ING records 1Q13 underlying net profit of EUR 800 million

ING records 1Q13 underlying net profit of EUR 800 million 
AMSTERDAM, NETHERLANDS -- (Marketwired) -- 05/08/13 --  
Group 1Q13 underlying net profit rose to EUR 800 million from EUR
579 million
 in 1Q12 and EUR 483 million in 4Q12 
- Net profit increased to EUR 1,804 million, or EUR 0.47 per share,
after    special items and net gains on divestments 
Bank underlying result before tax rose to EUR 1,169 million from EUR
1,151  million in 1Q12, EUR 283 million in 4Q12 
- 1Q13 underlying result before tax reflects improvement in net
interest    margin and impact of cost-saving initiatives 
- Net interest margin up to 1.38% on loan book repricing, lower
average    balance sheet and higher Financial Markets interest result 
- Operating expenses were down 8.8% from 4Q12 and stable
year-on-year;    cost/income ratio improved to 55.2% 
- Risk costs remained elevated at EUR 561 million, or 81 bps of
average RWA, 
but improved from 85 bps in 4Q12 
Insurance EurAsia 1Q13 operating result EUR 79 million, versus EUR
129 million
 in 1Q12 and EUR 161 million in 4Q12 
- Operating results continued to be affected by lower reinvestment
yields and 
a decline in Non-life results in the Netherlands 
- Investment spread declined to 94 bps from 99 bps in 4Q12, mainly
reflecting 
the low yield environment 
- Underlying result before tax improved versus both 1Q12 and 4Q12 to
EUR 85 
million due to lower impact of market-related items 
- Sales were on par with 1Q12 but jumped 18.8% from 4Q12 driven by
seasonally 
higher corporate pension renewals in NL 
Insurance ING U.S. 1Q13 operating result EUR 87 million, versus EUR
119  million in 1Q12 and EUR 137 million in 4Q12 
- Solid quarter for ongoing Insurance/IM businesses with strong net
inflows, 
higher AuM fees, and a resilient investment margin 
- Funding costs increased as more long-term debt was issued
replacing shorter-   term and internal debt in preparation for the
IPO 
- Sales grew 15.1% from 1Q12 driven by the Retirement business and
rose 15.7% 
from 4Q12 on seasonality in Employee Benefits 
- Underlying result before tax was EUR -192 million reflecting
losses on    Closed Block VA equity hedges in place to protect
capital 
ING maintained strong capital ratios; shareholders' equity rose by
EUR 2.7  billion to EUR 54.4 billion 
- Bank core Tier 1 ratio strengthened from 11.9% to 12.3% on 1Q13;
or 10.9% on    a fully-loaded Basel III basis 
- Insurance EurAsia IGD Solvency I ratio rose to 292% after
divestments; US 
capitalisation targets estimated to be met at 31
March 
- Successful NYSE listing of ING U.S. on 2 May 2013 raised EUR 0.5
billion of 
proceeds for the Group; reduced Group stake to 75% 
Chairman's Statement 
"ING has demonstrated steady progress so far this year on the Group's
restructuring, culminating with the successful IPO of our US
insurance business,
which was completed last week. The transaction
satisfied our agreement with the
European Commission to sell 25% of
the US business before the year-end deadline,
while raising EUR 0.5
billion of proceeds for the Group," said Jan Hommen, CEO
of ING
Group. 
"With that milestone completed, we are now accelerating preparations
for the
base case of an IPO of our European insurance company, with
the aim of being
ready to go to the market in 2014." 
"At the same time, the Bank has continued to show strong capital
generation,
with a Basel III core Tier 1 ratio of 10.9%, well above
our 10% target, allowing
us to plan another EUR 1.5 billion upstream
to the Group in the second quarter.
This, combined with the US IPO
proceeds, is expected to reduce the double leverage in the holding
company from EUR 7 billion to EUR 5 billion, taking us a step closer
to completing the financial and governance separation of the
banking
and insurance businesses." 
"ING Bank is also making good progress on its strategic priorities.
After taking
major strides last year to optimise the balance sheet and
de-risk the investment
portfolio, we are now comfortably meeting our
capital, funding and liquidity
targets, giving us room to selectively
grow our loan book. Net loan growth was a moderate EUR 2.5 billion in
the quarter, following a contraction in the second
half of 2012,
while net funds entrusted grew by an impressive EUR 16.5 billion." 
"Earnings at the Bank rebounded from the fourth quarter, supported by
a recovery
in the net interest margin to 138 bps as the loan book
reprices and lending margins improved. Expenses remained under
control as we continued to implement
our cost-saving initiatives,
bringing the cost/income ratio down to 55.2% versus
our target of
50-53% for 2015. Risk costs remained elevated amid the weak economic
climate in Europe, but improved compared with the fourth quarter to
81 bps of average risk-weighted assets. The return on IFRS-EU equity
for the Bank
also improved to 9.0% in the first quarter, approaching
our target range of 10-13% for 2015." 
"Total underlying net profit for the Group was EUR 800 million in the
first quarter, up 38.2% from one year ago and 65.6% from the fourth
quarter of 2012.
Results from Insurance EurAsia remained under
pressure amid the low yield environment. The ongoing businesses of
ING U.S. posted solid operating results,
driven by strong net inflows
and growth in assets under management, while underlying results were
dampened by hedge losses in the Closed Block VA as equity markets
rose." 
"As we look to the months ahead, we will continue to focus on driving
our operating performance as we prepare the companies for standalone
futures, while
keeping our customers at the heart of everything we
do." 


