ING counts on vast network to fuel its growth in China
Dutch firm's regional operation acts as a platform connecting outbound and inbound investment activities by leveraging its European contacts
ING Bank is pinning its hopes for growth in China on companies looking to go overseas and says operating profits in the region could grow by 10 to 15 per cent a year.
The ING group separated its banking and insurance operations as part of a restructuring required by the European Commission in order to be eligible for Dutch state aid during the 2008 global financial crisis.
While many international banks are keen to expand their range of services, the Dutch lender is focusing on running a mainly commercial banking operation in Asia, with investment banking capabilities. By contrast, it is running retail and commercial banking businesses in Central and Eastern Europe.
"Our network is key. There are not that many European banks with an adequate Asian platform and a very deep European network," Scholten said, noting that the commercial banking arm operated in 14 markets in Asia, including the mainland, Hong Kong, Taiwan, Singapore and Mongolia.
ING's growth in operating profit had exceeded targets in the past few years and Scholten said he expected that to remain the case, with Chinese corporate investment in Europe soaring in recent years.
Before 2008, the mainland's annual investment in Europe was less than US$1 billion, but by 2011 it had increased to US$10 billion, according to a report by China International Capital Corporation. It said it expected total investment to reach US$250 billion to US$500 billion in 2020.