ING Group : ING records 1Q13 underlying net profit of EUR 800 million

    ING Group : ING records 1Q13 underlying net profit of EUR 800 million

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    1,004      149             997
and special items^2
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 billion)      54       46  18.7%       52    5.1%
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 ratio   292%     231%            272%
Other data (end of period)
Underlying return on equity based on     6.0%     5.0%            3.8%
IFRS-EU equity^4
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.

Investor enquiries
T: +31 20 576 6396
E: investor.relations@ing.com
Press enquiries
T: +31 20 576 5000
E: media.relations@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

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