Customer centricity inRetail BankingING Investor DayEli LeenaarsCEO Retail Banking Direct & InternationalAmsterdam – 13 Ja...
Key messages           Trends require continuous innovation in the way we offer our  1        services           ING has t...
Trends require continuous innovation in the waywe do business   In terms of                                     Offer fair...
Putting the customer first is a key characteristicof INGFair pricing – e.g. lowest cost forcustomers for current accounts ...
ING is also a leader in innovative distribution…NL is a leader in online banking                                          ...
…resulting in lower costNetherlandsOperating expenses / Retail balances (bps)                                             ...
We have three different models in our footprint               Market share               (Savings and mortgages)          ...
We are converging to one model: Easy and fair, with low cost  Converging models                                           ...
We started to move towards this model a while agoBenelux                                                          ING Dire...
ING Direct has to complete the transformation intoa full bank          Your other                          Become         ...
…but is already a meaningful contributor to INGprofits ING Direct Pre Tax Result (EUR mln)                                ...
ING-DiBa’s transformation                    into a full bank                                     Roland Boekhout, CEO ING...
ING-DiBa: A success growth story…1965                                                               Retail balances*      ...
...and most advanced in transformation into a fullbankTotal client retail balances (EUR bln)                              ...
…leading to a strong market position in a verylarge market with great potential ...Retail Customers in 2010               ...
…with ongoing strong and sustainable financialperformanceCost to client Retail balances clients                           ...
Move towards full bank will unlock furtherperformance improvementAssets                               Funding             ...
A clear ambition going forwardING-DiBa: Consequent execution of existing strategy                                         ...
Spain: Zooming in on the economics         of the transformation  Mobile Banking and Social media                         ...
ING Direct Spain: The transformation into a multi-product bank with integrated distributionTotal client retail balances (E...
Multi-product clients are more valuableFull bank customers have 2-3x more                                Are more satisfie...
‘Lite branch network’ brings additionalacquisition and improves cross-buyLite network of 29 branches                      ...
A strong and sustainable performance, withcontinued growthIncreasing cross-buy, continued focus                           ...
Social media, a new way to interact with clientsClient contacts (ING Direct Spain) (1)                                    ...
We use social media for different purposes                                      Customer                         Brand    ...
Our ambition is to lead in mobile banking…•   Increasing market adoption of online banking through smartphones; *Mobile Ba...
Emerging markets – differentiation   and positioning for growth                       Brunon Bartkiewicz, General Manager ...
In our full banks in emerging markets, the retail model is the  basis to differentiate and to position for future growth  ...
In Poland ING also used savings as the acquisitionproduct…Number of accounts (mln)                                        ...
…to develop more active and bankable customersMaking more transactions…                                …and buying moreTra...
Target to be ‘the most internet bank’Retail Clients – transfers(December 2004 = 100)                                      ...
ING Bank Slaski is a frontrunner in branchdevelopment           Service points              Selling units          Advice ...
Solid growth in income and healthy profitability across the cycle Nice growth in income                                   ...
Setting the agenda                                and priorities               Eli Leenaars, CEO Retail Banking Direct and...
Clear priorities for ING Direct and emergingmarkets…                                 Priorities                           ...
…resulting in a well balanced portfolioMix of businesses      ROE*                          Benelux:                      ...
…while contributing to balance sheet optimisationat ING                                     • Continue growth of number of...
Key carrier: People and sharing of best practices People • Strong winning culture, with clear and shared values • Effectiv...
DisclaimerING Group’s Annual Accounts are prepared in accordance with International Financial Reporting Standardsas adopte...
