Jan H. M. Hommen
Thank you, and, welcome, everyone, to the ING first quarter 2012 results conference call.
First of all, let me say that we had a relatively strong first quarter, particularly when you see that against the backdrop of weakening economic environment and the ongoing sovereign debt crisis in Europe. The impact on markets and the de-risking continue to impact our results. They were down compared to the first quarter last year, but if I compare that with the Q4 of last year, significantly up, demonstrating, in particular, a strong commercial performance at both the bank and the insurance company. I will talk you through the presentation. Patrick Flynn and Wilfred Nagel and Matt Rider are here, and together, we will answer your questions afterwards.
Looking at Slide #2. You see the results. Underlying net of EUR 705 million, improvement compared to Q4, both for Bank and Insurance, but down compared to Q1 of last year. Underlying results in the Bank were up 65% up to EUR 1,126 million when I compare that with Q4, supported by lower impairments and lower de-risking losses, but despite a negative credit adjustment of EUR 304 million.Insurance recovered from Q4, and operating results were reduced at EUR 475 million. Underlying results were heavily impacted by the mark-to-market result on hedges that we use to protect our regulatory capital. Successful in protecting our capital, but it had a price in our P&L. Net result for the group were EUR 680 million. That included a gain on the sale of ING Direct U.S. That was EUR 489 million. Also included a charge in provision that we are taking for potential settlements of an investigation that we have been working with U.S. authorities into transactions that were conducted by our Commercial Bank prior to 2007. Capital ratios remained strong. ING core Tier 1 ratio is up to 10.9%, and the insurance IGD remains stable at 225%.