ING Group: ING posts 2013 underlying net profit of EUR 3,255 million

     ING Group: ING posts 2013 underlying net profit of EUR 3,255 million

ING Group full-year 2013 underlying net profit of EUR 3,255 million, up 22.2%
from full-year 2012
  *  2013 net result EUR 3,232 million, or EUR 0.85 per share, including
       divestments, special items and discontinued operations
  *  4Q13 net result of EUR 539 million, or EUR 0.14 per share, vs. EUR 0.39
       in 4Q12 and EUR 0.03 in 3Q13
Bank 4Q13 underlying result before tax of EUR 904 million, more than triple
that of 4Q12 but down 18.0% sequentially
  *  Income was strong, reflecting increase in net interest margin to 1.45%
       and result on unwinding the IABF in December 2013
  *  Expenses flat vs. 4Q12, but up 10.9% vs. 3Q13 due to Dutch bank tax and
       additional restructuring charges in the Netherlands
  *  Risk costs remained elevated at EUR 560 million, but were 4.9% lower
       than in 4Q12 and up 1.4% from 3Q13
ING Insurance 4Q13 operating result ongoing businesses of EUR 215 million, up
13.2% vs. 4Q12 but down 6.9% vs. 3Q13
  *  4Q13 operating result ongoing business reflects improvement in results
       at Netherlands Life and lower funding costs
  *  Result before tax of EUR -428 million reflects Japan Closed Block VA
       one-off charge of EUR 575 million to restore reserve adequacy
  *  Total new sales at ING Insurance were EUR 292 million, up 11.9% vs.
       4Q12 and 10.6% vs. 3Q13, at constant currencies
Standalone Bank and Insurance entities well capitalised
  *  Bank core Tier 1 ratio strong at 11.7% despite payment to the Dutch
       State in November 2013 and higher risk-weighted assets
  *  ING Insurance capital reinforced through EUR 1 billion debt-for-equity
       conversion in 4Q13; IGD ratio up strongly to 252%
  *  Measures taken in 1Q14 further improved the pro-forma solvency ratio of
       NN Life to ~234%; IPO to be appropriately capitalised
  *  Given ING's priority to repay the Dutch State, the Executive Board will
       not propose to pay a dividend over 2013 at the AGM in May

Chairman's Statement

"ING Group had a successful year in 2013, delivering an improved financial
result while making significant progress on our transformation," said Ralph
Hamers, CEO of ING Group. "We reported a full-year underlying net profit of
EUR 3,255 million, up 22.2% from 2012. The improvement was driven by a solid
performance at ING Bank, which recorded a 21.6% increase in underlying pre-tax
results, as well as an improved operating result for the ongoing business at
ING Insurance which rose 6.4% from 2012."

"We have also kept up the momentum on our transformation program in the
fourth quarter, during which we resolved the divestment of our Asian Insurance
and Investment Management businesses, reduced our stake in ING U.S. to 57%,
and lowered our holding in SulAmérica. We have strengthened the capital
position of ING Insurance ahead of its intended IPO in 2014. We also reduced
our State support by paying another tranche of core Tier 1 securities in
November, and by unwinding the IABF in December 2013. We are now within the
final phase of our restructuring and have started 2014 as a simpler, stronger
and more sustainable company."

"While working diligently to strengthen our businesses for their independent
futures, we have consistently placed our highest priority on
customer-centricity and have gained more customers along the way. ING-DiBa,
for example, welcomed its 8 millionth customer in 2013 and is the third
largest retail bank in Germany by number of customers. In Spain, ING opened
its millionth payment account, eight years after the first account was opened
there. Our customers' use of internet and mobile banking are expanding rapidly
and we now have around 3 million mobile banking customers in 14 countries.
We're proud that customers choose to do business with us."

