ING Direct 2015 Annual Report Download - page 128

Contents
Who we are
Report of the
Management
Board
Corporate
Governance
Consolidated
annual accounts
Parent company
annual accounts
Other
information
Additional
information
Notes to the Consolidated annual accounts of ING Bank - continued
41 Transfer of financial assets
The majority of ING's financial assets that have been transferred, but do not qualify for derecognition are debt instruments used in
securities lending or sale and repurchase transactions. Reference is made to Note 47 ‘Structured entities’.
Securities lending
Sale and repurchase
2015
Equity
Debt
Equity
Debt
Transferred assets at carrying amount
Amounts due from banks
18
Financial assets at fair value through profit and loss
4,339
7,892
Investments
2,502
Associated liabilities at carrying amount
Amounts due to banks
n.a
n.a
Customer deposits and other funds on deposit
n.a
n.a
Financial liabilities at fair value through profit and loss
4,384
3,966
The table above includes the associated liabilities which are reported after offsetting, compared to the gross positions of the
encumbered assets.
Securities lending
Sale and repurchase
2014
Equity
Debt
Equity
Debt
Transferred assets at carrying amount
Financial assets at fair value through profit and loss
2,202
22
6,465
3,684
Investments
3,594
Associated liabilities at carrying amount
Amounts due to banks
n.a
n.a
Customer deposits and other funds on deposit
n.a
n.a
Financial liabilities at fair value through profit and loss
2,202
22
6,414
6,422
Included in the tables above, are the carrying amounts of transferred assets under repurchase agreements and securities lending that
do not qualify for derecognition.
The tables above do not include assets transferred to consolidated securitisation entities as the related assets remain recognised in
the consolidated balance sheet.
Transfer of financial assets that qualified for derecognition
In 2014, ING sold financial assets (mortgages) for an amount of approximately EUR 990 million in the Australian market. The
transaction resulted in full derecognition of the financial assets from ING’s balance sheet. This equated to a profit of EUR 17.5 million.
Following this transfer, ING continues to have an on-going involvement in the transferred assets as servicer of the transferred assets
for a term of four years.
In 2013, ING transferred financial assets (mortgages loans) for an amount of approximately EUR 2 billion to a newly established special
purpose entity (SPE). The transaction resulted in full derecognition of the financial assets from ING’s balance sheet. The derecognition
did not have a significant impact on net result. Following this transfer ING continues to have two types of ongoing involvement in the
transferred assets: as counterparty to the SPE of a non-standard interest rate swap and as servicer of the transferred assets. ING has
an option to unwind the transaction by redeeming all notes at their principal outstanding amount, in the unlikely event of changes in
accounting and/or regulatory requirements that significantly impact the transaction. The fair value of the swap as at 31 December
2015 amounted to EUR 1.3 million (2014: EUR 33.7 million); fair value changes on this swap recognised in the profit and loss account in
2015 were EUR –32.4 million (2014: EUR 28.6 million). Fee income recognised in the profit and loss account in 2015 amounted to nil
(2014: EUR 0.5 million).
Transfer of financial assets not qualifying for derecognition
Transfer of financial assets not qualifying for derecognition
ING Bank Annual Report 2015 126