve established a solid momentum to go forward.”

ING boasts a growth rate of over 11,000 customers per month, making it the ninth largest bank in Canada, based on individual deposits through 2001. “We spend a lot of time thinking about, then simplifying the services Canadians really want and need and focusing just on those,” continued Bedbrook.

“That, and the lack of costly branches and general infrastructure, has given us the formula to be the first profitable virtual bank in Canada. It is a huge validation for our method of banking, and a clear win for our customers.”