ING Direct 2002 Annual Report Download

Download and view the complete annual report

Please find the complete 2002 ING Direct annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 97

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97

ANNUAL REPORT
ING GROUP
2002

Table of contents

  • Page 1
    AN N UAL R E PO R T ING GROUP 2002

  • Page 2
    ... capital base and improve other key ratios to maintain a solid financial foundation; 2. 3. 4. Optimise businesses; Create value for the clients with a multiproduct/multi-channel approach; Develop ING's special skills - direct banking, insurance in developing markets, employee benefits and pensions...

  • Page 3
    ... 0.34 7.23 0.73 EMPLOYEES Net profit in millions of euros 0.73 average full-time equivalents Distributable net profit Dividend 6,000 0.73 0.32 120,000 Shareholders' equity 5,500 5,000 7.46 110,000 100,000 R AT I O S (in %) 4,500 ING GROUP 4,000 80,000 90,000 Return on equity (ROE) 3,500 21...

  • Page 4
    ...D 22 Financial highlights 26 Group strategy and outlook 28 ING Europe 34 ING Americas 38 ING Asia/Pacific 42 Asset Management 46 ING Direct 48 ING in Society 50 Human Resources 52 Risk management 5 7 F I N A N C I A L I N F O R M AT I O N 57 Events after the balance-sheet date 57 Auditor's report 58...

  • Page 5
    ... M A N Net profit of EUR 4.3 billion equals 2001 result - Lower shareholders' equity due to adverse equity markets - Capital base still well above required levels - Successful special skills: direct banking, insurance in developing markets and pensions With an operational net profit of EUR 4,253...

  • Page 6
    ... billion perpetuals, the re-introduction of optional stock/cash dividend, the sale of EUR 650 million worth of ING shares that served to hedge employee stock options and a better allocation of capital. Focus on core business In the next few years, our focus will be to continue to build our business...

  • Page 7
    ... internet, a call centre, a branch office, or a personal adviser. Although the larger part of ING's income stems from retail financial services, we will continue to offer wholesale services in selected markets, with the emphasis on Europe, to serve our corporate and global clients. Modern corporate...

  • Page 8
    ...* Asset Management Platform as of 1 January 2003. 2) Member Audit Committee as of 15 April 2003. 3) Chairman Audit Committee as of 15 April 2003. 4) Retirement as of 1 July 2003. 5) Until 1 September 2002. 6) As of 1 September 2002. 7) Retirement as of 1 April 2003. Annual Report 2002 · ING Group...

  • Page 9
    ... Officer, in his room in ING House, discussing the financials with the general management of Corporate Control & Finance, Hans van Barneveld (standing) and Ronald Nijsen. Dividend policy ING will propose to the Annual General Meeting of Shareholders in April 2003 to introduce optional cash/stock...

  • Page 10
    ...S H A R E S Friday, 23 May 2003 Publication first-quarter results 2003 Euronext Amsterdam Stock Exchange, in euros 2002 2001 2000 1999 1998 Thursday, 15 May 2003 Publication second-quarter results 2003 Price - high Price - low Price - year-end Price/earnings ratio * 31.20 13.29 16.14 7.3 43.97...

  • Page 11
    ... part of Amsterdam and with respect for the environment. It also needed to be an enjoyable place to work and flexible so that it can be adjusted to future developments in working methods. But above all the new head office needed to radiate what ING stands for as a financial services provider...

  • Page 12
    ... introduce the interior of ING House and some of the people who work there. They include staff members from different countries and cultural backgrounds who support the Executive Committees of ING Europe, ING Americas, ING Asia/Pacific and ING Asset Management. Annual Report 2002 · ING Group 9

  • Page 13
    ... is on building market share through innovative approaches such as ING Direct, which is also active in the US, Canada and Australia. In Central Europe ING is moving from regional leadership in life insurance and pensions to top-three bancassurance in each of the major countries. ING Wholesale, as...

