ING Direct 2011 Annual Report Download - page 6

Dear reader,
2011 was a challenging year with tough
economic conditions. I am proud of our
employees, who were able to put more
focus on customer centricity in these difficult
circumstances. I am grateful that our customers
have remained loyal to ING and have continued
to place their trust in us. At the same time,
we realise that there is still quite a way to go.
investment management businesses. For theEuropean
insurance/investment management businesses, we
will continue preparations for a stand-alone future,
including the possibility of an IPO. As forthe US,
we continue to prepare for the base caseofan IPO for
the US insurance/investment managementbusinesses.
Universal application
The financial sector faced many challenges in 2011.
These include the many regulatory changes for the
banking and insurance sectors. A massive volume of
new regulations needs to be implemented within a
shortperiod of time. ING recognises and endorses the
importance of bolstering the stability of the financial
system but we are concerned that there is no universal
international application because national interests all
too often prevail. Furthermore, it is essential that the
impact on the economy and on customers is assessed
very carefully when new regulations are introduced. It is
important that financial institutions can continue to
effectively carry out their fundamental role in the
economy.
Trust
Despite the tough economic climate, we have
been working hard to regain the trust of all of our
stakeholders and particularly of our customers, who
are fundamental to our business; for example by offering
simple and transparent products at a reasonable price,
and bycontinuing to lend to them. We measure our
performance using the Net Promoter Score, which tells
us what our customers really think of us and whether
we provide them with the products and services they
need. The real test is whether they would recommend
ING to family and friends.
We gather feedback from our customers via our
employees but also through customer information
sessions or via online social networks. In these forums
we invite customers to share their views and experiences
Against a backdrop of a deteriorating economy and
increasing turmoil in the financial markets, we reported
good performance in 2011. Thanks to a number of
decisive strategic measures, our capital position is
strong. We have sold a number of operations to
simplify our portfolio. We divested ING Direct USA
andthe LatinAmerican pension, insurance and
investment management operations as imposed
by the European Commission. With income under
pressure, it is important that we maintain our
competitive position byfurther driving down our
costsand adapting to newmarket conditions.
We have reduced risk and significantly down-sized
ourposition in Southern European government
bonds. We have also repaid a substantial portion
of the outstanding Dutch state aid. Fully repaying
the Stateremains a top priority.
2011 was an exceptional year for ING. We took
decisiveand important steps in the restructuring
process we initiated in 2009. Since 1 January 2011,
ING Bank has been operating as a separate business
from ING Insurance/Investment Management. The
focus was directed towards consolidating and
developing the strengths of the banking operations
and on more efficient asset and liability management.
At ING Insurance/Investment Management, the US,
European and Asian businesses reported good progress
in their initiatives to improve operating performance
and strengthen capital positions. Furthermore, a lot
of work was done in 2011 to prepare for the original
base case of two initial public offerings (IPO): one
for our US operations and one for our European and
Asian activities. Unfortunately, due to theuncertain
economic outlook and volatile markets, we recently
had to announce a change of plans withregard
to the divestment of the insurance and investment
management businesses. We have decided to review
other strategic options for our Asian insurance and
4ING Group Annual Report 2011
Chairman’s message