ING records 1Q14 underlying net profit of EUR 988 million

ING records 1Q14 underlying net profit of EUR 988 million


ING Group 1Q14 underlying net profit of EUR 988 million from EUR 1,170 million
in 1Q13 and EUR 493 million in 4Q13
- 1Q14 net result EUR -1,917 million, reflecting the deconsolidation of Voya
  and the impact of the Dutch pension fund changes

Bank 1Q14 underlying result before tax of EUR 1,176 million, roughly flat vs.
1Q13 but up 30.1% sequentially
- 1Q14 results driven by an increase in the net interest margin and a lower
  level of risk costs as economic conditions improved
- 10.1% fully-loaded CET1 ratio after payment to Dutch State and making closed
  defined benefit pension plan in NL independent
- ING Bank attracted EUR 8.3 billion of funds entrusted and grew net lending
  by EUR 5.1 billion during the quarter

NN Group 1Q14 operating result ongoing business of EUR 274 million, up 61.2%
vs. 1Q13 and 28.0% from 4Q13
- 1Q14 operating result ongoing business driven by solid results in
  Netherlands Life and Netherlands Non-life and lower expenses
- Result before tax of EUR -372 million, reflecting impact of making ING's
  closed defined benefit pension plan in NL independent
- New sales grew 20.6% vs. 1Q13 and 53.0% vs. 4Q13, at constant currencies;
  the latter driven mainly by seasonally high 1Q14

ING Group secures pre-IPO investments of EUR 1.275 billion and agrees final
capital structure for NN Group
- ING Group secures a total of EUR 1.275 billion in pre-IPO investments from
  three investors ahead of NN Group's intended IPO
- EUR 850 million capital injection finalises capital structure; ING Group
  confirms intended IPO to comprise only secondary offering
- Capital injection and issuance of subordinated debt will increase the IGD
  ratio of NN Group to a pro-forma 277%

Chairman's Statement

"ING Group made a strong start to 2014, posting a first-quarter underlying net
result of EUR 988 million while demonstrating good commercial growth," said
Ralph Hamers, CEO of ING Group. "At the same time, we reached significant
milestones in our restructuring plan and sharpened the strategic priorities of
our businesses to ensure they remain sustainable and competitive."

"In March, we presented our 'Think Forward' strategy for ING Bank, which
outlines the actions we are taking to secure our future as a European banking
leader, along with a focused set of financial targets for 2017. The core of
our strategy is to create a differentiating customer experience. Our
dedication to achieving high levels of customer satisfaction is evident in our
most recent net promoter scores, which indicate that ING Bank is number one
relative to its competitors in the Netherlands, Germany, Italy, Poland, Spain
and Australia, and is number two in all other core markets. We are proud of
this recognition from our customers and will continue to serve them as best as
we can. Our new Chief Operations Officer will certainly help to advance our

"ING Bank posted a solid first-quarter underlying pre-tax result of EUR 1,176
million, reflecting an increase in the net interest margin and lower risk
costs as economic conditions improved. Our consistent customer focus has
enabled us to attract EUR 8.3 billion of funds entrusted across our franchise
and to extend EUR 5.1 billion of net lending during the quarter. We are
committed to supporting our customers' financial needs and will continue to
grow lending through the economic recovery."

"Continued capital generation at ING Bank enabled us to make a penultimate EUR
1.225 billion payment to the Dutch State in March, bringing the total paid to
the State since 2008 to EUR 12.5 billion. The capital position of ING Bank
remained strong, with a fully-loaded CET1 ratio of 10.1% at the end of the
quarter. The first-quarter underlying return on IFRS-EU equity rose to 10.2%,
within the range of our Ambition 2017 target."

