ING posts underlying net profit of EUR 748 million in 2009
(Thomson Reuters ONE) -
ING returns to profit in 2009: full-year underlying net result EUR 748 million
vs. EUR -304 million in 2008
* Negative market impacts of EUR 4,742 million, down from EUR 6,674 million in
2008
* The full-year 2009 net result was EUR -935 million or EUR -0.44 per share
including divestments and special items
4Q09 underlying net profit of EUR 74 million, vs. a loss of EUR 3,093 million in
4Q08
* Negative market impacts decrease sharply to EUR 992 million vs. peak of EUR
5,045 million in 4Q08
* Result excluding market impacts, risk costs and variable annuity assumption
changes was EUR 2,106 million, up 65% from 4Q08
* Special items includes EUR -930 million related to an accrual of additional
future payments to the Dutch State for the Alt-A facility
* Divestments and special items brought 4Q09 net result to EUR -712 million or
EUR -0.33 per share
Bank posts 4Q underlying profit before tax of EUR 132 million vs. loss of EUR
1,841 million in 4Q08
* Negative market impacts decrease to EUR 992 million from EUR 2,262 million
in 4Q08
* Loan loss provisions increase to EUR 686 million in fourth quarter from EUR
576 million a year earlier
* Result excluding market impacts and risk costs up sharply to EUR 1,810
million from EUR 998 million in 4Q08
Insurance posts 4Q underlying loss before tax of EUR 47 million vs. EUR 2,502
million loss in 4Q08
* Market impacts netted to nil compared with EUR -2,783 million in 4Q08
* Lapse assumption changes in US and Japanese variable annuity books lead to
EUR 343 million charge in 4Q09
* Excluding market impacts and variable annuity assumption changes, results
increase to EUR 296 million from EUR 281 million
First phase of Back to Basics programme completed with all targets exceeded and
risks reduced
* Operating expenses cut by EUR 1.5 billion in 2009 on a comparable basis
* Balance sheet of ING Bank reduced by 18%, or EUR 194 billion, vs. September
2008
Shareholders' equity increases by EUR 7.3 billion to EUR 33.9 billion, or EUR
8.95 per share, in 4Q09
* Successful EUR 7.5 billion rights issue enabled ING to repay half of Dutch
State capital support
* Bank's core Tier 1 ratio improves to 7.8%; debt/equity ratio for Group and
Insurance reduced to 12.4% and 9.7%, respectively
* ING will not pay a dividend over 2009
Chairman's statement
"2009 was a tumultuous year for financial markets, and for ING," said Jan
Hommen, CEO of ING Group. "Yet even in this challenging environment, we made
great strides to improve our operating performance, cut expenses and return to
profit on an underlying basis."
"Although asset impairments and revaluations continued to have a substantial
impact on ING's results, market conditions improved gradually through the course
of 2009, and the negative impact of market volatility was substantially lower in
the fourth quarter than a year ago. Loan loss provisions at the Bank increased
from a year earlier, but were roughly in line with the first three quarters of
the year. Excluding those impacts, the Bank showed a strong commercial
performance, supported by improved interest margins, higher results from
Financial Markets and cost reduction. Insurance results were impacted by
assumption changes in the variable annuity books in the US and Japan as fewer
customers surrendered their policies, while investment margins remained under
pressure following derisking measures taken earlier in the year. The net loss in
the quarter reflects an accrual of additional future payments to the Dutch State
for the Alt-A facility as part of the agreement with the European Commission
which we announced in October."
"We have made structural improvements in our operating performance, while
reducing risks and leverage on our balance sheet. The first phase of our Back to
Basics programme, which we launched at the beginning of last year, has been
successfully completed with all targets exceeded. We reduced our operating
expenses by EUR 1.5 billion on a comparable basis, surpassing the original cost
reduction target by 50%. The balance sheet of the Bank was reduced by 18% from
September 2008, or by EUR 194 billion, exceeding the 10% target. In one year,
Back to Basics has helped make ING a more efficient and less leveraged
institution with a lower risk profile, and that's an achievement our management
can be proud of. In the fourth quarter we were also able to raise equity to
repay half of the capital support received from the Dutch State and further
strengthen our capital position, marking an important milestone on our road to
recovery."
"The Back to Basics programme culminated in the decision to separate our banking
and insurance activities as part of the restructuring plan agreed with the
European Commission. While we are now appealing the proportionality of this
agreement in the context of a level playing field in Europe, we will move ahead
with the separation, which we believe is the right strategy to position both
businesses as we emerge from the financial crisis."
"2010 will be a year of transition, and it will not be without challenges, as we
work towards the operational separation of the banking and insurance businesses.
We will approach this process with the utmost care and diligence to ensure an
orderly and equitable separation. At the same time we will continue to work to
improve the performance of both parts of the business for our shareholders and
our customers, by rationalising our product offering, simplifying our processes
and investing in further improvements in customer service. Through this process
we will create strong and independent companies that can go forward to forge
their own futures."
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 17 February 2010 at 9:00 CET. Members of
the investment community can join the conference call at +31 20 794 8500 (NL),
+44 208 515 2378 (UK) or +1 480 629 9724 (US) and via live audio webcast at
www.ing.com.
A press conference will be held on 17 February 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) 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 full report including tables can be downloaded from the following link:
ING Group Q4 2009 Results
The following documents can be downloaded from around7:00 am CET from the
following links:
Analyst Presentation
Quarterly Report
ING Group Statistical Supplement
US Statistical
[HUG#1385159]
2009 Full Year Results ING Group in pdf: http://hugin.info/130668/R/1385159/343890.pdf
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Datum: 17.02.2010 - 01:07 Uhr
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