ING announces preliminary third quarter 2009 results
(Thomson Reuters ONE) - ALL THIRD QUARTER 2009 FIGURES ARE ROUNDED AND BASED ON PRELIMINARYDATA* THIRD QUARTER UNDERLYING NET RESULT ESTIMATED AROUND EUR 750 MILLION - Strong commercial results of EUR 2.4 billion attributable primarily to the Banking operations - Market impacts EUR -850 million largely relating to debt securities and real estate investments - Bank underlying net result EUR 250 million on stable interest income and lower expenses - Insurance underlying net result EUR 500 million driven by favourable market impacts - Group net result after divestments and special items EUR 500 million or EUR 0.24 per share* SHAREHOLDERS' EQUITY AND CAPITAL RATIOS STRENGTHENED - Shareholders' equity increases 19% from the end of 2Q09 to EUR 26.5 billion - Core Tier 1 ratio rises to 7.6% from 7.3% at the end of 2Q09; Tier 1 ratio up to 9.7% from 9.4% - Group debt/equity ratio improves to 13% from 13.5% in 2Q09ING announced that in connection with other announcements made today,it releases a limited set of preliminary and unaudited figures forthe third quarter of 2009. ING expects to post an underlying netresult of approximately EUR 750 million for the quarter, compared toEUR 229 million in the second quarter of 2009 and an underlying netresult of EUR -568 million in the third quarter of 2008. A net resultafter divestments and special items is expected of EUR 500 millionfor the third quarter, or approximately EUR 0.24 per share. Resultper share was EUR 0.03 in the second quarter of 2009, and EUR -0.22in the third quarter of 2008.The moderate stabilisation in operating conditions that began in thesecond quarter continued in the third quarter of 2009. This supportedthe Group's strong commercial results of approximately EUR 2.4billion, which were primarily attributable to the Bank. The Group'sthird quarter commercial results represent an increase of 42%compared with the same quarter last year, and a 3% increase over thesecond quarter of 2009.Still, ongoing weakness affecting global economies and financialmarkets continued to put pressure on results, leading tomarket-related impacts estimated at EUR -850 million. Althoughsubstantial, this is less severe than the second quarter impact ofEUR -1.4 billion. Market-related impacts in the third quarterconsisted primarily of impairments on debt securities, and negativerevaluations and impairments on real estate investments. Positivemarket-related impacts, partly offsetting these factors, includedone-time capital gains on equity and debt securities, hedge resultsand favourable mark-to-market valuations.Based on preliminary figures, the underlying net result of theBanking businesses was approximately EUR 250 million. Results weredriven by stable interest income compared with the second quarter of2009, and lower expenses supported by cost-containment programmes andone-time gains. The majority of the Group's impairments on debtsecurities and the bulk of the negative revaluations and impairmentson real estate investments were recorded in the Bank. Impairments ondebt securities mainly related to the retained portion of INGDirect's Alt-A RMBS. These impairments on Alt-A RMBS amounted to EUR-550 million and were triggered by continued deterioration in the UShousing market. The current negative revaluation reserve on INGDirect's Alt-A RMBS is EUR -280 million after tax (EUR -450 millionpre-tax).Risk costs for the third quarter are estimated at EUR -700 million,reflecting the persistently challenging credit environment. Thiscompares with EUR -852 million of net additions to loan lossprovisions in the second quarter of 2009. Based on the currenteconomic outlook, ING expects that risk costs in the coming quarterswill remain elevated at around the level of the first half of 2009.Based on the preliminary data, Insurance is expected to report anunderlying net result of EUR 500 million for the third quarter.Results were influenced significantly by positive market impactsincluding one-time gains on equity and debt securities and favourablemark-to-market valuations. Commercial results were notably lower thanthe second quarter of 2009, in part due to the seasonal impact ofdividend income. While improving equity markets had a positive impacton asset-based fees, investment margins declined as a consequence ofde-risking. Operating expenses in Insurance were stable compared tothe second quarter.ING continued to make significant advances on its Back to Basicsprogramme during the third quarter. Group operating expenses