ING posts solid increase in underlying net profit to EUR 1,492 million
(Thomson Reuters ONE) -
* ING Group's underlying net profit growth was driven by continued strong
performance in the Bank and a significant improvement in Insurance results.
The Group's 1Q11 net result was EUR 1,381 million, or EUR 0.37 per share,
including divestments and special items. The underlying return on equity
improved to 14.7% (Bank 13.7%, Insurance 6.2%).
* Bank underlying result before tax rose 32.2% to EUR 1,695 million, fuelled
by higher income and the continued normalisation of risk costs. The net
interest margin remained healthy at 1.44%. Risk costs declined to EUR 332
million, or 42 bps of average RWA. The underlying cost/income ratio improved
to 55.0% as expenses declined from 4Q10.
* Insurance operating result increased 35.5% to EUR 561 million, supported by
higher sales and growth in AuM. The investment spread rose to 95 bps. Sales
(APE) grew 11.4% versus 1Q10, or 8.0% excluding currency effects. The
administrative expenses/operating income ratio improved to 40.0% on higher
operating income and cost containment.
* Strong capital generation in ING Bank continued in 1Q11 with the Bank's core
Tier 1 ratio increasing to 10.0%. ING will proceed with the planned
repurchase of EUR 2 billion of core Tier 1 securities from the Dutch State
on 13 May 2011. The total payment will amount to EUR 3 billion and includes
a 50% repurchase premium.
"Both the Bank and the Insurance company posted strong results in the first
quarter, illustrating clear progress on their respective performance improvement
programmes as they prepare for their futures as stand-alone companies," said Jan
Hommen, CEO of ING Group. "The restructuring of the Group is on track. We
continue to work towards the full physical separation of the banking and
insurance activities, and we are laying the groundwork this year for two IPOs of
our US and European & Asian insurance businesses so that we will be ready to
proceed with transactions when market conditions are favourable. We continue to
explore strategic options for our Latin American insurance business, and we are
taking steps to meet the other restructuring demands imposed by the European
Commission, including the divestment of ING Direct USA and the carve-out of
WestlandUtrecht Bank from our Dutch retail banking business."
"Despite the far-reaching restructuring that the company is going through, we
have continued to show solid commercial growth across our franchises, which is a
testimony to the dedication and professionalism of our staff as we work hard to
maintain the loyalty of our customers. On that strong foundation, we have been
able to show a rapid recovery as ING comes out of the financial crisis. We have
improved efficiency and built up strong capital buffers in the Bank, while
continuing to increase our lending to customers to support the economic
recovery. As a result, ING is now in a position to repay a second tranche of
support from the Dutch State out of retained earnings. And provided that this
strong capital generation continues, we aim to repay the remaining support by
May 2012 on terms that are acceptable to all stakeholders."
Key Figures
--------------------------------------+------+---------+------+---------+------
|1Q2011|1Q2010(1)|Change|4Q2010(1)|Change
--------------------------------------+------+---------+------+---------+------
ING Group key figures (in EUR | | | | |
million) | | | | |
--------------------------------------+------+---------+------+---------+------
Underlying result before tax Group | 2,156| 1,403| 53.7%| 671|221.3%
--------------------------------------+------+---------+------+---------+------
of which Bank | 1,695| 1,282| 32.2%| 1,479| 14.6%
--------------------------------------+------+---------+------+---------+------
of which Insurance | 461| 121|281.0%| -808|
--------------------------------------+------+---------+------+---------+------
Underlying net result | 1,492| 923| 61.6%| 341|337.5%
--------------------------------------+------+---------+------+---------+------
Net result | 1,381| 1,230| 12.3%| 130|962.3%
--------------------------------------+------+---------+------+---------+------
Net result per share (in EUR)(2) | 0.37| 0.33| 12.1%| 0.03| n.a.
--------------------------------------+------+---------+------+---------+------
Total assets (end of period, in EUR | 1,229| 1,236| -0.5%| 1,247| -1.4%
billion) | | | | |
--------------------------------------+------+---------+------+---------+------
Shareholders' equity (end of period, | 40| 38| 5.7%| 41| -2.0%
in EUR billion) | | | | |
--------------------------------------+------+---------+------+---------+------
Underlying return on equity based on | 14.7%| 10.3%| | 3.3%|
IFRS-EU equity(3) | | | | |
--------------------------------------+------+---------+------+---------+------
Banking key figures | | | | |
--------------------------------------+------+---------+------+---------+------
Interest margin | 1.44%| 1.42%| | 1.47%|
--------------------------------------+------+---------+------+---------+------
Underlying cost/income ratio | 55.0%| 57.4%| | 57.2%|
--------------------------------------+------+---------+------+---------+------
Underlying risk costs in bp of | 42| 60| | 51|
average RWA | | | | |
--------------------------------------+------+---------+------+---------+------
Core Tier 1 ratio | 10.0%| 8.4%| | 9.6%|
--------------------------------------+------+---------+------+---------+------
Underlying return on equity based on | 13.7%| 11.7%| | 13.5%|
IFRS-EU equity(3) | | | | |
--------------------------------------+------+---------+------+---------+------
Insurance key figures | | | | |
--------------------------------------+------+---------+------+---------+------
Operating result (in EUR million) | 561| 414| 35.5%| 438| 28.1%
--------------------------------------+------+---------+------+---------+------
Investment margin / life general | 95| 84| | 93|
account assets (in bps) | | | | |
--------------------------------------+------+---------+------+---------+------
Administrative expenses / operating | 40.0%| 43.4%| | 44.1%|
income (Life & ING IM) | | | | |
--------------------------------------+------+---------+------+---------+------
Underlying return on equity based on | 6.2%| 0.8%| | -15.7%|
IFRS-EU equity(3) | | | | |
--------------------------------------+------+---------+------+---------+------
The footnotes relating to 1-3 can be found on page 13 of the full press release
as attached to this message. Note: Underlying figures are non-GAAP measures and
are derived from figures according to IFRS-EU by excluding impact from
divestments and special items
Investor conference call, media conference call and webcast
Jan Hommen, Patrick Flynn and Koos Timmermans will discuss the results in an
analyst and investor conference call on 5 May 2011 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 9031 (US) and via live audio webcast at
www.ing.com.
A media conference call will be held on 5 May 2011 at 11:00 CET. Journalists are
invited to join the conference 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: media.relations(at)ing.com
Additional information is available in the following documents which can be
downloaded from around 7:00 am CET from the following links at www.ing.com :
ING Group Q1 2011 results (Full press release in PDF)
ING Group Q1 2011 Quarterly Report (PDF)
ING Group Q1 2011 Analyst Presentation (PDF)
ING Group Q1 2011 Statistical Supplement (PDF)
ING Group Q1 2011 Historical Trend Data (PDF)
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 1Q2011 interim 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.
PDF version of press release:
http://hugin.info/130668/R/1512614/448264.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#1512614]
Unternehmensinformation / Kurzprofil:
Datum: 05.05.2011 - 06:54 Uhr
Sprache: Deutsch
News-ID 54259
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contact information:
Town:
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Kategorie:
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