ING records 3Q13 underlying net profit of EUR 891 million
(Thomson Reuters ONE) -
Group underlying net profit of EUR 891 million from EUR 844 million in 3Q12
and EUR 957 million in 2Q13
· 3Q13 net profit EUR 101 million, or EUR 0.03 per share, including
discontinued operations, special items and divestment
Bank underlying result before tax of EUR 1,103 million, in line with 3Q12 but
down 3.8% sequentially
· Net interest margin rose to 1.44% in 3Q13 and the cost/income ratio for the
first nine months of 2013 improved to 55.2%
· Risk costs declined 10.4% from 2Q13, but remained elevated at EUR 552
million, or 80 bps of average RWA
· Core Tier 1 ratio rose to 12.4%, or 12.1% on a pro-forma basis including
today's payment to the State and the IABF unwind
Insurance EurAsia operating result rose to EUR 218 million, up 89.6% versus
3Q12 but 14.8% lower than 2Q13
· Results driven by higher investment margin, lower expenses from the Benelux
transformation plan and improved Non-life results
· Underlying pre-tax result of EUR 136 million; up versus 3Q12 but down
sequentially due to seasonality of dividend income in 2Q13
· Insurance EurAsia IGD solvency ratio lower at 255% reflecting the change in
NN Life's solvency ratio and the sale of ING Life Korea
ING is advancing further into the end phase of its restructuring programme,
which will now be completed by 2016
· EUR 1.125 billion payment to Dutch State completed today; agreement reached
on unwinding of Illiquid Assets Back-up Facility
· Sale of ING Life Korea expected to close by year-end; ING Life Japan to be
included within the base case IPO of ING Insurance
· ING Group's stake in ING U.S. reduced to 57%; Group double leverage covered
by remaining stakes in ING U.S. and SulAmérica
Chairman's Statement
"ING continued to make strong progress on its restructuring programme in the
third quarter, advancing further into the end phase of our transformation," said
Ralph Hamers, CEO of ING Group. "At the same time, our businesses recorded
another good set of quarterly results while delivering on our strategic
priorities."
"Under a new agreement with the European Commission, the total restructuring of
ING Group will now be completed two years earlier, by the end of 2016. The
divestment of the Asian insurance and investment management activities is almost
complete. The sale of ING Life Korea is expected to close by year-end. We have
carefully explored and evaluated several divestment options for ING Life Japan,
and have now included this business within the scope of the base case IPO of ING
Insurance. Preparations for the base case IPO are progressing well and we will
be ready to go to the market in 2014. The successful sale of 38 million ING U.S.
shares in October brought our stake down to 57% and moves us close to meeting
the requirement to divest more than 50% of the U.S. by the end of 2014. The EUR
4.8 billion of leverage in the Group holding company is covered by the proceeds
from our share sales of ING U.S. and SulAmérica this year, together with the
market values of our remaining stakes in these companies."
"We are grateful for the support the Dutch State extended to us during the
crisis. Strong capital generation at the Bank facilitated the payment of another
tranche of core Tier 1 securities today, reducing the principal amount of
outstanding State aid to EUR 1.5 billion. We are also very pleased to have
reached an agreement with the State on the unwinding of the Illiquid Assets
Back-up Facility."
"The various performance improvement programmes and restructuring initiatives
underway across the company are on track, and the results are encouraging.
Underlying pre-tax results at ING Bank were solid at EUR 1,103 million, driven
by an increase of the net interest margin to 1.44%. Commercially, the net inflow
of funds entrusted was sound at EUR 1.9 billion. Risk costs declined from both
previous quarters, but remained elevated. Strong cost control continues to be a
priority at the Bank and is evident in the improvement of the cost/income ratio
to 55.2% for the first nine months of 2013, despite additional restructuring
charges in the third quarter from ongoing reorganisations. The year-to-date
return on IFRS-EU equity was 9.3%, within reach of our 2015 target."
"The Bank's capital position strengthened further to a 12.1% pro-forma core Tier
1 ratio, after today's payment to the Dutch State and including the estimated
impact from unwinding the IABF. ING Bank is continuously working to optimise its
capital structure and is already meeting most of the CRD IV requirements. In
order to reinforce our capital adequacy ahead of upcoming regulation, we are
launching exchange offers for EUR 4.7 billion of outstanding subordinated debt
into two CRD IV-compliant securities. We have also announced our intention to
call a USD 2.0 billion hybrid with an 8.5% coupon, which will reduce our cost of
capital."
"At Insurance EurAsia, both operating and underlying results improved compared
with a year ago, rising to EUR 218 million and EUR 136 million, respectively.
Third-quarter results primarily reflected a higher investment margin, lower
expenses as a result of the transformation programme in Insurance Benelux, and
better performance in Non-life. On a sequential basis, results at Insurance
EurAsia declined mainly due to seasonally higher dividend income in the second
quarter."
"We are proud of the financial and strategic progress that we have achieved this
quarter. I am very determined and excited to be leading ING during this next
phase of its transformation, and am convinced that our focused, simpler and
stronger company is well positioned to help our customers and society prosper,
and to grow our business."
