Focus on costs despite profit
ING Australia has announced it is embarking on a two-year program designed to reduce its cost to income from 53 per cent to 43 per cent by 2010.
The cost-reduction program was announced off the back of the company reporting an after-tax profit of $311 million for the year ended September 30 — a 28 per cent increase driven by net income growth of 16 per cent against expense growth of just 7 per cent.
Commenting on the result, ING Australia chief executive Paul Bedbrook said the company was performing strongly across all business units and was well-positioned for sustained future growth.
He told analysts that the performance highlights for ING had included an 18 per cent increase in funds under management, which had driven income growth up 13 per cent, a 189 increase in aligned adviser numbers to 1,334 and a 26 per cent increase in total in-force premiums.
Bedbrook said that during 2007 ING had consolidated its position as one of Australia’s major wealth managers and insurers.
“Halfway through the 10-year joint venture between ING and ANZ, ING Australia continues to have one of the strongest brands in the market for wealth management and protection,” he said.
AUTHOR
Mike Taylor
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