ING Direct 2008 Annual Report Download - page 166

2.1 Consolidated annual accounts
Notes to the consolidated profit and loss account of ING Group (continued)
Fee and commission expenses
Insurance operations Banking operations Total
2008 2007 2006 2008 2007 2006 2008 2007 2006
Funds transfer 185 144 140 185 144 140
Securities business 268 370 347 268 370 347
Insurance broking 574 686 551 –4 570 686 551
Management fees 217 182 188 169 230 204 386 412 392
Brokerage and advisory fees 573 673 624 55 2 578 678 626
Other 76 85 75 476 491 420 552 576 495
1,440 1,626 1,438 1,099 1,240 1,113 2,539 2,866 2,551
Other include commission expenses of nil (2007: nil; 2006: nil) in respect of underwriting syndication loans.
38 VALUATION RESULTS ON NON-TRADING DERIVATIVES
Valuation results on non-trading derivatives
Insurance operations Banking operations Total
2008 2007 2006 2008 2007 2006 2008 2007 2006
Change in fair value of derivatives relating to:
– fair value hedges –193 –227 –162 –5,299 924 203 –5,492 697 41
– cash-flow hedges (ineffective portion) 22 –5 –4 –7 22 –9 –7
– hedges of net investment in foreign entities
(ineffective portion) –6 –14 –12 –6 –14 –12
– other non-trading derivatives 2,412 –753 –85 –28 36 391 2,384 –717 306
Net result on non-trading derivatives 2,235 –999 –259 –5,327 956 587 –3,092 –43 328
Change in fair value of assets and liabilities
(hedged items) 164 223 211 5,533 –886 –203 5,697 –663 8
Valuation results on assets and liabilities designated as
at fair value through profit and loss (excluding trading) –432 89 127 56 –247 –305 145 –247
Net valuation results 1,967 –687 –48 333 126 137 2,300 –561 89
39 NET TRADING INCOME
Net trading income
Insurance operations Banking operations Total
2008 2007 2006 2008 2007 2006 2008 2007 2006
Securities trading results –239 246 159 130 –2,147 –804 –109 –1,901 –645
Foreign exchange transactions results –90 174 120 274 401 282 184 575 402
Derivatives trading results 79 30 –8 –766 2,469 1,270 –687 2,499 1,262
Other –94 –80 1–43 26 152 –137 –54 153
–344 370 272 –405 749 900 –749 1,119 1,172
Securities trading results includes the results of making markets in instruments such as government securities, equity securities, corporate
debt securities, money-market instruments, and interest rate derivatives such as swaps, options, futures and forward contracts. Foreign
exchange transactions results include gains and losses from spot and forward contracts, options, futures, and translated foreign currency
assets and liabilities.
The portion of trading gains and losses for the year ended 31 December 2008 relating to trading securities still held as at 31 December
amounted to EUR –246 million (2007: EUR –60 million; 2006: EUR –121 million).
The majority of the risks involved in security and currency trading is economically hedged with derivatives. The securities trading results
are partly offset by results on these derivatives. The result of these derivatives is included in Derivatives trading results.
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