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ING Investor Day 2012: Customer Centricity in retail banking

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ING Investor Day 2012: Customer Centricity in retail banking

  1. 1. Customer centricity inRetail BankingING Investor DayEli LeenaarsCEO Retail Banking Direct & InternationalAmsterdam – 13 January 2012
  2. 2. Key messages Trends require continuous innovation in the way we offer our 1 services ING has the ingredients to succeed in this environment: customer 2 oriented and low cost from innovative distribution We are converging our three retail models into one model: Easy and 3 fair, with low cost 4 ING Direct has to complete the transformation into a full bank In emerging markets, our retail model is the basis to differentiate and 5 position for future growthING Investor Day - 13 January 2012 2
  3. 3. Trends require continuous innovation in the waywe do business In terms of Offer fair pricing, transparent products, easy Customer what we offer access and excellent service Centricity our customers In terms of Streamline processes and improve efficiency Operational how we operate as regulatory costs rise Excellence as a company And in how we Optimise the balance sheet to maximise Balance Sheet manage our returns and offset higher capital requirements Optimisation balance sheetING Investor Day - 13 January 2012 3
  4. 4. Putting the customer first is a key characteristicof INGFair pricing – e.g. lowest cost forcustomers for current accounts Consumer oriented brand attributes Italy Transparency Market Knowledgeable Spain ING France Is trustworthy Reliable Germany Romania Treats me fairly Good Value Poland Easy to deal with BelgiumNetherlands Delivers on promises 0 100 200 300 Good serviceA loyal customer base Supported by customer intelligenceNet Promoter Score ranking • In-depth knowledge of 40 million retail clients Can, Spa, Aus, Fra, Ger, • Low acquisition cost supported by word of mouth UK, Rom, Pol, Bel • Allows to develop into multi-product customers NL, Ita faster and cheaper (more cross-buy and higher revenue per customer) 1 2 • Key in successful integrated channel approach 3 Organic growth of customers since 2000: 20 mlnING Investor Day - 13 January 2012 4
  5. 5. ING is also a leader in innovative distribution…NL is a leader in online banking Leader in Direct • Largest direct bank in the worldOnline banking usagePercentage¹, 2010 • Best quality contact centres in most countries100 Transformation • Direct if possible, advice when needed in the to ‘Self-first’ is ‘Self-first’ Benelux 80 a matter of time Netherlands • Most internet bank in Poland ‘Multi Canada 60 channel’ Frontrunner in branch management France Belgium Australia UK • From service point to advice shops in the 40 ‘Online Netherlands, Belgium and Poland Austria Germany adaptors’ Spain • Branch lite concepts in Spain and Italy Poland 20 ‘Brick & Mortar’ Italy 0 India Turkey Innovative in mobile and social media Romania 0 20 40 60 80 100 • Mobile websites, highly rated mobile apps Internet access • Social media as a new way to interact with Percentage², 2011 clients¹ Percentage of adults using internet² Percentage of households with internet accessSOURCE: data published by Eurostat, EFMA, comScore. InternetWorld Stats (Nielsen Online, International Telecommunications Union,Official country reports, and other trustworthy research sources).ING Investor Day - 13 January 2012 5
  6. 6. …resulting in lower costNetherlandsOperating expenses / Retail balances (bps) 108 93 92 83 79 79 2007 2008 2009 2010 3Q11 Market 2010ING DirectOperating expenses / Retail balances (bps) 140 98 113 65 64 55 55 54 57 44 43 45 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 3Q11 Market 2010ING Investor Day - 13 January 2012 6
  7. 7. We have three different models in our footprint Market share (Savings and mortgages) 25% Benelux: Strong platform in mature markets Netherlands Belgium Emerging markets: ING Direct: Strong platform Winning organic growth in growing markets model in large mature markets Thailand Poland Australia Germany Romania Canada Turkey Italy France India Spain UK 0% Bubble size = ING Client Retail Balances 3Q11 Market size (Savings and mortgages)ING Investor Day - 13 January 2012 7
