ING Direct 2009 Annual Report Download - page 289

Gross credit risk exposures (EAD) by economic sector
Central
Governments
and Central
Banks Institutions Corporate
Residential
mortgages Other retail
Total
2009
Total
2008
Builders & Contractors 13,506 2,581 16,087 19,351
Central Banks 22,022 22,022 23,786
Central Governments 64,675 64,675 53,794
Commercial Banks 488 87,610 331 65 88,494 112,0 93
Food, Beverages &
Personal Care 17,082 2,435 19,517 20,449
General Industries 14,774 2,096 16,870 20,209
Lower Public
Administration 6,177 14,369 96 20,642 20,651
Natural Resources 31,162 441 31,603 29,200
Non-Bank Financial
Institutions 3,514 46,262 869 50,645 52,879
Private Individuals 141 299,055 21,978 321,174 299,065
Real Estate 332 53,329 3,045 56,706 55,545
Services 16,891 4,475 21,366 22,973
Transportation &
Logistics 21,131 1,366 22,497 25,232
Other 21 1,140 53,686 7,392 62,239 70,478
Total 93,715 106,633 268,295 299,055 46,839 814,537 825,705
* Includes both AIRB and SA portfolios; Excludes securitisations, equities and ONCOA.
The figures presented above are based on the Basel II defined EAD, and differ from the industry distribution figures that are presented
in the annual accounts. Note that all other sectors have exposures that are less than EUR 15.0 billion.
ING uses a common industry classification methodology based on the NAICS system (North American Industry Classification System).
This methodology has over 1,500 detailed industry descriptions, which are aggregated into 22 industry classes at the highest level. Certain
countries require ING to report locally based on other industry classification methodologies, which are generally derived from the NAICS
classifications presented here. Residential mortgages are generally only extended to private individuals.
Outstandings by Tenor Bucket (based on credit risk outstandings)
Central
Governments
and Central
Banks Institutions Corporate
Residential
mortgages Other retail
Total
2009
Total
2008
Current Outstandings 88,331 107,763 232,178 288,244 35,855 752,371 749,213
1 month 80,839 106,565 225,948 287,781 35,268 736,401 714,735
3 month 61,797 85,032 211,372 287,339 34,452 679,992 653,817
6 month 54,379 81,612 203,467 286,568 33,497 659,523 636,540
1 year 51,169 75,423 164,262 283,352 23,739 597,945 572,949
2 years 46,400 68,774 135,767 279,657 20,622 551,220 525,787
3 years 42,219 58,784 110,734 274,706 17,882 504,325 477,955
5 years 30,085 46,538 77,057 256,328 13,270 423,278 400,858
7 years 22,698 33,442 52,417 245,610 10,931 365,098 340,794
10 years 9,763 12,315 35,831 224,947 8,327 291,183 259,858
* Includes both AIRB and SA portfolios; Excludes securitisations, equities and ONCOA.
* Problem Loans (rating 20-22) are excluded in the figures above.
Basel II does not include a cash flow methodology that would look at future portfolio runoff. This table, therefore, presents figures that are
based on credit risk outstandings, and not EAD. Credit Risk outstandings include amounts associated with both on and off balance sheet
products, but exclude amounts related to unused limits. For derivatives and securities financing, the mark-to-market plus add-on
methodology is applied, but the add-ons are generally less conservative than the add-ons applied under the Basel II definitions.
The figures above assume that loans, money market and investments in fixed income securities are fully repaid at their maturity dates and
that limits are reduced in conjunction with repayment schedules contained in the associated loan documentation, without regard for
potential renewal or extension, or portfolio sales or acquisitions. Pre-Settlement risks are assumed to reduce over the legal maturity of the
underlying transactions. However, under mark-to-market plus add-on methodology, it is possible for exposures to increase in time, rather
than decrease. This is a function of ING’s estimates of future interest rates and foreign exchange rates, as well as potential changes in
future obligations that may be triggered by such events. Generally, credit risk outstandings are lower than EAD.
ING Group Annual Report 2009 287
Additional Pillar 3 information for ING Bank only (continued)
2.4 Additional information