Welcome!

News Feed Item

ING posts 3Q12 underlying net profit of EUR 719 million

AMSTERDAM, THE NETHERLANDS -- (Marketwire) -- 11/07/12 --

* ING Group's 3Q12 net result was EUR 609 million, or EUR 0.16 per share, including divestments and special items.

* Bank underlying result before tax was solid at EUR 1,021 million despite the negative impact of CVA/DVA, de-risking losses and higher risk costs. The underlying interest margin rose to 1.33% from 1.26% in 2Q12.

* Insurance operating result was EUR 238 million. Underlying result before tax declined to EUR 44 million, including negative results on hedges in place to protect regulatory capital.

* Capital ratios strengthened: Bank core Tier 1 ratio increased to 12.1%; Insurance IGD solvency ratio rose to 249%.

Chairman's Statement

"During the third quarter, ING continued to deliver on its restructuring plan amid a challenging operating environment. We announced the first three sales of our Asian Insurance/IM units, and Insurance US is making strides in its IPO preparations. At the same time, together with the Dutch State, we have made good progress in our constructive dialogue with the European Commission about revisions to the restructuring plan," said Jan Hommen, CEO of ING Group. "At ING Bank, we announced the sales of ING Direct Canada and the UK as we sharpen our strategic focus. We also accelerated de-risking efforts, selling EUR 2.4 billion of European debt securities and releasing EUR 5 billion of RWA. The Bank posted a solid quarter, supported by a gain on the sale of our stake in Capital One. At Insurance we kept hedges in place to protect regulatory capital; however, losses on these hedges continued to affect results."

"As we work to solidify strong stand-alone futures for Bank and Insurance, we are taking steps to increase our agility in this uncertain environment. At Insurance Europe we are accelerating a transformation programme at Nationale-Nederlanden to sharpen its strategic focus and improve processes and systems. These measures, together with delayering of support functions, will result in a reduction in the workforce of 1,350 FTEs and annual savings of approximately EUR 200 million by the end of 2014. At Commercial Banking, we conducted a strategic review and have decided to simplify our business model and exit some businesses outside of ING's home markets. These measures will reduce the workforce by 1,000 FTEs and lower expenses by EUR 260 million from 2015 onwards."

"It is painful to announce such steps today, because throughout these challenging times employees at all levels have worked tirelessly to prepare businesses for divestment, secure strong stand-alone futures for Bank and Insurance, and ensure that we are prepared for industry changes and regulatory requirements. And while our employees have gone through a whirlwind of change during the last four years, they have consistently placed their highest priority on supporting our customers. I am grateful for these contributions and am confident that these efforts, combined with further streamlining, will strengthen our company for the long-term benefit of all stakeholders."

  Key Figures(1)
                   |                    |             |
                   |3Q2012 3Q2011 Change|2Q2012 Change|9M2012 9M2011 Change
-------------------+--------------------+-------------+--------------------
 ING Group key     |                    |             |
 figures (in EUR   |                    |             |
 million)          |                    |             |
                   |                    |             |
 Underlying result | 1,065  1,347 -20.9%| 1,224 -13.0%| 3,181  4,744 -32.9%
 before tax Group  |                    |             |
                   |                    |             |
    of which Bank  | 1,021    878  16.3%|   995   2.6%| 3,141  3,556 -11.7%
                   |                    |             |
    of which       |                    |             |
    Insurance      |    44    469 -90.6%|   229 -80.8%|    40  1,188 -96.6%
                   |                    |             |
 Underlying net    |                    |             |
 result            |   719  1,099 -34.6%| 1,045 -31.2%| 2,306  3,595 -35.9%
                   |                    |             |
 Net result        |   609  1,692 -64.0%| 1,171 -48.0%| 2,460  4,580 -46.3%
                   |                    |             |
 Net result per    |                    |             |
 share             |  0.16   0.45 -64.4%|  0.31 -48.4%|  0.65   1.21 -46.3%
 (in EUR)(2)       |                    |             |
                   |                    |             |
 Total assets (end |                    |             | 1,248  1,282  -2.7%
 of period, in EUR |                    | 1,237   0.9%|
 billion)          |                    |             |
                   |                    |             |
 Shareholders'     |                    |             |    53     45  18.8%
 equity (end of    |                    |             |
 period, in EUR    |                    |    51   4.7%|
 billion)          |                    |             |
                   |                    |             |
 Underlying return |                    |             |  6.2%  11.7%
 on equity based on|  5.6%  10.4%       |  8.5%       |
 IFRS-EU equity(4) |                    |             |
-------------------+--------------------+-------------+--------------------
 Banking key       |                    |             |
 figures           |                    |             |
                   |                    |             |
 Underlying        |                    |             |
 interest margin   | 1.33%  1.33%       | 1.26%       | 1.30%  1.37%
                   |                    |             |
 Underlying cost   | 58.7%  64.5%       | 58.4%       | 58.6%  60.1%
 income ratio      |                    |             |
                   |                    |             |
 Underlying risk   |                    |             |
 costs in bp of    |    75     49       |    72       |    69     42
 average RWA       |                    |             |
                   |                    |             |
 Core Tier 1 ratio |                    | 11.1%       | 12.1%   9.6%
                   |                    |             |
 Underlying return |                    |             |  8.1%  10.1%
 on equity based on|  7.9%   7.1%       |  7.9%       |
 IFRS-EU equity(4) |                    |             |
-------------------+--------------------+-------------+--------------------
 Insurance key     |                    |             |
 figures           |                    |             |
                   |                    |             |
 Operating result  |   238    392 -39.3%|   304 -21.7%|   800  1,309 -38.9%
 in EUR million)   |                    |             |
                   |                    |             |
 Investment margin/|                    |             |
 life general      |                    |             |
 account invested  |   130    126       |   133       |
 assets (in bps)(3)|                    |             |
                   |                    |             |
 Administrative    |                    |             | 47.8%  42.4%
 expenses /        |                    |             |
 operating income  | 47.6%  44.4%       | 46.9%       |
 (Life & ING IM)   |                    |             |
                   |                    |             |
 Underlying return |                    |             |  0.6%   7.0%
 on equity based on| -0.2%   9.7%       |  5.4%       |
 IFRS-EU equity(4) |                    |             |
-------------------+--------------------+-------------+--------------------

