ING CEO presents new Bank strategy

ING’s CEO Ralph Hamers presented a Bank strategy update on 31 March 2014.

The strategy was presented to analysts, investors, the media and employees at an Investor Day in Amsterdam, the Netherlands. It is effective as of Monday, 31 March 2014.
The strategy update is presented following ING reaching the final stage of its restructuring programme, with its divestment programme and repayment of the Dutch State almost complete.

The reason for a renewed strategy is the necessity for banks such as ING to re-think their business models and to assess where they can compete effectively. In this new landscape, we need to be agile towards change, to ensure a sustainable, competitive franchise in light of changing customer demands, technology and regulation. The strategy starts with clarifying ING’s purpose: empowering people to stay a step ahead in life and in business. This is a purpose that builds on the fundamental belief that all sustainable progress is driven by people with the imagination and determination to improve their future and the futures of those around them.

Differentiating customer experience

Ralph Hamers explained that ING Bank’s strategy aims to create a differentiating customer experience, enabled by simplifying and streamlining our organisation, further striving for operational excellence, enhancing the performance culture within our company and expanding our lending capabilities. The potential for improvement in these areas varies with our current market positions, which we have divided into Market Leaders (Netherlands, Belgium and Luxembourg), Challengers (Germany, Spain, Italy, France, Australia and Austria) and Growth Markets (Poland, Romania, Turkey and our stakes in Asia).

Updated financial targets

ING has updated its financial targets in its Ambition 2017. Among those are ING Bank’s ambitions towards 2017 of approximately 4% growth per year of our lending book and approximately 3% growth per year of the balance sheet. ING confirmed maintaining a targeted capital position of a fully loaded common equity Tier 1 ratio above 10% and a leverage ratio of approximately 4%. After having repaid the Dutch State in full, ultimately by May 2015, ING intends to resume dividend payments to shareholders over the financial year 2015, growing to a pay-out ratio of at least 40%.

Anytime, anywhere

Ralph Hamers pointed out that ING Bank has a unique starting situation with a mix of mature and growth businesses, allowing us to benefit strongly from a European Banking Union.
“Approximately 32 million customers trust us with their banking needs. This number is growing, reflecting our strong customer satisfaction rankings. Our ‘direct first’ model enables us to attract and retain a growing and attractive base of self-directed customers. Our international Commercial Banking network and our leading specialised lending franchises support our customers in more than 40 countries. In all these businesses, our purpose is to empower people to stay a step ahead in life and in business. Customers can count on us to make banking clear and easy, to be there for them anytime, anywhere, to empower them to make smart decisions and to continuously work to improve our service.”

More information can be found on www.ing.com/Investor-relations.htm