  • Page 14
    ... dynamism should be a catalyst to improve communications between units and levels throughout ING." Felix Potvliege, ING Europe Retail, feels that "the transparent lay-out and creative design create an open and innovative mindset and stimulate new ways of thinking about our business strategy." 11

  • Page 15
    ...value and service. ING has 6.6 million customers in the US and enjoys top-five positions in most of its US business lines such as retirement savings, annuities and life reinsurance. With four million clients in Canada, ING continues to be the leading and most profitable P&C company. In Latin America...

  • Page 16
    ... ING House. "Everyone who sees this incredible building surely knows that ING is out in front of our competition." Sue Collins, ING's chief actuary and head of Corporate Insurance Risk Management agrees. "With this building, ING has made a long-term investment in a top-quality working environment...

  • Page 17
    ..., brokers/ dealers to banks, ING accesses its clients through the customer's channel of choice. ING has leading positions in Australia, Taiwan, Korea, Malaysia and it is a fastgrowing niche player in Japan's crowded market. In New Zealand, ING New Zealand manages about 16% of all mutual funds in...

  • Page 18
    ...These open areas let you exchange information with colleagues in a very relaxed way," is her analysis of her new working environment. Gwendolyn Tates, a Sinologist by training, used to share an office with one or two other people. "So, your world was quite small", she says. "At ING House, everything...

  • Page 19
    ... Asset Management, ING Real Estate, Parcom Ventures, Baring Private Equity Partners, ING Aeltus and ING Trust. Not only the entrance hall and the façade, but also several elevators, ceilings, stairs and floors are made of glass, to accentuate the transparency of ING House. 16 Annual Report 2002...

  • Page 20
    ...: its openminded and innovative spirit", says Jan Boogerd (right), controller ING Asset Management. Eric Rivard, Head Human Resources for Asset Management, Wholesale International Banking and Private Banking, agrees. "In this company it is what you contribute that counts, not where you come from or...

  • Page 21
    ...fixed and predetermined annual increase in capital gains on equities and to reintroduce optional cash/stock dividend. Several general managers gave presentations about their business units, which provided the Supervisory Board not only with information about the developments within ING but also with...

  • Page 22
    ... discussed. The general management of ING Bank Netherlands and Nationale-Nederlanden informed the Audit Committee about the back-office developments at their business units. In February and August respectively, the 2001 annual results and the results for the first six months of 2002 were discussed...

  • Page 23
    .... In 1983, he joined NMB Bank, the present ING Bank, where he was successively responsible for the domestic and international wholesale business. In 1995, he became a member of the Executive Board of ING Group. In that same year, ING acquired the British investment two bank Barings. In the following...

  • Page 24
    ...the Executive Board, the general managers of the business units and all employees much success. AMSTERDAM, Annual accounts and dividend This annual report contains the report of the Executive Board and a summary of the annual accounts. The full annual accounts - available through www.ing.com, where...

  • Page 25
    ... ING's operational profit for 2002 of EUR 4,253 million matched the strong result of 2001. ING responded to the new realities of the market by sharpening its focus on core businesses and strengths, for instance on savings and guaranteed products, pensions and developing markets. The capital...

  • Page 26
    ...Starting in 2003, ING will realise capital gains on equities these depending gains at a on market and opportunities, thereby ending its policy of increasing fixed predetermined pace. The Netherlands 51% Belgium 18% Rest of Europe 20% North America 5% South America 1% Asia 3% Australia 2% Other Total...

  • Page 27
    ... of the euro versus the US dollar, ING has also hedged the expected profits of the US insurance ING Europe 66% ING Americas 19% ING Asia/Pacific 11% ING Asset Management 3% Other 1% Total 3,715 1,079 618 175 54 5,641 operations for the years 2003 and 2004 at a EUR/USD exchange rate of 0.920...

  • Page 28
    ... capital gains transferred to the profit and loss account, the write-off of goodwill and exchange rate fluctuations taken together detracted EUR 3.2 billion. Net profit for 2002, after dividend paid in 2002, added EUR 2.5 billion and changes in ING Group shares EUR 0.8 billion. Return on equity...