 
ING Group key figures
                                 |                       |
                                 |1Q2013 1Q2012(1) Change|4Q2012(1)  Change
---------------------------------+-----------------------+-----------------
 Profit and loss data (in EUR    |                       |
 million)                        |                       |
                                 |                       |
 Underlying result before tax    | 1,167       936  24.7%|      575  103.0%
                                 |                       |
 of which Bank                   | 1,169     1,151   1.6%|      283  313.1%
                                 |                       |
 of which Insurance EurAsia      |    85       -43       |      -32
                                 |                       |
 of which Insurance ING U.S.     |  -192      -199       |      304 -163.2%
                                 |                       |
 of which Insurance Other        |   104        27 285.2%|       20  420.0%
                                 |                       |
 Underlying net result           |   800       579  38.2%|      483   65.6%
                                 |                       |
 Divestments, discontinued       |                       |
 Operations and special items(2) | 1,004       149       |       997
---------------------------------+-----------------------+-----------------
 Net result                      | 1,804       728 147.8%|    1,481   21.8%
---------------------------------+-----------------------+-----------------
 Net result per share (in EUR)(3)|  0.47      0.19 147.4%|     0.39   20.5%
---------------------------------+-----------------------+-----------------
 Capital ratios (end of period)  |                       |
                                 |                       |
 Shareholders' equity (in EUR    |    5
4        46  18.7%|       52    5.1%
 billion)                        |                       |
                                 |                       |
 ING Group debt/equity ratio     | 10.8%     13.8%       |    11.3%
                                 |                       |
 Bank core Tier 1 ratio          | 12.3%     10.9%       |    11.9%
                                 |                       |
 Insurance EurAsia IGD Solvency I|  292%      231%       |     272%
 ratio                           |                       |
---------------------------------+-----------------------+-----------------
 Other data (end of period)      |                       |
                                 |                       |
 Underlying return on equity     |                       |
 based on IFRS-EU equity(4)      |  6.0%      5.0%       |     3.8%
 Employees (FTEs, end of period, |83,032    87,148  -4.7%|   84,064   -1,2%
 adjusted for divestments)       |                       |
---------------------------------+-----------------------+-----------------
( )
(1) The comparative figures of this period have been restated to reflect
    the new pension accounting requirements under IFRS which took effect
    on 1 January 2013.
(2) The results of Insurance/IM Asia have been transferred to "net result
    from discontinued operations".
(3) Result per share differs from IFRS earnings per share in respect of
    attributions to the core Tier 1 securities.
(4) Annualised underlying net result divided by average IFRS-EU equity.

 
Investor conference call, media conference call and webcasts 
Jan Hommen, Patrick Flynn and Wilfred Nagel will discuss the results
in an  analyst and investor conference call on 8 May 2013 at 9:00
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 www.ing.com. 
Jan Hommen, Patrick Flynn and Wilfred Nagel will also discuss the
results in a  press conference call on 8 May 2013 at 11:00 a.m. CET.
Journalists can  participate in the call at +31 20 531 5846 (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 at www.ing.com/qr : 
ING Group Results Full Press Release in PDF 
ING Group Analyst Presentation 
ING Group Quarterly Report 
ING Group Group Statistical Supplement 
ING Group Historical Trend Data 
Condensed consolidated interim financial  information for the period
ended 31 March  2013 
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 1Q2013 ING Group Interim
Accounts. 
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 results press release : 
http://hugin.info/130668/R/1700185/561149.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#1700185] 
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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