ING posts 2012 underlying net profit of EUR 2,603 million

Wed Feb 13, 2013 12:59am EST

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*ING Group's full-year 2012 net result was EUR 3,894 million, or EUR 1.03 per share, including
divestments, discontinued operations and special items. The 4Q12 net result was EUR 1,434 million,
or EUR 0.38 per share. The 4Q12 underlying net result was EUR 373 million, reflecting a solid
quarter at Insurance and lower Bank results due to incidental items and the Dutch bank tax. 
*Bank 4Q12 underlying result before tax was EUR 184 million, reflecting negative CVA/DVA
adjustments, de-risking losses and the Dutch bank tax. The interest margin was relatively stable
at 1.33% versus 3Q12 while risk costs increased slightly to EUR 588 million. 
*Insurance 4Q12 operating result improved versus 3Q12 to EUR 296 million as the investment spread
strengthened to 132 bps. Sales grew 12.7% from 4Q11 and 23.6% from 3Q12 at constant currencies.
Underlying result before tax rose to EUR 272 million.

Chairman's Statement
"2012 was a transformational year for ING as we worked decisively on the restructuring of the
Group, preparing the Bank and Insurance companies for independent futures," said Jan Hommen, CEO
of ING Group. "In the fourth quarter we announced two major divestments of our Asian Insurance/IM
businesses. We filed the IPO registration statement for our US insurance business, and we reached
an agreement with the European Commission which gives us more time and greater flexibility for
restructuring. The Bank made strides in optimising its balance sheet and generating capital to
meet Basel III requirements while funding a payment of EUR 1.125 billion to the Dutch State and
upstreaming an additional EUR 1 billion to the Group to reduce core debt." 

"Results for the year held up well, despite the sovereign debt crisis in Europe and weak economic
climate which persisted throughout 2012. Underlying net results for the Group were EUR 2,603
million, down just 5.2% from 2011, despite EUR 626 million of de-risking losses at the Bank, a EUR
175 million Dutch bank tax, and higher loan losses as the economy weakened. At Insurance,
de-risking and low interest rates put pressure on investment returns, but underlying results
recovered as market-related items diminished." 

"As the environment around us changes, ING is also evolving as we work to meet our customers'
rapidly changing needs and to achieve operational excellence. In the Netherlands as well as in
Belgium, we have made great progress in improving service and investing in IT as customers move
swiftly towards mobile banking. As our business model evolves, so must our organisation. Retail
Banking Netherlands is expanding the transformation programme started in 2011, leading to
approximately 1,400 additional redundancies by the end of 2015 and reducing expenses by an
additional EUR 120 million per annum from 2016 onwards. At ING Bank in Belgium, employee headcount
is expected to decline by 1,000 FTEs by 2015, through natural attrition, leading to EUR 150
million in annual cost savings by 2015. These initiatives come on top of measures announced in
Commercial Banking and Insurance Europe last quarter. Combined, all of these programmes accounted
for EUR 452 million in after-tax restructuring provisions booked in 2012, but they are essential
to drive future performance, reducing annual expenses by a combined EUR 1 billion by 2015." 

"Amid all of the changes we are going through, our employees have demonstrated consistent
dedication and commitment to keeping our customers' needs paramount. As we embark on 2013, the
economic climate remains challenging, and we must be agile to respond quickly to the dynamic
environment so that we can deliver sustainable results for the long-term benefit of all

 Key Figures1                                                                                                                       
                                                                     4Q2012  4Q2011  Change  3Q2012  Change  FY2012  FY2011  Change 
 ING Group key figures (in EUR million)                                                                                             
 Underlying result before tax Group                                     455    -849           1,028  -55.7%   3,530   3,803   -7.2% 
 of which Bank                                                          184     664  -72.3%     983  -81.3%   3,219   4,128  -22.0% 
 of which Insurance                                                     272  -1,513              44  518.2%     311    -325         
 Underlying net result                                                  373    -785             692  -46.1%   2,603   2,746   -5.2% 
 Net result                                                           1,434   1,186   20.9%     609  135.5%   3,894   5,766  -32.5% 
 Net result per share (in EUR)2                                        0.38    0.31   22.6%    0.16  137.5%    1.03    1.52  -32.2% 
 Total assets (end of period, in EUR billion)                                                 1,248   -6.4%   1,169   1,279   -8.6% 
 Shareholders' equity (end of period, in EUR billion)                                            53    2.8%      54      47   16.5% 
 Underlying return on equity based on IFRS-EU equity3                  2.8%   -6.9%            5.4%            5.2%    6.5%         
 Banking key figures                                                                                                                
 Interest margin                                                      1.33%   1.38%           1.34%           1.32%   1.38%         
 Underlying cost/income ratio                                         75.7%   66.8%           58.8%           62.5%   61.8%         
 Underlying risk costs in bp of average RWA                              84      62              76              73      48         
 Core Tier 1 ratio                                                                            12.1%           11.9%    9.6%         
 Underlying return on equity based on IFRS-EU equity3                  0.3%    5.7%            7.6%            5.9%    8.8%         
 Insurance key figures                                                                                                              
 Operating result (in EUR million)                                      296     349  -15.2%     237   24.9%   1,095   1,658  -34.0% 
 Investment margin/life general account invested assets (in bps) 4      132     129             130                                 
 Administrative expenses / operating income (Life & ING IM)           46.5%   46.2%           47.6%           47.5%   43.3%         
 Underlying return on equity based on IFRS-EU equity3                  5.1%  -22.2%           -0.2%            1.8%   -1.1%         

