ING Direct 2009 Annual Report Download - page 179

35 INTEREST RESULT BANKING OPERATIONS
Interest result banking operations
2009 2008 2007
Interest income on loans 24,983 31,174 26,390
Interest income on impaired loans 24 –24 –26
Total interest income on loans 25,007 31,150 26,364
Interest income on available-for-sale securities 3,923 7, 4 49 7,397
Interest income on held-to-maturity securities 612 669 736
Interest income on trading portfolio 40,844 45,510 32,443
Interest income on non-trading derivatives 3,936 7,076 6,190
Other interest income 5,528 5,157 3,619
Interest income banking operations 79,850 97,011 76,749
Interest expense on deposits by banks 1,266 4,856 5,131
Interest expense on customer deposits
and other funds on deposit 10,976 19,594 18,563
Interest expense on debt securities 2,657 4,109 3,648
Interest expense on subordinated loans 1,784 1,784 1,167
Interest on trading liabilities 40,023 44,093 29,383
Interest on non-trading derivatives 4,483 7,391 6,115
Other interest expense 6,286 4,142 3,766
Interest expense banking operations 67,475 85,969 67,773
Interest result banking operations 12,375 11,0 42 8,976
Interest margin
in percentages 2009 2008 2007
Interest margin 1.34 1.07 0.94
In 2009, the decline in average total assets led to a decrease of the interest result amounting to EUR 929 million (in 2008 the growth in
average assets led to an increase of the interest result of EUR 811 million; in 2007 the growth in average assets led to an increase of the
interest result of EUR 753 million). The increase of the interest margin by 25 basis points led to an increase of the interest result with
EUR 2,406 million (in 2008 the increase of the interest margin by 13 basis points led to a increase of the interest result with EUR 1,440
million; in 2007 the decrease of the interest margin by 12 basis points led to a decrease of the interest result with EUR 1,051 million).
36 GROSS PREMIUM INCOME
Gross premium income
2009 2008 2007
Gross premium income from life insurance policies 28,720 38,869 40,732
Gross premium income from non-life insurance
policies 1,772 4,943 6,086
30,492 43,812 46,818
Gross premium income decreased as a result of the divestments as disclosed in Note 30 ‘Company acquired and disposed’, including the
divestment of ING Life Taiwan, ING Canada, Annuity and Mortgage business of Chile and Australia/New Zealand. Furthermore, gross
premium income declined due to ING’s decision to limit variable annuity sales in the United States and to cease variable annuity sales in
Japan, as well as a lower appetite for investment-linked products.
Gross premium income has been presented before deduction of reinsurance and retrocession premiums granted. Gross premium income
excludes premium received for investment contracts, for which deposit accounting is applied.
2.1 Consolidated annual accounts
ING Group Annual Report 2009 177
Notes to the consolidated profit and loss account of ING Group
amounts in millions of euros, unless stated otherwise