ING Direct 2011 Annual Report Download - page 203

Notes to the consolidated annual accounts of ING Group continued
Reconciliation between Underlying and IFRS-EU income, expenses and net result
2011 Income Expenses Net result
Underlying 53,569 48,515 3,675
Divestments 1,304 309 933
Special items 921 861 54
IFRS-EU (continuing operations) 55,794 49,685 4,662
Discontinued operations 1,707 567 1,104
IFRS-EU (continuing and discontinued operations) 57,501 50,252 5,766
Divestments in 2011 reflects the results on the sale of ING Real Estate Investment Management (REIM) and ING Car Lease as well as the
operating result of the divested units.
Special items in 2011 includes costs for the Retail Netherlands change programme and strategic repositioning initiatives at Commercial
Banking, additional costs for the combining of ING Bank and Postbank in the Netherlands, the transformation programme in Belgium,
further restructuring at ING Real Estate following the sale of ING REIM, and costs related to the separation of Banking and Insurance, as
well as an adjustment of the Illiquid Assets Back-up Facility based on higher prepayment behaviour in the underlying Alt-A securities and
the result on the repurchase of subordinated loans executed in December 2011 as disclosed in Note 42 ‘Other income’ and Note 14
‘Subordinated loans’.
Reference is made to Note 25 ‘Discontinued operations’ for information on discontinued operations.
Operating segments ING Group Total
2010 Total Banking Total Insurance Eliminations Total
Underlying income
– Gross premium income 27,786 27,786
– Net interest result – banking operations 13,555 –93 13,462
– Commission income 2,253 1,472 3,725
– Total investment and other income 1,008 7, 3 8 8 –243 8,153
Total underlying income 16,816 36,646 –336 53,126
Underlying expenditure
– Underwriting expenditure 32,802 32,802
– Operating expenses 8,848 3,766 12,614
– Other interest expenses 1,122 –336 786
– Additions to loan loss provision 1,742 1,742
– Other impairments 488 28 516
Total underlying expenses 11,078 37,718 –336 48,460
Underlying result before taxation 5,738 –1,072 4,666
Taxation 1,427 –40 1,387
Minority interests 69 18 87
Underlying net result 4,242 –1,050 3,192
Reconciliation between Underlying and IFRS-EU income, expenses and net result
2010 Income Expenses Net result
Underlying 53,126 48,460 3,192
Divestments 979 438 474
Special items 1,279 –1,065
IFRS-EU (continuing operations) 54,105 50,177 2,601
Discontinued operations 781 513 209
IFRS-EU (continuing and discontinued operations) 54,886 50,690 2,810
Divestments in 2010 mainly relate to the sale of the three US independent retail broker-dealer units, the sale of the Private Banking
businesses in Asia and Switzerland and to the sale of ING’s 50% stake in Summit Industrial Fund LP as well as the operating result
of the in 2010 and 2011 divested units.
Special items in 2010 includes mainly restructuring expenses for the combining of the Dutch retail activities, the Belgium retail
transformation program, the cost related to the separation of Banking and Insurance and the expenses related to the goodwill
impairmentin the United States of EUR 513 million (after tax) in 2010. Reference is made to Note 9 ‘Intangible assets’.
1 Who we are 2 Report of the Executive Board 3 Corporate governance 4 Consolidated annual accounts 5 Parent company annual accounts 6 Other information 7 Additional information
201ING Group Annual Report 2011