ING Direct 2015 Annual Report Download - page 54

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
4 Financial assets at fair value through profit and loss
2015
2014
Trading assets
131,485
136,964
Non-trading derivatives
3,216
4,303
Designated as at fair value through profit and loss
3,234
2,756
137,935
144,023
Reference is made to Note 41 ‘Transfer of financial assets’ for information on securities lending as well as sale and repurchase
transactions.
Trading assets
2015
2014
Equity securities
14,817
17,193
Debt securities
14,316
21,584
Derivatives
39,012
46,613
Loans and receivables
63,340
51,574
131,485
136,964
In 2015, the decrease in trading debt securities is mainly due to a decrease in government bonds. The decrease in the trading
derivatives is mainly due to changes in fair value resulting from market interest rates. These decreases are partly mitigated by an
increase in Loands and receivables driven by increased reverse repurchase activities.
As at 31 December 2015, Trading assets include receivables of EUR 62,221 million (2014: EUR 50,692 million) with regard to reverse
repurchase transactions.
Trading assets and trading liabilities include assets and liabilities that are classified under IFRS-EU as ‘Trading’ but are closely related to
servicing the needs of the clients of ING Bank. ING offers institutional and corporate clients and governments products that are traded
on the financial markets. A significant part of the derivatives in the trading portfolio are related to servicing corporate clients in their
risk management to hedge for example currency or interest rate exposures. In addition, ING provides its customers access to equity
and debt markets for issuing their own equity or debt securities (‘securities underwriting’). Although these are presented as ‘Trading’
under IFRS-EU, these are directly related to services to ING’s customers. Loans and receivables in the trading portfolio mainly relate to
(reverse) repurchase agreements, which are comparable to collateralised lending. These products are used by ING as part of its own
regular treasury activities, but also relate to the role that ING plays as intermediary between different professional customers. Trading
assets and liabilities held for ING’s own risk are very limited. From a risk perspective, the gross amount of trading assets must be
considered together with the gross amount of trading liabilities, which are presented separately on the balance sheet. However, IFRS-
EU does not allow netting of these positions in the balance sheet. Reference is made to Note 18 ‘Financial liabilities at fair value
through profit and loss’ for information on trading liabilities.
Non-trading derivatives
2015
2014
Derivatives used in
– fair value hedges
1,010
1,223
– cash flow hedges
917
1,255
– hedges of net investments in foreign operations
72
111
Other non-trading derivatives
1,217
1,714
3,216
4,303
Other non-trading derivatives mainly includes interest rate swaps for which no hedge accounting is applied.
Financial assets at fair value through profit and loss
Trading assets by type
Non-trading derivatives by type
ING Bank Annual Report 2015 52