ING looking for acquisitions to grow in Germany, Italy and Spain, says CEO

By Elisa Martinuzzi and John O'Donnell

LONDON (Reuters) -Dutch lender ING Group is looking for opportunities to buy rival banks in major European countries to boost its size, its chief executive told Reuters, potentially joining a wave of takeovers sweeping the region's financial sector.

The remarks from the head of one of Europe's biggest banks are a clear signal that it is open to striking significant deals in Germany, Italy and Spain.

"We want to get bigger in bigger markets, including Italy, Spain and Germany," Steven van Rijswijk told Reuters. "M&A (mergers and acquisitions) is an option everywhere, if it would suit our criteria."

The comments illustrate the rekindled ambitions of the Dutch lender, which was bailed out by the government in the aftermath of the global financial crisis of 2008, and then reinvented itself as a pioneer of low-cost, no-frills online banking, alongside its smaller wholesale bank.

Van Rijswijk declined to name any targets, leaving his options open when asked if he was interested in Germany's Commerzbank, one of the country's most prominent lenders to medium-sized companies, an area where ING is looking to expand.

His ambition for deals could play a part in changing the banking landscape across Europe, as Commerzbank seeks to fend off Italy's UniCredit after rebuffing the Italian bank's approach for a tie-up.

In Spain and Italy, top lenders including BBVA and UniCredit are bidding for smaller rivals to grow their dominance.

"We would be looking firstly at businesses that offer certain products, operate predominantly in geographical markets where we are already active and have a strong digital footprint," the CEO told Reuters when asked specifically about Commerzbank.

Last year, Van Rijswijk played down interest in the German lender, citing its large branch network.

Dutch finance minister Eelco Heinen recently highlighted a consolidation battle among banks in Europe, expressing hope that Dutch banks could be involved as buyers rather than falling prey to foreign rivals.

Van Rijswijk highlighted so-called private banking with wealthier customers as one area of interest.

"The bank is now diversifying, and looking to cater to different segments, adding business lines such as private banking in markets where ING already has a presence," he said.

ING generates the bulk of its earnings in the Netherlands and neighbouring Belgium, followed by Germany, with far smaller operations in Italy and Spain.

Loans and mortgages in the Netherlands and Belgium make up about 55% of the 545 billion euros of retail loans.

European banks are weighing a fresh round of consolidation, bolstered by run of record profits and soaring stock markets.

($1 = 0.9651 euros)

(Reporting by Elisa Martinuzzi and John O'DonnellEditing by Tommy Reggiori Wilkes and Susan Fenton)