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ING posts 2012 underlying net profit of EUR 2,603 million


February 13, 2013 - Amsterdam, Netherlands



* ING Group's full-year 2012 net result was EUR 3,894 million, or EUR1.03 per share, including divestments, discontinued operations and specialitems. The 4Q12 net result was EUR 1,434 million, or EUR 0.38 per share.The 4Q12 underlying net result was EUR 373 million, reflecting a solidquarter at Insurance and lower Bank results due to incidental items and theDutch bank tax.

* Bank 4Q12 underlying result before tax was EUR 184 million, reflectingnegative CVA/DVA adjustments, de-risking losses and the Dutch bank tax. Theinterest margin was relatively stable at 1.33% versus 3Q12 while risk costsincreased slightly to EUR 588 million.

* Insurance 4Q12 operating result improved versus 3Q12 to EUR 296 millionas the investment spread strengthened to 132 bps. Sales grew 12.7% from4Q11 and 23.6% from 3Q12 at constant currencies. Underlying result beforetax rose to EUR 272 million.

Chairman's Statement

"2012 was a transformational year for ING as we worked decisively on therestructuring of the Group, preparing the Bank and Insurance companies forindependent futures," said Jan Hommen, CEO of ING Group. "In the fourthquarterwe announced two major divestments of our Asian Insurance/IM businesses. Wefiled the IPO registration statement for our US insurance business, and wereached an agreement with the European Commission which gives us more timeandgreater flexibility for restructuring. The Bank made strides in optimisingitsbalance sheet and generating capital to meet Basel III requirements whilefunding a payment of EUR 1.125 billion to the Dutch State and upstreaminganadditional EUR 1 billion to the Group to reduce core debt."

"Results for the year held up well, despite the sovereign debt crisis inEuropeand weak economic climate which persisted throughout 2012. Underlying netresults for the Group were EUR 2,603 million, down just 5.2% from 2011,despiteEUR 626 million of de-risking losses at the Bank, a EUR 175 million Dutchbanktax, and higher loan losses as the economy weakened. At Insurance,de-riskingand low interest rates put pressure on investment returns, but underlyingresults recovered as market-related items diminished."

"As the environment around us changes, ING is also evolving as we work tomeetour customers' rapidly changing needs and to achieve operationalexcellence. Inthe Netherlands as well as in Belgium, we have made great progress inimprovingservice and investing in IT as customers move swiftly towards mobilebanking. Asour business model evolves, so must our organisation. Retail BankingNetherlandsis expanding the transformation programme started in 2011, leading toapproximately 1,400 additional redundancies by the end of 2015 and reducingexpenses by an additional EUR 120 million per annum from 2016 onwards. AtINGBank in Belgium, employee headcount is expected to decline by 1,000 FTEs by2015, through natural attrition, leading to EUR 150 million in annual costsavings by 2015. These initiatives come on top of measures announced inCommercial Banking and Insurance Europe last quarter. Combined, all oftheseprogrammes accounted for EUR 452 million in after-tax restructuringprovisionsbooked in 2012, but they are essential to drive future performance,reducingannual expenses by a combined EUR 1 billion by 2015."

"Amid all of the changes we are going through, our employees havedemonstratedconsistent dedication and commitment to keeping our customers' needsparamount.As we embark on 2013, the economic climate remains challenging, and we mustbeagile to respond quickly to the dynamic environment so that we can deliversustainable results for the long-term benefit of all stakeholders."


Key Figures(1)
| 4Q 4Q | 3Q | FY FY
|2012 2011 Change|2012 Change|2012 2011 Change
-----------------------+-----------------+-------------+-------------------
ING Group key figures | | |
(in EUR million) | | |
| | |
Underlying result | 455 -849 | 1,028 -55.7%|3,530 3,803 -7.2%
before tax Group | | |
| | |
of which Bank | 184 664-72.3%| 983 -81.3%|3,219 4,128 -22.0%
| | |
of which Insurance | 272-1,513 | 44 518.2%| 311 -325
| | |
Underlying net result | 373 -785 | 692 -46.1%|2,603 2,746 -5.2%
| | |
Net result |1,434 1,186 20.9%| 609 135.5%|3,894 5,766 -32.5%
| | |
Net result per share | 0.38 0.31 22.6%| 0.16 137.5%| 1.03 1.52 -32.2%
(in EUR)(2) | | |
| | |
Total assets (end of | | |1,169 1,279 -8.6%
period, in EUR | | 1,248 -6.4%|
billion) | | |
| | |
Shareholders' equity | | | 54 47 16.5%
(end of period, in EUR| | 53 2.8%|
billion) | | |
| | |
Underlying return on | | | 5.2% 6.5%
equity based on IFRS- |2.8% -6.9% | 5.4% |
EU equity(3) | | |
-----------------------+-----------------+-------------+------------------
Banking key figures | | |
| | |
Interest margin |1.33% 1.38% | 1.34% | 1.32% 1.38%
| | |
Underlying cost/income|75.7% 66.8% | 58.8% | 62.5% 61.8%
ratio | | |
| | |
Underlying risk costs | 84 62 | 76 | 73 48
in bp of average RWA | | |
| | |
Core Tier 1 ratio | | 12.1% | 11.9% 9.6%
| | |
Underlying return on | | | 5.9% 8.8%
equity based on IFRS- |0.3% 5.7% | 7.6% |
EU equity(3) | | |
-----------------------+------------------+-------------+------------------
Insurance key figures | | |
| | |
Operating result (in | 296 349 -15.2%| 237 24.9%|1,095 1,658 -
34.0%
EUR million) | | |
| | |
Investment margin/life| | |
general account | 132 129 | 130 |
invested assets (in | | |
bps)( 4) | | |
| | |
Administrative | | | 47.5% 43.3%
expenses / operating |46.5% 46.2% | 47.6% |
income (Life & ING IM)| | |
| | |
Underlying return on | | | 1.8% -1.1%
equity based on IFRS- |5.1% -22.2% | -0.2% |
EU equity(3) | | |
-----------------------+------------------+-------------+------------------

