ING Direct 2002 Annual Report Download - page 5

OPERATIONAL NET PROFIT
PER SHARE
in euros
2.50
2.00
1.50
1.00
0.50
0.00
98 99 00 01 02
Annual Report 2002 · ING Group2
Message from the chairman
Progress with special skills
The operations in the Benelux continued their excellent track record and delivered the greater part of
our profit. We also made good progress with our special skills: direct banking, insurance in developing
markets and pensions. ING Direct benefited from the shift from investments to savings. Its client base
doubled to five million and funds entrusted went up from EUR 24 to EUR 55 billion in 2002. Early in
2003, we were pleased to announce a further reinforcement of our direct banking operations
though the acquisition of the German company Entrium, with an additional one million clients.
Our insurance companies and pension funds in developing markets again recorded double-
digit revenue and profit growth. In Russia, we were the first foreign company to launch a private
pension fund. Pensions will be one of the spearheads in our commercial strategy in the years ahead.
US operations integrated
Our retail and worksite operations in the US reported lower than planned profits as many of their
products are strongly linked to equity performance. While weathering the tough stock-market climate,
our US management and staff have nearly completed the integration of our various business units
into one company, operating under the ING brand, that occupies a top-five position in the US wealth
accumulation market. We are convinced that our integrated US business will deliver good share-
holder value, especially when the market rebounds.
Our businesses in Canada, Mexico and Asia/Pacific improved their results considerably.
Strategic alliances
We entered strategic alliances in markets with attractive growth prospects. We strengthened our
position as the leading insurer in South America by acquiring a 49% stake in Sul América, the second
largest insurer in Brazil. ING also reinforced its ranking as the second largest foreign insurer in Asia
(excluding Japan). In the Chinese city of Dalian, we set up a second life insurance joint venture. In
India and Korea, we strengthened the strategic alliances with local banks (Vysya Bank, Kookmin). We
formed a joint venture with ANZ for funds management and life insurance in Australia and New
Zealand and agreed to enter into a strategic partnership with Bank of New York in the field of
MESSAGE FROM THE CHAIRMAN
With an operational net profit of EUR 4,253 million, which
matched the good result for 2001, ING held up well in what
turned out to be one of the most difficult years in our history.
The rough economic climate, mainly created by political
uncertainties, put pressure on revenue growth and made loan
losses rise to unprecedented levels. We also had to absorb a
substantial depreciation of our investment portfolio, which
reduced shareholders’ equity. We responded by taking a number
of measures, both short and long term, to reinforce our capital
base. Our broad business mix and geographical spread continued to
prove their value in this difficult market environment. Revenues
grew organically by 5%, operational net profit and profit per
share equalled the high levels of 2001. Strict cost control, with
organic expenses down by 3%, supported our results.
  
Net profit of EUR 4.3 billion
equals 2001 result
—
Lower shareholders’ equity
due to adverse equity
markets
—
Capital base still well above
required levels
—
Successful special skills:
direct banking, insurance in
developing markets and
pensions