ING Group: ING records 3Q13 underlying net profit of EUR 891 million

     ING Group: ING records 3Q13 underlying net profit of EUR 891 million

Group underlying net profit of EUR 891 million from EUR 844 million in 3Q12
and EUR 957 million in 2Q13
· 3Q13 net profit EUR 101 million, or EUR 0.03 per share, including
  discontinued operations, special items and divestment
Bank underlying result before tax of EUR 1,103 million, in line with 3Q12 but
down 3.8% sequentially
· Net interest margin rose to 1.44% in 3Q13 and the cost/income ratio for the
  first nine months of 2013 improved to 55.2%
· Risk costs declined 10.4% from 2Q13, but remained elevated at EUR 552
  million, or 80 bps of average RWA
· Core Tier 1 ratio rose to 12.4%, or 12.1% on a pro-forma basis including
  today's payment to the State and the IABF unwind
Insurance EurAsia operating result rose to EUR 218 million, up 89.6% versus
3Q12 but 14.8% lower than 2Q13
· Results driven by higher investment margin, lower expenses from the Benelux
  transformation plan and improved Non-life results
· Underlying pre-tax result of EUR 136 million; up versus 3Q12 but down
  sequentially due to seasonality of dividend income in 2Q13
· Insurance EurAsia IGD solvency ratio lower at 255% reflecting the change in
  NN Life's solvency ratio and the sale of ING Life Korea
ING is advancing further into the end phase of its restructuring programme,
which will now be completed by 2016
· EUR 1.125 billion payment to Dutch State completed today; agreement reached
  on unwinding of Illiquid Assets Back-up Facility
· Sale of ING Life Korea expected to close by year-end; ING Life Japan to be
  included within the base case IPO of ING Insurance
· ING Group's stake in ING U.S. reduced to 57%; Group double leverage covered
  by remaining stakes in ING U.S. and SulAmérica


Chairman's Statement

"ING continued to make strong progress on its restructuring programme in the
third quarter, advancing further into the end phase of our transformation,"
said Ralph Hamers, CEO of ING Group. "At the same time, our businesses
recorded another good set of quarterly results while delivering on our
strategic priorities."

"Under a new agreement with the European Commission, the total restructuring
of ING Group will now be completed two years earlier, by the end of 2016. The
divestment of the Asian insurance and investment management activities is
almost complete. The sale of ING Life Korea is expected to close by year-end.
We have carefully explored and evaluated several divestment options for ING
Life Japan, and have now included this business within the scope of the base
case IPO of ING Insurance. Preparations for the base case IPO are progressing
well and we will be ready to go to the market in 2014. The successful sale of
38 million ING U.S. shares in October brought our stake down to 57% and moves
us close to meeting the requirement to divest more than 50% of the U.S. by the
end of 2014. The EUR 4.8 billion of leverage in the Group holding company is
covered by the proceeds from our share sales of ING U.S. and SulAmérica this
year, together with the market values of our remaining stakes in these

"We are grateful for the support the Dutch State extended to us during the
crisis. Strong capital generation at the Bank facilitated the payment of
another tranche of core Tier 1 securities today, reducing the principal amount
of outstanding State aid to EUR 1.5 billion. We are also very pleased to have
reached an agreement with the State on the unwinding of the Illiquid Assets
Back-up Facility."

"The various performance improvement programmes and restructuring initiatives
underway across the company are on track, and the results are encouraging.
Underlying pre-tax results at ING Bank were solid at EUR 1,103 million, driven
by an increase of the net interest margin to 1.44%. Commercially, the net
inflow of funds entrusted was sound at EUR 1.9 billion. Risk costs declined
from both previous quarters, but remained elevated. Strong cost control
continues to be a priority at the Bank and is evident in the improvement of
the cost/income ratio to 55.2% for the first nine months of 2013, despite
additional restructuring charges in the third quarter from ongoing
reorganisations. The year-to-date return on IFRS-EU equity was 9.3%, within
reach of our 2015 target."