  • Page 29
    ...the internet for simple products such as savings deposits, a call centre for applying for an insurance policy or a credit card and a professional intermediary for advice on a tailor-made retirement plan. In mature markets, ING Direct has proven to be an effective, cost-efficient and profitable entry...

  • Page 30
    ...-digit growth. Most of the embedded value from new insurance business is generated by these operations. The pension funds in a number of developing economies are also rapidly increasing their client base and assets under management. As a pension specialist, ING currently offers pension products in...

  • Page 31
    ... group of international clients. Thirdly, it is focusing on a selected range of wholesale products. Core products are financial markets, merger and acquisition advisory, structured finance and payments and cash management. Employee benefits/pensions and asset management, also core strengths of ING...

  • Page 32
    ... of unit-linked products in Belgium. ING's market share in retail life insurance increased from 10% in 2001 to 14% in 2002. The improvement was mainly achieved by increased sales through bank channels. Central Europe is increasingly important to ING as a source of value creation. ING is the number...

  • Page 33
    ... the Americas, Asia and the UK will focus on core countries. The Investment Banking business line will support Corporate Financial Services, mainly in the field of M&A advisory. Retail result +20% to EUR 2.0 billion - Central Europe contributed EUR 200 million to profit - ING Wholesale: European...

  • Page 34
    ... Bank of New York for sales, marketing and servicing of global custody and related services to institutional clients in Germany, the Benelux and Central Europe. The partnership will provide global services to ING Investment Management's Benelux operations, encompassing approximately Annual Report...

  • Page 35
    ...low growth with expense reduction and quality improvement ING Bank Private Banking focus on the high-networth market. In Wholesale, relationship management of the Dutch business units was integrated, resulting in improved co-operation between the business units. The Corporate Clients department has...

  • Page 36
    ... financial products such as savings accounts and fixed-income life insurance. Another opportunity lies in pension business. Throughout Europe, governments are seeking to reform their pension systems. ING is positioning itself to become a preferred supplier of corporate and individual pension plans...

  • Page 37
    Report of the Executive Board Build customer-focused integrated financial services businesses which deliver strong earnings-growth engines in each country market. US business affected by adverse economic conditions - ING Americas has 29 million clients and 250,000 points of distribution ...

  • Page 38
    ...ING has relationships with 2,800 brokers and 4.4 million clients. The integration of the acquired Zurich Financial Services personal and small commercial lines into ING Canada has resulted in strong customer retention. ING Americas 22% Rest of ING 78% 25,900 89,900 Annual Report 2002 · ING Group...

  • Page 39
    Report of the Executive Board In Latin America, ING is the largest insurer pillars of ING's integrated financial services business strategy: banking, insurance and asset management. The new structure will intensify the co-operation between ING's asset management units and the retail distribution ...

  • Page 40
    ...the retail businesses in North America and ING Direct. In Canada, ING's intermediaries sold EUR 28 million in bank deposits and added 3,500 clients to ING Direct's client base. In the US, a pilot has started whereby ING Direct is selling the US mutual funds. ING Direct's core savings account is also...

  • Page 41
    ... agents, brokers/dealers and banks. In all, ING has 60,000 points of distribution in Asia. In Australia, ING is well-positioned, with an excellent size and 1.5 million retail clients. ING Australia, formerly known as Mercantile Mutual, enjoys a 10% market share in retail life insurance and...

  • Page 42
    ...market share in life insurance with a niche product focus. The business is growing rapidly thanks to increasing sales in single premium variable annuities, where ING is one of the fastest-growing international companies. In Taiwan, ING Antai is a prominent player in mainly traditional life insurance...

  • Page 43
    ... performance during the year. Philippines: life activities sold - Indonesia: non-medical general insurance sold - Australia: joint venture with ANZ Bank in life insurance and asset management - Korea: Joint venture with Kookmin Bank extended - Japan: Strong sales singlepremium variable annuities...