"At NN Group, the first-quarter operating result for the ongoing business was
EUR 274 million, a significant improvement compared with both a year ago and
the previous quarter, driven by solid results in the core Dutch businesses and
lower expenses across the organisation. Commercial momentum was strong, with
sales rising 20.6% year-on-year and 53.0% sequentially, at constant
currencies. ING Group made significant progress in finalising its preparations
for the intended IPO of NN Group, announcing last week transactions to secure
important investments from three firms. Today, we announce measures to
strengthen the company's standalone capital structure with a further EUR 850
million and confirm that the intended IPO will comprise only secondary

"In April, ING U.S. started operating under the name Voya Financial, Inc.
representing a new era for the company. We have reduced our stake in Voya to
approximately 43%, fulfilling the requirement to divest more than 50% of this
business by year-end. Although deconsolidating Voya brought us a step further
in our strategic transformation, it also triggered a EUR 2,005 million
after-tax loss. This impact, together with a EUR -1,059 million charge for
successfully completing the Dutch closed defined benefit pension plan
agreement and a EUR 202 million gain following the deconsolidation of ING
Vysya Bank, led to the Group's quarterly net loss."

ING Group key figures
                                     1Q2014 1Q2013^1 Change  4Q2013^1 Change
Profit and loss data (in EUR million)                              
Underlying result before tax          1,176  1,169    0.6%    904      30.1%
Operating result ongoing business NN  274    170      61.2%   214      28.0%
Non-operating items ongoing business  -28    15              -117     
NN Group
Japan Closed Block VA                 -36    162      -122.2% -423     n.a.
Underlying result before tax          -2     95              4        
Insurance Other
Underlying result before tax ING     1,384  1,611    -14.1%  582      137.8%
Underlying net result ING Group       988    1,170    -15.6%  493      100.4%
Net gains/losses on divestments       -1,764 939             -38      
Net result from divested units              -38                     
Net result from discontinued          5      66              33       
operations Insurance/IM Asia
Net result from discontinued          53     -195            179      
operations Voya Financial ,Inc.
Special items                         -1,200 -47             -40      
Net result                            -1,917 1,897    -201.0% 626      -406.2%
Net result per share (in EUR)^2       -0.50  0.50     -200.0% 0.16     -412.5%
Capital ratios (end of period)                                     
Shareholders' equity (in EUR billion) 45     54       -16.1%  46       -0.9%
ING Group debt/equity ratio           7.3%   10.8%           8.5%     
Bank common equity Tier 1 ratio       10.0%  n.a.            10.8%    
phased in
Bank common equity Tier 1 ratio       10.1%  n.a.            10.0%    
NN Group IGD Solvency I ratio         249%   254%            254%     
Other data (end of period)                                         
Underlying return on equity based on  8.7%   8.9%            4.1%     
IFRS-EU equity^3
Employees (FTEs, end of period,       75,606 76,868   -1.6%   76,050   -0.6%
adjusted for divestments)

^1 The figures of this period have been restated to reflect the change in
accounting policy, i.e. the move towards fair value accounting for Guaranteed
Minimum Death Benefits reserves of the Japan Closed Block VA as of 1 January
^2 Result per share differs from IFRS earnings per share in respect of
attributions to the core Tier 1 securities.
^3 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, media conference call and webcasts
Ralph Hamers, Patrick Flynn and Wilfred Nagel will discuss the results in an
analyst and investor conference call on 7 May 2014 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
Ralph Hamers, Patrick Flynn and Wilfred Nagel will also discuss the results in
a press conference call on 7 May 2014 at 11:00 a.m. CET. Journalists can join
the conference call at +31 20 531 5847 (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 Results Full Press Release in PDF
-          ING Group Analyst Presentation
-          ING Group Quarterly Report
-          ING Group Historical Trend Data
-          Condensed consolidated interim financial information for the period
           ended 31 March 2014

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 1Q2014 Analyst Presentations isalso 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 1Q2014 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.

This document does not constitute an offer to sell, or a solicitation of an
offer to purchase, any securities in the United States or any other
jurisdiction. The securities of NN Group have not been and will not be
registered under the U.S. Securities Act of 1933, as amended (the "Securities
Act"), and may not be offered or sold within the United States absent
registration or an applicable exemption from the registration requirements of
the Securities Act.

PDF version of full ING Group 1Q14 results press release

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