The footnotes relating to 1-4 can be found on page 14 of the full press release as attached to this message.

Note: Underlying figures are non-GAAP measures and are derived from figures according to IFRS-EU by excluding impact from divestments and special items.


Investor conference call, media conference call and webcasts

Jan Hommen, Patrick Flynn, Wilfred Nagel and Matt Rider will discuss the results in an analyst and investor conference call on 7 November 2012 at 9:00 CET. Members of the investment community can join the conference call at +31 20 794 8500 (NL), +44 207 190 1537 (UK) or +1 480 629 9031 (US) and via live audio webcast at www.ing.com.

A media conference call will be held on 7 November 2012 at 11:00 CET. Journalists are invited to join the conference in Q&A-mode at + 31 20 531 58 46 (NL) or +44 203 365 3210 (UK) and via live audio webcast at www.ing.com.


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

ING Group 3Q2012 Results (Full press release in PDF)

ING Group 3Q2012 Results Analyst Presentation (PDF)

ING Group 3Q2012 Results Quarterly Report (PDF)

ING Group 3Q2012 Results Group Statistical Supplement (PDF) (XLS)

ING Group 3Q2012 Results Historical Trend Data (PDF) (XLS)

ING Groep N.V. Condensed consolidated interim financial information for the period ended 30 September 2012 (PDF)


IMPORTANT LEGAL INFORMATION

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

In preparing the financial information in this document, the same accounting principles are applied as in the 2011 ING Group Annual Accounts. All figures in this document are unaudited. Small differences are possible in the tables due to rounding.

Certain of the statements contained herein are not historical facts, including, without limitation, certain statements made of future expectations and other forward-looking statements that are based on management's current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Actual results, performance or events may differ materially from those in such statements due to, without limitation: (1) changes in general economic conditions, in particular economic conditions in ING's core markets, (2) changes in performance of financial markets, including developing markets, (3) consequences of a potential (partial) break-up of the euro, (4) the implementation of ING's restructuring plan to separate banking and insurance operations, (5) changes in the availability of, and costs associated with, sources of liquidity such as interbank funding, as well as conditions in the credit markets generally, including changes in borrower and counterparty creditworthiness, (6) the frequency and severity of insured loss events, (7) changes affecting mortality and morbidity levels and trends, (8) changes affecting persistency levels, (9) changes affecting interest rate levels, (10) changes affecting currency exchange rates, (11) changes in investor, customer and policyholder behaviour, (12) changes in general competitive factors, (13) changes in laws and regulations, (14) changes in the policies of governments and/or regulatory authorities, (15) conclusions with regard to purchase accounting assumptions and methodologies, (16) changes in ownership that could affect the future availability to us of net operating loss, net capital and built-in loss carry forwards, (17) changes in credit-ratings, (18) ING's ability to achieve projected operational synergies and (19) the other risks and uncertainties detailed in the Risk Factors section contained in the most recent annual report of ING Groep N.V. Any forward-looking statements made by or on behalf of ING speak only as of the date they are made, and, ING assumes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information or for any other reason. This document does not constitute an offer to sell, or a solicitation of an offer to buy, any securities.


