ING Direct 2011 Annual Report Download - page 12

in percentages
United States 48
Netherlands 26
United Kingdom 18
Belgium 2
Luxembourg 2
Switzerland 1
Other 3
Total 100
Geographical distribution of ING shares*
PROFIT RETENTION AND DISTRIBUTION POLICY
ING Group’s profit retention and distribution policy is determined
byinternal and external capital requirements and its growth
opportunities on the one hand and the capital providers’ dividend
expectations on the other. ING Group’s internal needs are
determined by statutory solvency requirements and capital ratios,
inexcess of which ING Group needs to maintain healthy buffers.
Animportant determinant are the credit ratings which are of
utmostimportance to ING Group, because they directly affect the
company’s financing costs and hence profitability. For their part,
thecapital providers expect a dividend which reflects ING Group’s
financial results and is relatively predictable.
ING’s policy is to pay dividends in relation to the long-term
underlying development of cash earnings. Dividends will only
bepaid when the Executive Board considers such a dividend
appropriate. Given the uncertain financial environment, increasing
regulatory requirements and ING’s priority to repay the remaining
outstanding core Tier 1 securities, the Executive Board will not
propose to pay a dividend over 2011 at the annual General
Meeting. ING intends to resume dividend payments on common
shares when all remaining core Tier 1 securities have been repaid
tothe Dutch State and Basel III requirements have been met.
CORE TIER 1 SECURITIES
In October 2008, to support its capital position, ING Group made
use of the previously announced capital support facilities by the
Dutch Government by issuing EUR 10 billion of core Tier 1 securities
to the Dutch State with a coupon of 8.5%. The core Tier 1 securities
are pari passu with common equity.
In December 2009, ING repurchased the first half of the core Tier 1
securities of EUR 5 billion plus a total premium of EUR 605 million.
Furthermore, at the coupon reset date, 13 May 2011, ING exercised
its option for early repurchase of EUR 2 billion of the remaining core
Tier 1 securities. The total payment in May 2011 amounted to EUR 3
billion and included a 50% repurchase premium. ING has funded this
repurchase from retained earnings.
ING remains committed to repaying the Dutch State as quickly as
possible on terms acceptable to all stakeholders. Ideally, ING would
like to complete the state repayment as soon as possible, however,
given the ongoing crisis in the eurozone and increasing regulatory
capital requirements, ING needs to take a cautious approach and to
maintain strong capital ratios in the Bank as it builds towards Basel III.
LISTINGS
Depositary receipts for ING Group ordinary shares are listed on the
stock exchanges of Amsterdam, Brussels and New York (NYSE).
Options on ING Group ordinary shares (or the depositary receipts
therefor) are traded on the NYSE Euronext Amsterdam Derivative
Markets and the Chicago Board Options Exchange.
SHAREHOLDERS AND DEPOSITARY-RECEIPT HOLDERS WITH
STAKES OF 5% OR MORE
To the best of our knowledge, as at 31 December 2011, there
wereno shareholders or holders of depositary receipts for shares
who reported to hold an interest of 5% or more as mentioned
inthe Dutch Financial Supervision Act, other than Stichting ING
Aandelen (ING Trust Office) and Stichting Continuïteit ING
(INGContinuity Foundation).
Authorised and issued capital
in EUR million
Year-end
2011
Year-end
2010
Ordinary shares
– authorised 3,480 1,080
– issued 919 919
Cumulative preference shares
– authorised 1,080 1,080
– issued ––
Shares in issue and shares outstanding in the market
in millions
Year-end
2011
Year-end
2010
(Depositary receipts for) ordinary shares
ofEUR0.24 nominal value 3,831.6 3,831.6
(Depositary receipts for) own ordinary shares
held by ING Group and its subsidiaries 49.3 51.3
(Depositary receipts for) ordinary shares
outstanding in the market 3,782.3 3,780.3
Prices depositary receipts for ordinary shares*
Euronext Amsterdam by NYSE Euronext
in EUR 2011 2010 2009
Price – high 9.41 8.16 9.64
Price – low 4.49 5.52 1.92
Price – year-end 5.56 7.28 6.90
Price/earnings ratio** 3.7 9.8 ***
* 2009 prices were adjusted for the increase in the number of shares
due to the rights issue.
** Based on the share price at year-end and net profit per ordinary
share for the financial year.
*** Not applicable.
* Year-end 2011 figures, estimated on information provided by several
largecustodians.
10 ING Group Annual Report 2011
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