ING Groep N.V. — Earnings Release 2011

Nov 3, 2011

PRESS RELEASE

3 November 2011

ING 3Q11 underlying net profi t increases to EUR 1,285 million

• ING Group's 3Q11 net result was EUR 1,692 million, or EUR 0.45 per share, including divestments, discontinued operations and special items. The underlying return on IFRS-EU equity was 13.9% for the fi rst nine months of 2011.
• Bank underlying result before tax declined to EUR 1,063 million, including EUR 267 million of impairments on Greek government bonds. The net interest margin narrowed to 1.37%, primarily due to lower Financial Markets results. Risk costs rose to EUR 438 million, or 55 bps of average RWA. Operating expenses declined for the third straight quarter and were 2.9% lower year-on-year. The underlying cost/income ratio was 55.8%, excluding market impacts.
• Insurance operating result rose 27.0% to EUR 527 million, driven by a higher investment margin and higher fees and premium-based revenues. The investment spread increased to 104 bps. Sales (APE) grew 6.5% from 3Q10 and 5.2% from 2Q11, excluding currency effects. The underlying result before tax was EUR 561 million, supported by signifi cant hedging gains which more than offset impairments, including EUR 200 million on Greek government bonds.
• ING maintained strong capital ratios in the third quarter. ING Bank's core Tier 1 ratio strengthened to 9.6%. The Insurance IGD solvency ratio was 242%.

Chairman's Statement

"The third quarter saw a marked deterioration on debt and equity markets amid a slowdown in the macroeconomic environment and a deepening of the sovereign debt crisis in Europe. In this challenging environment ING's earnings remained resilient, and our strong funding position enabled us to continue to increase lending to support our customers in these uncertain times," said Jan Hommen, CEO of ING Group. "We continued to take a prudent approach to risk, increasing hedging to preserve capital and selectively reducing exposures to southern Europe. Results were impacted by EUR 467 million in pre-tax impairments on Greek government bonds as all bonds were impaired to market value."

"As income is coming under pressure, we must renew efforts to reduce expenses across the Group to adapt to the leaner environment and maintain our competitive position. In Retail Banking Netherlands we are taking decisive steps to reduce costs by decreasing overhead and improving effi ciency through operational excellence. It is inevitable that these measures will lead to redundancies of approximately 2,000 internal FTEs and 700 external FTEs, but we will do our utmost to implement the measures with care."

"Despite the volatile market environment, we continue to work towards the separation of our insurance companies so we will be ready to move ahead with the IPOs when markets recover. Regulatory approvals are underway to create a separate holding company for our European and Asian insurance and investment management activities, and today we announced the creation of a management board for these operations. As we continue to advance on these priorities and our Ambition 2013 performance plans, we will remain focused on providing our customers with the exemplary service and products they need to manage their fi nancial futures during these uncertain times."

Key Figures1
	3Q2011	3Q20102	Change	2Q2011	Change	9M2011	9M20102	Change
ING Group key fi gures (in EUR million)
Underlying result before tax Group	1,624	1,220	33.1%	1,977	-17.9%	5,725	4,185	36.8%
of which Bank	1,063	1,494	-28.8%	1,304	-18.5%	4,061	4,383	-7.3%
of which Insurance	561	-274		673	-16.6%	1,663	-198
Underlying net result	1,285	835	53.9%	1,528	-15.9%	4,276	2,984	43.3%
Net result	1,692	239	607.9%	1,507	12.3%	4,580	2,680	70.9%
Net result per share (in EUR)3	0.45	0.06	650.0%	0.40	12.5%	1.21	0.71	70.4%
Total assets (end of period, in EUR billion)				1,241	3.4%	1,282	1,261	1.7%
Shareholders' equity (end of period, in EUR billion)				40	10.5%	45	42	5.7%
Underlying return on equity based on IFRS-EU equity4	12.1%	8.0%		15.2%		13.9%	10.2%
Banking key fi gures
Interest margin	1.37%	1.41%		1.42%		1.41%	1.40%
Underlying cost/income ratio	61.3%	56.8%		59.2%		58.3%	55.6%
Underlying risk costs in bp of average RWA	55	44		47		48	53
Core Tier 1 ratio				9.4%		9.6%	9.0%
Underlying return on equity based on IFRS-EU equity4	8.6%	13.0%		11.7%		11.4%	13.0%
Insurance key fi gures
Operating result ( in EUR million)	527	415	27.0%	690	-23.6%	1,728	1,162	48.7%
Investment margin / life general account assets (in bps)	104	84		99
Administrative expenses / operating income (Life & ING IM)	40.7%	43.9%		38.0%		39.5%	44.1%
Underlying return on equity based on IFRS-EU equity4	10.9%	-4.6%		11.3%		9.3%	-0.9%

The footnotes relating to 1-4 can be found on page 15 of this press release.

Note: Underlying fi gures are non-GAAP measures and are derived from fi gures according to IFRS-EU by excluding impact from divestments and special items.

