ING Direct 2015 Annual Report Download - page 270

Contents
Report of the
Executive Board
Corporate
Governance
Consolidated
annual accounts
Parent company
annual accounts
Other
information
Additional
information
Additional Pillar III information - continued
Aging Analysis
The table below gives insight in the aging of the Consumer exposures and includes both the performing and non-performing portfolio,
while the previous table only includes the past due performing exposures. The bucket 0-3 months comprises mainly of performing
exposures.
0-3
months
> 3-6
months
> 6-9
months
> 9-12
months
> 12-24
months
> 24
months*
Secured by Res. Mortgage
4,639
599
300
206
501
500
Other Retail
1,327
158
42
35
91
309
Total 2015
5,966
757
342
241
592
809
Excludes the business portfolio, includes both AIRB and SA portfolios; excludes securitisations, equities and ONCOA.
Off-balance items
Undrawn commitments
The figures below represent the potential exposure that may be drawn by ING Bank’s obligors under committed facilities. In most
cases, the obligors have the right to make use of these facilities unless an event of default has occurred, or another defined event
within the associated credit risk agreement has occurred. In most cases, the obligor pays a commitment fee to ING Bank on the
unused portion of these facilities. Pre-Settlement, Money Market and Investment limits are generally not committed.
2015
2014
Sovereigns
Institutions
Corporate
Secured by
Res. Mortgage
Other retail
Total
Total
Under SA approach
1
487
142
3,888
4,518
4,237
Under AIRB Approach
386
5,712
78,715
11,085
9,789
105,687
91,184
– 0% risk weight
13
31
157
5
206
117
– >0% - ≤10% risk weight
233
1,594
12,171
8,785
5,269
28,052
26,065
– >10% - ≤20% risk weight
62
1,523
10,943
1,395
1,672
15,595
13,983
– >20% - ≤35% risk weight
70
1,295
22,102
597
814
24,878
19,702
– >35% - ≤50% risk weight
597
14,700
170
653
16,120
13,758
– >50% - ≤75% risk weight
225
10,033
78
625
10,961
10,141
– >75% - ≤100% risk weight
1
248
4,365
21
442
5,077
3,646
– >100% - ≤150% risk weight
4
144
2,909
19
233
3,309
2,784
– >150% - ≤200% risk weight
3
15
865
6
40
929
497
– >200% - <1250% risk weight
40
470
9
41
560
490
– 1250% risk weight
Total
386
5,713
79,202
11,227
13,677
110,205
95,421
Includes both AIRB and SA portfolios; excludes securitisations, equities and ONCOA.
If all of the unused commitments were called upon at the same time, ING Bank’s credit risks (in terms of outstandings) would increase
by 14.6%. As part of its Regulatory EAD models, ING Bank makes an estimate of how much of these unused commitments would be
drawn under normal circumstances. The effect is included in the calculation of the RWA, together with a similar effect applied to
uncommitted facilities, albeit at a lower rate.
Counterparty credit risk
The main activities that qualify under counterparty credit risk are derivatives trading activities and securities financing. As part of
these activities, ING Bank enters into master agreements such as ISDA master agreements and Global Master Repurchase Agreements
(GMRAs). Under the terms contained in sections related to Minimum Threshold Amounts and Minimum Transfer Amounts of Credit
Support Annexes (CSA) or other similar clauses, both ING Bank and it counterparties may agree to pledge additional collateral to each
other in the event that either party is downgraded by one of the established rating agencies. ING Bank has determined that under
prevailing market conditions, a one notch downgrade would only have a limited effect on the amount of additional collateral that ING
Bank would be required to pledge under these agreements. However, the actual amount that ING Bank may be required to pledge in
the future may vary based on ING Bank's portfolio composition of both derivatives and securities pledged in securities financing
transactions, market circumstances, the number of downgrade notches as well as the terms and conditions of future CSAs or other
similar agreements entered into.
Aging analysis of past due Consumers exposures
Undrawn commitments
ING Bank Annual Report 2015 268