ING Group : ING records 2Q13 underlying net profit of EUR 942 million

    ING Group : ING records 2Q13 underlying net profit of EUR 942 million

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 year 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

"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

"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
Underlying result  1,288    1,305   -1.3%  1,167   10.4%  2,453  2,240    9.5%
before tax
 of which Bank   1,147    1,011   13.5%  1,169   -1.9%  2,316  2,162    7.1%
 of which          182     -110             85  114.1%    266   -153
Insurance EurAsia
 of which                                                -211    195 -208.2%
Insurance ING        -19      394 -104.8%   -192
 of which          -22       10 -320.0%    104 -121.2%     82     37  121.6%
Insurance Other
Underlying net       942    1,109  -15.1%    800   17.8%  1,742  1,687    3.3%
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      0.21     0.34  -38.2%   0.47  -55.3%   0.68   0.53   28.3%
share (in EUR)^3
Capital Ratios
(end of period)
Shareholders'                                                50     49    2.8%
equity (in EUR                                54   -8.4%
ING Group                                  10.8%           7.2%  12.3%
debt/equity ratio
Bank core Tier 1                           12.3%          11.8%  11.1%
Insurance EurAsia                                          304%   260%
IGD Solvency I                              292%
Other Data (end
of period)
Underlying return                                          6.6%   7.2%
on equity based     7.2%     9.4%           6.0%
Employees (FTEs,                                         82,643 86,648   -4.6%
end of period,                            83,032   -0.5%
adjusted for

^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
^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 +31 20 794
8500 (NL), +44 20 7190 1537 (UK) or +1 480 629 9031 (US) and via live audio
webcast at

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 +31 20 531 5857 (NL) or +44
203 365 3210 (UK) 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 at
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

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, 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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Source: ING Group via Thomson Reuters ONE
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