ING Direct 2015 Annual Report Download - page 88

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
ING Bank evaluates the results of its segments using a financial performance measure called underlying result. Underlying result is
derived by excluding from IFRS-EU special items and the impact of divestments.
Special items include items of income or expense that are significant and arise from events or transactions that are clearly distinct
from the ordinary operating activities. Disclosures on comparative periods also reflect the impact of current period’s divestments.
In addition to these segments, ING Bank reconciles the total segment results to the total result of ING Bank using Corporate Line
Banking. The Corporate Line Banking is a reflection of capital management activities and certain expenses that are not allocated to the
banking businesses. ING Group applies a system of capital charging for its banking operations in order to create a comparable basis for
the results of business units globally, irrespective of the business units’ book equity and the currency they operate in.
Underlying result as presented below is a non-GAAP financial measure and is not a measure of financial performance under IFRS-EU.
Because underlying result is not determined in accordance with IFRS-EU, underlying result as presented by ING may not be
comparable to other similarly titled measures of performance of other companies. The underlying result of ING’s segments is
reconciled to the Net result as reported in the IFRS-EU Consolidated profit and loss account below. The information presented in this
note is in line with the information presented to the Management Board.
This note does not provide information on the revenue specified to each product or service as this is not reported internally and is
therefore not readily available.
2015
Retail
Nether-
lands
Retail
Belgium
Retail
Germany
Retail
Other
Wholesale
Banking
Corporate
Line
Banking
Total
Underlying income
– Net interest result
3,683
1,953
1,634
1,906
3,567
1
12,744
– Commission income
515
397
172
276
964
–4
2,320
– Total investment and other income
205
195
104
186
1,078
–131
1,639
Total underlying income
4,403
2,546
1,910
2,369
5,609
–133
16,703
Underlying expenditure
– Operating expenses
2,475
1,532
842
1,582
2,571
230
9,231
– Additions to loan loss provision
433
169
57
210
478
1,347
Total underlying expenses
2,908
1,701
899
1,792
3,048
230
10,578
Underlying result before taxation
1,495
845
1,012
577
2,560
–364
6,125
Taxation
391
255
328
142
676
–91
1,703
Minority interests
6
2
48
16
72
Underlying net result
1,104
583
681
387
1,868
–273
4,350
Divestments
367
367
Special items
–58
–58
Net result IFRS-EU
1,046
583
681
754
1,868
–273
4,659
2015
Income
Expenses
Net result
Underlying
16,703
10,578
4,350
Divestments
367
367
Special items
77
–58
IFRS-EU
17,070
10,655
4,659
Divestments in 2015 reflect the result from the merger between ING Vysya Bank and Kotak Mahindra Bank.
Special items in 2015 comprise additional charges related to previously announced restructuring programmes in Retail Netherlands.
Segments by line of business
Reconciliation between Underlying and IFRS-EU income, expenses and net result
ING Bank Annual Report 2015 86