Information for shareholders (continued)
PROFIT RETENTION AND DISTRIBUTION POLICY
ING Group’s profit retention and distribution policy is determined by its internal financing requirements and its growth opportunities on the one hand and the capital providers’ dividend expectations on the other. ING Group’s internal funding needs are determined partly by statutory solvency requirements and capital ratios, compliance with which is essential to its existence. No less important to ING Group are its credit ratings, which directly affect its financing costs and hence its profitability. For their part, the capital providers expect a dividend which reflects ING Group’s financial results and is relatively predictable.
Each year, after publication of the financial results for the first six months of the year, an interim dividend is distributed by way of an advance against the final dividend, being half of the total dividend over the preceding year.
In February 2005, ING defined its dividend policy as follows: ING intends to pay dividends in relation to the longer-term underlying development of cash earnings following the introduction of International Financial Reporting Standards (IFRS), which are expected to increase volatility in net profit. Furthermore, it was decided in the beginning of 2005 to change the dividend policy to a full cash dividend. This change was very much welcomed by investors and analysts. ING has no intention to change its dividend policy.
Share buy-back programme
On 16 May 2007 ING announced a share buy-back programme to purchase ordinary shares (or depositary receipts for such shares), with a total value of EUR 5 billion over a period of 12 months, beginning in June 2007. At the end of 2007 the number of (depositary receipts for) ordinary shares repurchased under this programme was 91.7 million for a total consideration of EUR 2,793 million. At year-end 2007, 55.9% of the repurchase programme was completed. The repurchase programme is expected to run until June 2008.
LISTINGS
The (depositary receipts for) ordinary shares ING Group are listed on the exchanges of Amsterdam, Brussels, Frankfurt, Paris, New York (NYSE) and the Swiss exchanges. The (depositary receipts for) preference shares are listed on Euronext Amsterdam by NYSE Euronext. Options on (depositary receipts for) ordinary shares ING Group are traded at the NYSE Euronext Amsterdam Derivative Markets and the Chicago Board Options Exchange.
Authorised and issued capital
| in millions | Year-end 2007 |
Year-end 2006 |
|---|---|---|
| Ordinary shares | ||
| – authorised | 720 | 720 |
| – issued | 534 | 530 |
| Preference shares | ||
| – authorised | 360 | 360 |
| – issued | 19 | 76 |
| Cumulative preference shares | ||
| – authorised | 1,080 | 1,080 |
| – issued | – | – |
Shares in issue and shares outstanding in the market
| in millions | Year-end 2007 |
Year-end 2006 |
|---|---|---|
| (Depositary receipts for) ordinary shares of EUR 0.24 nominal value |
2,226.4 | 2,205.1 |
| (Depositary receipts for) own ordinary shares held by ING Group and its subsidiaries |
126.8 | 53.8 |
| (Depositary receipts for) ordinary shares outstanding in the market |
2,099.6 | 2,151.3 |
| (Depositary receipts for) preference shares of EUR 1.20 nominal value |
16 | 63 |
| (Depositary receipts for) own preference shares held by ING Group and its subsidiaries |
10 | – |
| (Depositary receipts for) preference shares outstanding in the market |
6 | 63 |
Prices depositary receipts for ordinary shares
| Euronext Amsterdam by NYSE Euronext in EUR |
2007 | 2006 | 2005 |
|---|---|---|---|
| Price – high | 34.69 | 35.95 | 29.75 |
| Price – low | 24.38 | 27.82 | 20.99 |
| Price – year end | 26.75 | 33.59 | 29.30 |
| Price/earnings ratio* | 6.2 | 9.4 | 8.8 |
* Based on the share price at year-end and underlying net profit per preference share for the financial year.
Dividend history
| in EUR | 2007 | 2006 | 2005 |
|---|---|---|---|
| Interim dividend | 0.66 | 0.59 | 0.54 |
| Final dividend | 0.82* | 0.73 | 0.64 |
| Total | 1.48* | 1.32 | 1.18 |
* Proposed.
FOUR-YEAR PRICE DEVELOPMENT ING DEPOSITARY RECEIPTS FOR SHARES
index 1 January 2004 = 100
GEOGRAPHICAL DISTRIBUTION OF ING SHARES*
in percentages
* 2007 figures, based on information provided by several large custodians.
SHAREHOLDERS WITH STAKES OF 5% OR MORE
Under the Dutch Financial Supervision Act, one holder of depositary receipts with an interest or potential interest of between 5% and 10% in ING Group was known as at 31 December 2007. This was AllianceBernstein Corporation.
INVESTOR RELATIONS
In addition to financial press releases and quarterly financial publications, ING also publishes the magazine ING Shareholder. You can subscribe to the magazine through our Investor Relations section at www.ing.com. To be kept informed of press releases and other ING news, you can subscribe to the email service through our Investor Relations section at www.ing.com.
Investors and financial analysts may contact:
ING Group,
Investor Relations (IH 07.430)
P.O. Box 810
1000 AV Amsterdam
The Netherlands
Telephone: +31 20 5415460
Fax: +31 20 5418551
Email: investor.relations@ing.com
Main credit ratings of ING (1)
| Standard & Poor’s |
Moody’s | Fitch | |
|---|---|---|---|
| ING GROUP | AA- | Aa2 | AA- |
| ING INSURANCE | |||
| – short term | A-1+ | P-1 | |
| – long term | AA- | Aa3 | AA- |
| ING BANK | |||
| – short term | A-1+ | P-1 | F1+ |
| – long term | AA | Aa1 | AA |
| – financial strength | B |
(1) The Standard & Poor’s, Moody’s and Fitch ratings all have a stable outlook.
ING’s long-term credit ratings are shown in the table above. Each of these ratings reflects only the view of the applicable rating agency at the time the rating was issued, and any explanation of the significance of a rating may be obtained only from the rating agency.
A security rating is not a recommendation to buy, sell or hold securities and each rating should be evaluated independently of any other rating. There is no assurance that any credit rating will remain in effect for any given period of time or that a rating will not be lowered, suspended or withdrawn entirely by the rating agency if, in the rating agency’s judgement, circumstances so warrant. ING accepts no responsibility for the accuracy or reliability of the ratings.
