ING records 2Q13 underlying net profit of EUR 942 million

ING records 2Q13 underlying net profit of EUR 942 million 
AMSTERDAM, THE NETHERLANDS -- (Marketwired) -- 08/07/13 --  Group
underlying net profit at EUR 942 million from EUR 800 million in 1Q13
and EUR 1,109 million in 2Q12 
- 2Q13 net profit EUR 788 million, or EUR 0.21 per share, including 
  discontinued operations, special items and divestments 
Bank underlying result before tax up 13.5% vs. 2Q12 to EUR 1,147
million; declines 1.9% from seasonally strong 1Q13 
- Net interest margin continued to improve, rising to 1.42%
supported by higher savings margins 
- Ongoing cost-containment programmes yielded further savings and
the cost/income ratio improved to 54.3% 
- Risk costs remained elevated at EUR 616 million, or 89 bps of 
average RWA, versus 73 bps in 2Q12 and 81 bps in 1Q13 
Insurance EurAsia operating result rose to EUR 256 million, up 26.1%
versus 2Q12 and more than triple 1Q13 
- Operating result supported by cost reductions from transformation
programme, improved Non-life result and lower funding costs 
- Investment spread unchanged at 94 bps as both average life general
account assets and average investment income were stable 
- Underlying result before tax of Insurance EurAsia improved
significantly both year-on-year and sequentially to EUR 182 million 
Insurance ING U.S. operating result rose to EUR 140 million, from
EUR 102 million in 2Q12 and EUR 87 million in 1Q13 
- Operating result increased driven by growth in fees and
premium-based revenues and a higher technical margin 
- 2Q13 showed continued strength in net inflows in the Retirement
and Investment Management businesses 
- Underlying result before tax was EUR -19 million reflecting losses
on Closed Block VA equity hedges in place to protect capital 
ING maintained strong capital ratios; shareholders' equity ended the
quarter at EUR 49.9 billion 
- Bank core Tier 1 ratio remained strong at 11.8% following EUR 1.8
billion capital upstream to ING Group in the second quarter 
- Insurance EurAsia IGD Solvency I ratio improves to 304%; estimated
combined RBC ratio for ING U.S. was 454% at 30 June 
- Given ING's priority to repay the Dutch State, an interim dividend
on common shares will not be paid in 2013 
Chairman's Statement 
"ING has made good progress so far this yea
r as we work to improve
our operational performance, execute our restructuring and prepare our
banking and insurance companies for independent futures," said Jan
Hommen, CEO of ING Group."We successfully completed the IPO of our
U.S.-based retirement, investment and insurance business in May. The
proceeds from the IPO, along with a capital upstream from the Bank,
have reduced the leverage in the Group holding company to EUR 4.4
billion, which is covered by the value of our remaining stake in ING
U.S. today. We completed the merger of the commercial operations of
WestlandUtrecht Bank with Nationale-Nederlanden Bank on 1 July,
paving the way to divest these operations as part of the Insurance
Europe IPO." 
"The financial performance in all three business segments was robust
in the second quarter. ING Bank posted solid underlying pre-tax
results of EUR 1,147 million, despite higher risk costs reflecting
the challenging economic climate. Savings inflow remained strong,
with net funds entrusted growth of EUR 6.5 billion, while the net
interest margin improved to 1.42%. Cost-containment efforts helped
reduce the cost/income ratio to 54.3% and the return on equity for
the first six months increased to 9.3%, approaching our Ambition 2015
target of 10-13%." 
"The operating results of Insurance EurAsia showed substantial
improvement both
year-on-year and sequentially. The European business
has been accelerating its transformation programme to be ready for a
base case IPO in 2014. The programme has already yielded cost savings
that supported the second-quarter results together with an
improvement in the Non-life result and lower funding costs. To
expedite the IPO process, ING U.S. will be transferred out of ING
Insurance (ING Verzekeringen N.V.), clearing the way to use ING
Insurance as the IPO entity." 
"In its first quarter as a public company, ING U.S. continued to
generate robust net inflows from the Retirement and Investment
Management businesses, contributing to higher fees and premium-based
revenues, which drove this quarter's solid operating performance. The
strength of the U.S. franchise is evident in the 50% appreciation of
its stock price since the IPO, bringing the current market value of
ING's remaining 71% stake in the company to EUR 4.5 billion." 
"I am extremely proud of what our people have achieved this quarter
and over the past years, through an exceptional period of change
within our company and in the financial industry. Every step of the
way, we have tried to keep the interests of our customers as our
first priority. I am grateful for the support of our employees and
consider myself privileged to have been given the opportunity to
serve as their leader during this period of enormous change. On 1
October, Ralph Hamers will take over from me as CEO of ING Group.
Ralph and I are working together to ensure a smooth transition, and I
am confident that he will continue the drive to build strong,
sustainable futures for our businesses, while placing the highest
priority on the needs of our customers." 