  8. 8. We are converging to one model: Easy and fair, with low cost Converging models For Customers: Easy and fair • Customer centric culture, with care for Broad Belgium customers product range Netherlands • Limited number of transparent products, serving all customer needs • Consistent fair pricing ING model Poland Easy and fair, • Customer centric process management, withOptimised breakthrough simplicity product with low cost range for ING Direct • Direct when possible, advice when neededcustomers Spain Italy Germany Australia Underlying economics: Strong low cost Canada model, stable business Mono France product UK • Superior brand, number one customer choice • Attractive client segment - prone to be direct, Mainly branch Direct when Direct low credit risk based possible (Low cost) • Simplified product range • Focus on direct channels Bubble size = ING Client Retail Balances 3Q11 • Process excellence, low cost ING Investor Day - 13 January 2012 8
  9. 9. We started to move towards this model a while agoBenelux ING DirectReduction of product offering Optimising product offeringNumber of retail savings products offered in NL Payment account launches to become the primary 62 Bank: 20 • 2005: Spain 8 • 2008: Germany Pre Merger Post Merger Today • 2008: Italy Postbank - ING • 2009: Australia, France Variable Fixed Other • 2010: CanadaMove towards direct channels Introducing some face when requiredIncrease in sales of products online Belgium Spain: Lite branch network of 29 branches covers 83% 29.6% of population (1) 37.4% 26.8% Italy: 7 branches opened 19.9% 3.8% in 2011 1.4% 1.7% 2.0% Investments Insurance Savings Accounts and Cards (Milan branch) 2009 2010 Aug-11 (1) % of ING Direct customers with a branch in their provinceING Investor Day - 13 January 2012 9
  10. 10. ING Direct has to complete the transformation intoa full bank Your other Become Complete, Full bank primary bank retail bank bank • Balance sheet • Primary bank for clients optimisation through asset • Full product range, transfers, Commercial • Second bank for clients banking integration increasing cross buy • Own-originated (share of wallet) • Second bank for clients residential mortgages, • Savings product main mutual funds, e- • Exploring face-to-face acquisition product brokerage and payment accounts • Direct channels • Large investment • Reducing investment portfolio portfolio • Margin on savings, • Improved stickiness • Higher yield from • Higher yield from thanks to cost of savings consumer loans, Commercial Banking advantage • High volume, low-risk • Further income assets mortgage production diversification and • Deleverage • Additional margin client stickiness from cross-buyING Investor Day - 13 January 2012 10
  11. 11. …but is already a meaningful contributor to INGprofits ING Direct Pre Tax Result (EUR mln) 471 418 734 733 Pre Tax Result Impairments Pre Tax Result exc. Impairments 873 603 697 409 442 483 334 132 214 -123 -105 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 3Q11 ROE* 4% 3% 9% 9% 5% 5% 11% 14% 10% ROE* exc. Impairments 4% 3% 9% 9% 6% 6% 12% 14% 15%ING - DiBa ING SpainPre Tax Result (EUR mln)* Pre Tax Result (EUR mln)* 75 79 64 50 55 443 482 20 373 257 217 -42 1 63 2001 2003 2005 2007 2009 2010 3Q11 2001 2003 2005 2007 2009 2010 3Q11 ROE** 8% 16% 23% ROE** 5% 8% 7% 16% 17% 17%* pre impairments** Based on 10% core tier 1 ratioING Investor Day - 13 January 2012 11
  12. 12. ING-DiBa’s transformation into a full bank Roland Boekhout, CEO ING-DiBaING Investor Day - 13 January 2012 12
  13. 13. ING-DiBa: A success growth story…1965 Retail balances* Customers In EUR bln In mln 161 7.41994 ING Group buys 49% stake in1998 10 0.51999 Acquisition of 2001 3Q11 2001 3Q11 Cost/Client Retail Acquisition of Balances Profitability2003 ING acquires remaining 51% in DiBa In bps Pre-tax (mln)** 113 4822004 4 millionth customer 352010 7 millionth customer 12011 2001 9M2011 2001 9M2011 - Integration with Commercial Bank - 3rd largest retail private bank in Germany • Includes brokerage ** pre impairments ING Investor Day - 13 January 2012 13
  14. 14. ...and most advanced in transformation into a fullbankTotal client retail balances (EUR bln) 161* 7,4 mln Clients 113 10 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 3Q11 Savings Retail Investment Products Retail Lending Payment Account Clients (mln) Your Primary Full bank other bank bank Investment Payment Consumer Integration with Products Savings Mortgages products account loans Commercial Banking Distribution Mail Telephone Internet Brokers Referrals Affiliates Mobile and social media* Client retail balances includes brokerageING Investor Day - 13 January 2012 14
