ING Direct 2015 Annual Report Download - page 182

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
To identify the notion of forbearance, ING typically assesses clients with Early Warning Signals, Watch List, Restructuring and Recovery
status. ING Bank reviews the performance of clients which were granted forbearance measures on at least a quarterly basis.
For corporate customers, ING Bank applies forbearance measures only to support clients that are experiencing temporary difficulties
with fundamentally sound business models. The aim is to maximise the repayment opportunities of the clients, while applying a very
strict policy with respect to (partial) debt forgiveness.
For retail clients, clear criteria to determine whether a client is eligible for a modification or refinancing have been established for all
ING Bank retail units that apply forbearance activities. Also, specific approval mandates are in place to approve the modifications and
refinancing, as well as procedures to manage, monitor and report the forbearance activities. These criteria and mandates vary, based
on the legal framework in place and market practices, but are in line with ING Bank policy.
Clients which are granted forbearance measures can have any risk rating (performing or non-performing), depending on their risk
profile:
• Performing - If the contract is considered as performing prior to any forbearance measure, and also after granting the forbearance
measure, the forbearance status for this client needs to be reported for a minimum of two years;
• Non-performing - If the contract is considered as non-performing prior to any forbearance measure, the client will retain its non-
performing status for a period of minimum one year.
The rating of clients with forbearance measures can also change during the forbearance reporting period:
• From performing to non-performing - If the performing forborne client, which exited the non-performing probation period, hits one
of the general non-performing triggers defined by ING, becomes more than 30 days past due or receives additional forbearance
measures during the reporting period, the client needs to be classified as non-performing.
• From non-performing to performing - The non-performing client, after forbearance measures have been granted, may be
upgraded to a performing rating, only when 1) one year has passed since the forbearance measures were granted, 2) the granting
of forbearance does not lead to the recognition of impairment or default, and 3) there is not any past-due amount or no concerns
regarding the full repayment of the exposure according to the post-forbearance conditions. The total minimum reporting period of
forbearance for any ‘cured’ non-performing client will take three years: one year as non-performing and subsequently the
‘regular’ two years as performing.
The forbearance classification on a client shall be discontinued, when all of the following conditions (measured on a quarterly basis)
are met:
• The contract is considered as performing and has been reported as ‘performing forbearance’ for a minimum of two years;
• Regular payments of significant aggregate amounts of principal or interest have been made during at least half of the forbearance
reporting period;
• None of the exposure to the client is more than 30 days past-due at the end of the forbearance reporting period.
Please note that the structure of the forborne assets tables is changed compared to previous years. Currently, the business portfolio is
present in both Business Lines, while previously the entire business portfolio was reported in Wholesale Banking.
2015
2014
Forborne
assets
Of which:
Perfor-
ming
Of which:
Non-Perfor-
ming
% of total
portfolio
Forborne
assets
Of which:
Perfor-
ming
Of which:
Non
-Perfor-
ming
% of
total
portfolio
Wholesale Banking
3,655
881
2,774
1.4%
3,657
1,437
2,221
1.6%
Retail Banking
6,982
3,241
3,741
1.6%
6,279
2,552
3,726
1.4%
Total
10,637
4,122
6,516
1.5%
9,936
3,989
5,947
1.5%
The total ING Bank forborne assets increased by EUR 0.7 billion (+7%) to EUR 10.6 billion at 31 December 2015. This increase was
mainly driven by Retail Banking as the total Wholesale Banking forborne assets remained relatively stable.
Wholesale Banking
As per December 2015, Wholesale Banking forborne assets amounted to a total of EUR 3.7 billion, which represents 1.4% of the total
Wholesale Banking portfolio.
ING Bank: Summary Forborne assets
ING Bank Annual Report 2015 180