ING posts 1Q underlying net profit of EUR 1,018 million
(Thomson Reuters ONE) -
1Q underlying net profit increases to EUR 1,018 million vs. EUR 236 million loss
in 1Q2009
* Net profit increases to EUR 1,326 million from loss of EUR 793 million in
1Q2009
* Divestments & special items totalled EUR 306 million vs. EUR -558 million a
year earlier
* Net result per share increase to EUR 0.35 from EUR -0.39 a year earlier
* Return on equity increases to 11.3% from 3.3% in full year 2009
Bank posts 1Q underlying profit before tax of EUR 1,278 million vs. EUR 769
million in 1Q2009
* Income recovers to pre-crisis levels as margins improve and volumes
increase, particularly in Retail Banking
* Impairments & other market impacts decline to EUR -181 million vs. EUR -219
million in 1Q2009 and EUR -992 million in 4Q2009
* Cost/income ratio improves to 57.5%, or 53.5% excluding impairments & other
market impacts
* Loan loss provisions decline to EUR 497 million, or 59 bps of average
risk-weighted assets
Insurance posts 1Q underlying profit before tax of EUR 269 million vs. EUR 954
million loss in 1Q2009
* Operating profit increases 62.7% to EUR 415 million on higher margins and
cost containment
* Administrative expenses/operating income for Life & ING IM improves to
43.4% from 47.0%
* Sales increase 20.5% from 4Q2009 to EUR 1,242 million and are back on par
with 1Q2009 level
Shareholders' equity increases by EUR 4.4 billion to EUR 38.2 billion, or EUR
10.10 per share
* Bank core Tier 1 ratio increases to 8.4% from 7.8% at year-end 2009, well
above 7.5% target
* Insurance Groups Directive Solvency I ratio improves to 261% from 251%
* Group debt/equity ratio improves to 11.8% and FiCo ratio increases to 162%
CHAIRMAN'S STATEMENT
"ING made a strong start in 2010 with earnings recovering in both banking and
insurance," said Jan Hommen, CEO of ING Group. "The performance of both
businesses improved, while market-related impacts diminished in the first
quarter as markets generally improved. Insurance sales regained momentum from
the fourth quarter, and savings volumes increased although loan growth remained
muted. The return on equity for the Group improved substantially to 11.3%."
"The bank has made good progress on the performance improvement initiatives
announced in October, posting an underlying profit before tax of EUR 1,278
million. Income rebounded to pre-crisis levels, surpassing the first quarter of
2008, as savings and mortgage volumes increased and margins improved,
particularly in Retail Banking. The cost/income ratio has been reduced to 53.5%
excluding impairments and other market impacts, illustrating ongoing cost
containment following the significant cuts made last year. Loan loss provisions
declined from previous quarters, as provisioned loans were restructured and the
US housing market stabilised. However risk costs on the Benelux mid-corporate
segment remained elevated given the weak economic environment."
"The insurance operations also showed early results on their performance
improvement plans announced in April. Cost containment and improving investment
margins drove a strong increase in operating profit, which rose 62.7% to EUR
415 million. Sales momentum also gained pace, up 20.5% from the fourth quarter
and matching the sales volumes from the first quarter last year. The market
recovery helped reduce the impact of impairments and revaluations, leading to an
improvement in the underlying result before tax to EUR 269 million, up from
losses in the previous quarters."
"The results to date are clearly encouraging, and they serve as evidence of the
commitment of our management and employees to drive performance improvements
while keeping a sharp eye on costs. We will work hard to build on these
successes in the coming quarters, but we must remain vigilant as markets are
still volatile and the economic recovery could prove fragile, as we have seen in
recent weeks with severe market volatility amid concerns about sovereign risk.
As we work to increase the value of our banking and insurance franchises coming
out of this crisis, our primary focus must remain on our customers and we aim to
differentiate ourselves by providing simpler and more transparent products,
reliable advice, efficient processes and better customer service."
"Our priorities for this year are to ensure an orderly operational separation of
banking and insurance and to improve the performance of both organisations to
create strong independent companies going forward - and we are making good
progress on all fronts."
"In the first quarter we also completed an inventory of all integration issues
that need to be addressed in the separation project. Now we are designing
solutions that aim to keep restructuring costs to a minimum while at the same
time ensuring that both the bank and insurer benefit from lower operating
expenses going forward."
NOTE FOR EDITORS
Jan Hommen, Patrick Flynn and Koos Timmermans will discuss the results in an
analyst and investor conference call on 12 May 2010 at 9:00 CET. Members of the
investment community can join the conference call at +31 20 794 8500 (NL), +44
207 154 2683 (UK) or +1 480 629 9771 (US) and via live audio webcast at
www.ing.com.
A media conference call will be held on 12 May 2010 at 11:30 CET. Journalists
are invited to join the conference in listen-only mode at +31 20 796 5332 (NL)
or +44 20 8515 2302 (UK) and via live audio webcast at www.ing.com.
Investor enquiries
T: +31 20 541 5460
E: investor.relations(at)ing.com
Press enquiries
T: +31 20 541 5433
E: mediarelations(at)ing.com
The following documents can be downloaded from around 7:00 am CET from the
following links:
ING Group Q1 2010 Results (Full Press release in PDF)
ING Group Quarterly Report
ING Group Statistical Supplement
ING Group Historical Trend Data
Analyst Presentation
DISCLAIMER
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 2009 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) the implementation of ING's restructuring plan to
separate banking and insurance operations, (4) 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, (5)the frequency and severity of
insured loss events, (6) changes affecting mortality and morbidity levels and
trends, (7) changes affecting persistency levels, (8) changes affecting interest
rate levels, (9) changes affecting currency exchange rates, (10)changes in
general competitive factors, (11) changes in laws and regulations, (12) changes
in the policies of governments and/or regulatory authorities, (13) conclusions
with regard to purchase accounting assumptions and methodologies, (14)changes in
ownership that could affect the future availability to us of net operating loss,
net capital and built-in loss carry forwards, and (15) ING's ability to achieve
projected operational synergies. 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.
[HUG#1414693]
Unternehmensinformation / Kurzprofil:
Datum: 12.05.2010 - 06:59 Uhr
Sprache: Deutsch
News-ID 20723
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