ING Direct 2011 Annual Report Download - page 200

Notes to the consolidated annual accounts of ING Group continued
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)
2011 2010 2009 2011 2010 2009 2011 2010 2009
Net result 5,766 2,810 –1,006 3,783.7 3,781.5 2,102.9
Attribution to non-voting
equitysecurities –1,520 – 441 –605
Impact of rights issue 583.1
Basic earnings 4,246 2,369 –1,611 3,783.7 3,781.5 2,686.0 1.12 0.63 –0.60
Effect of dilutive instruments:
Stock option and share plans 5.4 6.6 5.7
5.4 6.6 5.7
Diluted earnings 4,246 2,369 –1,611 3,789.1 3,788.1 2,691.7 1.12 0.63 –0.60
Attribution to non-voting equity securities
The attribution to non-voting equity securities represents the amount that would be payable on the non-voting equity securities if and
when the entire net result for the period would be distributed as dividend. This amount is only included for the purpose of determining
earnings per share under IFRS-EU and does not represent a payment (neither actual nor proposed) to the holders of the non-voting
equitysecurities.
The attribution in 2011 includes the premium of EUR 1 billion paid in relation to the repayment of the EUR 2 billion non-voting
equitysecurities. 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.
In 2009, 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-EU. 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.
Dilutive instruments
Diluted earnings per share is calculated as if the stock options and share plans outstanding at the end of the period had been exercised at
the beginning of the period and assuming that the cash received from exercised stock options and share plans is used to buy own shares
against the average market price during the period. The net increase in the number of shares resulting from exercising stock options and
share plans 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 anti-dilutive effect on the earnings per share calculation in 2011, 2010
and 2009 (the diluted earnings per share becoming higher or less negative than the basic earnings per share). Therefore, the potential
conversion is not taken into account in the calculation of diluted earnings per share for these years.
Earnings per ordinary share from continuing operations
Amount
(in millions of euros)
Weighted average
number of ordinary shares outstanding
during the period (in millions) Per ordinary share (in euros)
2011 2010 2009 2011 2010 2009 2011 2010 2009
Basic earnings 4,246 2,369 –1,611 3,783.7 3,781.5 2,686.0
Less: Total net result from
discontinued operations 1,104 209 93
Basic earnings from continuing
operations 3,142 2,160 –1,704 3,783.7 3,781.5 2,686.0 0.83 0.57 –0.64
Effect of dilutive instruments:
Stock option and share plans 5.4 6.6 5.7
5.4 6.6 5.7
Diluted earnings from continuing
operations 3,142 2,160 –1,704 3,789.1 3,788.1 2,691.7 0.83 0.57 –0.64
198 ING Group Annual Report 2011