ING Direct 2002 Annual Report Download - page 31

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Annual Report 2002 · ING Group28
Report of the Executive Board
Strategy and market positions
ING Europe focuses on boosting growth from
the existing businesses by cross-selling and other
forms of synergy, cutting costs and improving
quality and by forging strategic partnerships.
In retail financial services and private
banking, ING positions itself as a provider of
wealth management and financial protection. As
bancassurance market leader in the Netherlands,
ING serves more than 10 million retail clients. In
the home markets of the Netherlands, Belgium
and Poland, ING is pursuing the click–call–face
approach of interlocking distribution channels
and product platforms. This enables ING Europe
to deliver its products and services efficiently to
the various client segments. In the large mature
markets in Europe, ING is building up its retail
position around ING Direct (see pp. 46-47). In
Central Europe, the focus is on gradually
broadening its number-one position in pensions
and life to market leadership in bancassurance.
In wholesale financial services, ING is
positioned as a European institution with a
presence in the world’s major financial centres
of developed and emerging markets. It currently
enjoys a strong position in the mid-corporate
market in the Benelux countries. ING’s wholesale
strategy is threefold. First, it will maintain its
predominantly European focus. Secondly, it is
targeting only a select group of international
clients. Thirdly, it is focusing on a selected range
of wholesale products. Core products are
financial markets, merger and acquisition
advisory, structured finance and payments and
cash management. Employee benefits/pensions
and asset management, also core strengths of
ING, are increasingly being offered in the
package.
 
ING Europe’s aim is to be a top-five European financial institution, offering a variety
of insurance, banking and asset management products and services to retail and
wholesale clients through a number of distribution channels.
 
PREPARING ING EUROPE
FOR RENEWED GROWTH
The profitability of ING’s operations in Europe – especially those
in the Benelux – remained key to the Group’s result. The retail
businesses performed exceptionally well. ING Direct had
another stellar year and showed first profit in the fourth
quarter. The operations in Central Europe reported strong
profit growth. In the wholesale business, Financial Markets
delivered excellent results as did wholesale banking in the
Benelux. International Corporate Financial Services, however,
had to cope with high loan loss provisions. Additional
restructuring measures were announced in order to restore
profitability of international wholesale banking. Throughout
ING Europe, good progress was made during the year in
increasing efficiency and improving service levels.
 
Very good performance in
the Benelux
—
Excellent results from
Financial Markets
—
Loan loss level exceeds
50 basis points
—
Focus on cross-selling
—
Targeting bancassurance
leadership in Central
Europe
OPERATIONAL RESULT
BEFORE TAXATION
in millions of euros
3,715
1,926
ING Europe 66%
Rest of ING 34%