QUOTE AND NEWS
SeekingAlpha  Aug 7  Comment 
ING U.S. (NYSE:VOYA) Q2 2014 Earnings Conference Call August 6, 2014 10:00 AM ET Executives Darin Arita – Senior Vice President of Investor Relations Rodney O. Martin – Chairman and Chief Executive Officer Alain M. Karaoglan...
newratings.com  Aug 6  Comment 
AMSTERDAM (dpa-AFX) - Dutch financial services company ING Group NV (ING) Wednesday said profit for the second quarter increased over 19 percent from last year, driven primarily by ING Bank. Net result climbed to 1.067 billion euros ($1.43...
newratings.com  Aug 6  Comment 
Wall Street Journal  Aug 6  Comment 
ING reported a sharp rise in second-quarter net profit, boosted by one-time gains and lower provisions for bad loans, as the Dutch bank edges closer to fully rid itself from Dutch government support.
The Hindu Business Line  Jul 24  Comment 
ING Vysya Bank has selected Mindtree as strategic digital partner for its next generation mobility program. As part of this deal, Mindtree will help ING Vysya deliver multi-channel and m...
The Hindu Business Line  Jul 23  Comment 
Shares of ING Vysya Bank today fell sharply by seven per cent in morning trade after the company reported an 18 per cent drop in net profit for the June quarter. Stocks of the mid-sized p...
The Hindu Business Line  Jul 22  Comment 
ING Vysya Bank reported 18 per cent drop in net profit for the June quarter on higher provisions. The bank reported a net profit of ₹143.40 crore for the June quarter against ₹175.12 crore in corr...
The Hindu Business Line  Jul 22  Comment 
The Hindu Business Line  Jul 15  Comment 
The Competition Commission of India (CCI) has approved Birla Sun Life AMC’s acquisition of ING Mutual Fund’s schemes. In an order on Tuesday, CCI said “the total size of the market in terms of the...




 

ING Groep N.V. (NYSE:ING) is a global financial institution. The Company provides a range of insurance, banking and asset management services and serves more than 60 million customers in Europe, the United States, Canada, Latin America, Asia and Australia. ING has six business lines: Insurance Europe, Insurance Americas, Insurance Asia/Pacific, Wholesale Banking, Retail Banking and ING Direct. In April 2007, the Company completed the acquisition of AZL, a Netherlands-based provider of pension fund management services. In June 2007, the Company completed the sale of its specialty insurance unit , Nationale Borg, to HAL Investments B.V. and Egeria. In July 2007, the Company completed the sale of its business unit ING Trust. In July 2007, ING Real Estate, a subsidiary of the Company, acquired the Triangle Part-Dieu office building in Lyon, France. In September 2007, the Company completed the sale of ING Insurance Belgium NV, its Belgian broker and employee benefits insurance business, to P&V Verzekeringen. In January 2008, the Company closed all five transactions to acquire Banco Santander's pension and annuity businesses in Mexico, Chile, Colombia, Uruguay and Argentina. ING Groep N.V. also trades on the nyse with another smbol ISG, but as a smaller company with a market cap of around $2 billion, 1/20th of the company's total.

In July 2006, ING acquired Appleyard Vehicles Contracts, a United Kingdom-based car leasing company. In October 2006, ING acquired 56% of Summit Real Estate Investment Trust (Summit REIT), which owns a portfolio of light industrial properties in major markets across Canada. In October 2006, ING acquired ABN AMRO Asset Management (Taiwan) Ltd, a registered Securities Investment Trust Enterprise. In June 2006, ING sold its United Kingdom brokerage unit Williams de Broe Plc. In September 2006, it sold its 87.5% stake in Deutsche Hypothekenbank AG. In December 2006, ING sold its stake in Degussa Bank, a unit of ING-DiBa specialising in worksite banking for private customers.

Insurance Europe operates the insurance and asset management activities in Europe. Insurance Europe's main insurance activities are in the Netherlands, Belgium, Spain, Greece and Central Europe. It offers life insurance with a particular focus on pensions. In the Netherlands and Belgium, the Company also offers non-life insurance.

Insurance Americas provides insurance, investment, retirement and asset management products and services in the United States. In the United States, ING provides retirement services. In Canada, the Company was a property and casualty insurer until February 2009 when it spun off subsidiary ING Canada for $2.2 billion to institutional investors leaving it with ING Bank of Canada. Initially, the newly independent company was known as Intact Insurance until May 2009 when shareholders approved the name change of the parent company to Intact Financial. ING also operates in Mexico, Chile, Peru and Brazil.

Insurance Asia/Pacific conducts life insurance and asset/wealth management activities in Asia/Pacific. The Company operates in Australia, Hong Kong, Japan, Malaysia, New Zealand, South Korea and Taiwan.

Wholesale Banking (underlying income from Commercial Banking increased 36.5% on the year in 2009) conducts global wholesale banking operations. ING's primary focus is on the Netherlands and Belgium, where it offers a range of products to companies and other institutions. Wholesale Banking also manages ING Real Estate, a real estate investment manager.

