- Investment of EUR 800 million in continued digital
transformation in order to further improve customer experience,
accelerate growth in primary customers and lending
- Programmes to also lead to approximately EUR 900 million annual
cost savings by 2021; intended initiatives impact around 7,000
employees, mostly in Belgium and the Netherlands
AMSTERDAM, Netherlands, Oct. 3, 2016 (GLOBE NEWSWIRE)
-- 'Accelerating Think Forward' is the theme of the strategy
update that CEO Ralph Hamers and other executives will present
today at the ING Group Investor Day in Amsterdam, the Netherlands.
To accelerate the Think Forward strategy, ING will introduce a
number of initiatives to further improve the customer experience,
further grow primary customers and lending, and increase
efficiency.
"Since launching Think Forward in 2014, we have made excellent
progress on many fronts," said Ralph Hamers, CEO of ING. "We
attracted over three million new customers, supported the economy
by growing lending by around EUR 56 billion and strengthened our
capital. We did that by focusing on being clear and easy, anytime,
anywhere, and empowering customers to stay a step ahead in life and
in business. We also promised to keep getting better and that is
exactly what today's steps are aimed at. Our recent successes allow
us to do so from a position of strength."
"Customers are increasingly digital and bank with us more and
more through mobile devices. Their needs and expectations are the
same, all over the world, and they expect us to adopt new
technology as fast as companies in other sectors. In order to
continue to lead in digital banking, we need to offer a better
customer experience, that's instant, personal, frictionless and
relevant. At the same time, banks are confronted with continuous
regulatory burden and a prolonged period of ultra-low interest
rates. These factors put pressure on the returns which are
necessary to fund growth and investments, and cover our cost of
capital."
"In that context, we intend to start a path of convergence
towards one digital banking platform. Countries with similar value
propositions intend to harmonise their business models and develop
shared operating platforms. Infrastructure, data and support
functions are intended to be standardised across countries and
business lines. From 2016 to 2021 we intend to invest EUR 800
million in our digital transformation, building a scalable platform
to cater for continued commercial growth, an improved customer
experience and a quicker delivery of new products. This would allow
us to continue our success in growing our client franchise and
diversify our income. Through improved efficiency, the Accelerating
Think Forward programme is expected to deliver approximately
EUR 900 million of annual cost savings by 2021."
"In the Netherlands and Belgium, we intend to improve our
customer experience by moving to an integrated banking platform,
leveraging the combined strengths of the omnichannel capabilities
of the Netherlands with the relationship model and advice
capabilities of Belgium. The intended combination would leverage
scale advantages of our 11 million customer base, having one value
proposition, one strategy, one set of systems, one culture and one
organization - but with two legal entities and two balance
sheets."
"ING Belgium intends to transform to an omnichannel banking
environment. The intention is to rationalise the network by
integrating ING and Record Bank branches. At the same time, in the
Netherlands, we will further optimise a number of business
and support functions. The intended programme would draw on the
experience gained from successful similar large-scale IT projects
in the Netherlands and its adoption of the agile way of
working."
"In our Challenger Markets, we will work towards a Model Bank,
with one retail strategy and a harmonised retail proposition, fully
focused on increasing customer interaction. Aimed at further
customer and volume growth, we will deliver a scalable business
platform, initially for Spain, Italy, France, Czech Republic and
Austria. The platform can be extended to additional countries,
products and services. An agile, central IT services centre will
develop, maintain and run all needed digital requirements. In
Germany we will enhance our digital banking platform, introducing
an omnichannel approach and investing in scalability to provide
room for business growth and improve operational efficiency."
"In Wholesale Banking we intend to extend our Target Operating
Model (TOM) programme, further driving simplification, business
growth and innovation. We intend to continue to digitalise our
client offering through InsideBusiness across geographies, products
and devices. Process improvement initiatives would enable us to
decommission legacy IT systems, while global service centres would
increasingly provide services directly to clients. Our global
support functions including IT, Risk, Finance and HR also intend to
roll out TOM-programmes, streamlining and standardising to enable
further convergence of our operations."
"It is inevitable that the various measures and intentions
announced today may have a significant impact on many of our
colleagues. It means some functions will change significantly in
nature. It might mean that the location of functions will change.
And it might mean that positions will no longer be there in the
future. All-in-all, over the coming five years, around 7,000
functions might be impacted by these effects, including 950
positions employed by external suppliers."
"While not all plans we present today are finalized, the
intended initiatives are expected to result in a reduction of ING's
workforce in Belgium by around 3,500 FTEs and by around 2,300 FTEs
in the Netherlands for the years 2016-2021. These numbers include
the intended move to an integrated banking platform, with the
remainder of functions affected spread over intended programmes in
IT, operations, Wholesale Banking and various business support
functions. At the same time, we will add colleagues in parts of our
business where we expect to accelerate growth given our plans to
continue to attract new customers and increase lending to support
the economies we are active in."
