Wholesale Banking
Commercial momentum in difficult times
Key points
- Solid commercial performance with income growth in General Lending and Structured Finance
- Result before tax down due to market turmoil, negative revaluations in Real Estate and Financial Markets
- Improved market penetration, lead bank position and landmark deals in home markets
- Expenses down and under control, but risk costs rising
Wholesale Banking achieved a solid commercial performance in what was an extremely challenging year for the industry. Income remained fairly resilient, with good income growth in many businesses. However, overall results were negatively affected by the global financial crisis, especially in the second half of 2008 due to the unprecedented market turmoil. Wholesale Banking therefore increased its focus on reducing expenses, improving capital efficiency and controlling risk. ING's commitment to being a full-service bank supported its market penetration, lead bank standing, and landmark deal participation in its home markets.
Profit and loss account* (underlying)
| in EUR million | 2008 | 2007 | change |
|---|---|---|---|
| Total income | 4,107 | 4,801 | –14.5% |
| Operating expenses | 2,902 | 2,884 | 0.6% |
| Additions to loan loss provisions | 596 | –142 | n.a. |
| Underlying result before tax | 609 | 2,059 | –70.4% |
| Total result before tax** | 609 | 1,965 | –69.0% |
- *
- These numbers include the result from ING Real Estate which reports to Wholesale Banking. ING Real Estate is discussed in detail in the section on asset management together with ING Investment Management.
- **
- Total result before tax is defined as underlying result before tax including divestments and special items.
Key figures (underlying)
| 2008 | 2007 | |
|---|---|---|
| After-tax RAROC | 4.9% | 19.8% |
| Economic Capital (in EUR billion) | 9.3 | 6.9 |
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