ING Canada seeking acquisitions

One of ING Canada’s key strategies is to pursue value-creating acquisitions that fit into its current business line, Claude Dussault, president & CEO of ING Canada told delegates at the Scotia Capital Financials Summit Conference.

Dussault discussed the company’s goals going forward, which, he said are two-fold. First is to outperform the industry in terms of return on equity by at least 500 basis points per year. Second, ING plans to exceed the annual growth of the industry by at least 300 basis points over time — not year after year, but over a period of time.

He noted acquisitions are a key component in pushing the company’s growth into the double-digit level in a single-digit growing industry.

Dussault noted that the company has created a very strong balance sheet — no leverage and excess capital — and while long-term this is not an ideal position in which to be, there are plans to improve this position. The prime target is to use the capital to make acquisitions and bring about a balance sheet that will help the company perform at the ROE level.

ING Canada has found that by carrying the capital on the balance sheet it could be useful at a time when it needs to make moves on acquisitions.

“It is somewhat of an art,” Dussault said. “And it has to take into account what are our expectations. But as I said, mid- to long-term is that we can leverage the balance sheet by using that capital for more consolidation.”