  15. 15. …leading to a strong market position in a verylarge market with great potential ...Retail Customers in 2010 Deposit market (Total: EUR 1,600 bln)Savings banks / Cooperative banks 23% 37% ~ 50 mln 5% Sparkassen & Landesbanken Volksbanken VR-Banks ~ 30 mln 11% Großbanken* 24% ING-DiBa Regionalbanken / KreditbankenPrivate Banks 14 10 24 mln Mortgages Market (Total: EUR 800 bln) 11 mln 21% 32% 3rd largest retail 6% 7.1 mln private bank in Sparkassen & Landesbanken Germany Volksbanken 7.0 mln 21% 20% Großbanken* ING-DiBa 4.0 mln Regionalbanken / Kreditbanken 3.3 mln * Großbanken: Deutsche Bank, Postbank, Commerzbank, HypoVereinsbankING Investor Day - 13 January 2012 15
  16. 16. …with ongoing strong and sustainable financialperformanceCost to client Retail balances clients 4th year in a row as the most preferredIncl. marketing expenses consumer bank (NPS) in Germany(1) 113 6.9 7.1 7.4 11% 5.3 6.5 Three major 73 German 16% 57 retail banks 47 10% 0.8 36 35 35 3.6 ING-DiBa 45% 2001 2003 2005 2007 2009 2010 9M11 (1) Icon Added Value Panes, March 2011 Clients (million) Cost per Retail Balances (bps)Substantial cost advantages (2010) With a solid profitability performance ING-DiBa 35 X3.5 Pre-Tax Profit (EUR mln)** Comdirect 49 Savings Banks 107 482 443 Deutsche Postbank 373 113 257 217 Cooperative Banks 121 1 63Deutsche Bank (Retail) 136 2001 2003 2005 2007 2009 2010 9M2011 ROE* 8% 16% 23% Market average 120 * Based on 10% core tier 1 ratio ** pre impairmentsING Investor Day - 13 January 2012 16
  17. 17. Move towards full bank will unlock furtherperformance improvementAssets Funding LiquidityAlign assets with liabilities Integration of ING-DiBa in ING Leverage residential mortgage term-funding strategy expertise for investments• Merging of German Commercial Banking activities • Use of high quality German residential • Intercompany transactions (EUR 9 bln): with ING-DiBa mortgages and Pfandbrief (up to EUR • Purchase of Orange Lions• Optimises capital use of ING- 10 bln) established in April 2011 (backed by Dutch residential DiBa • Inaugural issue: EUR 500 mln June ’11 mortgages)• Transfer of Commercial Bank • Strong track record in retail deposit • Intercompany loan (secured by assets generation Dutch residential mortgages) • Improved liquidity of ING Bank NVPrevious situation (< 2011) Future situation (≥ 2012) Achieved CB Assets Wholesale CB Assets • EUR 1 bln: One bank.de - funding Integration of Commercial Banking • EUR 9 bln: Intercompany transactions Investment Investment Portfolio Portfolio Deposits Potential Intercompany • EUR 1 bln: Integration of Real Estate Deposits Finance Retail • Balanced growth in Commercial Banking Lending assets via organic growth and selected Retail Lending portfolio transfers (~EUR 5 bln) PfandbriefING Investor Day - 13 January 2012 17
  18. 18. A clear ambition going forwardING-DiBa: Consequent execution of existing strategy • Balanced growth in Commercial Banking assets via selected portfolio transfers and organic growth of top Corporates • Capture full benefits of balance sheet integration • Limited product portfolio: attractively priced, profitable and transparent • Continued strong growth in new clients and deposits • Providing high quality of service with few and efficient processes • Transparency to all stakeholdersING Investor Day - 13 January 2012 18
  19. 19. Spain: Zooming in on the economics of the transformation Mobile Banking and Social media Carina Szpilka, CEO ING Direct SpainING Investor Day - 13 January 2012 19
  20. 20. ING Direct Spain: The transformation into a multi-product bank with integrated distributionTotal client retail balances (EUR bln) 2,4 30 mln Clients 19 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 9M11 Savings Retail Invtment. Prod. Retail Lending Payment Account Clients (mln) Positioning Your Primary Complete other bank bank retail bank Mutual, Pension and Mortgages Payment Consumer Products Savings Account Loans Life Insurance Broker Mobile Banking Distribution Telephone Internet ATM’s Branches and Social mediaING Investor Day - 13 January 2012 20
  21. 21. Multi-product clients are more valuableFull bank customers have 2-3x more Are more satisfied (%)savings Multi-product clientsAvg balance per 83%client (EUR) Multi-product clients 73% 78% 19,500 11,600 6,800 Savings only Payment + + Retail lending Savings only Payment + + Retail investment investments LendingAnd generate more operating profit ConclusionPer client (EUR) • 35% of client base are multi-product Multi-product clients 495 • Full bank customers have more savings, are more satisfied and have higher profitability 146 49 Savings only Payment + + Retail lending InvestmentING Investor Day - 13 January 2012 21