were 2%lower than the previous quarter and 9% lower than the third quarterof 2008. During the first nine months of 2009, Group-wide efficiencyinitiatives delivered EUR 1 billion of savings versus ING's upwardrevised target of EUR 1.3 billion. Headcount reductions totalled10,400 FTEs by the end of the third quarter, surpassing the full-yearexpected reduction of 7,000 FTEs. A cumulative Bank balance sheetreduction of 16% was achieved by the end of September, well ahead ofthe Group's targeted 10% reduction for 2009 versus September 2008.ING's shareholders' equity and capital ratios strengthened during thethird quarter. Shareholders' equity increased approximately 19% toaround EUR 26.5 billion. Based on current preliminary figures, theBank core Tier 1 ratio rose to 7.6% from 7.3% in the previousquarter, and the Tier 1 ratio increased to 9.7% from 9.4%. The Groupdebt/equity ratio is expected to have improved to 13% from 13.5% inthe second quarter of 2009.The third quarter 2009 preliminary results do not include theone-time pre-tax charge of EUR 1.3 billion related to the measuresagreed to in the Restructuring Plan filed with the EuropeanCommission, as announced today. This charge will be booked in thefourth quarter of 2009. A provision related to the deposit guaranteescheme in the Netherlands following the fall of DSB Bank will also bereflected in the fourth quarter.ING announced the divestment of the following businesses between Julyand October 2009: Annuities and Mortgages in Chile, InsuranceAustralia and New Zealand, Swiss Private Banking, Asian PrivateBanking and ING Reinsurance U.S. All of these divestments areexpected to be closed and booked in either the fourth quarter of 2009or the first quarter of 2010.ADDITIONAL INFORMATIONAll figures mentioned in this press release are based on preliminarydata, are unaudited and may change. ING will present its complete2009 Third Quarter Results on Wednesday 11 November 2009, includingthe customary presentations for the media and investment communities.NOTE FOR EDITORSJan Hommen will address the announcements made today in an analystand investor conference call at 9:00 CET. Members of the investmentcommunity can join in listen-only mode at +31 20 794 8497 (NL) or +44207154 2688 (UK) and via live audio webcast at www.ing.com.A press conference will be held at 11:30 CET. Journalists are invitedto join the conference at ING House, Amstelveenseweg 500, Amsterdam,Journalists can also join in listen-only mode at +31 20 794 8500 andvia live audio webcast at www.ing.com.Press enquiries Investor enquiriesRaymond Vermeulen Frans Middendorff ING Group Investor Relations+31 20 541 5682 +31 20 541 6516 +31 20 541 5460Raymond.Vermeulen(at)ing.com Frans.Middendorff(at)ing.com Investor.Relations(at)ing.comWeblink to analyst presentationING PROFILEING is a global financial institution of Dutch origin offeringbanking, investments, life insurance and retirement services to over85 million private, corporate and institutional clients in more than40 countries. With a diverse workforce of about 110,000 people, INGis dedicated to setting the standard in helping our clients managetheir financial future.IMPORTANT LEGAL INFORMATIONCertain of the statements contained herein are statements of futureexpectations and other forward-looking statements. These expectationsare based on management's current views and assumptions and involveknown and unknown risks and uncertainties. Actual results,performance or events may differ materially from those in suchstatements due to, among other things, (i) general economicconditions, in particular economic conditions in ING's core markets,(ii) performance of financial markets, including emerging markets,(iii) the frequency and severity of insured loss events, (iv)mortality and morbidity levels and trends, (v) persistency levels,(vi) interest rate levels, (vii) currency exchange rates (viii)general competitive factors, (ix) changes in laws and regulations,(x) changes in the policies of governments and/or regulatoryauthorities, (xi) conclusions with regard to purchase accountingassumptions and methodologies, (xii) ING's ability to achieveprojected operational synergies and (xiii) the implementation ofING's restructuring plan to separate banking and insuranceoperations. ING assumes no obligation to update any forward-lookinginformation contained in this document.http://hugin.info/130668/R/1349935/325530.pdfThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 26.10.2009 - 07:05 Uhr
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