ING Direct Putting the customer first
Key points
- Two million customers added in 2008, bringing the total to 22.2 million worldwide
- Positive commercial results; total client retail balances production up EUR 24.4 billion to EUR 322.7 billion
- Impairments of EUR 1,891 million on investment portfolio
- liquid Assets Back-up Facility in early 2009 reduces impact of Alt-A RMBS future losses
- Strong brand and customer focus are key components of strategy
ING Direct continued to show positive commercial results, despite an increasingly competitive marketplace and against the backdrop of the continuing crisis in the financial sector. Results were heavily impacted by impairments on its investment portfolio due to the financial crisis. Client retail balances production was up EUR 24.4 billion to EUR 322.7 billion at year-end.
Profit and loss account (underlying)
| in EUR million | 2008 | 2007 | change |
|---|---|---|---|
| Total income | 878 | 2,196 | – 60.0% |
| Operating expenses | 1,719 | 1,598 | 7.6% |
| Additions to loan loss provisions | 283 | 68 | 316.2 |
| Underlying result before tax | –1,125 | 530 | –312.3% |
| Total result before tax* | –1,155 | 530 | –317.9% |
- *
- Total result before tax is defined as underlying result before tax including divestments and special items.
Key figures
| 2008 | 2007 | |
|---|---|---|
| After-tax RAROC | –18.2% | 14.3% |
| Economic Capital (EUR billion) | 3.4 | 2.8 |
Underlying result before tax
| in EUR million | 2008 | 2007 | change |
|---|---|---|---|
| Canada (1997)* | 59 | 30 | 96.7% |
| Spain (1999) | 43 | 55 | –21.8% |
| Australia (1999) | 72 | 84 | –14.3% |
| France (2000) | 31 | 46 | –32.6% |
| United States (2000) | 343 | 78 | 339.7% |
| Italy (2001) | 34 | 49 | –30.6% |
| Germany (2002)/ Austria (2004) | 297 | 359 | –17.3% |
| United Kingdom (2003) | –72 | –120 | n.a. |
| Japan** | –40 | –22 | n.a. |
| Subtotal | 766 | 559 | 37.0% |
| Impairments | –1,891 | –29 | |
| Total | –1,125 | 530 | –312.3% |
- *
- Launch year in brackets
- **
- Early 2009, it was decided not to launch operations in Japan.
