ING Direct 2015 Annual Report Download - page 55

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
Designated as at fair value through profit and loss
2015
2014
Equity securities
7
9
Debt securities
1,080
1,124
Loans and receivables
2,147
1,623
3,234
2,756
Included in the Financial assets designated as at fair value through profit and loss is a portfolio of loans and receivables which is
economically hedged by credit derivatives. The hedges do not meet the criteria for hedge accounting and the loans are recorded at
fair value to avoid an accounting mismatch. The maximum credit exposure of the loans and receivables included in Financial assets
designated as at fair value through profit and loss approximates its carrying value. The cumulative change in fair value of the loans
attributable to changes in credit risk is not significant.
The notional value of the related credit derivatives is EUR 215 million (2014: EUR 83 million). The change in fair value of the credit
derivatives attributable to changes in credit risk since the loans were first designated, amounts to EUR –9 million (2014: EUR –10
million) and the change for the current year amounts to nil (2014: EUR –6 million).
The changes in fair value of the (designated) loans attributable to changes in credit risk have been calculated by determining the
changes in credit spread implicit in the fair value of bonds issued by entities with similar credit characteristics.
As at 31 December 2015, Loans and receivables designated as at fair value through profit and loss includes EUR 1,766 million (2014:
EUR 1,112 million) with regard to reverse repurchase transactions.
5 Investments
2015
2014
Available-for-sale
– equity securities - shares in third party managed structured entities
169
210
– equity securities - other
4,265
2,508
4,434
2,718
– debt securities
82,566
92,683
87,000
95,401
Held-to-maturity
– debt securities
7,826
2,239
7,826
2,239
94,826
97,640
In 2015, the merger between ING Vysya and Kotak was completed. As a result of this transaction, ING Bank holds 6.5% in Kotak,
recognised as an Available-for-sale equity investment at EUR 1.2 billion as at 31 December 2015. Reference is made to Note 7
‘Investments in associates and joint ventures’, Note 11 ‘Assets held for sale’ and Note 50 ‘Other events’.
Included in Available-for-sale equity securities, as at 31 December 2015, are shares held in VISA Europe Limited amounting to EUR 154
million (2014: nil) Reference is made to Note 13 ‘Equity’, Note 36 ‘Fair value of assets and liabilities’ and Note 50 ‘Other events’.
In 2015, EUR 3.5 billion of mainly Government bonds previously classified as Investments Available-for-sale are classified as
Investments Held-to-maturity. These Government bonds are now expected to be held until their redemption dates. The remainder of
the decrease in 2015 relates mainly to lower positions in Government bonds held in Germany, Australia and Belgium.
Designated as at fair value through profit and loss by type
Investments by type
ING Bank Annual Report 2015 53