ING Direct 2009 Annual Report Download - page 190

49 EARNINGS PER ORDINARY SHARE
Earnings per ordinary share
Amount
(in millions of euros)
Weighted average
number of ordinary shares
outstanding during the period
(in millions)
Per ordinary share
(in euros)
2009 2008 2007 2009 2008 2007 2009 2008 2007
Net result –935 –729 9,241 2,102.9 2,042.7 2,141.1 –0.44 –0.36 4.32
Attribution to non-voting equity securities (1) –605
Impact of rights issue (2) 583.1 617.5 647.2
Basic earnings –1,540 –729 9,241 2,686.0 2,660.2 2,788.3 –0.57 –0.27 3.31
Effect of dilutive securities:
Non-voting equity securities
Warrants 4.2
Stock option and share plans 5.7 1.0 16.0
5.7 1.0 20.2
Diluted earnings –1,540 –729 9,241 2,691.7 2,661.2 2,808.5 –0.57 –0.27 3.29
(1)
The 2009 amount of EUR 605 million includes the coupon (EUR 259 million) and repayment premium (EUR 346 million) on the repayment of EUR 5 billion
non-voting equity securities. The 2008 coupon of EUR 425 million paid on the non-voting securities did not impact basic earnings.
(2)
The rights issue, which was finalised on 15 December 2009 has an effect on the basic earnings per share and the diluted earnings per share, as defined in IFRS.
All weighted average number of shares outstanding before the rights issue are restated with an adjustment factor of approximately 1.3 that reflects the fact that
the exercise price of the rights issue was less than the fair value of the shares. The effect of dilutive securities is adjusted as well.
Diluted earnings per share data are computed as if the stock options and warrants outstanding at year-end had been exercised at the
beginning of the period. It is also assumed that ING Group uses the cash received from exercised stock options and warrants or non-voting
equity securities converted to buy its own shares against the average market price in the financial year. The net increase in the number of
shares resulting from exercising warrants and stock options or converting non-voting equity securities is added to the average number of
shares used for the calculation of diluted earnings per share. The potential conversion of the non-voting equity securities has an antidilutive
effect on the earnings per share calculation in 2008 and 2009 (the diluted earnings per share becoming less negative than the basic
earnings per share). Therefore, the potential conversion is not taken into account in determining the weighted average number of shares
for the calculation of diluted earnings per share for these years.
50 DIVIDEND PER ORDINARY SHARE
Dividend per ordinary share
2009 (1) 2008 2007
Per ordinary share (in euros) 0.00 0.74 1.48
Total amount of dividend declared
(in millions of euros) 0 1,500 3,180
(1) The Executive Board, with the approval of the Supervisory Board, has proposed, subject to the ratification by the General Meeting of Shareholders, a cash
dividend of EUR 0.00 per share for the year 2009.
In 2009 a coupon to the Dutch State of EUR 259 million was paid as part of the repayment of EUR 5 billion non-voting equity securities.
In 2008 coupon was payable to the Dutch State per non-voting equity security of EUR 0.425, provided that ING Group’s capital adequacy
position was and remained satisfactory both before and after payment in the opinion of the Dutch central bank. The full amount of
EUR 425 million was recognised as a liability as at 31 December 2008. The amount was paid on 12 May 2009.
2.1 Consolidated annual accounts
ING Group Annual Report 2009
188
Notes to the consolidated profit and loss account of ING Group (continued)