Retail Banking (accounted for 27.9% of the entire group's underlying income in 2009 (up from 17.7% in 2008 it grew 13.5% on the year compared to a contraction of 28% for the group), It also makes up about 10% of the total income generated by all of ING Groep's banking operations (including those by ING Direct and Commercial Banking) which was up from 6-7% in 2008. 1hfy10 grew 28% to €8560 million, cost to income ratio down to 55% from 68.8% a year before) offers retail banking services in the mature markets of the Netherlands and Belgium, and in the developing markets of Poland, Romania, India and China. Private banking is offered by ING in the Netherlands, Belgium, Luxembourg, Switzerland and various countries in Asia, Latin America and Central and Eastern Europe.

ING Direct operates direct retail banking activities for customers in Australia, Canada, France, Germany and Austria, Italy, Spain, the United Kingdom and the United States. The main products offered by ING Direct are savings accounts and mortgages.

In the first half of 2010 the Dutch Government profited $565 million on ING's US mortgage portfolio. The risks were transferred by ING to the Dutch government as a result of low confidence in the US housing market.[1]

Business & Financials

  • In the table Gross Premiums for 1hfy09 and 1hfy10 is gross premium income

2010 FY - A strong banking recovery in 2010 boosted net earnings up to €3.893 billion, four fold higher than the 2009 fiscal period (€644 million the fourth quarter). By January 2010, 2011 the banking segment will be completely separate from the insurance business (2 insurance IPO's separating Asian and American businesses will happen in 2001); after tax separation costs were €85 million. Insurance administrative expenses represented 43.9% of operating income, down from 44.3% in 2009 (but still higher than the target level of 35%). Return on equity was still in the negative, -1.8% compared to -0.9% in 2009. Full year operating expenses were up 4.6% (to just under 10 billion euro). Though retail banking operating results before tax were up for 3 consecutive quarters begining in 1Q10, in 4Q10 it fell markedly qoq (by about 20% to over 800 million euro). For the year investment margin contributed only 21% to operating income (fees and premium based revenue 66%). 51.5% of equity comes from ING Bank, 30% ING Insurance.[2] At the end of 2009 34% of ING shares were held in the Netherlands (49% in Benelux), 41% between the USA and the United Kingdom, 5% in Switzerland and 5% elsewhere. Moody's gave it the highest credit rating (A1). About 70% of net income losses came from the insurance divisions. Return on equity was much higher in the first two quarters of 2010 compared to the previous three. It was 11.3% and 11.7% in the first two quarters of 2010 compared to 3.3%, 4.4% and -0.2% in the three previous quarters.

2009 Insurance America experienced the biggest increase in earnings at risk (the risk of loss from default by debtors, risk is measured based on performance by five key areas lending, investments, pre-settlement (derivatives, securities and other related activity), money markets and settlement) in 2009, rising to €1738 million from €790 million accounting for slightly more than the total increase experienced by all insurance divisions combined (49.4% higher versus 4.1% for ING Banking). As a response the bank increased or decreased diversification in key segments. Commercial banking reported a drop in capital, largely the result of de-risking efforts by the banking division, however overall assets were pushed back up by increases in strategic equity stakes associated with the retail banking business.

Key Financial Metrics (€ million) 2006[3] 2007[3] 2008[4] 2009[4] 1HFY09[5] 1HFY10[5] Change % 2010[2]
Revenue 73,621 76,586 66,291 47,765 29,304 54,887[6]
Total Net Income 8033 9508 (729) (935) (722) 2416 na 3,893
Shareholders Equity 38,266 37,208 17,334 33,863 22,000 42,000 87% 41,555
Gross Premiums 48,133 48,833 37,760 30,179 7192 6796 (-)5.5%
Total Assets 1,226,307 1,312,510 1,331,663 1,163,643 1,1880,000 1,273,000 7% 1,247,110

In terms of portfolio risk exposure by region, 51.5% of all exposure is in the USA (but it was down to €57.9 billion in 2009 from €61.7 billion in 2008). The Netherlands is the largest source of European exposure with France second equal to Italy and the United Kingdom combined, Germany was second with €6 billion (by division Insurance Europe). South Korea and Japan account for 86% of risk exposure in Asia.[5] Altogether, Insurance operations recorded a loss in underlying net income of €214 million in 2009 which is about a fifth what it was the year before while gross premiums fell 20.1% on the year, 22.2% smaller than in 2007.

References

  1. Dutch Govt Makes Profit On ING Mortgages, But Remains Cautious (2010-09-27).
  2. 2.0 2.1 ING Group 2010 full year results (2011-02-16).
  3. 3.0 3.1 ING Groep 2007 Annnual Report
  4. 4.0 4.1 ING Groep 2009 Annual Report
  5. 5.0 5.1 5.2 ING Groep 2010 Second Quarter Results (2010-08-11).
  6. ING Groep Key Figures (2011-02-16).
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki