2007 ANNUAL REPORT

• Consolidated balance sheet
• Consolidated profit and loss account
• Consolidated statement of cash flows
• Consolidated statement of changes in equity
• Accounting policies for the consolidated balance sheet and profit and loss account
• Accounting policies for the consolidated statement of cash flows of ING Group
• Notes to the consolidated balance sheet
  • Assets
    • 1 Cash and balances with central banks
    • 2 Amounts due from banks
    • 3 Financial assets at fair value through profit and loss
    • 4 Investments
    • 5 Loans and advances to customers
    • 6 Investments in associates
    • 7 Real estate investments
    • 8 Property and equipment
    • 9 Intangible assets
    • 10 Deferred acquisition costs
    • 11 Other assets
  • Equity
  • Liabilities
• Additional information to the consolidated balance sheet
• Notes to the consolidated profit and loss account
• Segment reporting
• Notes to the consolidated statement of cash flows of ING Group
• Risk management
• Capital management
• Authorisation of annual accounts

5 Loans and advances to customers

Loans and advances to customers by insurance and banking operations

	2007	2006
Insurance operations	27,576	37,606
Banking operations	528,540	440,375
	556,116	477,981
Eliminations	–3,152	–3,544
	552,964	474,437

Loans and advances to customers by type – insurance operations

	2007	Netherlands 2006	2007	International 2006	2007	Total 2006
Policy loans	54	55	3,414	3,511	3,468	3,566
Loans secured by mortgages	8,532	18,335	8,772	9,539	17,304	27,874
Personal loans	2,851	3,736	2,602	913	5,453	4,649
Other	378	507	1,003	1,047	1,381	1,554
	11,815	22,633	15,791	15,010	27,606	37,643
Loan loss provisions	–14	–12	–16	–25	–30	–37
	11,801	22,621	15,775	14,985	27,576	37,606

Loans and advances to customers by type – banking operations

	2007	Netherlands 2006	2007	International 2006	2007	Total 2006
Loans to, or guaranteed by, public authorities	14,678	16,450	8,961	9,503	23,639	25,953
Loans secured by mortgages	141,314	120,753	132,614	87,458	273,928	208,211
Loans guaranteed by credit institutions	1,951	2,088	591	320	2,542	2,408
Other personal lending	6,975	6,484	17,784	16,422	24,759	22,906
Other corporate loans	105,017	93,988	100,643	89,547	205,660	183,535
	269,935	239,763	260,593	203,250	530,528	443,013
Loan loss provisions	–654	–733	-1,334	–1,905	–1,988	–2,638
	269,281	239,030	259,259	201,345	528,540	440,375

Loans and advances to customers analysed by subordination – banking operations

	2007	2006
Non-subordinated	527,344	439,850
Subordinated	1,196	525
	528,540	440,375

 

As at 31 December 2007, Loans and advances to customers included receivables with regard to securities which have been acquired in reverse repurchase transactions related to the banking operations amounting to EUR 4,569 million (2006: EUR 1,554 million).

No individual loan or advance has terms and conditions that materially affect the amount, timing or certainty of the consolidated cash flows of the Group.

Loans and advances to customers and Amounts due from banks include finance lease receivables, analysed as follows:

Finance lease receivables

	2007	2006
Maturities of gross investment in finance lease receivables
– within 1 year	6,473	4,641
– more than 1 year but less than 5 years	8,448	8,061
– more than 5 years	3,753	3,346
	18,674	16,048
Unearned future finance income on finance leases	–3,109	–2,684
Net investment in finance leases	15,565	13,364
Maturities of net investment in finance lease receivables
– within 1 year	5,337	3,943
– more than 1 year but less than 5 years	7,060	6,813
– more than 5 years	3,168	2,608
	15,565	13,364
Included in Amounts due from banks	232	277
Included in Loans and advances to customers	15,333	13,087
	15,565	13,364

 

The allowance for uncollectible finance lease receivables included in the loan loss provisions amounted to EUR 33 million at 31 December 2007 (2006: EUR 47 million).

No individual finance lease receivable has terms and conditions that materially affect the amount, timing or certainty of the consolidated cash flows of the Group.

Loan loss provisions analysed by type – banking operations

	2007	Netherlands 2006	2007	International 2006	2007	Total 2006
Loans secured by public authorities			1	2	1	2
Loans secured by mortgages	96	96	203	177	299	273
Loans guaranteed by credit institutions	11		3	6	14	6
Other personal lending	181	357	374	408	555	765
Other corporate loans	377	280	755	1,316	1,132	1,596
	665	773	1,336	1,909	2,001	2,642
The closing balance is included in
– amounts due from banks	11		2	4	13	4
– loans and advances to customers	654	733	1,334	1,905	1,988	2,638
	665	733	1,336	1,909	2,001	2,642

Changes in loan loss provission

	2007	Insurance Operations 2006	2007	Banking Operations 2006	2007	Total 2006
Opening balance	37	47	2,642	3,313	2,679	3,360
Changes in the composition of the group	–3		98	–101	95	–101
Write-offs	–11	–4	–952	–691	–963	–695
Recoveries	1		59	86	60	86
Increase in loan loss provisions	8	4	125	103	133	107
Exchange rate differences	–1	–2	–19	–67	–20	–69
Other changes	–1	–8	48	–1	47	–9
Closing balance	30	37	2,001	2,642	2,031	2,679

 

Changes in loan loss provisions relating to insurance operations are presented under Investment income. Changes in the loan loss provision relating to banking operations are presented on the face of the profit and loss account.

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