ING GROUP CONSOLIDATED RESULTS

ING Group posted an underlying net profi t of EUR 1,285 million in the third quarter, up 53.9% from the third quarter of 2010, due to a signifi cant improvement at Insurance, which reported a loss one year ago. On a sequential basis underlying net results were 15.9% lower, refl ecting the impact of volatile fi nancial markets, a weakening macroeconomic environment and further impairments on Greek sovereign debt.

Third-quarter results include EUR 467 million of pre-tax impairments on Greek sovereign debt. This refl ects further market declines of securities impaired in the second quarter of 2011 as well as new impairments of bonds maturing in 2020 and beyond following the outcome of the EC meeting on 26 October 2011. As a result, all Greek government bonds are now impaired to the 30 September 2011 market value, which represents a write-down of approximately 60%.

ING Bank reported an underlying result before tax of EUR 1,063 million, down 28.8% from the third quarter of last year and 18.5% lower than the second quarter of 2011. The decline in results compared with both periods was mainly caused by EUR 267 million of impairments on Greek government bonds and a sharp decline in the Financial Markets results of Commercial Banking, refl ecting sustained weakness in fi xed income and equity markets. The interest margin narrowed to 1.37%, down four basis points from one year ago and fi ve basis points lower than the previous quarter, partly due to Financial Markets. Risk costs rose compared with both periods, primarily due to further provisioning for some large, existing nonperforming fi les. Operating expenses declined both yearon-year, and sequentially.

The net production of client balances at ING Bank was positive for the ninth straight quarter. Total funds entrusted at ING Bank increased by EUR 6.5 billion in the third quarter despite increased competition for savings. Funds entrusted at Retail Banking grew by EUR 1.0 billion, driven by net infl ows at ING Direct and Retail Central Europe. Commercial Banking reported a net increase in funds entrusted of EUR 5.5 billion, consisting mainly of shortterm deposits from asset managers and corporate treasuries. The net production of residential mortgages was EUR 5.4 billion, of which EUR 3.7 billion was at ING Direct and EUR 1.6 billion in the Benelux. Nevertheless, the overall demand for credit remained subdued given the challenging market environment. Some shorter-tenor lending was reduced as short-term funding became more expensive. Consequently, total other lending across the Bank showed a net decrease of EUR 0.4 billion as a decline at Commercial Banking was not fully offset by net growth in Retail Banking.

The operating result of ING Insurance improved signifi cantly to EUR 527 million versus EUR 415 million in the third quarter of 2010. This was driven by an increase in the investment margin and higher fees and premium-based revenues. The operating result declined 23.6% from the strong second quarter of 2011, which included seasonal and nonrecurring items. The third-quarter underlying result before tax of EUR 561 million was supported by nonoperating items consisting primarily of positive hedging results in the Benelux, which more than compensated for impairments, including EUR 200 million of impairments on Greek government bonds.

Insurance sales (APE) increased both year-on-year and from the second quarter. APE rose 7.1% (5.2% excluding currency effects) on a sequential basis, primarily due to strong sales in Asia/Pacifi c, as well as strong Full Service Retirement Plan and Employee Benefi t sales in the US.

ING Group's quarterly net profi t was EUR 1,692 million compared with EUR 239 million in the third quarter of last year and EUR 1,507 million in the second quarter of 2011. The third-quarter underlying effective tax rate was 20.4%.

Net results included EUR 516 million of net gains on divestments, mainly attributable to Clarion Real Estate Securities and ING Car Lease, as well as EUR 13 million of profi ts from the Latin American insurance operations, which are reported under discontinued operations. Special items after tax were EUR -122 million and primarily related to various restructuring programmes and separation and IPO preparation costs. Separation and IPO preparation costs were EUR 55 million in the quarter and EUR 116 million year-to-date (after tax). It is anticipated that these costs will remain within the previously announced amount of EUR 250 million after tax.

The net profi t per share was EUR 0.45 versus EUR 0.06 in the third quarter of 2010 and EUR 0.40 in the second quarter of this year. The average number of shares used to calculate earnings per share over the third quarter was 3,784 million. The Group's underlying net return on IFRS-EU equity was 13.9% for the fi rst nine months of 2011.