ING Group Key Figures
| | |
|3Q2013 3Q2012(1) Change|2Q2013 Change|9M2013 9M2012(1) Change
---------------+-------------------------+-------------+-----------------------
Profit and | | |
loss data (in | | |
EUR million) | | |
| | |
Underlying | | | 3,884 3,172 22.4%
result before | 1,219 1,126 8.3%| 1,307 -6.7%|
tax | | |
| | |
of which | 1,103 1,110 -0.6%| 1,147 -3.8%| 3,419 3,272 4.5%
Bank | | |
| | |
of which | | | 402 -143
Insurance | 136 10 1,260.0%| 182 -25.3%|
EurAsia | | |
| | |
of which | -20 6 | -22 | 63 44 43.2%
Insurance | | |
Other | | |
| | |
Underlying net| 891 844 5.6%| 957 -6.9%| 2,837 2,289 23.9%
result | | |
| | |
Net | | | -26 84
gains/losses | -950 -200 | -16 |
on divestments| | |
| | |
Net result | | | -37 -34
from divested | 1 -54 | |
units | | |
| | |
Net result | | | 200 472
from | | |
discontinued | 143 198 | -98 |
operations | | |
Insurance/IM | | |
Asia | | |
| | |
Net result | | | -140 193
from | | |
discontinued | 79 -46 | -23 |
operations | | |
Insurance ING | | |
U.S.( 2) | | |
| | |
Special items | -63 -83 | -32 | -141 -325
---------------+-------------------------+-------------+-----------------------
Net result | 101 659 -84.7%| 788 -87.2%| 2,693 2,678 0.6%
---------------+-------------------------+-------------+-----------------------
Net result per| | | 0.71 0.70 1.4%
share (in | 0.03 0.17 -82.4%| 0.21 -85.7%|
EUR)(3) | | |
---------------+-------------------------+-------------+-----------------------
Capital Ratios| | |
(end of | | |
period) | | |
| | |
Shareholders' | | | 50 51 -2.1%
equity (in EUR| | 50 -0.7%|
billion) | | |
| | |
ING Group | | | 7.8% 12.3%
debt/equity | | 7.2% |
ratio | | |
| | |
Bank core Tier| | 11.8% | 12.4% 12.1%
1 ratio | | |
| | |
Insurance | | | 255% 265%
EurAsia IGD | | 304% |
Solvency I | | |
ratio | | |
---------------+-------------------------+-------------+-----------------------
Other Data | | |
(end of | | |
period) | | |
| | |
Underlying | | | 7.3% 6.4%
return on | | |
equity based | 7.2% 6.8% | 7.3% |
on IFRS-EU | | |
equity(4) | | |
| | |
Employees | | |75,899 78,068 -2.8%
(FTEs, end of | | |
period, | |75,798 0.1%|
adjusted for | | |
divestments) | | |
---------------+-------------------------+-------------+-----------------------
(1) The comparative figures of this period have been restated to reflect the new
pension accounting requirements under IFRS, which took effect on 1 January 2013.
(2) The results of Insurance ING U.S. have been transferred to "net result from
discontinued operations" as of the third quarter 2013.
(3) Result per share differs from IFRS earnings per share in respect of
attributions to the core Tier 1 securities.
(4) Annualised underlying net result divided by average IFRS-EU equity.
Investor conference call, press conference and webcast
Ralph Hamers, Patrick Flynn and Wilfred Nagel will discuss the results in an
analyst and investor conference call on 7 August 2013 at 9:00 a.m. CET.
Members of the investment community can join the conference call at
+31 20 794 8500 (NL), +44 20 7190 1537 (UK) or +1 480 629 9031 (US) and via
live audio webcast at www.ing.com.
Ralph Hamers, Patrick Flynn and Wilfred Nagel will also discuss the results in
a press conference on 6 November 2013 at 11:00 a.m. CET. Journalists are
invited to join the conference at ING Amsterdamse Poort, Bijlmerplein 888,
Amsterdam. Journalists can also join in listen-only mode at +31 20 531 5846
(NL) or +44 203 365 3210 (UK) and via live audio webcast at www.ing.com.
Investor enquiries
T: +31 20 576 6396
E: investor.relations(at)ing.com
Press enquiries
T: +31 20 576 5000
E: media.relations(at)ing.com
Additional information is available in the following documents which can be
downloaded from around 7:00 am CET at www.ing.com/qr:
ING Group 3Q2013 Full press Release (PDF)
ING Group 3Q2013 Quarterly Report (PDF)
ING Group Statistical Supplement (PDF and XLS)
ING Group 3Q2013 Historical Trend Data (PDF and XLS)
ING Group 3Q2013 Analyst Presentation (PDF)
ING Group 3Q2013 Media Presentation (PDF)
ING Group Condensed consolidated interim financial information for the period
ended 30 September 2013
Information for editors:
A video interview with Ralph Hamers is available at http://www.youtube.com/ING
and www.ing.com
Footage (B-roll) of ING and quotes from the interview can be downloaded via
www.videobankonline.com, or requested by emailing info(at)videobankonline.com.
The ING Group 3Q2013 Analyst and Media Presentations are also available at
www.slideshare.net/ING
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 3Q2013 ING Group Interim Accounts.
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.
PDF version of press release:
http://hugin.info/130668/R/1740838/584703.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#1740838]
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Datum: 06.11.2013 - 06:58 Uhr
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News-ID 313158
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