ING Bank comfortably passes EBA stress test

Autor: Hugin

 |  15.07.2011, 18:07  |  651 Aufrufe  |   0  | 

·         EBA stress test confirms strong capital position of ING Bank. Strong
profit and capital generation enable balance sheet to absorb adverse shocks

·         Under adverse stress test scenario the estimated consolidated Core
Tier 1 capital ratio of ING would decline to 8.7% in 2012 compared to 9.6% as of
end of 2010

·         ING would remain well above hurdle rate of 5% Core Tier 1 ratio with
surplus Core Tier 1 capital of EUR 14.8 billion in 2012.

ING Bank was subject to the 2011 EU-wide stress test conducted by the European
Banking Authority (EBA), in cooperation with De Nederlandsche Bank (DNB), the
European Central Bank (ECB), the European Commission (EC) and the European
Systemic Risk Board (ESRB).

ING Bank notes the announcements made today by the EBA and DNB on the EU-wide
stress test and fully acknowledges the outcomes of this exercise.

The EU-wide stress test, carried out across 90 banks covering over 65% of the EU
banking system total assets, seeks to assess the resilience of European banks to
severe shocks and their specific solvency to hypothetical stress events under
certain restrictive conditions.

The assumptions and methodology were established to assess banks´ capital
adequacy against a 5% Core Tier 1 capital benchmark and are intended to restore
confidence in the resilience of the banks tested. The adverse stress test
scenario was set by the ECB and covers a two-year time horizon (2011-2012). The
stress test has been carried out using a static balance sheet assumption as at
December 2010. The stress test does not take into account future business
strategies and management actions and is not a forecast of ING Bank profits.

As a result of the assumed shock, the estimated consolidated Core Tier 1 capital
ratio of ING would change to 8.7% under the adverse scenario in 2012 compared to
9.6% as of end of 2010.

Details on the results observed for ING Bank:

The EU-wide stress test requires that the results and weaknesses identified,
which will be disclosed to the market, are acted on to improve the resilience of
the financial system. Following completion of the EU-wide stress test, the
results determine that:
ING Bank meets the capital benchmark set out for the purpose of the stress test.
The bank will continue to ensure that appropriate capital level must be
maintained. In the adverse scenario, ING Bank remains well above this benchmark
of 5% Core Tier 1 ratio with surplus Core Tier 1 capital of EUR 14.8 billion in
2012.

Following table as per EBA instructions

Results of the 2011 EBA EU-wide stress test: Summary ((1-3))

Name of the bank: ING Bank N.V.
--------------------------------------------------------------------------------

+------------------------------------------------------------------------------+

|Actual results at 31 December 2010 million EUR,  %|


+------------------------------------------------------------------------------+

|   |

| |

|Operating profit before impairments 7.999|

| |

|Impairment losses on financial and non- -2.332|

|financial assets in the banking book |

| |

|   |


+------------------------------------------------------------------------------+

|Risk weighted assets ((4)) 321.103|

| |

|Core Tier 1 capital ((4)) 30.895|


+------------------------------------------------------------------------------+

|Core Tier 1 capital ratio,  % ((4)) 9,6%|


+------------------------------------------------------------------------------+

|Additional capital needed to reach a 5 %  |

|Core Tier 1 capital benchmark |

+------------------------------------------------------------------------------+
 Outcomes of the adverse scenario at 31 %
 December 2012,  excluding all mitigating
 actions taken in 2011

--------------------------------------------------------------------------------
 Core Tier 1 Capital ratio 8,7%

--------------------------------------------------------------------------------


+------------------------------------------------------------------------------+

|Outcomes of the adverse scenario at 31 million EUR,  %|

|December 2012,  including recognised |

|mitigating measures as of 30 April 2011 |


+------------------------------------------------------------------------------+

|   |

| |

|2 yr cumulative operating profit before 12.278|

|impairments |

| |

|2 yr cumulative impairment losses on -8.276|

|financial and non-financial assets in |

|the banking book |

| |

|2 yr cumulative losses from the stress -1.052|

|in the trading book |

| |

|of which valuation losses due to -237|

|sovereign shock |

| |

|   |


+------------------------------------------------------------------------------+

|Risk weighted assets 391.282|

| |

|Core Tier 1 Capital 33.860|


+------------------------------------------------------------------------------+

|Core Tier 1 Capital ratio (%) 8,7%|


+------------------------------------------------------------------------------+

|Additional capital needed to reach a 5 %  |

|Core Tier 1 capital benchmark |

| |

|   |

| |

|Effects from the recognised mitigating   |

|measures put in place until 30 April |

|2011 ((5)) |

| |

|Equity raisings announced and fully  |

|committed between 31 December 2010 and |

|30 April 2011 (CT1 million EUR) |

| |

|Effect of government support publicly  |

|announced and fully committed in period |

|from 31 December 2010 to 30 April 2011 |

|on Core Tier 1 capital ratio (percentage |

|points of CT1 ratio) |

| |

|Effect of mandatory restructuring plans,   |

|publicly announced and fully committed |

|in period from 31 December 2010 to 30 |

|April 2011 on Core Tier 1 capital ratio  |

|(percentage points of CT1 ratio) |

+------------------------------------------------------------------------------+
 Additional taken or planned mitigating percentage points contributing to
 measures capital ratio
 Use of provisions and/or other reserves
 (including release of countercyclical
 provisions)
 Divestments and other management actions
 taken by 30 April 2011
 Other disinvestments and restructuring 0,7
 measures,  including also future
 mandatory restructuring not yet approved
 with the EU Commission under the EU
 State Aid rules
 Future planned issuances of common
 equity instruments (private issuances)
 Future planned government subscriptions -0,8
 of capital instruments (including
 hybrids)
 Other (existing and future) instruments
 recognised as appropriate back-stop
 measures by national supervisory
 authorities