The footnotes relating to 1-4 can be found on page 14 of the full press release as attached to
this message.
Note: Underlying figures are non-GAAP measures and are derived from figures according to IFRS-EU
by excluding impact from divestments and special items.

 Press conference, investor conference call and webcasts                                                                                                                                                                                                                                                                                                                                                                                 
 Jan Hommen, Patrick Flynn and Wilfred Nagel will discuss the results in a press conference on 13 February 2013 at 09:00 a.m. CET. Journalists are invited to join the conference at ING Amsterdamse Poort, Bijlmerplein 888, Amsterdam. Journalists can also join in listen-only mode at +31 20 531 5846 (NL) or +44 203 365 3210 (UK) and via live audio webcast at .  
 Jan Hommen, Patrick Flynn and Wilfred Nagel will also discuss the results in an analyst and investor conference call on 13 February 2013 at 10:30 a.m. CET. Members of the investment community can join the conference call at +31 20 794 8500 (NL), +44 207 190 1537 (UK) or +1 480 629 9031 (US) and via live audio webcast at .                                   
 Investor enquiries                                                                                                                                                                                                                                                                                                                                                                                                                      
 T: +31 20 576 6396                                                                                                                                                                                                                                                                                                                                                                                                                      
 Press enquiries                                                                                                                                                                                                                                                                                                                                                                                                                         
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 Additional information is available in the following documents which can be downloaded from around 7:00 am CET from the following links at :                                                                                                         
 ING Group 4Q2012 Results (PDF)                                                                                                                                                                                        
 ING Group 4Q2012 Results Analyst Presentation (PDF)                                                                                                                                                                   
 ING Group 4Q2012 Results Media Presentation (PDF)                                                                                                                                                                     
 ING Group 4Q2012 Results Quarterly Report (PDF)                                                                                                                                                                       
 ING Group 4Q2012 Results Group Statistical Supplement (PDF) (XLS)  
 ING Group 4Q2012 Results Historical Trend Data (PDF) (XLS)         

 IMPORTANT LEGAL INFORMATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
 ING Group's Annual Accounts are prepared in accordance with International Financial Reporting Standards as adopted by the European Union ('IFRS-EU').                                                                                                                                                                                                                                                                                                                                                                           
 In preparing the financial information in this document, the same accounting principles are applied as in the 2011 ING Group Annual Accounts. All figures in this document are unaudited. Small differences are possible in the tables due to rounding.                                                                                                                                                                                                                                                                         
 Certain of the statements contained herein are not historical facts, including, without limitation, certain statements made of future expectations and other forward-looking statements that are based on management's current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Actual results, performance or events may differ materially from those in such       
 statements due to, without limitation: (1) changes in general economic conditions, in particular economic conditions in ING's core markets, (2) changes in performance of financial markets, including developing markets, (3) consequences of a potential (partial) break-up of the euro, (4) the implementation of ING's restructuring plan to separate banking and insurance operations, (5) changes in the availability of, and costs associated with, sources of liquidity such as interbank funding, as well as conditions 
 in the credit markets generally, including changes in borrower and counterparty creditworthiness, (6) the frequency and severity of insured loss events, (7) changes affecting mortality and morbidity levels and trends, (8) changes affecting persistency levels, (9) changes affecting interest rate levels, (10) changes affecting currency exchange rates, (11) changes in investor, customer and policyholder behaviour, (12) changes in general competitive factors, (13) changes in laws and regulations, (14) changes  
 in the policies of governments and/or regulatory authorities, (15) conclusions with regard to purchase accounting assumptions and methodologies, (16) changes in ownership that could affect the future availability to us of net operating loss, net capital and built-in loss carry forwards, (17) changes in credit-ratings, (18) ING's ability to achieve projected operational synergies and (19) the other risks and uncertainties detailed in the Risk Factors section contained in the most recent annual report of ING 
 Groep N.V. Any forward-looking statements made by or on behalf of ING speak only as of the date they are made, and, ING assumes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information or for any other reason. This document does not constitute an offer to sell, or a solicitation of an offer to buy, any securities.                                                                                                                                            

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