ING results demonstrate resilience in challenging environment
* Underlying net profit up 19.2% to EUR 1,946 million supported by
investment gains
* Underlying profit includes a EUR 455 million net gain on the
sale of part of ING's stake in ABN Amro
* Profit declines 8.6%, excluding ABN Amro gain, on lower
revaluations of real estate & private equity investments
* Strong life sales push value of new business up 47.5% to EUR
298 million; solid volume growth in banking
* Net profit up 46.8% to EUR 2,306 million (EUR 1.08 per
share) after divestment gains and restructuring expenses
* Risk management and strong balance sheet protected ING from the
direct impact of market turmoil
* Negligible impact from liquidity crisis on long-term funding
costs of the banking business
* No material impairments on EUR 3.1 billion portfolio of
investments backed by subprime assets
* No material revaluations on debt securities held in the
third quarter as credit spreads increased
* Investments continue to support growth, optimise the competitive
position and sharpen focus
* Acquisitions of Oyak Bank in Turkey and Latin American
pension business of Santander progressing on track
* Investments planned to optimise Belgian retail network to
boost pre-tax profit by over EUR 100 million
* Initiatives at Wholesale to generate EUR 30 million in cost
savings and EUR 100 million in revenue by 2009
Chairman's Statement"The third quarter was marked by turmoil in
financial markets as concerns about US subprime lending triggered a
liquidity crisis and a repricing of risk. Risk management protected
us against the direct impact of this turmoil, demonstrating ING's
resilience in a challenging environment," said Michel Tilmant,
Chairman of ING Group. "Our strong balance sheet and large customer
deposit base enabled ING to manage the liquidity crisis with only a
negligible increase in funding costs. We incurred no material
impairments or revaluations on our subprime residential
mortgage-backed securities or leveraged finance transactions.
Revaluations of debt securities held were essentially flat as lower
interest rates offset credit-spread widening in the third quarter."
"The commercial performance of the business remained robust. ING
achieved strong sales of life insurance in Central Europe and Asia as
well as variable annuities in the US. That drove a 47.5% increase in
the value of new business to EUR 298 million. The banking businesses
continued to show solid volume growth in mortgages, term deposits and
current accounts. That was partially offset by outflows from
high-balance customers at ING Direct UK, where management actions are
being taken to stop the outflow."
"The market turbulence has made the business environment more
challenging. Strategic trading results in Wholesale Banking were
impacted by the market turmoil and deal flow slowed in leveraged
finance. Revaluations on real estate and private equity investments
were less favourable than in recent quarters. Equity market
volatility has increased. The yield curve has remained flat, and
competition for deposits is intensifying for Retail Banking and ING
Direct."
"The fundamentals underpinning our businesses remain strong and will
support growth over the long term. We continue to invest to support
ING's wealth management strategy, including the acquisitions of Oyak
Bank in Turkey and the Latin American pension business of Santander.
Our stake in the Bank of Beijing increased its market value more than
ten-fold to EUR 2.1 billion following that bank's IPO in the third
quarter. We also continue to invest in existing businesses to
optimise our competitive position. The integration of Postbank and
ING Bank in the Netherlands is on track. Investments are also planned
to optimise the retail distribution model in Belgium to boost profit
there by more than EUR 100 million by 2012. At Wholesale Banking we
are introducing new initiatives to improve efficiency and stimulate
growth, which are expected to generate EUR 30 million in cost savings
and EUR 100 million in revenue benefits by 2009."
The full report including tables can be downloaded from the following
link:
2007 Third Quarter Results ING Group
The following documents can be downloaded from around 08.00 am CET
from the following link:
Presentations on Quarterly Results
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