ING Direct 2007 Annual Report Download - page 10

POSITIONAL IMAGE
We sold several non-core businesses,
including Regio Bank in the Netherlands
and (in early 2008) our non-core insurance
business in Mexico.
In mature markets, we increased effi ciency
and optimised our competitive position,
for example, by integrating Postbank and
ING Bank to better meet the needs of our
Dutch retail customers; a major investment
demonstrating our strong commitment to
the Dutch banking market.
Continued effi cient capital allocation
Successful execution of our strategy
is underpinned by continued effi cient
reallocation of capital we generate in
mature markets to high-growth business,
or by returning it to shareholders. A process
supported by active management of our
portfolio of businesses.
As a result of disciplined capital
management and the solid profi tability of
our businesses, we were able to maintain a
strong capital position in 2007. On balance,
ING widened its spare leverage by a third,
further securing the capital base and
providing maximum fi nancial fl exibility to
pursue our renewed strategic objectives,
a position further strengthened under the
new Basel II regime. We employed our
excess capital to fund acquisitions,
pay dividends to shareholders and buy
back shares. A EUR 5 billion buy-back
programme was started in May/June 2007
and is expected to be completed by
June 2008.
Integrated risk management
In recent years, ING has systematically
invested in improving our risk management
capabilities, building a strong risk
management function fully integrated into
the daily management of businesses and
strategic planning. We weathered the
recent fi nancial markets turmoil with
limited direct impact, demonstrating the
importance of sound risk management at
such times. Risk management also works
with businesses to identify and execute
business opportunities, lower funding costs
and support strategic decisions.
Looking forward
With our sharpened strategy, ING remains
focused on creating value for shareholders
and rewarding them with a better total
return on investment than the average of
our peers in the fi nancial sector over the
longer term.
Fast-tracking
our global brand
ING has created one of the world’s leading
retail fi nancial services brands. Increasing
awareness for the ING brand across the
globe has been a key priority over recent
years. In 2007, global sponsorship of the
ING Renault Formula One team, along with
our fi rst-ever global branding campaign,
proved very successful. As a result, ING’s
brand awareness has increased signifi cantly
across the globe. Our sponsorship is also
generating many fruitful business leads
and signifi cant new business.
8Our performance
Strategy
ING Group Annual Review 2007