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BRIEF-ING Groep announces cost-cutting plan
October 3, 2016 / 5:46 AM / a year ago

BRIEF-ING Groep announces cost-cutting plan

Oct 3 (Reuters) - ING Groep NV :

* Investment of 800 million euros ($898.48 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 900 million euros annual cost savings by 2021

* Intended initiatives impact around 7,000 employees, mostly in Belgium and Netherlands

* Countries with similar value propositions intend to harmonise their business models and develop shared operating platforms

* In Netherlands And Belgium, we intend to move to an integrated banking platform,

* All-In-All, over coming five years, around 7,000 functions might be impacted by these effects, including 950 positions employed by external suppliers

* 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 Netherlands for years 2016-2021

* In line with our strategy, we will be introducing ING Group financial targets for 2020

* Targets for 2020: we will maintain our ING group CET1 ratio above prevailing fully-loaded requirement, currently 12.5 pct, with a leverage ratio above 4 pct

* 2020 target for cost/income ratio is 50-52 pct

* We intend to start a path of convergence towards one digital banking platform.

* Over coming five years, around 7,000 functions might be impacted by these effects, including 950 positions employed by external suppliers

* For intended workforce reductions, a pre-tax redundancy provision of around 1.1 billion euros is expected to be booked, of which 1.0 billion euros in Q4 of 2016

* We reiterate our intention to pay a progressive dividend over time Source text for Eikon: Further company coverage: ($1 = 0.8904 euros) (Gdynia Newsroom:)

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