ING posts 3Q09 underlying net profit of EUR 778 million
(Thomson Reuters ONE) - * 3Q09 underlying net result of EUR 778 million, compared with EUR 229 million in 2Q09 and EUR -568 million in 3Q08 * Pre-tax market impacts of EUR -882 million include impairments on debt securities and real estate revaluations and impairments * Results excluding market impacts and risk costs were EUR 2.4 billion, primarily attributable to the Bank * Cost reduction programmes brought operating expenses down 9.3%, or EUR 330 million, from the third quarter last year * Divestments and special items totalled EUR -278 million, bringing the 3Q09 net result to EUR 499 million or EUR 0.25 per share * Bank underlying net result of EUR 264 million, versus a loss of EUR -25 million in 2Q09 and EUR -101 million in 3Q08 * Market impacts of EUR -1,121 million include EUR -664 million impairments on debt securities, EUR -423 million on real estate * Strong interest income and Financial Markets results, lower costs drive results excl. market impacts and risk costs of EUR 2.0 billion * Insurance underlying net result of EUR 514 million, compared with EUR 254 million in 2Q09 and EUR -467 million in 3Q08 * Favourable pre-tax market impacts of EUR 240 million including realised gains on equities and positive DAC unlocking * Lower investment margins and stable cost base lead to result excluding market impacts of EUR 346 million * Shareholders' equity and capital ratios strengthened * Shareholders' equity increases by 19%, or EUR 4.2 billion, in 3Q09 to EUR 26.5 billion as market values of debt securities increased * Core Tier 1 ratio increases to 7.6% from 7.3% at the end of 2Q09; Risk-weighted assets decline EUR 8 billion to EUR 337 billion * Group debt/equity ratio improves slightly to 13.1% from 13.5% in 2Q09 * Back to Basics transformation programme progressing on track or ahead of original targets * Cumulative reduction in Bank balance sheet of EUR 176 billion, or 16%, since 30 September 2008 exceeds 10% reduction target * EUR 1 billion of cost savings achieved in fi rst nine months of 2009 versus revised annual target of EUR 1.3 billion * Total FTE reduction of 10,239 realised by end of September 2009CHAIRMAN'S STATEMENT"ING achieved a strong commercial performance in the third quarter,illustrating the strength of our Banking and Insurance franchiseseven in this challenging economic environment," said Jan Hommen, CEOof ING Group. "The Bank continued to benefi t from resilient interestresults and strong Financial Markets performance. Insurance salesimproved from the second quarter, although investment margins wereunder pressure following de-risking measures taken earlier this year.Negative market impacts were less severe than in previous quarters asequity markets improved; however, results continued to be impacted byimpairments on mortgage-backed securities and negative revaluationson real estate investments. This resulted in an underlying net profit of EUR 778 million for the Group in the third quarter, supported byour ongoing efforts to drive down expenses.""We have achieved most of the targets set out in the fi rst phase ofour Back to Basics programme thanks to the enormous efforts of ourmanagement and staff. Operating expenses have been reduced by EUR 1billion on a comparable basis, and we expect to reach our EUR 1.3billion target for the full year. We exceeded our target forde-leveraging the Bank's balance sheet, reaching a 16% reduction overthe past 12 months, while improving our margins. Divestments ofnon-core activities gained pace in the third quarter, and we havedemonstrated a disciplined approach to achieve attractive prices evenin the current market environment.""In the fourth quarter, we announced plans to take our Back to Basicsprogramme a step further and move towards a full separation ofBanking and Insurance. This was not a decision we took lightly, but Istrongly believe it is the right choice and the right time. Thefinancial services industry will be transformed as a result of thecrisis and the winners will be those institutions that can regaintheir customers' trust, offering transparent products, value formoney and superior service. The split will enable both the Bank andthe Insurer to adapt more quickly and emerge from the crisis moreeffi cient, more agile, and more focused on meeting our customers'needs.""In the Netherlands we have proven that ING can achieve attractivereturns in the most competitive retail banking market in Europe. INGDirect has set the global standard for internet banking with highcustomer satisfaction and one of the lowest cost bases in theindustry. Our One Bank strategy will leverage these skills across theorganisation to grow our retail banking franchise, offering customersa different kind of banking experience while delivering attractivereturns for shareholders.""Our insurance company is a leader in retirement services with anattractive mix of mature and growth markets. We will take great careto ensure the separation of the business goes smoothly and that wecontinue to deliver business as usual for our customers. Thedivestment of insurance will be done carefully to ensure value forshareholders is protected while balancing the interests of allstakeholders.""We have a lot of work ahead, but this is the beginning of anexciting new phase for ING. Our resolution with the EuropeanCommission on restructuring will put behind uncertainty and enable usto focus on the future. We are also raising equity to repay the firsthalf of the capital support received from the Dutch State a year ago,which is an important milestone on our road to recovery. It is timeto move forward, and I look forward to the journey ahead."The full report including tables can be downloaded from the followinglink:ING Group Q3 2009 ResultsThe following documents can be downloaded from around 07:15 am CETfrom the following links:Analyst PresentationQuarterly ReportGroup Statistical SupplementUS Statistical SupplementInvestor enquiriesT: +31 20 541 5460E: investor.relations(at)ing.comPress enquiriesT: +31 20 541 5433E: mediarelations(at)ing.comConference calls and webcastsJan Hommen, Koos Timmermans and Patrick Flynn will discuss theresults in an analyst and investor conference call on 11 November2009 at 9:00 CET. Members of the investment community can join inlisten-only mode at +31 20 794 8500 (NL), +44 208 515 2315 (UK) or +1480 629 9771 (US) and via live audio webcast at www.ing.com.A press conference call will be held on 11 November 2009 at 11:30CET. Journalists are invited to join the conference call inlisten-only mode at +31 20 794 8500 (NL) or +44 207 190 1537 (UK).http://hugin.info/130668/R/1354120/328186.pdfThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 11.11.2009 - 06:59 Uhr
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