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

ING posts 2012 underlying net profit of EUR 2,603 million 
AMSTERDAM, NETHERLANDS -- (Marketwire) -- 02/13/13 --  
* 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 stakeholders." 


 
  Key Figures(1)
                       | 4Q    4Q        | 3Q          | FY   FY
                       |2012  2011 Change|2012   Change|2012 2011 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%|
 billion)              |                 |             |
                       |                 |             |
 Shareholders' equity  |                 |             |   54     47  16.5%
 (end of period, in EUR|                 |    53   2.8%|
 billion)              |                 |             |
                       |                 |             |
 Underlying return on  |                 |             | 5.2%   6.5%
 equity based on IFRS- |2.8% -6.9%       |  5.4%       |
 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%
 ratio                 |                 |             |
                       |                 |             |
 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 IFRS- |0.3%   5.7%       |  7.6%       |
 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 IFRS- |5.1% -22.2%       | -0.2%       |
 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  20 531 5846 (NL) or  203 365 3210 (UK) and via
live audio webcast at www.ing.com. 
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  20 794 8500 (NL),  207 190 1537 (UK) or  480
629 9031 (US) 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 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. 
PDF version of full press release:
http://hugin.info/130668/R/1677603/547166.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#1677603] 
Investor enquiries
T:  20 576 6396
E: investor.relations@ing.com 
Press enquiries
T:  20 576 5000
E: media.relations@ing.com
 
 
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