Amsterdam  - Shares of the Dutch ING Group rose substantially on Thursday following reports that the worlds' second largest retail bank would focus more on its core business and divest 10 to 15 companies in the following years.

"We are taking ING back to basics on all levels," said Jan Hommen, whose appointment as chairman of the managing board is to be formalized at ING's general shareholders meeting scheduled for April 27.

"The crisis has reinforced the need for us to be even more in touch with our customers. We will be focusing on fewer but more transparent products," Hommen said just before the annual investor's day was due to start.

By 2 pm, ING's share value was up 12.4 per cent and stood at 5.89 euros (7.79 dollars) per share.

In February, the Dutch bank announced it would sell 2 to 3 billion euros in non-core activities. The 1.4- billion-euro sale of ING Canada has already been completed.

Hommen said ING now planned to increase its divestments of non-core business activities to 6 to 8 billion euros in total. This would free some 4 billion euros in capital, he said.

"ING will become a more focused group," Hommen said.

The bank said its previously announced cost-cutting plans were on track. Half of the 7,000 announced job cuts have already been completed.

ING is reviewing its insurance activities in the US. The bank wants to focus its business on low-risk products, such as life insurances and pensions.

ING Group was one of three major Dutch banks to receive substantial government support since the financial crisis first hit the Netherlands in September 2008.

On January 26, the Dutch government agreed to guarantee 80 per cent of the group's problematic Alt-A mortgages, then estimated at 35.1 billion dollars.

On October 19, ING received a capital injection of 10 billion euros from the Dutch government

Other banks that received government support late 2008 were SNS Reaal (a 750-million-capital injection) and the Dutch banking division of Fortis NV, including Dutch ABN Amro bank, which was nationalized.

The International Netherlands Group (ING) is the result of a 1992 merger of several Dutch banks and insurance companies. Its original parent company was established in
1743.(dpa)