  • Page 44
    ...: improving operational efficiency, developing new distribution channels, optimising existing channels and increasing sales productivity. ING will pay special attention to joint venture management and governance in order to ensure that it builds strong relation- Annual Report 2002 · ING Group 41

  • Page 45
    ... investment performance. Assets under management declined by 13% to EUR 449 million, mainly due to falling stock markets and weakening exchange rates - Over 60% of assets of ING funds outperformed peer group - ING Investment Management integrated in Executive Centres Europe, Americas and Asia...

  • Page 46
    ...Jan Doets (general manager ING Real Estate), Alexander Rinnooy Kan and Jeroen van Schooten. top-performing mutual funds through ING's distribution channel therefore is key for the success of ING's asset management business. Thus, an integrated financial product offering at retail customer level was...

  • Page 47
    ... in Europe, retail investors are finding it much easier to compare the investment performance of funds. Top-rated funds increasingly attract the bulk of new money. Also in the retail market, performance has become the critical success factor to build a profitable asset management business. ING...

  • Page 48
    ... corporate and private clients. Fund administration for third parties continued to grow - Baring Asset Management Financial Services Group now has EUR 62 billion assets under administration - Asset management remains vulnerable to short-term market developments - ING well-positioned to benefit...

  • Page 49
    ... markets by offering clients best value for money and excellent service via call centres, direct mail and the internet. ING Direct uses a high-rate, no-fee, no-minimum savings account as the entry product. Upon reaching the necessary scale, ING Direct complements the savings account by cross-selling...

  • Page 50
    ...), increasing its participation to 70%. DiBa bought the Degussa Bank (an employee benefits and mortgage bank in Germany), with 60,000 clients and EUR 2.4 billion in retail balances. ING Direct USA extended its market footprint north from New York to include Boston. In January 2003, expansion started...

  • Page 51
    ... on corporate social responsibility based on trust, transparency and ethical behaviour - New key performance indicators developed - Postbank opens service points in rural areas - ING's sustainable equity funds outperformed their benchmark BUILDING TRUST IN A TURBULENT WORLD The turbulence of 2002...

  • Page 52
    ... of ING's corporate governance to enhance transparency and give shareholders more power - Covenant signed with European Workers Council for social policy and labour management in Europe - Work on new business principles on human rights and sustainability Shareholders During the year, ING laid...

  • Page 53
    ... sensible, HR functions will be standardised on a European or global level. HR will place greater emphasis on advisory work to support line managers in achieving their business strategies. Just like the services offered to ING's external customers, the three elements of click, call and face apply to...

  • Page 54
    ... and cultural mix of the locations where the Group does business. Diversity is both a business and a social matter. The Diversity Council representing ING employees from around the world has delivered a detailed measurable plan to increase the diversity level of workforce and management. Regional...

  • Page 55
    ... Board level, the Risk Policy Committee evaluates and manages ING Group's overall risk profile, aiming for a good balance between risk, return and capital. This chapter discusses the principal risks that are monitored: credit risk, market risk, liquidity risk, actuarial and underwriting risk...

  • Page 56
    ... respective foreign currency obligations due to a specific country event. LARGEST ECONOMIC EXPOSURES BY COUNTRY (ING BANK, > EUR 10 BILLION) amounts in billions of euros 2002 C O R P O R AT E FINANCIAL BANKS INSTITUTIONS GOVERNMENTS OTHERS T O TA L Netherlands United States Germany United Kingdom...

  • Page 57
    ...risk concentrations. ING applies value-at-risk and stress-testing scenarios for market risk management. Value-atRisk measures the maximum overnight loss that could occur under normal market circumstances due to changes in risk factors (e.g. interest rate, foreign exchange rate, equity prices) if the...

  • Page 58
    ... control and asset and liability management. The insurance operations are exposed to movements in equity markets since they have an impact on the level of charges deducted for unit-linked and variable business. A 10% decrease in stock market prices would lower the pre-tax budgeted result for the...

  • Page 59
    ... of the Executive Board Consistent with other business in ING Group, the current embedded-value methodology is being extended to a risk-adjusted capital allocation and performance measurement tool. quality of the system of internal controls and procedures of business units and recommends actions...

