- ING Group's full-year 2011 net result was EUR 5,766 million, or EUR 1.52 per share, including divestments, discontinued operations and special items. The 4Q11 underlying net result was EUR -516 million. The 4Q11 net result was EUR 1,186 million, or EUR 0.31 per share.
- Bank underlying result before tax came in at EUR 793 million in 4Q11, including EUR 79 million of realised losses from selective de-risking at ING Direct and EUR 133 million of re-impairments on Greek government bonds. Despite pressure on savings margins, the net interest margin rose to 1.42% from 1.37% in 3Q11. Risk costs were EUR 530 million, or 65 bps of average RWA, mainly reflecting higher losses on mid-corporate and SME lending in the Benelux.
- Insurance underlying loss before tax was EUR 1,348 million in 4Q11, mainly refl ecting the previously announced charge for the US Closed Block VA assumption changes, as well as losses on hedges in place to protect regulatory capital. The operating result rose 20.4% from 4Q10 to EUR 478 million driven by a higher investment margin, a decline in expenses and lower interest costs. The investment spread rose to 106 bps fuelled primarily by the Benelux.
- Given the uncertain financial environment, increasing regulatory requirements and ING's priority to repay the Dutch State, the Executive Board will not propose to pay a dividend over 2011 at the annual General Meeting in May 2012.
Chairman's Statement
"The economic environment became more challenging in the fourth quarter of 2011. The financial crisis spread further into the real economy, and uncertainty around the European sovereign debt crisis continued to erode confidence and amplify market volatility. Despite this challenging backdrop and its inevitable impact on results, ING posted 15.1% higher full-year underlying earnings in 2011 compared with 2010," said Jan Hommen, CEO of ING Group.
"During the fourth quarter, income at the Bank was affected by losses related to further de-risking of the investment portfolio, as well as re-impairments on Greek government bonds and other market impacts. However, commercial performance remained robust. Funds entrusted grew by EUR 8.1 billion, underscoring the strong deposit-gathering ability of our franchise amid continued competition for savings in our home markets. Our strong funding profile enabled ING Bank to continue to support customers' financing needs. The capital position of the Bank remained strong, with the core Tier 1 ratio stable at 9.6% after absorbing the impact of higher capital requirements under CRD III which came into effect at year-end. As the economic recovery is expected to remain weak in 2012, we will continue to take a prudent approach to risk, capital and funding while working towards our Ambition 2015 targets."
"Our Insurance results were severely impacted by the update to policyholder behaviour assumptions on the US Closed Block VA, as announced in December, as well as losses on hedges in place to protect regulatory capital given the ongoing market turmoil. These factors led to a fourth-quarter loss on an underlying basis. However, operating results were up 20.4% from a year ago, demonstrating cost discipline and strong progress on performance improvement programmes. Significant milestones in the restructuring process were achieved in 2011, including the sale of Insurance Latin America and the completion of the legal and operational separation of Insurance US, Europe and Asia. In 2012, we will continue to focus on improving returns while preparing these businesses for stand-alone futures."
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ING nominates Yvonne van Rooy and Robert Reibestein as members of the Supervisory Board
ING announced today it will propose to the 2012 Annual General Meeting (AGM) the appointment of Yvonne van Rooy and Robert Reibestein to the Supervisory Board.
Yvonne van Rooy (1951, Dutch) is currently President of the Utrecht University. From 1986 to 1994 she was the State Secretary for Economic Affairs and Minister of Foreign Trade in two consecutive Dutch cabinets. Mrs. Van Rooy also served as a member of the Dutch Parliament and of the European Parliament. In addition, she is deputy Crown Member of the Sociaal-Economische Raad and Vice Chairman and secretary of the Supervisory Board of Bank Nederlandse Gemeenten.
Robert Reibestein (1956, Dutch) was senior partner of McKinsey & Company until 31 December 2011. For almost 30 years he served leading financial institutions in Europe and Asia. Mr Reibestein led McKinsey's practice in Amsterdam, was then responsible for its Global Banking and Securities Practice and most recently he led McKinsey's offices across Europe, Middle-East and Africa. He is also Chairman of the Supervisory Board of the Stichting Koninklijk Concertgebouworkest, Vice Chairman of Leiden University and member of the Board of the World Wildlife Fund.
Both candidates are nominated for appointment by the AGM, which will be held on 14 May 2012. The appointment of Yvonne van Rooij will be effective as of that date. Robert Reibestein's appointment will be effective as of 1 January 2013 to comply with the independence criteria of the Dutch Corporate Governance Code.
The proposed appointments have been approved by the Dutch Central Bank (DNB).
