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

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

  oING 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.
  oBank 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.
  oInsurance 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

"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 stakeholders."

Key Figures^1
                       4Q2012 4Q2011 Change 3Q2012 Change FY2012 FY2011 Change
ING Group key figures
(in EUR million)
Underlying result         455   -849         1,028 -55.7%  3,530  3,803  -7.2%
before tax Group
 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     0.38   0.31  22.6%   0.16 137.5%   1.03   1.52 -32.2%
(in EUR)^2
Total assets (end of                                       1,169  1,279  -8.6%
period, in EUR                               1,248  -6.4%
Shareholders' equity                                          54     47  16.5%
(end of period, in EUR                          53   2.8%
Underlying return on                                        5.2%   6.5%
equity based on          2.8%  -6.9%          5.4%
IFRS-EU equity^3
Banking key figures
Interest margin         1.33%  1.38%         1.34%         1.32%  1.38%
Underlying cost/income  75.7%  66.8%         58.8%         62.5%  61.8%
Underlying risk costs      84     62            76            73     48
in bp of average RWA
Core Tier 1 ratio                            12.1%         11.9%   9.6%
Underlying return on                                        5.9%   8.8%
equity based on          0.3%   5.7%          7.6%
IFRS-EU equity^3
Insurance key figures
Operating result (in      296    349 -15.2%    237  24.9%  1,095  1,658 -34.0%
EUR million)
Investment margin/life
general account           132    129           130
invested assets (in
bps) ^ 4
Administrative                                             47.5%  43.3%
expenses / operating    46.5%  46.2%         47.6%
income (Life & ING IM)
Underlying return on                                        1.8%  -1.1%
equity based on          5.1% -22.2%         -0.2%
IFRS-EU equity^3

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
T: +31 20 576 5000

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)

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.

PDF version of full press release


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