ING posts 2Q underlying net profit of EUR 1,202 million
(Thomson Reuters ONE) -
2Q underlying net profit rises to EUR 1,202 million from EUR 212 million in
2Q2009 and EUR 1,018 million in 1Q2010
* Net profit increases to EUR 1,090 million from EUR 71 million in the same
quarter last year
* Divestments and special items total EUR -112 million for the second quarter
* Net profit per share increases to EUR 0.29 versus EUR 0.03 in 2Q2009
* Return on IFRS equity climbs to 11.7% for the first half of 2010
* First-half underlying net profit increases to EUR 2,220 million from EUR -23
million in 1H2009
Bank 2Q underlying profit before tax EUR 1,613 million vs. EUR -186 million in
2Q2009 and EUR 1,278 million in 1Q2010
* Income continues to increase, supported by volume growth at healthy margins
and lower negative market impacts
* Cost/income ratio improves to 52.6%, approaching ambition of 50% by 2013
* Addition to loan loss provisions declined further to EUR 465 million or 55
bps of average risk-weighted assets
* Volumes increase: funds entrusted up EUR 13.6 billion, mortgage production
EUR 6.1 billion, midcorps and SME up EUR 2.4 billion
Insurance 2Q underlying result before tax EUR -115 million vs. EUR 242 million
in 2Q2009 and EUR 269 million in 1Q2010
* Operating result increases slightly from 1Q2010 but declines to EUR 419
million from EUR 482 million in 2Q2009
* Underlying result impacted by EUR -521 million DAC unlocking in US, mainly
on closed block, as equity markets decline
* New sales increase 22.2% from year earlier, excluding FX and closed blocks,
driven by Asia, US and Latin America
Shareholders' equity increases by EUR 3.4 billion to EUR 41.6 billion or EUR
11.02 per share
* Bank core Tier 1 ratio improves to 8.6%, well above the 7.5% target
* Insurance Groups Directive Solvency I ratio improves to 267%
* Group debt/equity ratio improves to 11.3% and FiCo ratio increases to 167%
* ING will not pay an interim dividend over the first half of 2010
CHAIRMAN'S STATEMENT
"ING continued to build earnings momentum in the second quarter, particularly at
the banking business, as commercial growth gained pace and market conditions
further improved," said Jan Hommen, CEO of ING Group. "The underlying net profit
for the Group increased to EUR 1,202 million in the second quarter, up from EUR
212 million a year earlier when markets were more volatile. Underlying earnings
also continued their upward trend compared with the strong first quarter,
increasing 18% from EUR 1,018 million, despite concerns about economic recovery
in the eurozone that dominated markets during the quarter."
"Sovereign risk concerns, combined with fear of a 'double dip' scenario, had a
significant impact on interbank markets in the euro area as well as on equity
markets worldwide. The sharp decline in equity markets in the quarter severely
impacted the results of our US insurance operations. However, the bank continued
to benefit from its strong liquidity and funding profile, with lending growth
funded entirely by customer deposits, and refinancing of long-term funding
already completed for the year."
"The Bank led the earnings improvement as commercial growth remained robust and
negative market impacts continued to decline. Interest income was stable as
margins on savings and lending remained healthy and volume growth picked up,
offsetting a small decline from Financial Markets. Provisions for loan losses
continued to trend lower as the US housing market stabilised and lower
provisions were taken in Commercial Banking. However risk costs in the Benelux
mid-corporate and SME segments remain elevated, reflecting a still weak economic
environment. Efficiency at the bank improved further, reflecting the significant
cuts made last year, and the cost/income ratio declined to 52.6%, approaching
the target of 50% for 2013."
"The measures taken over the past six quarters to strengthen our balance sheet
have reduced vulnerability to market shocks. ING Bank comfortably passed the
European Union's stress test last month, and we are pleased that the increased
disclosure from the industry appears to have helped stabilise markets and
restore confidence in the sector. We also welcome the increased clarity around
changes under Basel III, and the bank is well positioned for this new regulatory
environment, with a healthy liquidity position and funding mix."
"The decline in equity markets impacted underlying results from Insurance,
particularly on the closed block in the US, however the operating profit from
Insurance increased slightly from the first quarter. Compared with the second
quarter last year, operating results were lower as investment margins remained
under pressure in the low interest rate environment. Administrative expenses
increased, due in part to investments to support growth initiatives and business
improvement programmes. Insurance sales momentum continued, resulting in an
increase of 22.2%, excluding currency effects and the closed blocks in Japan and
the US."
"Our commercial growth in the second quarter demonstrates the dedication of our
employees and the resilience of both our banking and insurance franchises during
a period of economic uncertainty as we strive to improve our service and put our
customers at the centre of everything we do. Following the significant cost cuts
achieved last year, we have shifted our focus to achieving operational
excellence to secure a sustainable cost advantage in both the Bank and the
Insurer."
"We continue to work towards the operational separation of our Banking and
Insurance operations, with the aim to have the businesses operating on an
arm's-length, stand-alone basis by the end of this year. Good progress was made
in the second quarter. We currently have 1,100 projects underway worldwide, with
separation costs estimated at EUR 110-150 million for 2010, of which EUR 30
million was taken in the first half. At the same time we are working to improve
the performance of the Insurance business, while reviewing our options so we
will be ready to act when markets are favourable."
Conference call, press conference and webcast
Jan Hommen, Patrick Flynn and Koos Timmermans will discuss the results in an
analyst and investor conference call on 11 August 2010 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 9771 (US) and via live audio webcast at
www.ing.com.
A press conference will be held on 11 August 2010 at 11:30 CET. Journalists are
invited to join the conference at ING House, Amstelveenseweg 500, Amsterdam.
Journalists can also join in listen-only mode at +31 20 794 8500 (NL) or +44
20 7190 1537 (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 7:30 am CET from the
following links:
ING Group Q2 2010 Results (Full Press Release in PDF)
ING Group Q2 2010 Quarterly Report (PDF)
Q2 2010 Analyst Presentation (PDF)
Q2 2010 Media Presentation (PDF)
Q2 2010 Group Statistical Supplement (PDF)
Q2 2010 Group Historical Trend data (PDF)
ING Group Condensed consolidated interim financial information for the period
ended 30 June 2010 (PDF)
ING Bank Condensed consolidated interim financial information for the period
ended 30 June 2010 (PDF)
ING Insurance Condensed consolidated interim financial information for the
period ended 30 June 2010 (PDF)
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#1436897]
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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.
All reproduction for further distribution is prohibited.
Source: ING Group via Thomson Reuters ONE
Unternehmensinformation / Kurzprofil:
Datum: 11.08.2010 - 07:32 Uhr
Sprache: Deutsch
News-ID 39327
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