ING Direct 2015 Annual Report Download - page 133

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
2015
Less than 1
month
1–3
months
3–12
months
1–5
years
Over 5
years
Total
Contingent liabilities in respect of
– discounted bills
– guarantees
16,813
494
465
1,121
3,299
22,192
– irrevocable letters of credit
7,447
2,065
1,393
251
6
11,162
– other
244
244
24,504
2,559
1,858
1,372
3,305
33,598
Irrevocable facilities
49,133
1,458
6,407
36,255
5,125
98,378
73,637
4,017
8,265
37,627
8,430
131,976
2014
1
Less than 1
month
1–3
months
3–12
months
1–5
years
Over 5
years
Total
Contingent liabilities in respect of
– guarantees
16,433
556
698
981
3,728
22,396
– irrevocable letters of credit
6,627
3,856
1,356
333
6
12,178
– other
364
13
40
8
425
23,424
4,425
2,094
1,322
3,734
34,999
Irrevocable facilities
39,371
7,673
5,090
25,328
4,884
82,346
62,795
12,098
7,184
26,650
8,618
117,345
1 Excludes commitments and contingent liabilities related to businesses classified as held for sale, being ING Vysya.
Guarantees relate both to credit and non-credit substitute guarantees. Credit substitute guarantees are guarantees given by ING Bank
in respect of credit granted to customers by a third party. Many of them are expected to expire without being drawn on and therefore
do not necessarily represent future cash outflows. In addition to the items included in contingent liabilities, ING Bank has issued
guarantees as a participant in collective arrangements of national industry bodies and as a participant in government required
collective guarantee schemes which apply in different countries.
Irrevocable letters of credit mainly secure payments to third parties for a customer’s foreign and domestic trade transactions in order
to finance a shipment of goods. ING Bank’s credit risk in these transactions is limited since these transactions are collateralised by the
commodity shipped and are of a short duration.
Other contingent liabilities include acceptances of bills and are of a short-term nature. Other contingent liabilities also include
contingent liabilities resulting from the normal operations of the Real Estate business including obligations under development and
construction contracts. None of the items included in Other contingent liabilities are individually significant.
Irrevocable facilities mainly constitute unused portions of irrevocable credit facilities granted to corporate clients. Many of these
facilities are for a fixed duration and bear interest at a floating rate. ING Bank’s credit risk and interest rate risk in these transactions is
limited. The unused portion of irrevocable credit facilities is partly secured by customers’ assets or counter-guarantees by the central
governments and exempted bodies under the regulatory requirements. Irrevocable facilities also include commitments made to
purchase securities to be issued by governments and private issuers.
Contingent liabilities and commitments
Contingent liabilities and commitments
ING Bank Annual Report 2015 131