"Regrettably, the steps and intentions announced today would
mean that a significant number of colleagues would have to leave
ING. Because of the work we have done in recent years, we are able
to take these intended measures from a position of strength. This
enables us to do our utmost to build on our track record of helping
colleagues who are affected to find new job opportunities. For the
intended workforce reductions, a pre-tax redundancy provision of
around EUR 1.1 billion is expected to be booked, of which EUR 1.0
billion in the fourth quarter of 2016."
"In line with our strategy, we will be introducing ING Group
financial targets for 2020. We will maintain our ING Group
CET1 ratio above the prevailing fully-loaded requirement, currently
12.5%, with a leverage ratio above 4%. Our target for the
cost/income ratio is 50-52%. In light of the continuing regulatory
uncertainty, we are not updating our RoE target (currently 10-13%
of ING Bank IFRS-EU equity), but we reiterate our intention to pay
a progressive dividend over time."
Further details of the various programmes will become available
in the coming months. Wherever there is an impact on the workforce,
all intended measures will be made in accordance with local
regulations and will be discussed with the respective
stakeholders.
Note for editors
Ralph Hamers will discuss the announcements made today in a
media conference call on 3 October 2016 at 8:15 a.m. CET.
Journalists can join the conference call via the Q&A-mode at
+31 20 531 5871 (NL) or +44 203 365 3210 (UK) or via
live audio webcast at www.ing.com.
All presentations at the ING Investor Day are available online
(www.ing.com/investorday). The keynote speeches by Ralph Hamers and
Patrick Flynn (starting shortly after 10.00 a.m. CET) can be
followed live via webcast at www.ing.com.
For further information on ING, please visit www.ing.com.
Frequent news updates can be found in the Newsroom or via the
@ING_news Twitter feed. Photos of ING operations, buildings and its
executives are available for download at Flickr. Footage (B-roll)
of ING is available via videobankonline.com, or can be requested by
emailing info@videobankonline.com. ING presentations are available
at SlideShare.
Press enquiries |
|
Investor enquiries |
Raymond Vermeulen |
|
ING Group Investor Relations |
+31 20 576 6369 |
|
+31 20 576 6396 |
Raymond.Vermeulen@ing.com |
|
Investor.Relations@ing.com |
|
|
|
ING
PROFILE ING is a global financial institution with a strong
European base, offering banking services through its operating
company ING Bank. The purpose of ING Bank is empowering people to
stay a step ahead in life and in business. ING Bank's 52,000
employees offer retail and wholesale banking services to customers
in over 40 countries. ING Group shares are listed on the exchanges
of Amsterdam (INGA NA, ING.AS), Brussels and on the New York Stock
Exchange (ADRs: ING US, ING.N). Sustainability forms an integral
part of ING's strategy, which is evidenced by the number one
position among 395 banks ranked by Sustainalytics. ING Group shares
are being included in the FTSE4Good index and in the Dow Jones
Sustainability Index (Europe and World) where ING is among the
leaders in the Banks industry group. IMPORTANT LEGAL
INFORMATION Elements of this press release contain or may
contain information about ING Groep N.V. and/or ING Bank N.V.
within the meaning of Article 7(1) to (4) of EU Regulation No 596/
2014. All projects described are proposed intentions of the bank.
No formal decisions will be taken until the information &
consultation with the Work Council have been properly finalized.
Subject also to regulatory approval. Certain of the statements
contained herein are not historical facts, including, without
limitation, certain statements made of future expectations and
other forward-looking statements that are based on management's
current views and assumptions and involve known and unknown risks
and uncertainties that could cause actual results, performance or
events to differ materially from those expressed or implied in such
statements. Actual results, performance or events may differ
materially from those in such statements due to, without
limitation: (1) changes in general economic conditions, in
particular economic conditions in ING's core markets, (2) changes
in performance of financial markets, including developing markets,
(3) consequences of a potential (partial) break-up of the euro, (4)
potential consequences of European Union countries leaving the
European Union, (5) changes in the availability of, and costs
associated with, sources of liquidity such as interbank funding, as
well as conditions in the credit markets generally, including
changes in borrower and counterparty creditworthiness, (6) changes
affecting interest rate levels, (7) changes affecting currency
exchange rates, (8) changes in investor and customer behaviour, (9)
changes in general competitive factors, (10) changes in laws and
regulations, (11) changes in the policies of governments and/or
regulatory authorities, (12) conclusions with regard to purchase
accounting assumptions and methodologies, (13) changes in ownership
that could affect the future availability to us of net operating
loss, net capital and built-in loss carry forwards, (14) changes in
credit ratings, (15) ING's ability to achieve projected operational
synergies and (16) the other risks and uncertainties detailed in
the most recent annual report of ING Groep N.V. (including the Risk
Factors contained therein) and ING's more recent disclosures,
including press releases, which are available on www.ING.com. Any
forward looking statements made by or on behalf of ING speak only
as of the date they are made, and, ING assumes no obligation to
publicly update or revise any forward-looking statements, whether
as a result of new information or for any other reason. This
document does not constitute an offer to sell, or a solicitation of
an offer to purchase, any securities in the United States or any
other jurisdiction. |
PDF version of press release
http://hugin.info/130668/R/2046095/764546.pdf
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