Retail Banking Keeping the customer at the heart of our strategy
Key points
- Steady performer in difficult environment
- Postbank and ING Bank merged into new retail bank in the Netherlands
- Transformation branch network in Belgium
- Rebranding Oyak Bank into ING Bank Turkey successfully completed
- Economic slowdown affected assets under management in Private Banking
The retail banking market became increasingly challenging in 2008. Against this backdrop, Retail Banking remained a steady performer with a high return on capital. Further progress was made in improving the customer experience and efficiency, reducing costs in the Benelux and preparing new service models. In Central Europe and Asia, ING continued to grow its activities.
Profit and loss account (underlying)
| in EUR million | 2008 | 2007 | change |
|---|---|---|---|
| Total income | 7,399 | 7,456 | –0.8% |
| Operating expenses | 5,307 | 4,855 | 9.3% |
| Additions to loan loss provisions | 401 | 198 | 102.5% |
| Underlying result before tax | 1,691 | 2,402 | –29.6% |
| Total result before tax* | 1,420 | 2,078 | –31.7% |
- *
- Total result before tax is defined as underlying result before tax including divestments and special items.
Key figures (underlying)
| 2008 | 2007 | |
|---|---|---|
| After-tax RAROC | 21.7% | 37.0% |
| Economic Capital (EUR billion) | 5.9 | 4.8 |
Breakdown of underlying income
| in EUR million | 2008 |
| Netherlands | 4,346 |
| Belgium | 1,842 |
| Central Europe* | 878 |
| Asia* | 333 |
| Total | 7,399 |
- *
- Mainly the retail banking operations in Romania, Ukraine, India (ING Vysya Bank), Private Banking Asia, the ING participations in Bank of Beijing, TMB and Kookmin Bank.