--------------------------------------------------------------------------------
 Supervisory recognised capital ratio 8,6%
 after all current and future mitigating
 actions as of 31 December 2012,  % ((6))

--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
 Notes

--------------------------------------------------------------------------------
 (1) The stress test was carried using the EBA common methodology,  which
 includes a static balance sheet assumption and incorporates regulatory
 transitional floors,  where binding (see http://www.eba.europa.eu/EU-wide-
 stress-testing/2011.aspx  for the details on the EBA methodology).
 (2) All capital elements and ratios are presented in accordance with the EBA
 definition of Core Tier 1 capital set up for the purposes of the EU-wide
 stress test,  and therefore may differ from the definitions used by national
 supervisory authorities and/or reported by institutions in public disclosures.
 (3) Neither baseline scenario nor the adverse scenario and results of the
 stress test should in any way be construed as a bank´s forecast or directly
 compared to bank´s other published information.
 (4) Full static balance sheet assumption excluding any mitigating management
 actions,  mandatory restructuring or capital raisings post 31 December 2010
 (all government support measures and capital raisings fully paid in before 31
 December 2010 are included).
 (5) Effects of capital raisings,  government support and mandatory
 restructuring plans publicly announced and fully committed in period from 31
 December 2010 to 30 April 2011,  which are incorporated in the Core Tier 1
 capital ratio reported as the outcome of the stress test.
 (6) The supervisory recognised capital ratio computed on the basis of
 additional mitigating measures  presented in this section. The ratio is based
 primarily on the EBA definition,  but may include other mitigating measures not
 recognised by the EBA methodology as having impacts in the Core Tier 1
 capital,  but which are considered by the national supervisory authorities as
 appropriate mitigating measures for the stressed conditions. Where applicable, 
 such measures are explained in the additional announcements issued by
 banks/national supervisory authorities. Details of all mitigating measures are
 presented in the worksheet "3 - Mitigating measures).


Notes to editors
The detailed results of the stress test under the baseline and adverse scenarios

as well as information on ING Bank credit exposures and exposures to central and

local governments are provided in the accompanying disclosure tables based on

the common format provided by the EBA.
The stress test was carried out based on the EBA common methodology and key

common assumptions (e.g. constant balance sheet,  uniform treatment of

securitisation exposures) as published in the EBA Methodological note.

Therefore,  the information relative to the baseline scenarios is provided only

for comparison purposes. Neither the baseline scenario nor the adverse scenario

should in any way be construed as a bank´s forecast or directly compared to

bank´s other published information.
See more details on the scenarios,  assumptions and methodology on the EBA

website: http://www.eba.europa.eu/EU-wide-stress-testing/2011.aspx

 Press enquiries Investor enquiries
 Frans Middendorff Investor Relations
 +31 20 541 6516 +31 20 541 5460
 Frans.Middendorff@ing.com Investor.relations@ing.com
About ING

ING is a global financial institution of Dutch origin offering banking, 

investments,  life insurance and retirement services. As of 31 March 2011,  ING

served more than 85 million private,  corporate and institutional clients in more

than 40 countries. With a diverse workforce of about 105,000 people,  ING is

dedicated to setting the standard in helping our clients manage their financial

future.
Important Legal Information
Certain of the statements contained herein are not historical facts,  including, 

without limitation,  certain statements made of future expectations and other

forward-looking statements that are based on management´s current views and

assumptions and involve known and unknown risks and uncertainties that could

cause actual results,  performance or events to differ materially from those

expressed or implied in such statements. Actual results,  performance or events

may differ materially from those in such statements due to,  without limitation:

(1) changes in general economic conditions,  in particular economic conditions in

ING´s core markets,  (2) changes in performance of financial markets,  including

developing markets,  (3) the implementation of ING´s restructuring plan to

separate banking and insurance operations,  (4) changes in the availability of, 

and costs associated with,  sources of liquidity such as interbank funding,  as

well as conditions in the credit markets generally,  including changes in

borrower and counterparty creditworthiness,  (5) the frequency and severity of

insured loss events,  (6) changes affecting mortality and morbidity levels and

trends,  (7) changes affecting persistency levels,  (8) changes affecting interest

rate levels,  (9) changes affecting currency exchange rates,  (10) changes in

general competitive factors,  (11) changes in laws and regulations,  (12) changes

in the policies of governments and/or regulatory authorities,  (13) conclusions

with regard to purchase accounting assumptions and methodologies,  (14) changes

in ownership that could affect the future availability to us of net operating

loss,  net capital and built-in loss carry forwards,  and (15) ING´s ability to

achieve projected operational synergies. ING assumes no obligation to publicly

update or revise any forward-looking statements,  whether as a result of new

information or for any other reason.


PDF version of press release plus attachments: 

http://hugin.info/130668/R/1531359/466067.pdf


This announcement is distributed by Thomson Reuters on behalf of 

Thomson Reuters clients. The owner of this announcement warrants that: 

(i) the releases contained herein are protected by copyright and 
 other applicable laws; and 

(ii) they are solely responsible for the content,  accuracy and 
 originality of the information contained therein. 


Source: ING Group via Thomson Reuters ONE
[HUG#1531359] 
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