  22. 22. ‘Lite branch network’ brings additionalacquisition and improves cross-buyLite network of 29 branches Increases acquisition of new clients outside Madrid 1H11 vs. 2009 +63% 29 Branches +32% = 83% of population1 X2(1) % of ING Direct customers with a branch into their province Without branches With branchesBranch contacts focuses on cross-buy Key pointsChannel mix (Sep 2011 split) • Branches are there to support moments of 3% 12% truth: 44% • First account opening 91% • Some services, like lost credit card 26% 83% • Cross-buy 30% 2% 1% • Branch contacts responsible for 30% of Cross-buy Transactions Inquiries cross-buy Branch Telephone Internet MobileING Investor Day - 13 January 2012 22
  23. 23. A strong and sustainable performance, withcontinued growthIncreasing cross-buy, continued focus 4th consecutive year most preferredon operational excellence Consumer Bank1 128 Would you recommend your bank to friends and family? 70 73 75 56 51 Yes / probably yes Hesitant No / Likely not 50 78% 44% 44% 42% 6% 8% 13% 25% 31% 34% 35% 43% 36% 32% 20% 2001 2003 2005 2007 2009 2010 9M11 -2% -13% -20% -26% % Clients with more 1 product Total expenses to Client Balances ING Direct Four major banks in Spain 1 TNS Benchmarking Financials Institutions 2010Substantial cost advantage With a solid profitability performance3total cost / retail balances (in bps) 109 75 79 64 x2 50 55 20 51 -42 2001 2003 2005 2007 2009 2010 9M11 ING Market ROE2 16% 5% 8% 7% 16% 17% 17% 2 Based on 10% core Tier 1 ratio 3 pre impairments ING Investor Day - 13 January 2012 23
  24. 24. Social media, a new way to interact with clientsClient contacts (ING Direct Spain) (1) • Restore trust through transparency and fair pricing • Offer convenience and excellent service • Reduce costs: streamline processes and improve efficiency • Keep on innovating(1) September 2011 “We are where customers are” “A key channel to better meet and exceed consumer expectations”ING Investor Day - 13 January 2012 24
  25. 25. We use social media for different purposes Customer Brand Uses service tool Dialogue # of countries • Assisting customers • An open and collaborative • Early detection, monitoring & fast product development enables to Facebook (11) follow-up build better products that meet the needs of Clients Benefits • Effective method of gathering Twitter (10) feedback and supporting the • Through crowd sourcing, trust is process and service established with consumers improvement YouTube (12) • ING Webcare Team actively • THRiVE Chequing account was participates in social media launched using crowd sourcing Blog (4) • By handling problems and • Staff engaged and able to be E COM complaints, answering questions involved in the product and its Flickr (2) TO and rebutting any factual inaccuracies development • 10,000+ clients involved in Other* (8) • With the goal of helping the making product even better Examples customer and improving our (77.000 accounts to date) (online) reputation • Winner of Product of the Year award 2011 2011: • 255.000 ING references • 2.700 dialogues (3.5x 2010 levels) * Mostly dedicated platforms and local SMING Investor Day - 13 January 2012 25
  26. 26. Our ambition is to lead in mobile banking…• Increasing market adoption of online banking through smartphones; *Mobile Banking via Smartphone Grew 40% in EU in 2011 (*Comscore May 2011)• ING offering mobile banking already in 14 countries, with more than 6% of mobile banking penetration in our client base• Making use of international experience resulting in faster time to market, saving on costs and time, creating a learning loop. (i.e. French app development effort 7 months, Spain app development effort 3 months)• Already more than: • 2.5 mln clients already downloaded native applications (IOS-Android-BB) • 0.5 mln unique visitors using M-sites• Best in class mobile apps with excellent client ratings (Avg): • iPhone (4,5) ***** • Android (4,3) ***** • *Others (4/5) ***** [(* Others): Blackberry, Windows Phone 7, iPad, Android Tablets)]ING Investor Day - 13 January 2012 26
  27. 27. Emerging markets – differentiation and positioning for growth Brunon Bartkiewicz, General Manager ING DirectING Investor Day - 13 January 2012 27
