ING Direct
Making banking simple
Key points
- Milestone reached of more than 20 million customers worldwide
- Total client retail balances production up EUR 35 billion to EUR 310 billion
- Continued investments to support geographical growth and expand product offering
- Mortgages firmly embedded as second core product
ING Direct continued to invest in building the business and expanding its product offering. The company faced a challenging year, given the interest rate environment, strong competition and required repositioning of ING Direct UK, all of which impacted profit. Total client retail balances were up EUR 35 billion (excluding currency effects), bringing the total balance to EUR 310.1 billion, driven by a record own-originated mortgages production of EUR 29 billion.
Profit and loss account (underlying)
| in EUR million | 2007 | 2006 | change |
|---|---|---|---|
| Total income | 2,196 | 2,233 | –1.7% |
| Operating expenses | 1,598 | 1,482 | 7.8% |
| Additions to loan-loss provisions | 68 | 57 | |
| Underlying profit before tax | 530 | 694 | –23.6% |
| Total profit before tax* | 530 | 691 | –23.3% |
* Total profit before tax is defined as profit before tax including divestments and special items.
Key figures (underlying)
| 2007 | 2006 | |
|---|---|---|
| After-tax RAROC | 14.3% | 11.8% |
| Economic capital (EUR billion) | 2.8 | 3.2 |
UNDERLYING PROFIT BEFORE TAX
in percentages
Underlying profit before tax
| in EUR million | 2007 | 2006 | change |
|---|---|---|---|
| Canada (1997) | 0 | 62 | n.a. |
| Spain (1999) | 55 | 55 | |
| Australia (1999) | 84 | 86 | –2.3% |
| France (2000) | 46 | 34 | 35.3% |
| United States (2000) | 78 | 85 | –8.2% |
| Italy (2001) | 49 | 43 | 14.0% |
| Germany (2002) | 367 | 332 | 10.5% |
| United Kingdom (2003) | –120 | 19 | n.a. |
| Austria (2004) | –9 | –22 | n.a. |
| Japan | –22 | – | n.a. |
| Total | 530 | 694 | –24% |
