ING Direct 2013 Annual Report Download - page 157

In addition, in 2013, a reorganisation provision of EUR 61 million is recognised at ING Belgium (banking operations) related to an expected
reduction of the workforce of around 1,100 FTE’s over a period of two years.
In 2012, a reorganisation provision of EUR 233 million was recognised in the segment Retail Netherlands (Bank) mainly as a result of entering
the second phase of the transformation program. The transformation program aims to streamline IT systems as well as the further
development and integration of ING’s mobile banking services. These measures are expected to result in a further reduction of the
workforce of around 1,400 FTE’s (of which 400 external FTE’s) over a period of three years.
In 2012, a reorganisation provision of EUR 191 million was recognised in the segment Commercial Banking following a strategic review of
the business portfolio through right-sizing of the equities business, run-off of certain leasing units and further operational improvements in
several businesses. These measures are expected to result in a reduction of the workforce of around 1,000 FTE’s over a period of three
years.
In 2012, a reorganisation provision of EUR 172 million was recognised in the segment Insurance Benelux and EUR 27 million was recognised
in the Corporate line Insurance following the initiative to accelerate the transformation program in preparation for the stand-alone future of
NN Group. In response to changing customer preferences and market dynamics, NN Group is undertaking actions to increase its agility in
the current operating environment by delayering the support staff structure in the Netherlands and sharpen the strategic focus of its
business units, in particular Nationale-Nederlanden (NN). These measures are expected to result in a reduction of the workforce of around
1,350 FTE’s over a period of two years.
In 2012, an additional reorganisation provision of EUR 55 million was recognised in the segment Insurance Benelux for the strategic
initiatives announced in 2011. The main goals of the strategic initiative are to regain customer trust, diversify distribution channels,
implement a new product range and increase efficiency. In 2012, the reorganisation measures resulted in a reduction of the workforce of
470 FTE’s.
Each of these initiatives will be implemented over a period of several years and the estimate of the reorganisation provisions is inherently
uncertain. The provision at balance sheet date represent the best estimate of the expected redundancy costs and are expected to be
sufficient to cover these costs.
Other provisions
Changes in other provisions
Litigation Other Total
2013 2012 2013 2012 2013 2012
Opening balance 219 296 403 338 622 634
Additions 20 922 248 42 257
Releases –40 –27 –26 –38 –66 –65
Charges –6 –40 –254 –33 –260 –73
Exchange rate differences –6 –1 –16 –7 –22 –8
Changes in the composition of the group and other
changes –9 –18 60 –105 51 –123
Closing balance 178 219 189 403 367 622
In general, Other provisions are of a short-term nature.
The amounts included in other provisions are based on best estimates with regard to amounts and timing of cash flows required to settle
the obligation.
Other
Other mainly relates to year-end accruals in the normal course of business.
Notes to the consolidated annual accounts of ING Group continued
155ING Group Annual Report 2013
1 Who we are 2 Report of the Executive Board 3 Corporate governance 4 Consolidated annual accounts 5 Parent company annual accounts 6 Other information 7 Additional information