Full 3Q12 Results press release in PDF: http://hugin.info/130668/R/1655504/535043.pdf


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

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

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

Source: ING Group via Thomson Reuters ONE

[HUG#1655504]

Investor enquiries
T: +31 20 576 6396
E: Email Contact

Press enquiries
T: +31 20 576 5000
E: Email Contact

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Bill Schmarzo, author of "Big Data: Understanding How Data Powers Big Business" and "Big Data MBA: Driving Business Strategies with Data Science" is responsible for guiding the technology strategy within Hitachi Vantara for IoT and Analytics. Bill brings a balanced business-technology approach that focuses on business outcomes to drive data, analytics and technology decisions that underpin an organization's digital transformation strategy.
DevOpsSummit New York 2018, colocated with CloudEXPO | DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City. Digital Transformation (DX) is a major focus with the introduction of DXWorldEXPO within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term.
@DevOpsSummit at Cloud Expo, taking place November 12-13 in New York City, NY, is co-located with 22nd international CloudEXPO | first international DXWorldEXPO and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time t...
Headquartered in Plainsboro, NJ, Synametrics Technologies has provided IT professionals and computer systems developers since 1997. Based on the success of their initial product offerings (WinSQL and DeltaCopy), the company continues to create and hone innovative products that help its customers get more from their computer applications, databases and infrastructure. To date, over one million users around the world have chosen Synametrics solutions to help power their accelerated business or per...
DXWordEXPO New York 2018, colocated with CloudEXPO New York 2018 will be held November 11-13, 2018, in New York City and will bring together Cloud Computing, FinTech and Blockchain, Digital Transformation, Big Data, Internet of Things, DevOps, AI, Machine Learning and WebRTC to one location.
Charles Araujo is an industry analyst, internationally recognized authority on the Digital Enterprise and author of The Quantum Age of IT: Why Everything You Know About IT is About to Change. As Principal Analyst with Intellyx, he writes, speaks and advises organizations on how to navigate through this time of disruption. He is also the founder of The Institute for Digital Transformation and a sought after keynote speaker. He has been a regular contributor to both InformationWeek and CIO Insight...
When talking IoT we often focus on the devices, the sensors, the hardware itself. The new smart appliances, the new smart or self-driving cars (which are amalgamations of many ‘things'). When we are looking at the world of IoT, we should take a step back, look at the big picture. What value are these devices providing. IoT is not about the devices, its about the data consumed and generated. The devices are tools, mechanisms, conduits. This paper discusses the considerations when dealing with the...
Sanjeev Sharma Joins November 11-13, 2018 @DevOpsSummit at @CloudEXPO New York Faculty. Sanjeev Sharma is an internationally known DevOps and Cloud Transformation thought leader, technology executive, and author. Sanjeev's industry experience includes tenures as CTO, Technical Sales leader, and Cloud Architect leader. As an IBM Distinguished Engineer, Sanjeev is recognized at the highest levels of IBM's core of technical leaders.
DXWorldEXPO LLC announced today that Kevin Jackson joined the faculty of CloudEXPO's "10-Year Anniversary Event" which will take place on November 11-13, 2018 in New York City. Kevin L. Jackson is a globally recognized cloud computing expert and Founder/Author of the award winning "Cloud Musings" blog. Mr. Jackson has also been recognized as a "Top 100 Cybersecurity Influencer and Brand" by Onalytica (2015), a Huffington Post "Top 100 Cloud Computing Experts on Twitter" (2013) and a "Top 50 C...
For years the world's most security-focused and distributed organizations - banks, military/defense agencies, global enterprises - have sought to adopt cloud technologies that can reduce costs, future-proof against data growth, and improve user productivity. The challenges of cloud transformation for these kinds of secure organizations have centered around data security, migration from legacy systems, and performance. In our presentation, we will discuss the notion that cloud computing, properl...
IoT is rapidly becoming mainstream as more and more investments are made into the platforms and technology. As this movement continues to expand and gain momentum it creates a massive wall of noise that can be difficult to sift through. Unfortunately, this inevitably makes IoT less approachable for people to get started with and can hamper efforts to integrate this key technology into your own portfolio. There are so many connected products already in place today with many hundreds more on the h...
SYS-CON Events announced today that IoT Global Network has been named “Media Sponsor” of SYS-CON's @ThingsExpo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. The IoT Global Network is a platform where you can connect with industry experts and network across the IoT community to build the successful IoT business of the future.
CloudEXPO New York 2018, colocated with DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City and will bring together Cloud Computing, FinTech and Blockchain, Digital Transformation, Big Data, Internet of Things, DevOps, AI, Machine Learning and WebRTC to one location.
Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settlement products to hedge funds and investment banks. After, he co-founded a revenue cycle management company where he learned about Bitcoin and eventually Ethereal. Andrew's role at ConsenSys Enterprise is a mul...
DXWorldEXPO | CloudEXPO are the world's most influential, independent events where Cloud Computing was coined and where technology buyers and vendors meet to experience and discuss the big picture of Digital Transformation and all of the strategies, tactics, and tools they need to realize their goals. Sponsors of DXWorldEXPO | CloudEXPO benefit from unmatched branding, profile building and lead generation opportunities.