ING Direct 2011 Annual Report Download - page 233

Risk management continued
ING Bank
The table below represents the economic sector breakdown of credit risk outstandings (including impaired amounts) for loans
and positions that have been classified as problem loans and for which provisions have been made.
Impaired Loans: ING Bank portfolio, outstandings by economic sector (1)
2011 2010
Private Individuals 4,790 4,838
Real Estate 2,671 2,777
General Industries 819 858
Transportation & Logistics 797 818
Food, Beverages & Personal Care 784 837
Builders & Contractors 774 792
Services 718 582
Non-Bank Financial Institutions 368 527
Other 1,661 1,750
Total 13,382 13,779
(1) Economic sectors below EUR 500 million in both years are not shown separately but grouped in Other.
ING Bank holds specific and collective provisions of EUR 3,040 million and EUR 1,133 million, respectively (2010: EUR 2,697 million and
EUR 1,404 million respectively), representing the difference between the amortised cost of the portfolio and the estimated recoverable
amount discounted at the effective rate of interest. In addition, there is EUR 777 million (2010: EUR 1,094 million) in provisions against
theperforming portfolio. The 2010 figures are including ING Direct USA.
Provisions: ING Bank portfolio (1)
Commercial Banking Retail Banking Benelux
Retail Banking Direct
& International Total ING Bank
2011 2010 2011 2010 2011 2010 2011 2010
Opening balance 1,855 1,628 1,641 1,290 1,699 1,481 5,195 4,399
Changes in the composition of the group –3 –3
Write-offs –373 –337 –494 –454 –437 –375 –1,304 –1,166
Recoveries 66 36 37 58 9 11 112 105
Increase/(decrease) in loan loss provision 479 497 603 721 588 533 1,670 1,751
Exchange differences 15 65 0 8–98 82 –83 155
Other changes –34 –36 18 –601 –33 –637 –49
Closing balance 2,039 1,855 1,751 1,641 1,160 1,699 4,950 5,195
(1) The 2011 figures are excluding ING Direct USA.
The risk costs development in the first half of 2011 was relatively favourable, however, since mid 2011, the economic climate deteriorated.
On balance, risk costs for the full year 2011 were in line with 2010 risk costs levels.
Credit Covers Problem Assets
The table hereunder shows the cover values per credit risk category classified based on Retail and Commercial Banking products. In the
ING Bank master scale which ranges from 1 being the best rating to 22 being the worst rating, Problem Assets are the Assets with ratings
in the range 18–22. All other are called Performing Assets and are shown in the tables above.
Problem Assets – Cover values**** including guarantees received**
31 December 2011
Outstandings* Mortgages*** Cash Guarantees** Other
Total Credit
Covers****
Retail
Residential Mortgages 4,070 4,987 4,987
Other Lending 569 145 145
Total Retail 4,639 5,132 5,132
Commercial
Financial Institutions 457 63 151 22 137
Corporates 8,090 2,913 335 242 1,063 4,553
Governments 9 0 0 0
Other 187 105 012108
Total Commercial 8,743 3,081 336 294 1,087 4,798
Total 13,382 8,213 336 294 1,087 9,930
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
231ING Group Annual Report 2011