ING Direct 2013 Annual Report Download - page 344

ING GROUP
The debt/equity ratio of ING Group as at 31 December 2013 was 8.4% (2012: 11.2%).
ING Group reports to the Dutch Central Bank as required under the Dutch implementation of the financial conglomerates directive (FICO).
The directive mainly covers risk concentrations in the group, intra-group transactions and an assessment of the capital adequacy of the
Group.
In the following table, we show the Group’s FICO ratio on the following basis:
• Insurance required capital from applying European Solvency I rules to all NN Group entities globally (regardless of local capital
requirements);
• Bank required capital based on applying Basel II with the Basel I floor (80% of Basel I Risk Weighted Assets);
• Group FICO capital using an approach similar to that used for Bank BIS capital and Insurance IGD capital whereby Group leverage
is deducted.
Regulatory capital adequacy ING Group
2013 2012
BIS capital 46,496 47,270
IGD capital Insurance operations 20,903 22,447
Group leverage (core debt) –4,910 –7,100
Regulatory capital 62,490 62,619
Required capital banking operations 26,913 28,767
Required capital insurance operations 8,153 9,523
Total required capital 35,066 38,290
FICO ratio 178% 164%
Capital adequacy and ratios
Quantitative disclosures on capital measurements and ratios
Group Bank NN Group
2013 2012 2013 2012 2013 2012
Core Tier1 ratio (Bank)
Year-end actual Tier1 ratio 11.72% 11.97%
Regulatory minimum Tier1 ratio 2.00% 2.00%
Target minimum Tier1 ratio 10.00% 10.00%
Tier1 ratio (Bank)
Year-end actual Tier1 ratio 13.53% 14.40%
Regulatory minimum Tier1 ratio 4.00% 4.00%
Target minimum Tier1 ratio 11.50% 10.00%
BIS ratio (Bank)
Year-end actual BIS ratio 16.46% 16.96%
Regulatory minimum BIS ratio 8.00% 8.00%
Target minimum BIS ratio 15.00% 10.00%
Insurance Groups Directive
Year-end actual Capital coverage ratio 257% 236%
Required capital 100% 100%
Target ratio 150% 150%
Debt/Equity ratio (Group)
Debt/Equity ratio 8.44% 11.23%
Target maximum Debt/Equity ratio 15.00% 15.00%
The Tier 1 ratio and the BIS ratio are regulatory requirements. Internally ING manages on the Core Tier 1 ratio. The actual ratios were
11.97% at the end of 2012 and 11.72% at the end of 2013.
Capital management continued
342 ING Group Annual Report 2013