ING Direct 2009 Annual Report Download - page 194

Operating segments
2007
Retail
Banking ING Direct
Commercial
Banking
Insurance
Europe
Insurance
Americas
Insurance
Asia/Pacific Other
Total
segments Eliminations Total
Underlying income
– Gross premium
income 10,253 19,156 9,347 46 38,802 38,802
– Net interest result
– banking operations 5,378 1,932 1,748 39,061 –60 9,001
– Commission income 1,591 98 1,235 476 978 120 94,507 4,507
– Total investment and
other income 486 166 1,818 4,626 4,280 1,007 3,804 16,187 –1,838 14,349
Total underlying income 7,455 2,196 4,801 15,355 24,414 10,474 3,862 68,557 –1,898 66,659
Underlying expenditure
– Underwriting
expenditure 11, 205 20,825 9,181 53 41,264 41,264
– Operating expenses 4,855 1,598 2,884 1,726 1,705 690 292 13,750 13,750
– Other interest
expenses 582 327 175 1,910 2,994 –1,898 1,096
– Additions to loan
loss provision 198 68 –142 1125 125
– Other impairments 2–5 –3 –3
Total underlying
expenses 5,053 1,666 2,742 13,515 22,857 10,046 2,251 58,130 –1,898 56,232
Underlying result
before taxation 2,402 530 2,059 1,840 1,557 428 1,611 10,427 10,427
Taxation 532 105 262 252 410 120 –229 1,452 1,452
Minority interest 44 68 16 844 –21 159 159
Underlying net result 1,826 425 1,729 1,572 1,139 264 1,861 8,816 8,816
As at 31 December 2007, the segment Insurance Asia/Pacific had a net reserve inadequacy using a prudent (90%) confidence level.
This inadequacy was offset by reserve adequacies in other segments, so that at Group level there is a net adequacy at the prudent
(90%) confidence level. Following the agreement to sell ING Life Taiwan the inadequacy in Insurance Asia/Pacific has disappeared as
at 31 December 2008.
Reconciliation between IFRS and Underlying income, expenses and net result
2007 Income Expenses Net result
Underlying 66,659 56,232 8,816
Divestments 9,971 8,865 795
Special items –44 446 –370
IFRS as applied by ING Group 76,586 65,543 9,241
Divestments in 2007 mainly relate to the sale of NRG and the sale of the Belgium broker business.
Special items in 2007 relate to the restructuring of Oyak Bank and the combining of ING Bank and Postbank.
Interest income (external) and interest expense (external) breakdown by business lines
2009
Retail
Banking ING Direct
Commercial
Banking
Insurance
Europe
Insurance
Americas
Insurance
Asia/Pacific Other Total
Interest income 16,412 10,532 52,051 2,443 3,579 658 1,458 87,133
Interest expense 8,903 7,451 48,743 43 284 33,261 68,688
7,509 3,081 3,308 2,400 3,295 655 –1,803 18,445
2.1 Consolidated annual accounts
ING Group Annual Report 2009
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Segment reporting (continued)