ING Bank Śląski | Annual Report 2014

ING BANK ŚLĄSKI

ING BANK ŚLĄSKIAnnual Report 2014

Financial results
Selected quarterly data

Selected quarterly data for past 8 years are available for download in XLS file

Download
Interactive tables

Compare the presented data over the years and in the form of graphs

VIEW

8. General and administrative expenses

View the data in terms of 8-year-period

  2014 2013
Personnel expenses, of which: 947.5 926.6
  - wages and salaries, including: 794.8 776.1
     - variable remuneration programme 27.8 18.5
     - ING Group’s incentive programme 1.9 4.9
     - retirement benefits 2.2 2.7
  - employee benefits 152.7 150.5
General and administrative expenses, of which: 807.1 777.8
  - maintenance, refurbishment and rental of buildings 266.2 250.5
  - cost of marketing and promotion 109.7 98.0
  - IT costs 103.0 125.8
  - consulting 68.8 75.4
  - material and leasing costs 68.5 59.4
  - obligatory fee for the Bank Guarantee Fund 54.1 49.3
  - cash handling services 37.3 39.0
  - other 99.5 80.4
Depreciation and amortisation, of which: 175.1 164.0
  - on property, plant and equipment 101.7 90.1
  - on intangible assets 73.4 73.9
Total 1,929.7 1,868.4

8.1. Employee benefits

8.1.1. Variable Remuneration Programme

In 2014, the Variable Remuneration Programme initiated in 2012, was continued. The Programme is addressed to:

  • persons holding managerial positions having material impact on the Group risk profile (to satisfy the requirements of PFSA Resolution No. 258/2011) and
  • employees displaying special potential and skills (part involving the grant of a financial instrument).

Benefits will be granted to the employees covered with the Programme, based on their performance appraisal for a given year. The Programme description and characteristics are included in Chapter IV. Significant accounting principles in item 12.3.3. Variable Remuneration Programme Benefits.
The below table presents basic information about the Programme addressed to persons holding managerial positions having material impact on the Group risk profile.

Programme 2012
Number of shares Value of shares
(in mio PLN)
Number of non-deferred shares - held 1 year (assigned in 2013 – payable in 2014) Number of deferred shares total Phantom stock - 1 year of deferral (assigned in 2014 – payable in 2015) Phantom stock - 2 years of deferral (assigned in 2015 – payable in 2016) Phantom stock - 3 years of deferral (assigned in 2016 – payable in 2017) Stock price median for period from 10 Oct 2014 to 20 Nov 2014
38,709 5.5 - 38,709 12,887 12,902 12,920 142.00
Programme 2013
Number of shares Value of shares
(in mio PLN)
Number of non-deferred shares - held 1 year (assigned in 2014 – payable in 2015) Number of deferred shares total Phantom stock - 1 year of deferral (assigned in 2015 – payable in 2016) Phantom stock - 2 years of deferral (assigned in 2016 – payable in 2017) Phantom stock - 3 years of deferral (assigned in 2017 – payable in 2018) Stock price median for period from 10 Oct 2014 to 20 Nov 2014
82,777 11.8 49,735 33,042 10,996 11,014 11,032 142.00
Programme 2014
Number of shares Value of shares
(in mio PLN)
Number of non-deferred shares - held 1 year (assigned in 2015 – payable in 2016) Number of deferred shares total Phantom stock - 1 year of deferral (assigned in 2016 – payable in 2017) Phantom stock - 2 years of deferral (assigned in 2017 – payable in 2018) Phantom stock - 3 years of deferral (assigned in 2018 – payable in 2019) Stock price median for period from 10 Oct 2014 to 20 Nov 2014
78,175 11.1 46,942 31,233 10,395 10,411 10,427 142.00
8.1.2. Incentive programme’s ING Group

To the end of 2012 the Group participated in the long-term incentive programme’s Group ING LSPP (Longterm Sustainable Performance Plan), formerly known as LEO (Long-term Equity Ownership). Description of system variants is included in Chapter IV. Significant accounting principles in the item  12.3.2. ING Group long-term incentive system benefits.

As at the balance sheet date, the Group recognises in its books the measurement of instruments held by Group employees. The fair value of options granted is recognised as personnel expenses (on the other side of the balance sheet – in capitals) and is allocated throughout the vesting period. 

The table below presents the parameters taken into account in the valuation model in the years 2014 and 2013:

  2014 2013
  min max min max
risk free interest rate 2.02% 4.62% 2.02% 4.62%
expected term of realisation 5 years 9 years 5 years 9 years
current share price 2.9 EUR 26.05 EUR 2.9 EUR 26.05 EUR
expected volatility of the certificates of shares 25% 84% 25% 84%
expected dividends 0.94% 8.99% 0.94% 8.99%

 

Changes in option rights outstanding
  Options outstanding
(in numbers)
Weighted average exercise price
(in euros)
  2014 2013 2014 2013
Opening balance 653,065 732,183 14.08 13.26
  - transferred -104,638 37,312 7.10 12.41
  - made 57,052 63,266 6.23 6.15
  - forfeited 6,761 12,195 12.68 13.59
  - expired 34,161 40,969 15.16 10.27
Closing balance 450,453 653,065 16.64 14.08

As per 31 Dec 2014 total options outstanding consists of 75.066 options relating to equity-settled share-based payment arrangements and 375,387 options relating to cash-settled share-based payment arrangements (as per 31 Dec 2013 109,166 and 543,899 respectively).

Range of exercise price and weighted average remaining contractual life of options outstanding and exercisable are presented In table below:

2014
Range of exercise price in euros Options outstanding as at 31 Dec 2014 Weighted average remaining contractual life Weighted average exercise price (in EUR) Options excercisable as at 31 Dec 2014 Weighted average remaining contractual life "Weighted average exercise price
(in EUR)
0.00 - 5.00 42,667 4.22 2.90 42,667 4.22 2.90
5.00 - 10.00 78,348 5.21 7.35 78,348 5.21 7.35
10.00 - 15.00 4,145 3.72 14.36 4,145 3.72 14.36
15.00 - 20.00 174,010 2.16 17.09 174,010 2.16 17.09
20.00 - 25.00 88,781 2.21 24.68 88,781 2.21 24.68
25.00 - 30.00 62,502 1.23 25.16 62,502 1.23 25.16
  450,453     450,453    

 

2013
Range of exercise price in euros Options outstanding as at 31 Dec 2013 Weighted average remaining contractual life Weighted average exercise price (in EUR) Options excercisable as at 31 Dec 2013 Weighted average remaining contractual life "Weighted average exercise price
(in EUR)
0.00 - 5.00 74,877 5.22 2.90 74,877 5.22 2.90
5.00 - 10.00 211,926 6.21 7.35 211,926 6.21 7.35
10.00 - 15.00 24,270 0.97 14.37 24,270 0.97 14.37
15.00 - 20.00 183,933 3.18 17.08 183,933 3.18 17.08
20.00 - 25.00 92,096 3.21 24.67 92,096 3.21 24.67
25.00 - 30.00 65,963 2.24 25.19 65,963 2.24 25.19
  653,065     653,065    

The aggregate intrinsic value of options outstanding and exercisable as at 31 Dec 2014 was EUR 611,000 in comparision with EUR 1,121,911 as at 31 Dec 2013.

Briefcase

Your place for bookmarking and printing favourite pages

In Briefcase: page(s)

Your favourite pages Notes      
Your favourite pages Notes      

Send your comments to this Report

×