ING Direct 2015 Annual Report Download - page 268

Contents
Report of the
Executive Board
Corporate
Governance
Consolidated
annual accounts
Parent company
annual accounts
Other
information
Additional
information
Additional Pillar III information - continued
The total non-performing exposure decreased from EUR 17.2 billion to EUR 15.0 billion year to date, bringing the NPL based on READ
for all product categories down from 2.2% to 1.8%. The decrease in non-performing exposure is mainly in industry types Commercial
Banks, Real Estate and Private Individuals and primarily visible in the Netherlands and Other Europe. For Commercial Banks a decrease
in non-performing exposure of EUR 0.9 billion is mainly caused by a claim on assets under trusteeship that is now considered
performing rating and a partial repayment of a loan by the curator which decreased the non-performing exposure. The non-
performing Real Estate exposure decreased with EUR 0.7 billion years to date. This decrease is mainly due to the decrease in non-
performing loans in the Spanish Real Estate portfolio. The decrease for Private Individuals is mainly due to an improvement in the
Dutch non-performing Residential Mortgage portfolio which decreased by EUR 1.0 billion and improved the NPL ratio for this portfolio.
The Belgium non-performing Residential Mortgage portfolio increased by EUR 0.2 billion, increasing this portfolio’s NPL ratio. The main
reason for this increase is a more conservative approach for the unlikely to pay trigger and a maturing Residential Mortgage portfolio
in ING Belgium. In the Natural Resources and Services industry an increase in non-performing loans is observed as these sectors still
struggle from the slow recovery of the global economy. The increase in non-performing loans for the Natural Resources industry is
mainly seen in Ukraine and in Mining and can be explained from the geopolitical situation and the decline in commodity prices. The
developments in this region and the industry are being closely monitored by management.
Cumulative provisions by industry and geographic area
The tables below show the provisions per NAICS industry and geography and should be read in conjunction with the information and
statements made in the Risk Management section of the annual report.
2015
2014
Sovereigns Institutions Corporate
Secured by
Res. Mortgage Other retail
Securitisation
Total Total
Private Individuals
1
884
709
1,594
1,335
Real Estate
841
20
86
947
1,316
Natural Resources
420
7
427
304
Builders & Contractors
324
97
421
479
Services
307
102
409
399
General Industries
356
51
407
468
Food, Beverages & Personal Care
291
54
345
430
Transportation & Logistics
296
38
334
338
Utilities
204
3
207
118
Retail
107
59
166
211
Chemicals, Health & Pharmaceuticals
130
16
146
155
Automotive
103
24
127
117
Non-Bank Financial Institutions
6
25
15
44
90
65
Media
61
20
81
111
Other1
9
16
41
2
16
84
149
Total
9
22
3,507
906
1,297
44
5,786
5,995
Includes both AIRB and SA portfolios; excludes securitisations, equities and ONCOA.
Excludes revaluations made directly through the equity account.
1 Sectors with cumulative provisions of less than EUR 50 million are grouped under ‘Other’.
2 At the end of 2015, the stock of provisions included provisions for amounts due from banks: EUR 14 million (2014: EUR 6 million).
Cumulative provisions by industry2
ING Bank Annual Report 2015 266