  • Page 60
    ...) of the equities securities portfolio, the revaluation reserve was approximately EUR 0.7 billion negative (after tax) at 10 March 2003 (at opening Amsterdam Stock Exchange). The ratio of available capital versus required capital of ING Verzekeringen N.V. decreased from 169% at 31 December 2002 to...

  • Page 61
    ... Shareholders' equity * Preference shares of group companies Third-party interests Group equity 18,254 2,146 1,959 22,359 21,514 2,542 1,461 25,517 Subordinated loans Group capital base 2,412 24,771 600 26,117 General provisions Insurance provisions * Funds entrusted to and debt securities...

  • Page 62
    ... profit per share Diluted profit per share 2.20 2.32 2.32 2.20 2.37 2.35 Dividend per ordinary share 0.97 0.97 This consolidated profit and loss account is specified by insurance and banking operations and by Operational and Non-operation al result on page 65. Annual Report 2002 · ING Group...

  • Page 63
    ... of share capital and distributions to shareholders. Realised revaluations previously recognised in shareholders' equity are released from shareholders' equity to the profit and loss account. As these revaluations have already been included in comprehensive net profit of the year under report and...

  • Page 64
    ...-27,152 Loans and subordinated loans of group companies Private placements of shares Movements in shares ING Groep N.V. Cash dividends Net cash flow from financing activities 4,070 438 653 -1,977 3,184 7,523 623 -563 -2,300 5,283 Net cash flow Cash at beginning of year Exchange differences Cash at...

  • Page 65
    ...Shareholders' equity. In 2002, ING Group and ANZ, one of Australia's major banks, have formed a funds management and life insurance joint venture called ING Australia. The company is 51%-owned by ING and 49%-owned by ANZ. As part of the transaction, the new joint venture acquired net assets from ANZ...

  • Page 66
    ... 4,119 39 948 250 3,815 MOVEMENTS IN THE PROVISION FOR LOAN LOSSES INCLUDED IN LENDING, BANKS AND OTHER ASSETS 2002 2001 Opening balance Changes in the composition of the group Write-offs Recoveries Additions from: - - value adjustments to receivables interest income 4,763 98 -882 33 4,501...

  • Page 67
    ...,040 Changes in ING Groep N.V. shares held by group companies Closing balance 822 18,254 -526 21,514 INSURANCE PROVISIONS BREAKDOWN INSURANCE PROVISIONS GROSS REINSURANCE ELEMENT OWN ACCOUNT 2002 2001 2002 2001 2002 2001 Provision for life policy liabilities Provision for profit sharing...

  • Page 68
    ... sale of investments in shares regarding financing of acquisitions Non-operational items before tax 280 280 325 325 280 280 325 325 Taxation on non-operational items Non-operational net profit 33 247 325 Net profit for the period * See notes starting on page 66. 4,500 4,577 Annual Report 2002...

  • Page 69
    ...E R AT I O N S 2002 2001 Income from disposal of group companies Income from land and buildings Income from investments in shares and convertible debentures Income from investments in fixed-interest securities debentures private loans mortgage loans policy loans deposits with credit institutions...

  • Page 70
    ...3,124 T O TA L I N C O M E O P E R AT I O N A L I N C O M E B Y G E O G R A P H I C A L A R E A INSURANCE OPERATIONS BANKING OPERATIONS ELIMINATIONS TOTAL 2002 2001 2002 2001 2002 2001 2002 2001 Netherlands Belgium Rest of Europe North America South America Asia Australia Other 11,971...

  • Page 71
    ... disability insurance products. O P E R A T I O N A L R E S U LT B E F O R E T A X A T I O N B Y G E O G R A P H I C A L A R E A INSURANCE OPERATIONS BANKING OPERATIONS TOTAL 2002 2001 2002 2001 2002 2001 Netherlands Belgium Rest of Europe North America South America Asia Australia Other...

  • Page 72
    ...FOR TOTAL BANKING OPERATIONS The tables provide pre-tax RAROC figures for the banking business units of the respective Executive Centres and by segment. RAROC BY EXECUTIVE CENTRE RAROC (PRE-TAX) ECONOMIC CAPITAL in billions of euros 2002 2001 2002 2001 ING Europe (excl. ING Direct) ING Asset...

