ING sees net inflows despite upheaval

By Gilbert Kreijger

GENEVA (Reuters) - Dutch bank ING (ING.AS: Quote, Profile, Research, Stock Buzz) is seeing net inflows of savings despite the upheaval in global markets as it benefits from its "boring" and conservative profile, the deputy head of its private banking unit said on Monday.

"Despite market circumstances we have net inflows," Bernard Coucke, deputy chief executive of ING Private Banking, told the Reuters Wealth Management Summit. "For the whole group it is positive."

"There is a flight to savings and quality and luckily our group is well preserved through the crisis," he said.

He declined to comment on specifics about the third quarter although he said the group had benefited from the crisis at Belgian-Dutch rival Fortis (FOR.BR: Quote, Profile, Research, Stock Buzz).

"We are not targeting a wounded animal. That is not the way we work. Of course we receive clients from other banks," he said.

Fortis was broken up earlier this month, partly nationalized by the Dutch government and partly sold off to French rival BNP Paribas (BNPP.PA: Quote, Profile, Research, Stock Buzz) as some Fortis clients and counterparty banks pulled their money from the bank.

Coucke said that although ING had been criticized for being "dull" and "boring" in the past, the private bank was now capitalizing on that image.

"We have relative conservative approach. You won't find loads of hedge funds and very speculative products in our portfolios. Our risk management has always been very experienced," he said.

Coucke said ING Private Banking -- mainly active in Asia and Europe -- was seeing inflows in all regions. It was looking for opportunities in Asia, particularly China and Australia, where it might make acquisitions or build the business itself.

"Private banking is a very, very fragmented business... It is clear there will be more consolidation. We look at all opportunities," he said.

Economies of scale are important to control costs, given margins will likely decline over the long term, Coucke said.

"There is pressure of transparency and regulations. Customers will see what margins are. Those of the past will not be accepted in the future," he said.

Coucke said the private banking business was still growing, even in mature markets like Europe, where it competes with Belgian KBC (KBC.BR: Quote, Profile, Research, Stock Buzz), Dutch Rabobank RABN.UL and Swiss UBS (UBSN.VX: Quote, Profile, Research, Stock Buzz).

"Because it is a fragmented business, (growth) will remain impressive. The group is well positioned to capture that," he said. "If you do your business well because it is fragmented you can do as well in the emerging market."

He also predicted that wealthy individuals in regions like the Middle East, Russia and eastern Europe would keep spending.  Continued...