ING Direct 2004 Annual Report Download - page 8

CHAIRMAN’S STATEMENT1.1
WHO WE ARE
6ING Group Annual Report 2004
Dear Stakeholder
In May 2004, the renewed Executive Board assumed leadership
of ING Group. Three new Executive Board members joined the
team and I succeeded Ewald Kist. On behalf of the Executive
Board, I would like to thank Ewald Kist for the four years in
which he led the company and effected the integration of the
Group. It is a big challenge for me and my team to lead ING,
a company with a respectable track record, a good business
mix and an entrepreneurial culture. ING was built on the back
of mergers and acquisitions and has grown from a market
capitalisation of EUR 4.9 billion in 1991 to EUR 49.1 billion
end 2004. Even in the turbulent times of the past few years,
ING managed to deliver strong earnings, and 2004 was no
exception. Operating net profit rose from EUR 4,053 million
in 2003 to EUR 5,389 million in 2004, an increase of 33%.
Our past success, however, does not justify complacency
about the future. ING’s overall strategic direction is to create
a business mix that respects ING’s identity and offers better
value-creating opportunities. We remain committed to our
three core business areas – banking, insurance and asset
management – albeit in a more focused and streamlined
manner. The challenge in 2004 was to lay the foundations for
moving ING forward. For this reason, we have chosen a theme
for our Annual Report that reflects our efforts best: ‘Laying
the foundations for profitable growth’.
ING is a company with six unique strengths. We have a strong
home market position in the Benelux, which has a high level
of wealth accumulation. Our large presence in the United
States puts us in the world’s biggest savings market. In Asia
and Central Europe we have a portfolio of successful life
insurance companies. In mature markets, ING Direct has
become the world’s leading direct bank. ING is also among the
world’s 100 best brands. Lastly, our size and scope generate
important benefits, for instance in funding, exploring new
business initiatives and attracting qualified staff.
But in spite of these strengths, it had become clear that, after
a period of strong growth and acquisitions, our organisation
had become quite complex. It also emerged that some of our
businesses were underperforming and that some were drifting
away from ING’s core. We responded by making a number of
changes in 2004.
The first initiative of the renewed Executive Board was to
simplify the management structure. The new structure is
based on six business lines, and is designed to bring the
Executive Board closer to the business, foster faster decision-
making and enhance personal accountability. The business
lines are Insurance Europe, Insurance Americas, Insurance
Asia/Pacific, Wholesale Banking, Retail Banking and
ING Direct.
In addition we took a more critical look at our business
portfolio. We decided to sell businesses which were non-core
or underperforming. These divestments have freed up capital,
part of which has been used to reduce the leverage of the
Group. The rest will be invested in our core activities.
LAYING THE FOUNDATIONS FOR PROFITABLE GROWTH