Retail Banking
Investing in efficiency and growth
Key points
- Investment in integration of Postbank and ING Bank underlines commitment to Dutch market
- Acquisition of Oyak Bank gives ING solid platform in Turkey
- Continued strong growth in Poland, Romania and India
- Private Banking benefits from increasing wealth worldwide
Retail Banking performed well in 2007, especially in key product areas of mortgages and savings. Important steps were taken to improve efficiency in the mature markets and to enter high-growth markets in Central and Eastern Europe and Asia. In a financial services environment characterised by consumer power, rapid technological change and globalisation, Retail Banking aims to set the standard in convenience banking around the world.
Profit and loss account (underlying)
| in EUR million | 2007 | 2006 | change |
|---|---|---|---|
| Total income | 6,396 | 6,086 | 5.1% |
| Operating expenses | 4,162 | 3,990 | 4.3% |
| Additions to loan-loss provisions | 172 | 161 | |
| Underlying profit before tax | 2,062 | 1,935 | 6.6% |
| Total profit before tax* | 1,783 | 1,935 | –7.9% |
* Total profit before tax is defined as profit before tax including divestments and special items
Key figures (underlying)
| 2007 | 2006 | |
|---|---|---|
| After-tax RAROC | 39.5% | 32.0% |
| Economic capital (EUR billion) | 3.9 | 4.1 |
UNDERLYING PROFIT BEFORE TAX
in percentages
Breakdown of underlying profit before tax
| 2007 | |
|---|---|
| Netherlands | 1,548 |
| Belgium | 341 |
| Poland | 110 |
| Other* | 63 |
| Total | 2,062 |
* Mainly the retail banking operations in Romania, Ukraine, India (ING Vysya Bank), Private Banking Asia and Americas, ING Card, ING Trust, the ING participations in Bank of Beijing, TMB and Kookmin Bank.
