Three years ago, ING Direct Australia obtained 40 per cent of its funding from retail deposits, 30 per cent from short-term wholesale funding and 25 per cent from long-term wholesale funding. Today its funding profile is very different.The bank released its 2011 financial report yesterday, in which it disclosed that total deposits to loans was 64 per cent, short-term wholesale funding was down below 10 per cent and securitisation now stood at around five per cent.ING Direct chief executive Don Koch said: "With the restructuring of our liability base we have a stronger balance sheet."We have multiple opportunities for gathering funding. Savings are growing faster than mortgages and we expect that to continue at least for the next year or two."And we are still growing our mortgage book."Koch said the bank had developed a business looking after the cash management requirements of local councils, other government organisations and not-for-profits. It has picked up A$1.5 billion in that market over the past couple of years.The bank made a net profit of $304 million for the year to December - up 10 per cent on the 2010 result.Retail deposits grew 12 per cent to $26.1 billion (Australian Prudential Regulation Authority figures show a household deposit growth rate of six per cent, but ING Direct counts self-managed superannuation fund deposits as household deposits, which APRA does not).The bank's home loan portfolio grew two per cent to $37.4 billion, compared with system growth of 5.9 per cent in 2011.Koch said: "The choice we made coming out of the GFC was to be a little bit more conservative in terms of our credit policies. "Growing mortgage at system is not our goal. Our goal is quality growth."The bank's bad debt experience improved last year. Its loan loss provision was $23.8 million, compared with $29.2 million in 2010.It also had strong growth in non-interest income - up 21 per cent on the previous year. The bank's move into transaction banking a couple of years ago is starting to generate solid account fee income. ING Direct has 1.4 million customers.