Second Quarter 2009 underlying net profit of EUR 229 million shows improvement from underlying net loss of EUR -305 million in first quarter 2009 :
- Bank interest result up 19.4% versus 2Q08 and 4.7% versus 1Q09 on improvements in savings and lending margins
- Group operating expenses down 5.5% from the second quarter of 2008 and 2.4% from the first quarter of 2009
- Results dampened by market impacts including EUR -584 million of real estate revaluations
- EUR -763 million of pre-tax hedge results offset by positive equity-related DAC unlocking and unrealised gains through equity
- Net addition to loan loss provisions of EUR 852 million at ING Bank, equivalent to 118 bps of average credit-risk weighted assets
- Divestments and special items totalled EUR -159 million, bringing the quarterly net result to EUR 71 million or EUR 0.03 EPS
- De-leveraging, de-risking and cost-containment measures progressing on track or ahead of targets
- Cumulative reduction in Bank balance sheet of EUR 164 billion, or 15%, since 3Q08 exceeds target for 10% reduction
- 53% of targeted EUR 1 billion cost savings achieved in first half of 2009; cost savings expected to reach EUR 1.3 billion for full year
- Total FTE reduction of 8,219 realised by end of 2Q09, ahead of 7,000 planned reductions for full-year 2009
- Risk-reduction efforts help offset credit rating migration, limiting the increase in risk-weighted assets to 1.7%
- All key capital and leverage ratios robust during the quarter; shareholders’ equity increases by EUR 2.9 billion
- All key capital and leverage ratios remained strong during the quarter; Bank Tier 1 ratio of 9.4% and core Tier 1 ratio of 7.3%
- Shareholders’ equity increased by EUR 2.9 billion driven by tightening credit spreads and the uptick in equity markets
- Bank asset leverage ratio of 28.9x at the end of 2Q09, down from 30.1x at the end of 1Q09
- ING has decided not to pay an interim dividend on common shares over 2009
Chairman’s Statement
“ING posted solid commercial performance in the quarter, as a more favourable interest rate environment and improved margins on savings and lending led to a 19.4% increase in interest income at the banking operations. In Insurance, the recovery of equity markets in the second quarter helped boost fees on assets under management. However, sales of investment-linked products remained subdued as customers awaited a sustained market rally or opted for traditional life products,” said Jan Hommen, CEO of ING.
