ING Direct 2008 Annual Report Download - page 18

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ING Group Annual Report 2008
1.2 Report of the Executive Board
16
Capital management
Maintaining a strong capital position
ING seeks to maintain a strong capital position and to
allocate capital efficiently across the Group. The exceptional
market conditions in 2008 had a significant negative effect
on Shareholders’ equity. ING took a number of steps to
strengthen its capital position. These included taking
advantage of capital support facilities made available
by the Dutch State.
Capital base: ING Groep N.V.
in EUR million
Year-end
2008
Year-end
2007
Shareholders’ equity 17, 334 37, 20 8
+ Core Tier-1 securities 10,000
+ Group hybrid capital 11,655 8,620
+ Group leverage (core debt) 7,170 4,728
Total capitalisation (Bank + Insurance) 46,159 50,556
–/– Revaluation reserves fixed income and other –6,769 963
–/– Group leverage (core debt) (d) 7,170 4,728
Adjusted equity (e) 45,758 44,865
Debt/equity ratio (d/(d+e)) 13.5% 9.5%
Economic Capital and Available
Financial Resources
EC ING Group 30,675 36,000
AFR ING Group 42,135 49,715
AFR/EC ratio 137% 138%
Capital base: ING Verzekeringen N.V. (Insurance)
in EUR million
Year-end
2008
Year-end
2007
Adjusted equity (e) 23,903 27,03 6
Core debt (d) 2,301 4,267
Debt/equity ratio (d/(d+e)) 8.8% 13.6%
Available capital (a) 22,010 22,965
EU required regulatory capital (b) 8,582 9,405
Capital coverage ratio (a/b) 256% 244%
Economic Capital and Available
Financial Resources
EC ING Insurance 13,681 23,199
AFR ING Insurance 14,456 22,710
Capital base: ING Bank N.V.
in EUR million
Year-end
2008
Year-end
2007
Core Tier-1 24,934 23,374
Hybrid Tier-1 7,085 6,397
Available capital Tier-1 32,019 29,772
Other capital 11,870 11,792
BIS capital 43,889 41,564
Risk-weighted assets (1) 343,388 402,727
Required capital Basel II 27,471
Required capital floor based on Basel I 34,369
Core Tier-1 ratio (1) 7 . 2 6 % 5.80%
Tier-1 ratio (1) 9.32% 7.39%
BIS ratio (1) 12.78% 10.32%
Economic Capital and Available
Financial Resources
EC ING Bank 22,407 17,927
AFR ING Bank 34,849 31,733
(1) Based on Basel II as of 2008.