ING posts 1Q12 underlying net profit of EUR 705 million
(Thomson Reuters ONE) -
* ING Group 1Q12 net profit totalled EUR 680 million, including the impact of
divestments and special items
* Bank underlying result before tax increased 65.1% from 4Q11 to EUR 1,126
million, helped by lower impairments. Results include EUR -304 million of
valuation adjustments (CVA/DVA) and fair value changes on own Tier 2 debt as
credit spreads tightened. Excluding that impact, Bank results were down just
6.8% from a strong 1Q11
* Insurance posted an operating result of EUR 475 million, supported by a
strong investment margin and higher fees and premium-based revenues. Sales
rose 5.1% from 1Q11, and jumped 29.6% from 4Q11. Underlying results were
impacted by losses on hedges to protect regulatory capital, leading to a
pre-tax underlying loss of EUR 18 million
* Capital ratios remained strong: ING Bank's core Tier 1 ratio strengthened to
10.9%, reflecting the sale of ING Direct USA and ongoing capital generation.
The Insurance IGD solvency ratio remained stable at 225%
* ING has begun discussions with the Dutch State, and together with the State
will soon start discussions with the European Commission following the
favourable court ruling on ING's appeal
Chairman's Statement
"The operating environment remained challenging in the first quarter, as the
European sovereign debt crisis persisted, increasing volatility on financial
markets. The impact of this environment was evident in our underlying results,
which declined from a strong first quarter last year; however, earnings for both
Bank and Insurance improved from the previous quarter," said Jan Hommen, CEO of
ING Group.
"Bank results rose 65.1% from the fourth quarter, supported by lower
impairments, despite a negative CVA/DVA adjustment in the first quarter of
2012. Expenses declined compared with both prior quarters, and loan loss
provisions improved slightly from the fourth quarter, but are expected to remain
elevated given the weakening economic environment in Europe. Although
competition for savings remained intense, Retail Banking attracted EUR 11.4
billion in new deposits, further strengthening the funding position of ING Bank,
and on professional markets the Bank raised EUR 9.2 billion of long-term
funding. The capital position strengthened further with a 10.9% core Tier 1
ratio."
"Insurance results recovered from the fourth quarter, though underlying earnings
continue to be impacted by mark-to-market losses on hedges to protect regulatory
capital. Operating results remained solid, driven by a strong investment margin
and higher fees and premium-based revenues as sales gained momentum in Asia, the
US and Central Europe."
"While ING welcomed the favourable court ruling on ING's appeal against the
European Commission, we remain committed to the decision to separate the banking
and insurance operations, and are making good progress in preparing our
Insurance and Investment Management businesses for stand-alone futures in Europe
and the US."
Key Figures(1)
| |
|1Q2012 1Q2011 Change|4Q2011 Change
-------------------------------------------+---------------------+-------------
ING Group key figures (in EUR million) | |
| |
Underlying result before tax Group | 1,108 1,961 -43.5%| -666
| |
of which Bank | 1,126 1,533 -26.5%| 682 65.1%
| |
of which Insurance | -18 428 -104.2%|-1,348
| |
Underlying net result | 705 1,354 -47.9%| -594
| |
Net result | 680 1,381 -50.8%| 1,186 -42.7%
| |
Net result per share (in EUR)(2) | 0.18 0.37 -51.4%| 0.31 -41.9%
| |
Total assets (end of period, in EUR | 1,242 1,229 1.0%| 1,279 -2.9%
billion) | |
| |
Shareholders' equity (end of period, in | 48 40 18.8%| 47 2.0%
EUR billion) | |
| |
Underlying return on equity based on IFRS-| 6.0% 13.4% | -5.2%
EU equity(4) | |
-------------------------------------------+---------------------+-------------
Banking key figures | |
| |
Underlying interest margin | 1.32% 1.40% | 1.36%
| |
Underlying cost/income ratio | 58.8% 56.0% | 66.8%
| |
Underlying risk costs in bp of average RWA| 59 34 | 61
| |
Core Tier 1 ratio | 10.9% 10.0% | 9.6%
| |
Underlying return on equity based on IFRS-| 8.6% 12.5% | 5.9%
EU equity(4) | |
-------------------------------------------+---------------------+-------------
Insurance key figures | |
| |
Operating result (in EUR million) | 475 511 -7.0%| 478 -0.6%
| |
Investment margin/life general account | 118 98 | 113
assets (in bps)(3) | |
| |
Administrative expenses/operating income | 41.9% 39.6% | 42.0%
(Life & ING IM) | |
| |
Underlying return on equity based on IFRS-| -0.7% 5.6% |-19.1%
EU equity(4) | |
-------------------------------------------+---------------------+-------------
The footnotes relating to 1-4 can be found on page 14 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 webcasts
Jan Hommen, Patrick Flynn, Wilfred Nagel and Matt Rider will discuss the
results in an analyst and investor conference call on 9 May 2012 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 9676 (US) and via
live audio webcast at www.ing.com.
A media conference call will be held on 9 May 2012 at 11:00 CET. Journalists
can join the conference 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 20 576 6396
E: investor.relations(at)ing.com
Press enquiries
T: +31 20 576 5000
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 1Q2012 Results (Full Press Release in PDF)
ING Group 1Q2012 Analyst Presentation (PDF)
ING Group 1Q2012 Quarterly Report (PDF)
ING Group 1Q2012 Group Statistical Supplement (PDF) (XLS)
ING Group 1Q2012 Historical Trend Data (PDF) (XLS)
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 2011 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)
consequences of a potential (partial) break-up of the euro, (4) the
implementation of ING's restructuring plan to separate banking and insurance
operations, (5) 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, (6) the frequency and severity of insured loss events, (7)
changes affecting mortality and morbidity levels and trends, (8) changes
affecting persistency levels, (9) changes affecting interest rate levels, (10)
changes affecting currency exchange rates, (11) changes in investor, customer
and policyholder behaviour, (12) changes in general competitive factors, (13)
changes in laws and regulations, (14) changes in the policies of governments
and/or regulatory authorities, (15) conclusions with regard to purchase
accounting assumptions and methodologies, (16) changes in ownership that could
affect the future availability to us of net operating loss, net capital and
built-in loss carry forwards, (17) changes in credit-ratings, (18) ING's
ability to achieve projected operational synergies and (19) the other risks
and uncertainties detailed in the Risk Factors section contained in the most
recent annual report of ING Groep N.V. Any forward-looking statements made by
or on behalf of ING speak only as of the date they are made, and, 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. This document
does not constitute an offer to sell, or a solicitation of an offer to buy,
any securities.
PDF version of full 1Q12 press release:
http://hugin.info/130668/R/1610045/511690.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#1610045]
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