2013-02-13 07:01:04 -
* ING Group's full-year 2012 net result was EUR 3,894 million, or EUR 1.03 per
share, including divestments, discontinued operations and special items. The
4Q12 net result was EUR 1,434 million, or EUR 0.38 per share. The 4Q12
underlying net result was EUR 373 million, reflecting a solid quarter at
Insurance and lower Bank results due to incidental items and the Dutch bank
tax.
* Bank 4Q12 underlying result before tax was EUR 184 million, reflecting
negative CVA/DVA adjustments, de-risking losses and the Dutch bank tax. The
interest margin was relatively stable at 1.33% versus 3Q12 while risk costs
increased slightly to EUR 588 million.
* Insurance 4Q12 operating result improved versus 3Q12 to EUR 296 million as
the investment spread strengthened to 132 bps. Sales grew 12.7% from 4Q11
and 23.6% from 3Q12 at constant currencies. Underlying result before tax
rose to EUR 272 million.
Chairman's Statement
"2012 was a transformational year for ING as we worked decisively on the
restructuring of the Group, preparing the Bank and Insurance companies for
independent futures," said Jan Hommen, CEO of ING Group. "In the fourth quarter
we announced two major divestments of our Asian Insurance/IM businesses. We
filed the IPO registration statement for our US insurance business, and we
reached an agreement with the European Commission which gives us more time and
greater flexibility for restructuring. The Bank made strides in optimising its
balance sheet and generating capital to meet Basel III requirements while
funding a payment of EUR 1.125 billion to the Dutch State and upstreaming an
additional EUR 1 billion to the Group to reduce core debt."
"Results for the year held up well, despite the sovereign debt crisis in Europe
and weak economic climate which persisted throughout 2012. Underlying net
results for the Group were EUR 2,603 million, down just 5.2% from 2011, despite
EUR 626 million of de-risking losses at the Bank, a EUR 175 million Dutch bank
tax, and higher loan losses as the economy weakened. At Insurance, de-risking
and low interest rates put pressure on investment returns, but underlying
results recovered as market-related items diminished."
"As the environment around us changes, ING is also evolving as we work to meet
our customers' rapidly changing needs and to achieve operational excellence. In
the Netherlands as well as in Belgium, we have made great progress in improving
service and investing in IT as customers move swiftly towards mobile banking. As
our business model evolves, so must our organisation. Retail Banking Netherlands
is expanding the transformation programme started in 2011, leading to
approximately 1,400 additional redundancies by the end of 2015 and reducing
expenses by an additional EUR 120 million per annum from 2016 onwards. At ING
Bank in Belgium, employee headcount is expected to decline by 1,000 FTEs by
2015, through natural attrition, leading to EUR 150 million in annual cost
savings by 2015. These initiatives come on top of measures announced in
Commercial Banking and Insurance Europe last quarter. Combined, all of these
programmes accounted for EUR 452 million in after-tax restructuring provisions
booked in 2012, but they are essential to drive future performance, reducing
annual expenses by a combined EUR 1 billion by 2015."
"Amid all of the changes we are going through, our employees have demonstrated
consistent dedication and commitment to keeping our customers' needs paramount.
As we embark on 2013, the economic climate remains challenging, and we must be
agile to respond quickly to the dynamic environment so that we can deliver
sustainable results for the long-term benefit of all stakeholders."
Key Figures(1)
| | |
|4Q2012 4Q2011 Change|3Q2012 Change|FY2012 FY2011 Change
-----------------------+--------------------+-------------+--------------------
ING Group key figures | | |
(in EUR million) | | |
| | |
Underlying result | 455 -849 | 1,028 -55.7%| 3,530 3,803 -7.2%
before tax Group | | |
| | |
of which Bank | 184 664 -72.3%| 983 -81.3%| 3,219 4,128 -22.0%
| | |
of which Insurance | 272 -1,513 | 44 518.2%| 311 -325
| | |
Underlying net result | 373 -785 | 692 -46.1%| 2,603 2,746 -5.2%
| | |
Net result | 1,434 1,186 20.9%| 609 135.5%| 3,894 5,766 -32.5%
| | |
Net result per share | 0.38 0.31 22.6%| 0.16 137.5%| 1.03 1.52 -32.2%
(in EUR)(2) | | |
| | |
Total assets (end of | | | 1,169 1,279 -8.6%
period, in EUR | | 1,248 -6.4%|
billion) | | |
| | |
Shareholders' equity | | | 54 47 16.5%
(end of period, in EUR| | 53 2.8%|
billion) | | |
| | |
Underlying return on | | | 5.2% 6.5%
equity based on IFRS- | 2.8% -6.9% | 5.4% |
EU equity(3) | | |
-----------------------+--------------------+-------------+--------------------
Banking key figures | | |
| | |
Interest margin | 1.33% 1.38% | 1.34% | 1.32% 1.38%
| | |
Underlying cost/income| 75.7% 66.8% | 58.8% | 62.5% 61.8%
ratio | | |
| | |
Underlying risk costs | 84 62 | 76 | 73 48
in bp of average RWA | | |
| | |
Core Tier 1 ratio | | 12.1% | 11.9% 9.6%
| | |
Underlying return on | | | 5.9% 8.8%
equity based on IFRS- | 0.3% 5.7% | 7.6% |
EU equity(3) | | |
-----------------------+--------------------+-------------+--------------------
Insurance key figures | | |
| | |
Operating result (in | 296 349 -15.2%| 237 24.9%| 1,095 1,658 -34.0%
EUR million) | | |
| | |
Investment margin/life| | |
general account | 132 129 | 130 |
invested assets (in | | |
bps)( 4) | | |
| | |
Administrative | | | 47.5% 43.3%
expenses / operating | 46.5% 46.2% | 47.6% |
income (Life & ING IM)| | |
| | |
Underlying return on | | | 1.8% -1.1%
equity based on IFRS- | 5.1% -22.2% | -0.2% |
EU equity(3) | | |
-----------------------+--------------------+-------------+--------------------
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.
Press conference, investor conference call and webcasts
Jan Hommen, Patrick Flynn and Wilfred Nagel will discuss the results in a
press conference on 13 February 2013 at 09:00 a.m. CET. Journalists are
invited to join the conference at ING Amsterdamse Poort, Bijlmerplein 888,
Amsterdam. Journalists can also join in listen-only mode at +31 20 531 5846
(NL) or +44 203 365 3210 (UK) and via live audio webcast at www.ing.com.
Jan Hommen, Patrick Flynn and Wilfred Nagel will also discuss the results in
an analyst and investor conference call on 13 February 2013 at 10:30 a.m. 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.
Investor enquiries
T: +31 20 576 6396
E:
investor.relations@ing.com
Press enquiries
T: +31 20 576 5000
E:
media.relations@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 4Q2012 Results (PDF)
ING Group 4Q2012 Results Analyst Presentation (PDF)
ING Group 4Q2012 Results Media Presentation (PDF)
ING Group 4Q2012 Results Quarterly Report (PDF)
ING Group 4Q2012 Results Group Statistical Supplement (PDF) (XLS)
ING Group 4Q2012 Results 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 press release:
hugin.info/130668/R/1677603/547166.pdf
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originality of the information contained therein.
Source: ING Group via Thomson Reuters ONE
[HUG#1677603]