"In the fourth quarter of 2013, ING Bank posted a solid underlying result
before tax of EUR 904 million, reflecting a strengthening of the interest
margin to 1.45% and despite seasonally lower activity in Financial Markets.
The result on the unwinding of the IABF supported income in the fourth quarter
and helped offset an increase in expenses, which was caused by the annual
Dutch bank tax and additional restructuring charges in Retail Netherlands
stemming from the extension of existing cost-saving programmes. Risk costs
remained elevated and edged up slightly from the third quarter, but were down
year-on-year. ING Bank continued to demonstrate progress towards Ambition
2015. The cost/income ratio for the full year improved to 56.8% and the
full-year underlying return on IFRS-EU equity rose to 9.0%, within reach of
our 2015 target. The year-end capital position was strong with a core Tier 1
ratio of 11.7% and a pro-forma fully-loaded CRD IV core Tier 1 ratio of

"ING Insurance moved forward in defining its independent future. Its new 'NN'
brand was launched in October and the segmentation of ING Insurance was
aligned to better reflect its businesses. The fourth-quarter operating result
for the ongoing business of ING Insurance was EUR 215 million, primarily
reflecting improved performance in Netherlands Life. We have taken measures in
the fourth quarter of 2013, as well as in early 2014, to fortify the capital
position of ING Insurance. As a result, the IGD and NN Life solvency ratios
increased sharply and local entities are currently adequately capitalised.
Preparations for the base case IPO are on track and we intend to go to market
this year, assuming conditions are favourable."

"For 2014, I am confident that we are well positioned to achieve our
strategic objectives and that we will continue to make progress in completing
the restructuring, while keeping our customers at the heart of everything we

ING Group Key Figures
                 4Q2013 4Q2012^1 Change 3Q2013  Change FY2013 FY2012^1  Change
Profit and loss
data (in EUR
result before       904      283 219.4%  1,103  -18.0%  4,323    3,554   21.6%
tax ING Bank
Operating result
ongoing business    215      190  13.2%    231   -6.9%    886      833    6.4%
ING Insurance
items ongoing      -117     -185           -56           -229     -779
business ING
Japan Closed       -540      -31            70 -871.4%   -669      105 -737.1%
Block VA
result before         4       17 -76.5%     -2             89       43  107.0%
tax Insurance
result before       467      275  69.8%  1,346  -65.3%  4,400    3,756   17.1%
tax ING Group
Underlying net      405      163 148.5%    978  -58.6%  3,255    2,664   22.2%
result ING Group
Net gains/losses    -38    1,612          -950            -64    1,696
on divestments
Net result from              -50             1            -37      -84
divested units
Net result from
operations           33       78            56            220      338
Net result from
operations          179      301            79             39      495
Insurance ING
U.S. ^ 2
Special items       -40     -624           -63           -182     -949
Net result          539    1,482 -63.6%    101  433.7%  3,232    4,161  -22.3%
Net result per     0.14     0.39 -64.1%   0.03  366.7%   0.85     1.10  -22.7%
share (in EUR)^3
Capital Ratios
(end of period)
equity (in EUR                              50   -7.3%     46       52  -11.3%
ING Group
debt/equity                               7.8%           8.5%    11.3%
Bank core Tier 1                         12.4%          11.7%    11.9%
EurAsia IGD                               212%           252%     236%
Solvency I ratio
Other data (end
of period)
return on equity   3.4%     1.3%          7.9%           6.4%     5.5%
based on IFRS-EU
Employees (FTEs,
end of period,                          76,671   -0.8% 76,050   77,835   -2.3%
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 30 September 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.
NOTE: Underlying figures and Operating results are non-GAAP measures. These
are derived from figures according to IFRS-EU by excluding impact from
divestments, discontinued operations and special items and, for Operating
results only, gains/losses and impairments, revaluations and market & other

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 12 February 2014 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 9724 (US) and via live audio
webcast at

Ralph Hamers, Patrick Flynn and Wilfred Nagel will also discuss the results in
a press conference on 12 February 2014 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 4Q2013 Full press Release (PDF)
ING Group 4Q2013 Quarterly Report (PDF)
ING Group 4Q2013 Statistical Supplement (PDF and XLS)
ING Group 4Q2013 Historical Trend Data (PDF and XLS)
ING Group 4Q2013 Analyst Presentation (PDF)
ING Group 4Q2013 Media Presentation (PDF)

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 4Q2013 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. The
Financial statements for 2013 are in progress and may be subject to
adjustments from subsequent events. All figures in this document are
unaudited. Small differences are possible in the tables due to rounding.
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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The issuer of this announcement warrants that they are solely responsible for
the content, accuracy and originality of the information contained therein.
Source: ING Group via Globenewswire
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