ING will move towards a complete separation of its banking and insurance operations as part of its ongoing strategy review, it has announced today.

The split is a result of its restructuring deal with the European Commission, transforming it over the next four years into a smaller Europe-focused bank.

The company has also said it will pay back 50% of its aid from the Dutch state early and launch an $11.25 billion rights issue.

Jan Hommen, chief executive officer of ING, said: “Over the last six months, we have worked tirelessly - both inside ING and with the Dutch Government and the European Commission - to devise a plan that will enable us to pay back the Dutch State, address the EC’s requirements for viability and fair competition, and return our focus to the business and what matters most to our customers.

“We recognize the considerable efforts of the Dutch Government and the EC, and are pleased to have achieved understandings with them about how we will move forward.”

ING will present the rights issue at an extraordinary meeting on November 25. The price, ratios and total number of shares will be announced following the meeting.