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ING Groep N.V. Message Board

  • jpomper jpomper Nov 9, 2012 4:19 AM Flag

    Q3 report: spin, lies, management incompetence continued

    Take a look at facts:
    1) Net group profit dropped 64%, to 609M. Compare to last year Q3 net profit: 1692M
    2) Insurance business is back in loss. Net loss is 61M, compare to last year Q3: 499M profit.
    3) Bank business at 40% net earnings collapse. Net profit dropped to 670M, compare to last year Q3: 1193M profit.

    And all this comes in despite the COF sell, and all other divestments as extra income.

    Now, take a look at what Jan Hommen said:
    "We posted solid third quarter results, particularly seen against the backdrop of the weakening economic environment."
    The truth: "We posted dismal, shameful results, despite stable and improving economic environment."

    "Insurance operating results declined to EUR 238 million, primarily driven by lower investment margin and lower nonlife results.
    The truth: "Insurance is back in loss again, despite many billions of impairments and losses in the last 3 years. Clearly, we cannot manage the insurance business."

    "We have continued to make good progress on the European Commission restructuring program."
    The truth: "We made no progress at all in the restructuring, paid down no debt despite our promise, and the discussions are stuck."

    My dear Dutch frends, is this the best guy in your country to manage ING?
    Should somebody evaluate Jan's performance, or are you all satisfied ??

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    • ING versus US Financial Sector:

      Excerpt from S&P Q4 Update:

      "Financial sector earnings estimate are a pleasant surprise: Financials are the only sector within the S&P 500 to have seen higher growth expectations since July 1, for Q3, ’12, Q4 ’12, and Q1 ’13. Here is a brief table of how Financial sector earnings estimates have tracked the last 3 months: (near column is week of Nov 2, middle column is as of October 1, 3rd column is as of July 1):

      Q3 ’12 +7.6%, +5.3%, +4.2%

      Q4 ’12 +30.2%, +28.9%, +26.6%

      Q1 ’13 +9.6%, +8.4%, +6.4%

      No other sector within the S&P 500 shows this steady progression in earnings, which might help explain the good relative strength in financials since this S&P 500 correction started in mid-September."

      Compare this evaluation with ING management's statements in Q3 report.
      The incompetence, the lies, the open admittance of stupidity is embarrassing.

      Why not hire 5 young graduate from INSEAD as a team , and replace the current management?
      They will at least try hard to bring ING back from the grave.

    • You are too soft on ING's management.
      Read what Zacks said :-)

      Disappointing 3Q for ING Groep
      By: Mark Vickery

      November 08, 2012 | Comment(s): 0

      ING Groep NV (ING - Snapshot Report) reported its third-quarter 2012 underlying net profit of €719 million ($921 million). This reflects a decline of 34.6% from €1.1 billion ($1.4 billion) of net profit recorded in the prior-year quarter.

      However, considering certain divestments and non-recurring items, the net profit came in at €609 million ($780 million) in the reported quarter, substantially declining by 64% from €1.7 billion ($2.2 billion) in the prior-year quarter.

      Higher operating expenses were the main reasons behind the company’s poor performance in the quarter. However, a healthy balance sheet and strong capital ratios were the positives.

      Performance in Detail

      Underlying income was down 18.5% on a year-over-year basis to €9583 million ($12,271 million) from €11,764 million ($15,064 million).

      Underlying operating expenses for the quarter totaled €3063 million ($3,922 million), slightly up 2.5% year over year. A rise in staff and other expenses was partially offset by a decline in intangibles amortization and impairments expenses.

      Segment Performance

      Banking: Underlying income stood at €3,813 million ($4883 million), up 10.5% from the prior-year quarter. Underlying operating expenses were almost stable at €2,237 million ($2865 million), compared with the prior-year quarter, reflecting ongoing cost-containment efforts. Underlying profit before tax stood at €1,021 million ($1307 million), up 16.3% year over year.

      Insurance: Underlying income stood at €5,807 million (7,436 million) down 31.0% from the prior-year quarter. Operating Expenses stood at €825 million (1,056 million), rising 8.1% from the year-ago quarter. The hike reflected increased staff expenses partially offset by a marginal decline in other expenses. Underlying profit before tax was €44 million ($56 million), plunging 90.6% from the prior-year quarter.

      Balance Sheet

      ING Groep’s total assets as of September 30, 2012, came in at €1,248 billion ($1,598. billion), marginally climbing 0.9% from €1,237 billion ($1,584 billion) as of June 30, 2012.

      Cash and balances with central banks came in at €28,367 million ($36,324 million) as of September 30, 2012 compared with €16,165 million ($20,699 million) as of June 30, 2012.

      Total shareholders’ equity came in at €53 billion ($68 billion), climbing 3.9% from €51 billion ($65) recorded in the prior-quarter.

      As of September 30, 2012, debt equity ratio stood at 12.3%, unchanged from June 30, 2012. This reflected stable adjusted equity as well as core debt levels of the company.

      Our Viewpoint

      We expect ING Groep’s diversified business model and sound financial position to keep contributing to its overall growth in the future. Further, the company’s de-risking efforts, coupled with expense management initiatives, are also expected to drive profitability in the years to come.

      However, we are concerned about the increasing competition, volatility in the global economy and the effects of the deepening Euro-Zone crisis on the same.

      Currently, ING Groep retains a Zacks #4 Rank, which translates into a short-term Sell rating

 
ING
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