  • Page 73
    ... 2002, the total embedded value of ING's life insurance operations was EUR 23,279 million compared to EUR 25,827 million at year-end 2001. The decrease mainly reflects the impact of lower stock prices, credit-related losses and lower currency exchange rates versus the euro. The value of new business...

  • Page 74
    ...133 million, representing an after-tax reduction of EUR 150 million compared to 2001. Most of the decrease is from the Americas, where overruns in 2002 were EUR 68 million, a EUR 143 million reduction from the 2001 level. The overall internal rate of return for ING's life business is 12.7% excluding...

  • Page 75
    ... by EUR 1,817 million. Major assumption changes included capital. lower assumed investment income, lower assumed separate account growth rates and higher assumed credit defaults in the Executive Centre ING Americas. Developing markets new business value increased by 22% over 2001 to EUR 237 million...

  • Page 76
    ... models and processes used. Additional information CAPITAL BASE B R E A K D O W N C A P I TA L B A S E in millions of euros GROUP INSURANCE BANKING GROUP INSURANCE BANKING 2002 2001 Shareholders' equity Preference shares of group companies Subordinated loans Capital base ING Group 18,254 2,146...

  • Page 77
    ... of euros 2002 2001 ING Groep N.V.: - - - Shareholders' equity Preference shares of group companies Subordinated loans 18,254 2,146 2,412 22,812 21,514 2,542 600 24,656 Capital base ING Group Subordinated loans ING Bank (included in Tier 2) Subordinated loans ING Verzekeringen Capital base...

  • Page 78
    ... E in % 2002 2001 ING Europe (excluding ING Direct and the restructuring provision for international wholesale banking) ING Asset Management 70.6 87.2 71.3 88.4 Total banking operations (excluding ING Direct and the restructuring provision) 71.0 71.7 CREDIT RATINGS Credit ratings are indicators...

  • Page 79
    ... or represented. In December 2002, the Executive Board, the management of ING Netherlands and the Central Workers Council of ING signed a covenant to give further effect to this proposal. In addition, a proposal will be made to the Annual General Meeting of Shareholders of ING Group to be held on 15...

  • Page 80
    ... communicated in the Annual Report and to the Annual General Meeting. It was further decided that the Stichting Administratiekantoor ING Groep will be renamed Stichting ING Aandelen ('Trust Office ING Shares') and amend its Articles of Association to reflect that its objectives will be to promote...

  • Page 81
    ... position from ING. This profile was approved by the Central Workers Council and the Annual General Meeting of Shareholders in 2002. The profile is available at the company's offices in Amsterdam and on the company's website [www.ing.com]. No more than one former member of the Executive Board can be...

  • Page 82
    ... of Managing Directors Royal Dutch/Shell Group. First appointment Supervisory Board ING Group: May 1998, Chairman as of May 1999. Chairman of the Remuneration & Nomination Committee and the Corporate Governance Committee. Current term of office: until the 2006 Annual General Meeting of Shareholders...

  • Page 83
    ... Board ING Group: September 1996. Joined ING in 1996. Former position: President VNO-NCW Federation. Main responsibilities: Asset Management, Information Technology, Human Resources & Management Development, Procurement, E-business. New appointments At the Annual General Meeting of Shareholders...

  • Page 84
    ... a base salary, a short-term performance-related cash bonus and a long-term incentive currently in the form of stock options. In order to maintain a competitive remuneration package, benchmarking against comparable companies is carried out regularly. Currently, the Supervisory Board is reviewing the...

  • Page 85
    ... Executive Board may also be granted a number of conditional share awards in ING Group in 2003 out of a total pool of 50,000 ING shares made available for this purpose. 2001 SHORT-TERM PERFORMANCE BASE SALARY RELATED BONUS LONG-TERM INCENTIVES MARKET VALUE OPTIONS NUMBER OF OPTIONS PENSION COSTS...

