ING Direct 2009 Annual Report Download - page 188

Changes in share awards(1)
Share awards (in numbers) Weighted average grant date fair value (in euros)
2009 2008 2007 2009 2008 2007
Opening balance 7,792,009 7,133,714 8,373,146 22.60 27.52 24.90
Granted 6,273,467 3,591,755 2,554,762 3.29 16.74 19.74
Performance effect –1,085,987 – 451,070 2,463,058 32.52 27. 4 4 19.35
Vested –1,228,764 –1,945,092 –5,569,061 32.63 27.51 19.35
Forfeited –498,553 –537,298 – 68 8,191 24.01 25.92 26.39
Rights issue 3,401,501
Closing balance 14,653,673 7,792,0 09 7,133,714 7.53 22.60 27.52
(1) 2008 and 2007 reflect original numbers and amounts, not restated for the rights issue adjustment factor.
As per 31 December 2009 the share awards consists of 10,810,687 share awards (2008: 5,719,281) relating to equity-settled share-based
payment arrangements and 3,842,986 share awards (2008: 2,072,728) relating to cash-settled share-based payment arrangements.
The fair value of share awards granted is recognised as an expense under staff expenses and is allocated over the vesting period of the
share awards. The fair values of share awards have been determined by using a Monte Carlo simulation based valuation model. The model
takes into account the risk free interest rate, the current stock prices, expected volatilities and current divided yields of the performance
peer group used to determine ING’s Total Shareholder Return (TSR) ranking.
As at 31 December 2009 total unrecognised compensation costs related to share awards amounted to EUR 41 million (2008: EUR 56
million; 2007: EUR 53 million). These costs are expected to be recognised over a weighted average period of 1.8 years (2008: 1.8 years;
2007: 1.7 years).
46 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 nil and EUR 86 million dividends paid on preference shares and trust preferred securities
(2008: EUR 1 million and EUR 94 million; 2007: EUR 7 million and EUR 92 million).
Total interest income and total interest expense for items not valued at fair value through profit and loss for 2009 were EUR 41,856 million
(2008: EUR 52,505 million; 2007: EUR 46,900 million) and EUR 22,253 million (2008: EUR 33,507 million; 2007: EUR 31,173 million)
respectively. Net interest income of EUR 18,445 million is presented in the following lines in the profit and loss account.
Net interest income
2009 2008 2007
Interest result bank 35 12,375 11,0 42 8,976
Investment income – insurance 37 6,786 8,080 8,784
Interest expense –716 –978 –1,102
18,445 18,14 4 16,658
47 OTHER OPERATING EXPENSES
Other operating expenses
Banking operations Insurance operations Total
2009 2008 2007 2009 2008 2007 2009 2008 2007
Depreciation of property and equipment 365 353 321 84 95 98 449 448 419
Amortisation of software 282 103 117 60 70 104 342 173 221
Computer costs 637 733 561 270 297 289 907 1,030 850
Office expenses 679 687 628 476 599 660 1,155 1,286 1,288
Travel and accommodation expenses 99 163 153 66 101 102 165 264 255
Advertising and public relations 539 833 759 90 204 258 629 1,037 1,017
External advisory fees 401 459 491 289 373 455 690 832 946
Postal charges 111 130 113 111 130 113
Addition/(releases) of provision
for reorganisations and relocations 339 136 434 258 811 597 144 445
Other 1,003 627 969 663 836 684 1,666 1,463 1,653
4,455 4,224 4,546 2,256 2,583 2,661 6,711 6,807 7,207
2.1 Consolidated annual accounts
ING Group Annual Report 2009
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Notes to the consolidated profit and loss account of ING Group (continued)