"The Bank's capital position strengthened further to a 12.1% pro-forma core
Tier 1 ratio, after today's payment to the Dutch State and including the
estimated impact from unwinding the IABF. ING Bank is continuously working to
optimise its capital structure and is already meeting most of the CRD IV
requirements. In order to reinforce our capital adequacy ahead of upcoming
regulation, we are launching exchange offers for EUR 4.7 billion of
outstanding subordinated debt into two CRD IV-compliant securities. We have
also announced our intention to call a USD 2.0 billion hybrid with an 8.5%
coupon, which will reduce our cost of capital."

"At Insurance EurAsia, both operating and underlying results improved compared
with a year ago, rising to EUR 218 million and EUR 136 million, respectively.
Third-quarter results primarily reflected a higher investment margin, lower
expenses as a result of the transformation programme in Insurance Benelux, and
better performance in Non-life. On a sequential basis, results at Insurance
EurAsia declined mainly due to seasonally higher dividend income in the second

"We are proud of the financial and strategic progress that we have achieved
this quarter. I am very determined and excited to be leading ING during this
next phase of its transformation, and am convinced that our focused, simpler
and stronger company is well positioned to help our customers and society
prosper, and to grow our business."

ING Group Key Figures
                 3Q2013 3Q2012^1   Change 2Q2013 Change 9M2013 9M2012^1 Change
Profit and loss
data (in EUR
Underlying                                               3,884    3,172  22.4%
result before     1,219    1,126     8.3%  1,307  -6.7%
 of which Bank  1,103    1,110    -0.6%  1,147  -3.8%  3,419    3,272   4.5%
 of which                                                402     -143
Insurance           136       10 1,260.0%    182 -25.3%
 of which         -20        6             -22            63       44  43.2%
Insurance Other
Underlying net      891      844     5.6%    957  -6.9%  2,837    2,289  23.9%
Net gains/losses   -950     -200             -16           -26       84
on divestments
Net result from       1      -54                           -37      -34
divested units
Net result from                                            200      472
operations          143      198             -98
Net result from                                           -140      193
operations           79      -46             -23
Insurance ING
U.S. ^ 2
Special items       -63      -83             -32          -141     -325
Net result          101      659   -84.7%    788 -87.2%  2,693    2,678   0.6%
Net result per     0.03     0.17   -82.4%   0.21 -85.7%   0.71     0.70   1.4%
share (in EUR)^3
Capital Ratios
(end of period)
Shareholders'                                               50       51  -2.1%
equity (in EUR                                50  -0.7%
ING Group                                                 7.8%    12.3%
debt/equity                                 7.2%
Bank core Tier 1                           11.8%         12.4%    12.1%
Insurance                                                 255%     265%
EurAsia IGD                                 304%
Solvency I ratio
Other Data (end
of period)
Underlying                                                7.3%     6.4%
return on equity   7.2%     6.8%            7.3%
based on IFRS-EU
Employees (FTEs,                                        75,899   78,068  -2.8%
end of period,                            75,798   0.1%
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 ING U.S. have been transferred to "net result from
discontinued operations" as of the third quarter 2013.
^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
Ralph Hamers, 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

Ralph Hamers, Patrick Flynn and Wilfred Nagel will also discuss the results in
a press conference on 6 November 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 5846
(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 3Q2013 Full press Release (PDF)
ING Group 3Q2013 Quarterly Report (PDF)
ING Group Statistical Supplement (PDF and XLS)
ING Group 3Q2013 Historical Trend Data (PDF and XLS)
ING Group 3Q2013 Analyst Presentation (PDF)
ING Group 3Q2013 Media Presentation (PDF)
ING Group Condensed consolidated interim financial information for the period
ended 30 September 2013

Information for editors:
A video interview with Ralph Hamers is available at
Footage (B-roll) of ING and quotes from the interview can be downloaded via, or requested by emailing
The ING Group 3Q2013 Analyst and Media Presentations are also available at

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 3Q2013 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 press release


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Source: ING Group via Thomson Reuters ONE
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