ING Direct 2013 Annual Report Download - page 284

Risk management continued ING Bank
ING Bank: Summary Forbearance totals
2013
Forborn
Outstandings
% of Total ING
Bank portfolio
Specific
Provisions and
Partial Write
Offs
Corporate Banking (2) 4,664 1.1% 1,712
Retail Banking (2) 810 0.3% N.A.
Total 5,474 0.8% 1,712 (1)
(1) Please note Collective Provisions on Forbearance assets are not included
(2) Corporate Banking includes Business Lending, Pre-Settlement, Money Market and Investment outstandings.
Retail Banking includes Consumer Lending outstandings.
Corporate Banking
To identify forbearance, 80% of the total Watchlist and Non-Performing outstandings of ING’s Corporate Banking portfolio, was
scrutinized. This represents the material Watchlist and Non-Performing loans with a threshold of EUR 3 million. For the remainder a lower
incidence of forbearance is expected as these are often managed in a portfolio manner or have little opportunity for restructuring. The
total of EUR 4.7 billion of Corporate Banking Forborn Assets represents 1.1% of the total ING Corporate Banking portfolio.
Next to the EUR 4.7 billion classified as forbearance there were EUR 2.5 billion of loans where ING has made some degree of concession in
exchange for acceleration of repayments, increased equity, additional collateral and/or higher margin. These loans are considered as on a
commercial basis and not more favourable terms than those available to other debtors with a similar risk profile; therefore, these are not
reported as forborn.
Corporate Banking: Forbearance by Geographical Region
2013
Country
Performing
Forborn O/S
Non-
Performing
Forborn O/S
Provisions
and Partial
Write Offs
Netherlands 336 1,625 599
Belgium 18 218 105
Germany 085 31
Rest of Europe 254 1,350 671
Americas 13 219 75
Asia/Pacific 298 239 231
Rest of World 9 0 0
Total 928 3,736 1,712
Corporate Banking: Forbearance by Industry
2013
Industry
Performing
Forborn
Outstandings
Non-
Performing
Forborn
Outstandings
Specific
Provisions and
Partial Write
Offs
Real Estate 343 1,333 503
Transportation & Logistics 203 344 199
Builders & Contractors 45 355 198
Food, Beverages & Personal Care 21 363 170
General Industries 37 293 133
Services 183 98 68
Natural Resources 0239 128
Retail 8160 81
Telecom 3142 51
Media 4116 45
Other 81 293 136
Total 928 3,736 1,712
An amount of EUR 3.7 billion of forborne assets were part of the non-performing loan portfolio. As per 2013, ING held EUR 1.7 billion of
loan loss provisions against the EUR 3.7 billion of forborn assets in the NPL portfolio which is part of ING’s total reported loan loss provisions.
In 2013, ING Bank changed the way it reported the Forborn Assets and updated its policy based on the ESMA and EBA recommendations
issued in October 2013. In order to ensure compliance with these new recommendations, one of the measures implemented was to
include Watchlist clients to the scope. As a result the outstanding amount of Forborn loans in 2013 is not comparable with the 2012 level.
282 ING Group Annual Report 2013