ING Direct 2011 Annual Report Download - page 202

Notes to the consolidated annual accounts of ING Group continued
presented in this note is in line with the information presented to the Executive and Management Board. Underlying result is defined as
result under IFRS-EU excluding the impact of divestments and special items. Disclosures on comparative years also reflect the impact of
current year’s divestments.
The following table specifies the main sources of income of each of the segments:
Specification of the main sources of income of each of the segments
Segment Main source of income
Retail Netherlands
Income from retail and private banking activities in the Netherlands. The main products offered are current
andsavings accounts, mortgages and other consumer lending in the Netherlands.
Retail Belgium Income from retail and private banking activities in Belgium. The main products offered are similar to those intheNetherlands.
Retail CE Income from retail and private banking activities in Central Europe. The main products offered are similar tothoseinthe Netherlands.
Retail Asia Income from retail banking activities in Asia. The main products offered are similar to those in the Netherlands.
ING Direct Income from direct retail banking activities. The main products offered are savings accounts and mortgages.
Commercial Banking (excluding
Real Estate) Income from wholesale banking activities. A full range of products is offered from cash management to corporatefinance.
ING Real Estate Income from real estate activities.
Insurance Benelux Income from life insurance, non-life insurance and retirement services in the Benelux.
Insurance CRE Income from life insurance, non-life insurance and retirement services in Central and Rest of Europe.
Insurance US * Income from life insurance and retirement services in the United States.
Insurance US Closed Block VA Consists of ING’s Closed Block Variable Annuity business in the United States, which has been closed tonewbusiness since early 2010 and which is now being managed in run-off.
Insurance Asia/Pacific Income from life insurance and retirement services in Asia/Pacific.
ING IM Income from investment management activities.
Corporate Line Banking
Corporate Line Banking is a reflection of capital management activities and certain expenses that are not allocated
to the banking businesses. ING Group applies a system of capital charging for its banking operations in order to
create a comparable basis for the results of business units globally, irrespective of the business units’ book equity
and the currency they operate in.
Corporate Line Insurance The Corporate Line Insurance includes items related to capital management, run-off portfolios, ING Re and remaining activities in Latin America.
Corporate Line Insurance The Corporate Line Insurance includes items related to capital management, run-off portfolios and ING Re.
* Excluding US Closed Block VA
This note does not provide information on the revenue specified to each product or service as this is not reported internally
andistherefore not readily available.
b. ING Group
Operating segments ING Group Total
2011 Total Banking Total Insurance Eliminations Total
Underlying income
– Gross premium income 27,198 27,198
– Net interest result – banking operations 13,562 –60 13,502
– Commission income 2,255 1,515 3,770
– Total investment and other income 37 9,352 –290 9,099
Total underlying income 15,854 38,065 –350 53,569
Underlying expenditure
– Underwriting expenditure 33,087 33,087
– Operating expenses 9,128 3,730 12,858
– Other interest expenses 910 –350 560
– Additions to loan loss provision 1,667 1,667
– Other impairments 319 24 343
Total underlying expenses 11,114 37,751 –350 48,515
Underlying result before taxation 4,740 314 5,054
Taxation 1,277 19 1,296
Minority interests 79 4 83
Underlying net result 3,384 291 3,675
200 ING Group Annual Report 2011