The footnotes relating to 1-4 can be found on page 14 of the full pressreleaseas attached to this message.Note: Underlying figures are non-GAAP measures and are derived from figuresaccording to IFRS-EU by excluding impact from divestments and specialitems.


Press conference, investor conference call and webcasts

Jan Hommen, Patrick Flynn and Wilfred Nagel will discuss the results in apress conference on 13 February 2013 at 09:00 a.m. CET. Journalists areinvited to join the conference at ING Amsterdamse Poort, Bijlmerplein 888,Amsterdam. Journalists can also join in listen-only mode at 20 531 5846(NL) or 203 365 3210 (UK) and via live audio webcast at www.ing.com.

Jan Hommen, Patrick Flynn and Wilfred Nagel will also discuss the resultsinan analyst and investor conference call on 13 February 2013 at 10:30 a.m.CET.Members of the investment community can join the conference call at 20 794 8500 (NL), 207 190 1537 (UK) or 480 629 9031 (US) and vialive audio webcast at www.ing.com.

Additional information is available in the following documents which can bedownloaded from around 7:00 am CET from the following links at www.ing.com:

ING Group 4Q2012 Results (PDF)

ING Group 4Q2012 Results Analyst Presentation (PDF)

ING Group 4Q2012 Results Media Presentation (PDF)

ING Group 4Q2012 Results Quarterly Report (PDF)

ING Group 4Q2012 Results Group Statistical Supplement (PDF) (XLS)

ING Group 4Q2012 Results Historical Trend Data (PDF) (XLS)

IMPORTANT LEGAL INFORMATION

ING Group's Annual Accounts are prepared in accordance with InternationalFinancial Reporting Standards as adopted by the European Union ('IFRS-EU').

In preparing the financial information in this document, the sameaccountingprinciples are applied as in the 2011 ING Group Annual Accounts. Allfiguresin this document are unaudited. Small differences are possible in thetablesdue to rounding.

Certain of the statements contained herein are not historical facts,including, without limitation, certain statements made of futureexpectationsand other forward-looking statements that are based on management's currentviews and assumptions and involve known and unknown risks and uncertaintiesthat could cause actual results, performance or events to differ materiallyfrom those expressed or implied in such statements. Actual results,performance or events may differ materially from those in such statementsdueto, without limitation: (1) changes in general economic conditions, inparticular economic conditions in ING's core markets, (2) changes inperformance of financial markets, including developing markets, (3)consequences of a potential (partial) break-up of the euro, (4) theimplementation of ING's restructuring plan to separate banking andInsuranceoperations, (5) changes in the availability of, and costs associated with,sources of liquidity such as interbank funding, as well as conditions inthecredit markets generally, including changes in borrower and counterpartycreditworthiness, (6) the frequency and severity of insured loss events,(7)changes affecting mortality and morbidity levels and trends, (8) changesaffecting persistency levels, (9) changes affecting interest rate levels,(10)changes affecting currency exchange rates, (11) changes in investor,customerand policyholder behaviour, (12) changes in general competitive factors,(13)changes in laws and regulations, (14) changes in the policies ofgovernmentsand/or regulatory authorities, (15) conclusions with regard to purchaseaccounting assumptions and methodologies, (16) changes in ownership thatcouldaffect the future availability to us of net operating loss, net capital andbuilt-in loss carry forwards, (17) changes in credit-ratings, (18) ING'sability to achieve projected operational synergies and (19) the other risksand uncertainties detailed in the Risk Factors section contained in themostrecent annual report of ING Groep N.V. Any forward-looking statements madebyor on behalf of ING speak only as of the date they are made, and, INGassumesno obligation to publicly update or revise any forward-looking statements,whether as a result of new information or for any other reason. Thisdocumentdoes not constitute an offer to sell, or a solicitation of an offer to buy,any securities.

PDF version of full press release:http://hugin.info/130668/R/1677603/547166.pdf

This announcement is distributed by Thomson Reuters on behalf ofThomson Reuters clients. The owner of this announcement warrants that:

(i) the releases contained herein are protected by copyright andother applicable laws; and

(ii) they are solely responsible for the content, accuracy andoriginality of the information contained therein.

Source: ING Group via Thomson Reuters ONE

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