ING posts 3Q12 underlying net profit of EUR 719 million

ING posts 3Q12 underlying net profit of EUR 719 million 
AMSTERDAM, THE NETHERLANDS -- (Marketwire) -- 11/07/12 --    * ING
Group's 3Q12 net result was EUR 609 million, or EUR 0.16 per share,  
  including divestments and special items. 
* Bank underlying result before tax was solid at EUR 1,021 million
despite the     negative impact of CVA/DVA, de-risking losses and
higher risk costs. The 
underlying interest margin rose to 1.33%
from 1.26% in 2Q12. 
* Insurance operating result was EUR 238 million. Underlying result
before tax     declined to EUR 44 million, including negative results
on hedges in place to     protect regulatory capital. 
* Capital ratios strengthened: Bank core Tier 1 ratio increased to
12.1%;     Insurance IGD solvency ratio rose to 249%. 
Chairman's Statement 
"During the third quarter, ING continued to deliver on its
restructuring plan
amid a challenging operating environment. We
announced the first three sales of our Asian Insurance/IM units, and
Insurance US is making strides in its IPO preparations. At the same
time, together with the Dutch State, we have made good
progress in
our constructive dialogue with the European Commission about
revisions to the restructuring plan," said Jan Hommen, CEO of ING
Group. "At ING Bank, we announced the sales of ING Direct Canada and
the UK as we sharpen our
strategic focus. We also accelerated
de-risking efforts, selling EUR 2.4 billion
of European debt
securities and releasing EUR 5 billion of RWA. The Bank posted
a
solid quarter, supported by a gain on the sale of our stake in
Capital One. At Insurance we kept hedges in place to protect
regulatory capital; however, losses
on these hedges continued to
affect results." 
"As we work to solidify strong stand-alone futures for Bank and
Insurance, we
are taking steps to increase our agility in this
uncertain environment. At Insurance Europe we are accelerating a
transformation programme at Nationale-Nederlanden to sharpen its
strategic focus and improve processes and systems. These measures,
together with delayering of support functions, will result in a
reduction in the workforce of 1,350 FTEs and annual savings of
approximately EUR 200 million by the end of 2014. At Commercial
Banking, we conducted a strategic
review and have decided to simplif
y
our business model and exit some businesses
outside of ING's home
markets. These measures will reduce the workforce by 1,000 FTEs and
lower expenses by EUR 260 million from 2015 onwards." 
"It is painful to announce such steps today, because throughout these
challenging times employees at all levels have worked tirelessly to
prepare businesses for divestment, secure strong stand-alone futures
for Bank and Insurance, and ensure that we are prepared for industry
changes and regulatory
requirements. And while our employees have
gone through a whirlwind of change
during the last four years, they
have consistently placed their highest priority
on supporting our
customers. I am grateful for these contributions and am confident
that these efforts, combined with further streamlining, will
strengthen our company for the long-term benefit of all
stakeholders." 


