ING Direct 2004 Annual Report Download - page 108

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106 ING Group Annual Report 2004
ING Group
According to an agreement (‘Protocol’) between the Dutch Central Bank and the Pension & Insurance Board regarding the
supervision of financial conglomerates, ING Group is required to have an amount of capital, reserves and subordinated loans
which are at least equal to the sum of:
– the required capital for the banking activities; and
– the required capital for the insurance activities.
For regulatory purposes certain (external) subordinated loans of ING Bank N.V. and ING Verzekeringen N.V. are included.
REGULATORY REQUIRED CAPITAL ING GROUP
2004 2003
Shareholders’ equity 25,866 21,331
Preference shares of group companies 1,283 1,783
Subordinated loans 4,109 3,252
Capital base ING Group 31,258 26,366
Subordinated loans ING Bank N.V. (incl. in Tier 2) 9,951 8,979
Subordinated loans ING Verzekeringen N.V. 2,250 2,250
Capital base including subordinated loans 43,459 37,595
Required capital banking operations 21,931 20,101
Required capital insurance operations 8,697 8,779
Surplus capital 12,831 8,715
RELATED PARTIES
In the normal course of business, ING Group enters into various transactions with related companies. Related companies
comprise non-consolidated participating interests and the non-consolidated part of joint-ventures. These transactions are not
considered material to ING Group, either individually or in the aggregate. Parties are considered to be related if one party has
the ability to control or exercise significant influence over the other party in making financial or operating decisions.
Transactions have taken place on an at arm’s length basis.
RELATED PARTY TRANSACTIONS
Joint Joint
ventures Associates ventures Associates
2004 2003
Receivables 142 242 303 167
Liabilities 214 27 10 21
Guarantees issued in favour of 124 2 79 1
Income received from and expenses paid to joint-ventures were EUR 5 million respectively EUR 150 million (2003: nil respectively
nil) and income received from and expenses paid to associates were EUR 7 million respectively nil (2003: EUR 7 million
respectively EUR 2 million).
ADDITIONAL INFORMATION RELATING TO
THE CONSOLIDATED BALANCE SHEET OF ING GROUP
(continued)
2.1
ANNUAL ACCOUNTS