  28. 28. In our full banks in emerging markets, the retail model is the basis to differentiate and to position for future growth Starting Current Country position Progress towards the full bank model position Positioned as savings bankPoland Strategic position Customer-driven processes Most internet oriented/ from 1994 onwards, modern bank in Poland Most internet-oriented (4th player) currently own 75% Branch network focusing on advice Innovative self bank concept Innovative businessRomania Started in Romania in model, >1mln satisfied 1994, Entered retail Simplified product range customers market in 2003 (already 10th player) Internet-oriented Positioning as savingsTurkey bank Acquired in 2008 Transition underway Developing (12th player) internet/mobile Developing India Strategic position Internet/mobile Growing in line with the from 2002, currently market (8th player among own 44% Modern IT solutions privately owned banks) Introduced savings led TMB Strategic position strategy Developing into retail leader from 2005, currently Integrated distribution (6th player) own 30% channels, focus on internet ING Investor Day - 13 January 2012 28
  29. 29. In Poland ING also used savings as the acquisitionproduct…Number of accounts (mln) Number of retail clients* (mln) 2.2 3.0 1.7 2.0 0.9 0.5Oct.2004 2006 2008 2010 3Q11 2004 2006 2008 2010 3Q11 Savings accounts Current accountRetail clients: Retail Balances (PLN bln) Key points 19.2 31.7 41.3 51.8 • One of the first banks focusing on savings 50.0 • With a simplified offer, two products instead of nine • Aggressively marketed on ‘easy and free’ functionality 2004 2006 2008 2010 3Q11 • Attracting the right customer profile Current accounts Savings Term deposits Structured products Asset management Mortgages Other lendingNote: retail clients excl. Mid-CorporatesEUR/PLN = 4.141235 - average rate Jan-Sep. 2011.ING Investor Day - 13 January 2012 29
  30. 30. …to develop more active and bankable customersMaking more transactions… …and buying moreTransactions per client per year x 4 Retail balances per customer (PLN x1,000) up 70% 34 38 16 17 18 16 25 11 19 11 2004 2006 2008 2010 3Q11 2004 2006 2008 2010 3Q11Shifting fast to electronic channels Leave more time to service the customers# Branch transaction per customer per year Retail balances per FTE (PLN x mln)Total branch manual operations down by 28% 6.5 6.2 6.4 5.2 4.9 5.2 4.3 2.7 2.3 2.8 2004 2006 2008 2010 3Q11 2004 2006 2008 2010 3Q11ING Investor Day - 13 January 2012 30
  31. 31. Target to be ‘the most internet bank’Retail Clients – transfers(December 2004 = 100) Number of ING BankOnLine users (th.)40% 800 63% 65% 56%30% 600 44% 34%20% 400 18% 25% 9% 1,98610% 200 1,541 1,856 758 1,146 148 347 5020% 0 2005 2006 2007 2008 2009 2010 2011 2004 2005 2006 2007 2008 2009 2010 3Q11 share of paper transfers (left axis) Number of ING BSK ON-LINE clients electronic Client base pentration rate paper Key points • Introduced no fee direct current account • With no fees for internal payments • Broad variety of transactions/services available on internet/mobile • Constantly considered as top 3 internet bank (compared with pure internet banks)ING Investor Day - 13 January 2012 31
  32. 32. ING Bank Slaski is a frontrunner in branchdevelopment Service points Selling units Advice shops Franchise network Stareo project Re-organisation 2011 2006 – 2011 1997 - 2001 New model touch and feel Self service zoneING Investor Day - 13 January 2012 32
  33. 33. Solid growth in income and healthy profitability across the cycle Nice growth in income Healthy profitability and return PLN m Profit before tax - PLN m +20% CAGR +8.7% 9.9% 2,721 934 2,531 834 787 2,136 2,206 753 738 2,064 2,029 706 693 1,821 1,697 563 CAGR 9.2% +15% +63% 2005 2006 2007 2008 2009 2010 9M10 9M11 2005 2006 2007 2008 2009 2010 9M10 9M11 Total Bank Retail incł. MC* Total Bank Retail incł. MC* 14% 17% 17% 17% 11% 13% 14% 13% 15%* FA figures ROE ING Investor Day - 13 January 2012 33
  34. 34. Setting the agenda and priorities Eli Leenaars, CEO Retail Banking Direct and InternationalING Investor Day - 13 January 2012 34
  35. 35. Clear priorities for ING Direct and emergingmarkets… Priorities • Continue to acquire new clients with our winning retail model ING Direct • Continue to lead in internet/mobile - complete the transformation • Optimise channel mix, introduce some face into a full bank - • Migrate from securities portfolio to own-originated assets (Retail and Commercial Banking) Emerging Markets • Continue to fully focus on customer centricity - differentiate to be • Excel in business process management positioned for • Lead in innovation and distribution future growth -ING Investor Day - 13 January 2012 35
  36. 36. …resulting in a well balanced portfolioMix of businesses ROE* Benelux: Stable, high returns, but 30% mature ING Direct: Winning organic growth Germany Canada model in large mature Australia markets also providing funding and liquidity 20% Belgium Spain Netherlands Emerging markets: Established platforms for France Poland future growth 10% Romania Italy Turkey 0% UK India Bubble size = ING Client Retail Balances Q3 2011 10% GDP growth* *GDP Growth est 2012 -2015 – IMF World economic outlookING Investor Day - 13 January 2012 36
  37. 37. …while contributing to balance sheet optimisationat ING • Continue growth of number of retail customers • Continue growth of stable retail deposits in ING Direct and in emerging Continue strong markets deposit growth • Increase stickiness of deposits further through transformation into full bank (especially current account offering) • Optimise the cost of liabilities within the local markets Reduce short-term funding • Complete the balance sheet extension reduction Replace low-yielding • Transfer of Commercial Banking assets assets with customer • Increase consumer lending lending • Re-price assets in line with increased margins in the market Transform investment • Convert investment portfolio into liquidity purposes only book into liquidity • Further shift to high quality liquid assets driven by favourable maturity profile portfolio Balance sheet • Fund assets locally integration • Coordinate development of assets and liabilities within the countriesING Investor Day - 13 January 2012 37
  38. 38. Key carrier: People and sharing of best practices People • Strong winning culture, with clear and shared values • Effective best practice sharing and focus on innovation • Senior people movements across disciplines and cultures effectively distributes best practices • Attractive employer Retail Standards Board • Define common standards • Speed-up time to the market and reduce costING Investor Day - 13 January 2012 38
  39. 39. DisclaimerING Group’s Annual Accounts are prepared in accordance with International Financial Reporting Standardsas adopted by the European Union (‘IFRS-EU’).In preparing the financial information in this document, the same accounting principles are applied as in the3Q2011 ING Group Interim Accounts. All figures in this document are unaudited. Small differences arepossible in the tables due to rounding.Certain of the statements contained herein are not historical facts, including, without limitation, certainstatements made of future expectations and other forward-looking statements that are based onmanagement’s current views and assumptions and involve known and unknown risks and uncertainties thatcould cause actual results, performance or events to differ materially from those expressed or implied insuch statements. Actual results, performance or events may differ materially from those in such statementsdue to, without limitation: (1) changes in general economic conditions, in particular economic conditions inING’s core markets, (2) changes in performance of financial markets, including developing markets, (3) theimplementation of ING’s restructuring plan to separate banking and insurance operations, (4) changes inthe availability of, and costs associated with, sources of liquidity such as interbank funding, as well asconditions in the credit markets generally, including changes in borrower and counterparty creditworthiness,(5) the frequency and severity of insured loss events, (6) changes affecting mortality and morbidity levelsand trends, (7) changes affecting persistency levels, (8) changes affecting interest rate levels, (9) changesaffecting currency exchange rates, (10) changes in general competitive factors, (11) changes in laws andregulations, (12) changes in the policies of governments and/or regulatory authorities, (13) conclusions withregard to purchase accounting assumptions and methodologies, (14) changes in ownership that couldaffect the future availability to us of net operating loss, net capital and built-in loss carry forwards, and (15)ING’s ability to achieve projected operational synergies. ING assumes no obligation to publicly update orrevise any forward-looking statements, whether as a result of new information or for any other reason. Thisdocument, and any other document or presentation to which it refers, do not constitute an offer to sell, or asolicitation of an offer to buy, any securities.www.ing.comING Investor Day - 13 January 2012 39
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