  • Page 86
    ... BOARD Ewald Kist Hessel Lindenbergh Cees Maas Alexander Rinnooy Kan 862 358 461 889 2,570 5.6% 5.1% 5.6% 3.5% 4.8% 17 17 862 358 478 889 2,587 5.6% 5.1% 5.6% 3.8% 4.9% 16 16 No loans and advances have been granted to other members of the Executive Board. Annual Report 2002 · ING Group...

  • Page 87
    ... exercise price of these options is EUR 12.65, being the Euronext Amsterdam Stock Market opening price of the ING Group share on 3 March 2003. ING Group shares held by members of the Executive Board As at 31 December 2002, Fred Hubbell (including direct family) held 1,050,000 ING Group shares (2001...

  • Page 88
    ... E R V I S O R Y B O A R D A S AT 31 DECEMBER 2002 NUMBER OF OPTIONS OUTSTANDING AS AT 31 DEC 2001 EXERCISED IN 2002(1) OUTSTANDING AS AT 31 DEC 2002 AMOUNTS IN EUROS SHARE PRICE EXERCISE PRICE AT EXERCISE DATE EXPIRY DATE Aad Jacobs 118,000 50,000 20,840 118,000 50,000 20,840 108,000 50,000...

  • Page 89
    ... option scheme is discontinued. The option rights are subject to certain conditions, including a certain continuous period of service. The exercise prices of the options are the same as the quoted prices of ING Group shares at the date on which the options are granted. 86 Annual Report 2002 · ING...

  • Page 90
    ...I S S U E AND EXERCISE PRICE OPTIONS OUSTANDING ORIGINAL NUMBER OF OPTIONS AS AT 1 JANUARY 2002 OPTIONS OUSTANDING AS AT 31 DECEMBER 2002 EXERCISE PRICE IN EUROS 1997 3,328,700 860,000 11,821...2002 62,150 125,479 187,090 88,750 19,515,286 1,057,650 121,443,986 Annual Report 2002 · ING Group 87

  • Page 91
    ... 2.35 4,427 2.30 2.29 11,984 6.27 6.18 11,834 6.21 6.12 (1) The amounts in the pro forma columns reflect the figures if the fair value of the stock options at the time they were granted were recognised in the profit and loss account. 88 Annual Report 2002 · ING Group

  • Page 92
    ...the results on the (sale of) shares which were bought to hedge these option rights are either debited or credited to Shareholders' equity. The fair values have been determined by using an option-pricing model. This model takes the risk free interest rate into account, as well as the expected life of...

  • Page 93
    ... takes effect, which is expected to take place after the Annual General Meeting of 15 April 2003. AMSTERDAM, 10 MARCH 2003 B O A R D O F S T I C H T I N G C U M U L AT I E F PREFERENTE AANDELEN ING GROEP E X E C U T I V E B O A R D O F I N G G R O E P N . V. 90 Annual Report 2002 · ING Group

  • Page 94
    ...Mayor Frankfurt am Main, Germany George Verberg, Chairman Executive Board Nederlandse Gasunie (Dutch Natural Gas Company), the Netherlands Ben Verwaayen, CEO BT Group, United Kingdom Eckart Wintzen, Managing Director Ex'tent, the Netherlands 1 JANUARY 2003 Sabine Diehl, Chairman, Germany Ad Festen...

  • Page 95
    ...) performance of financial markets, including emerging markets, (iii) the frequency and severity of insured loss events, (iv) mortality and morbidity levels and trends, (v) persistency levels, (vi) interest rate levels, (vii) currency exchange rates, (viii) general competitive factors, (ix) changes...

  • Page 96
    ... health, accident and disability. Savings ING offers a full range of savings instruments from basic savings deposits to ING Direct's high return, no-fees internet savings accounts and sophisticated products that combine savings and investments. Financial markets Corporate and institutional clients...

  • Page 97
    ...; Annual Report ING in Society, in Dutch and English (available in June 2003); Annual Accounts, in Dutch and English; Annual Report on Form 20-F, in English (in accordance with SEC guidelines). These publications are available on www.ing.com. The publications can be ordered on the internet: www.ing...