ING Direct 2008 Annual Report Download - page 172

2.1 Consolidated annual accounts
As at 31 December 2008 total unrecognised compensation costs related to share awards amounted to EUR 56 million (2007:
EUR 53 million; 2006: EUR 88 million). These costs are expected to be recognised over a weighted average period of 1.8 years
(2007: 1.7 years; 2006: 1.8 years).
44 OTHER INTEREST EXPENSES
Other interest expenses mainly consist of interest in connection with the insurance operations, including interest on the perpetual
subordinated loans.
Other interest expenses include EUR 1 million and EUR 94 million dividends paid on preference shares and trust preferred securities (2007:
EUR 7 million and EUR 92 million; 2006: EUR 10 million and EUR 101 million).
Total interest income and total interest expense for items not valued at fair value through profit and loss for 2008 were EUR 52,505 million
(2007: EUR 46,900 million; 2006: EUR 41,281 million) and EUR 33,507 million (2007: EUR 31,173 million; 2006: EUR 27,014 million)
respectively. Net interest income of EUR 18,144 million is presented in the following lines in the profit and loss account.
Net interest income
2008 2007 2006
Interest result bank 34 11,042 8,976 9,192
Investment income – insurance 36 8,080 8,784 8,756
Interest expense –978 –1,102 –1,016
18,14 4 16,658 16,932
45 OTHER OPERATING EXPENSES
Other operating expenses
Insurance operations Banking operations Total
2008 2007 2006 2008 2007 2006 2008 2007 2006
Depreciation of property and equipment 95 98 102 353 321 361 448 419 463
Amortisation of software 70 104 100 103 117 100 173 221 200
Computer costs 297 289 231 733 561 605 1,030 850 836
Office expenses 599 660 629 687 628 634 1,286 1,288 1,263
Travel and accommodation expenses 101 102 102 163 153 139 264 255 241
Advertising and public relations 204 258 177 833 759 722 1,037 1,017 899
External advisory fees 373 455 581 459 491 449 832 946 1,030
Postal charges 130 113 117 130 113 117
Addition/(releases) of provision for
reorganisations and relocations 811 –16 136 434 63 144 445 47
Other 836 684 565 627 969 760 1,463 1,653 1,325
2,583 2,661 2,471 4,224 4,546 3,950 6,807 7, 207 6,421
Other operating expenses include lease and sublease payments in respect of operating leases of EUR 172 million (2007: EUR 156 million;
2006: EUR 229 million) in which ING is the lessee. Other operating expenses also include EUR 85 million related to integration costs of
CitiStreet and EUR 143 million related to premium taxes.
No individual operating lease has terms and conditions that materially affect the amount, timing and certainty of the consolidated cash
flows of the Group.
The External advisory fees include fees for audit services and non-audit services provided by the Group’s auditors.
Fees of Group’s auditors
2008 2007 2006
Audit fees 46 61 63
Audit related fees 37 4
Tax fees 35 4
All other fees 72 3
Total 59 75 74
Notes to the consolidated profit and loss account of ING Group (continued)
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