  Key Figures(1)
                   |                    |             |
                   |3Q2012 3Q2011 Change|2Q2012 Change|9M2012 9M2011 Change
-------------------+--------------------+-------------+--------------------
 ING Group key     |                    |             |
 figures (in EUR   |                    |             |
 million)          |                    |             |
                   |                    |             |
 Underlying result | 1,065  1,347 -20.9%| 1,224 -13.0%| 3,181  4,744 -32.9%
 before tax Group  |                    |             |
                   |                    |             |
    of which Bank  | 1,021    878  16.3%|   995   2.6%| 3,141  3,556 -11.7%
                   |                    |             |
    of which       |                    |             |
    Insurance      |    44    469 -90.6%|   229 -80.8%|    40  1,188 -96.6%
                   |                    |             |
 Underlying net    |                    |             |
 result            |   719  1,099 -34.6%| 1,045 -31.2%| 2,306  3,595 -35.9%
                   |                    |             |
 Net result        |   609  1,692 -64.0%| 1,171 -48.0%| 2,460  4,580 -46.3%
                   |                    |             |
 Net result per    |                    |             |
 share             |  0.16   0.45 -64.4%|  0.31 -48.4%|  0.65   1.21 -46.3%
 (in EUR)(2)       |                    |             |
                   |                    |             |
 Total assets (end |                    |             | 1,248  1,282  -2.7%
 of period, in EUR |                    | 1,237   0.9%|
 billion)          |                    |             |
                   |                    |             |
 Shareholders'     |                    |             |    53     45  18.8%
 equity (end of    |                    |             |
 period, in EUR    |                    |    51   4.7%|
 billion)          |                    |             |
                   |                    |             |
 Underlying return |                    |             |  6.2%  11.7%
 on equity based on|  5.6%  10.4%       |  8.5%       |
 IFRS-EU equity(4) |                    |             |
-------------------+--------------------+-------------+--------------------
 Banking key       |                    |             |
 figures           |                    |             |
                   |                    |             |
 Underlying        |                    |             |
 interest margin   | 1.33%  1.33%       | 1.26%       | 1.30%  1.37%
                   |                    |             |
 Underlying cost   | 58.7%  64.5%       | 58.4%       | 58.6%  60.1%
 income ratio      |                    |             |
                   |                    |             |
 Underlying risk   |                    |             |
 costs in bp of    |    75     49       |    72       |    69     42
 average RWA       |                    |             |
                   |                    |             |
 Core Tier 1 ratio |                    | 11.1%       | 12.1%   9.6%
                   |                    |             |
 Underlying return |                    |             |  8.1%  10.1%
 on equity based on|  7.9%   7.1%       |  7.9%       |
 IFRS-EU equity(4) |                    |             |
-------------------+--------------------+-------------+--------------------
 Insurance key     |                    |             |
 figures           |                    |             |
                   |                    |             |
 Operating result  |   238    392 -39.3%|   304 -21.7%|   800  1,309 -38.9%
 in EUR million)   |                    |             |
                   |                    |             |
 Investment margin/|                    |             |
 life general      |                    |             |
 account invested  |   130    126       |   133       |
 assets (in bps)(3)|                    |             |
                   |                    |             |
 Administrative    |                    |             | 47.8%  42.4%
 expenses /        |                    |             |
 operating income  | 47.6%  44.4%       | 46.9%       |
 (Life & ING IM)   |                    |             |
                   |                    |             |
 Und
erlying return |                    |             |  0.6%   7.0%
 on equity based on| -0.2%   9.7%       |  5.4%       |
 IFRS-EU equity(4) |                    |             |
-------------------+--------------------+-------------+--------------------

 
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. 
Investor conference call, media conference call and webcasts 
Jan Hommen, Patrick Flynn, Wilfred Nagel and Matt Rider will discuss
the results
in an analyst and investor conference call on 7 November
2012 at 9:00 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 www.ing.com. 
A media conference call will be held on 7 November 2012 at 11:00 CET.
Journalists are invited to join the conference in Q&A-mode at + 31 20
531 58 46 (NL) or +44 203 365 3210 (UK) and via live audio webcast at
www.ing.com. 
Additional information is available in the following
documents which can be downloaded from around 7:00 am CET from the
following links at www.ing.com: 
ING Group 3Q2012 Results (Full press release in PDF) 
ING Group 3Q2012 Results Analyst Presentation (PDF) 
ING Group 3Q2012 Results Quarterly Report (PDF) 
ING Group 3Q2012 Results Group Statistical Supplement (PDF) (XLS) 
ING Group 3Q2012 Results Historical Trend Data (PDF) (XLS) 
ING Groep N.V. Condensed consolidated interim financial information
for the
 period ended 30 September 2012 (PDF) 
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. 
Full 3Q12
Results press release in PDF: http://hugin.info/130668/R/1655504/535043.pdf 
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants
that: 
(i) the releases contained herein are protected by copyright and    
other applicable laws; and 
(ii) they are solely responsible for the content, accuracy and     
originality of the information contained therein. 
Source: ING Group via Thomson Reuters ONE 
[HUG#1655504] 
Investor enquiries
  T: +31 20 576 6396
  E: investor.relations@ing.com 
Press enquiries
  T: +31 20 576 5000
  E: media.relations@ing.com
 
 
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