ING Belgium SA/NV 2009 Financial Report 1 TABLE OF CONTENTS ........................................................................................................................................... 2 2 KEY FIGURES........................................................................................................................................................... 4 2.1 INCOME STATEMENT.............................................................................................................................................. 4 2.2 BALANCE SHEET .................................................................................................................................................... 4 3 REPORT OF THE BOARD OF DIRECTORS ON THE CONSOLIDATED ACCOUNTS OF ING BELGIUM SA/NV............................................................................................................................................................. 5 3.1 COMMENTS ON FINANCIAL STATEMENTS............................................................................................................... 5 3.1.1 Changes in the consolidation scope ............................................................................................................... 5 3.1.2 Consolidated income statement...................................................................................................................... 5 3.1.3 Consolidated balance sheet............................................................................................................................ 7 3.2 PROFILE:ING IN BELGIUM..................................................................................................................................... 9 3.3 SOCIAL REPORT ...................................................................................................................................................... 9 3.4 RISK MANAGEMENT ............................................................................................................................................... 9 3.5 POST-BALANCE-SHEET EVENTS .............................................................................................................................. 9 3.6 INFORMATION ON BRANCHES ............................................................................................................................... 10 3.7 RESEARCH AND DEVELOPMENT............................................................................................................................ 10 3.8 INFORMATION CONCERNING THE USE OF FINANCIAL INSTRUMENTS ..................................................................... 10 3.9 OUTLOOK............................................................................................................................................................. 10 3.10 LEGAL STIPULATIONS REGARDING THE COMPOSITION OF THE AUDIT COMMITTEE ........................................... 10 4 ING BELGIUM SA AND THE RULES OF CORPORATE GOVERNANCE................................................... 11 4.1 CURRENT STATE OF AFFAIRS ................................................................................................................................11 4.2 ING BELGIUM'S POSITION REGARDING THE BELGIAN CORPORATE GOVERNANCE CODE ..................................... 11 4.3 BOARD OF DIRECTORS ......................................................................................................................................... 12 4.4 EXECUTIVE COMMITTEE ...................................................................................................................................... 14 5 ING BELGIUM’S SUPERVISORY, EXECUTIVE AND EXTERNAL AUDIT BODIES ............................... 15 5.1 BOARD OF DIRECTORS ......................................................................................................................................... 15 5.2 STATUTORY AUDITOR.......................................................................................................................................... 16 5.3 EXECUTIVE COMMITTEE ...................................................................................................................................... 16 6 INFORMATION ABOUT THE COMPANY ........................................................................................................ 17 7 CONSOLIDATED ANNUAL ACCOUNTS........................................................................................................... 19 7.1 CONSOLIDATED BALANCE SHEET ........................................................................................................................ 20 7.2 CONSOLIDATED INCOME STATEMENT................................................................................................................... 21 7.3 STATEMENT OF CASH FLOW................................................................................................................................. 22 7.4 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY .......................................................................................... 25 7.5 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME ................................................................................. 27 7.6 INFORMATION ON THE CONSOLIDATED ACCOUNTS............................................................................................... 30 7.6.1 Statement of compliance with IFRS.............................................................................................................. 30 7.6.2 Corporate information ................................................................................................................................. 30 7.6.3 Basis of presentation .................................................................................................................................... 30 7.6.4 Accounting policies ...................................................................................................................................... 36 7.6.5 Risk management.......................................................................................................................................... 48 7.6.6 Capital management .................................................................................................................................... 64 ING Belgium SA/NV – Financial Report 2009 2 7.7 NOTES TO THE CONSOLIDATED ACCOUNTS........................................................................................................... 71 7.7.1 Notes to the consolidated balance sheet....................................................................................................... 71 Note 1: Cash and balances with central banks .....................................................................................................................71 Note 2: Financial assets held for trading..............................................................................................................................71 Note 3: Financial assets designated at fair value through profit or loss ...............................................................................71 Note 4: Financial assets available for sale ...........................................................................................................................72 Note 5: Loans and receivables .............................................................................................................................................72 Note 6: Derivatives used for hedging...................................................................................................................................73 Note 7: Property, plant and equipment ................................................................................................................................73 Note 8: Investment property ................................................................................................................................................75 Note 9: Goodwill and other intangible assets.......................................................................................................................75 Note 10: Deferred tax assets ..................................................................................................................................................76 Note 11: Investments in associates, subsidiaries and joint ventures ......................................................................................78 Note 12: Other assets.............................................................................................................................................................79 Note 13: Disposal Group .......................................................................................................................................................80 Note 14: Financial liabilities held for trading ........................................................................................................................81 Note 15: Financial liabilities designated at fair value through profit or loss..........................................................................81 Note 16: Financial liabilities measured at amortised cost......................................................................................................81 Note 17: Financial liabilities associated with transferred assets ............................................................................................82