 
 
ING Group Key Figures
             |                        |              |
             |2Q2013 2Q2012(1)  Change|1Q2013  Change|1H2013 1H2012  Change
-------------+------------------------+--------------+---------------------
 Profit      |                        |              |
and loss     |                        |              |
data (in EUR |                        |              |
 million)    |                        |              |
             |                        |              |
 Underlying  |                        |              | 2,453  2,240    9.5%
 result      |                        |              |
 before      | 1,288     1,305   -1.3%| 1,167   10.4%|
 tax         |                        |              |
             |                        |              |
    of which |                        |              |
 Bank        | 1,147     1,011   13.5%| 1,169   -1.9%| 2,316  2,162    7.1%
             |                        |              |
    of which |                        |              |   266   -153
 Insurance   |   182      -110        |    85  114.1%|
 EurAsia     |                        |              |
             |                        |              |
    of which |                        |              |  -211    195 -208.2%
 Insurance   |                        |              |
 ING U.S.    |   -19       394 -104.8%|  -192        |
             |                        |              |
             |                        |              |
    of which |   -22        10 -320.0%|   104 -121.2%|    82     37  121.6%
 Insurance   |                        |              |
 Other       |                        |              |
             |                        |              |
 Underlying  |   942     1,109  -15.1%|   800   17.8%| 1,742  1,687    3.3%
 net result  |                        |              |
             |                        |              |
 Divestments,|                        |              |   852    334
 discontinued|  -155       183        | 1,004        |
 operations  |                        |              |
 and special |                        |              |
 items(2)    |                 
       |              |
-------------+------------------------+--------------+---------------------
 Net result  |   788     1,293  -39.1%| 1,804  -56.3%| 2,592  2,020   28.3%
-------------+-----------------------+-------------+-----------------------
 Net result  |                        |              |
 per share   |                        |              |  0.68   0.53   28.3%
(in EUR) (3) |                        |              |
             |  0.21      0.34  -38.2%|  0.47  -55.3%|
-------------+------------------------+--------------+---------------------
 Capital     |                        |              |
 Ratios      |                        |              |
 (end of     |                        |              |
 period)     |                        |              |
             |                        |              |
Share        |                        |              |
-holders'    |                        |              |    50     49    2.8%
 equity (in  |                        |    54   -8.4%|
 EUR billion)|                        |              |
             |                        |              |
 ING Group   |                        |              |  7.2%  12.3%
 debt/equity |                        | 10.8%        |
 ratio       |                        |              |
             |                        |              |
 Bank core   |                        | 12.3%        | 11.8%  11.1%
 Tier 1 ratio|                        |              |
             |                        |              |
 Insurance   |                        |              |  304%   260%
 EurAsia IGD |                        |  292%        |
 Solvency I  |                        |              |
 ratio       |                        |              |
-------------+------------------------+--------------+---------------------
 Other Data  |                        |              |
 (end        |                        |              |
 of period)  |                        |              |
             |                        |              |
 Underlying  |                        |              |  6.6%   7.2%
 return on   |                        |              |
 equity      |  7.2%      9.4%        |  6.0%        |
 based on    |                        |              |
 IFRS-EU     |                        |              |
 equity(4)   |                        |              |
             |                        |              |
 Employees   |                        |              |
 (FTEs,      |                        |              |82,643 86,648   -4.6%
 end of      |                        |              |
 period,     |                        |83,032   -0.5%|
 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, press conference and webcast 
Jan Hommen, Patrick Flynn and Wilfred Nagel will discuss the results
in an analyst and investor conference call on 7 August 2013 at 9:00
a.m. CET. Members of the investment community can join the conference
call at 20 794 8500 (NL),  20 7190 1537 (UK) or  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 on 7 August 2013 at 11:00 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 5857 (NL) or 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 2Q2013 Full press Release (PDF) 
ING Group 2Q2013 Quarterly Report (PDF) 
ING Group Statistical Supplement (PDF and XLS) 
ING Group 2Q2013 Historical Trend Data (PDF and XLS) 
ING Group 2Q2013 Analyst Presentation (PDF) 
ING Group 2Q2013 Media Presentation (PDF) 
ING Group Condensed consolidated interim financial information for
the period ended 30 June 2013 
ING Bank Condensed consolidated interim financial information for
the period ended 30 June 2013 
ING Insurance Condensed consolidated interim financial information
for  the period ended 30 June 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 2Q2013 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, a
nd, 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/1721574/573358.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#1721574] 
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