BANKING

Banking key fi gures
	3Q2011	3Q2010	Change	2Q2011	Change	9M2011	9M2010	Change
Profi t and loss data (in EUR million)
Underlying interest result	3,297	3,415	-3.5%	3,348	-1.5%	10,041	9,936	1.1%
Underlying income	3,880	4,319	-10.2%	4,101	-5.4%	12,489	12,873	-3.0%
Underlying operating expenses	2,379	2,451	-2.9%	2,427	-2.0%	7,287	7,155	1.8%
Underlying addition to loan loss provision	438	374	17.1%	370	18.4%	1,141	1,336	-14.6%
Underlying result before tax	1,063	1,494	-28.8%	1,304	-18.5%	4,061	4,383	-7.3%
Key fi gures
Interest margin	1.37%	1.41%		1.42%		1.41%	1.40%
Underlying cost/income ratio	61.3%	56.8%		59.2%		58.3%	55.6%
Underlying risk costs in bp of average RWA	55	44		47		48	53
Risk-weighted assets (end of period, in EUR billion, adjusted for divestm.)				315	1.6%	320	331	-3.3%
Underlying return on equity based on IFRS equity1	8.6%	13.0%		11.7%		11.4%	13.0%
Underlying return on equity based on 7.5% core Tier 12	12.4%	17.6%		16.9%		16.5%	17.1%

1 Annualised underlying net result divided by average IFRS-EU equity.

Annualised underlying, after-tax return divided by average equity based on 7.5% core Tier 1 ratio.

ING Bank reported an underlying result before tax of EUR 1,063 million. Results were heavily impacted by additional impairments on Greek government bonds (as all maturities were impaired to the market value as of 30 September 2011), and a sharp decline in Financial Markets results. The net interest margin was under pressure and declined compared with both the third quarter of last year and the second quarter of 2011. Risk costs rose versus both periods due to provisioning on a few large fi les.

UNDERLYING RESULT BEFORE TAX (in EUR million)

Total underlying income was 10.2% lower than the third quarter of last year. This primarily refl ects EUR 267 million of impairments on Greek government bonds, including EUR 90 million of write-downs on previously impaired securities and EUR 177 million of impairments following a decision to impair the remaining bonds maturing in 2020 and beyond. Excluding these impairments, income was 4.0% lower, mainly due to lower interest results and a decline in management fees following the partial completion of the announced sale of ING's Real Estate Investment Management (REIM) business. Income was 5.4% lower than the second quarter of 2011, which included EUR 187 million of Greek government bond impairments. Additionally, commissions declined from the previous quarter, refl ecting the sale of Clarion Real Estate Securities (CRES, which is part of REIM) and lower fees in Commercial Banking.

The interest result was down 3.5% from the third quarter of 2010, largely due to the narrowing of the interest margin by four basis points to 1.37%, partly due to Financial Markets. Compared with the previous quarter, the Bank's interest result decreased 1.5% as higher client balances compensated in part for a narrowing of the total interest margin by fi ve basis points. In the Benelux, margins for mortgages and current accounts improved slightly, but margins on savings and other lending products were under pressure. ING Direct's total interest margin declined from the previous quarter, mainly due to increases in client savings rates. Margins in the lending books of Commercial Banking held up well, whereas margins at Structured Finance declined slightly.

Underlying operating expenses declined for the third straight quarter. Expenses were down 2.9% from a year ago due to lower impairments on real estate development projects and the partial sale of REIM. Expenses declined at ING Direct and

OPERATING EXPENSES (in EUR million) AND COST/INCOME RATIO (in %)

Retail International, which largely offset an increase in expenses in Retail Benelux that was attributable to higher pension costs, regular salary increases and IT investments. Compared with the second quarter of 2011, ING Bank's total underlying operating expenses were down 2.0%, primarily due to lower deposit insurance premiums, marketing costs and performance-related personnel expenses. Although costs continued to decline, the thirdquarter underlying cost/income ratio increased to 61.3%, or 55.8% excluding market impacts, due to lower income.

Additions to loan loss provisions at ING Bank increased versus both prior periods to EUR 438 million. The quality of the loan book did not change signifi cantly, as nonperforming loans and on-watch exposures remained stable in the quarter. For the full year, ING expects risk costs as a percentage of risk-weighted assets and in absolute terms to remain below the level seen in 2010. Risk costs rose by EUR 68 million from the second quarter of this year. This was mainly attributable to further provisioning on some specifi c fi les in the Structured Finance and General Lending portfolios in Commercial Banking and the US mortgage portfolio at ING Direct. Risk costs declined in Retail Belgium and at Real Estate Finance. Total risk costs in the third quarter rose to 55 basis points of average risk-weighted assets versus 44 basis points in the same quarter of 2010 and 47 basis points in the second quarter of 2011.

The underlying result before tax of Retail Banking was EUR 811 million. Results fell 19.5% from a year earlier due to EUR 85 million of Greek government bond impairments (mainly at ING Direct) and lower margins in the Netherlands on savings and mortgages. Operating expenses were essentially fl at year-on-year despite higher pension costs and regular salary increases. Risk costs were also stable from the third quarter of last year. Compared with the second quarter of 2011, results increased 15.2%. This was mainly attributable to lower impairments on Greek government bonds, and despite margin pressure at ING Direct and higher risk costs. Risk costs rose on higher additions in the ING Direct USA mortgage portfolio and the Turkish midcorporate lending portfolio, which were only partially offset by lower additions in the Benelux mid-corporate and SME segments. Expenses decreased 1.2% from the second quarter because of lower contributions to the deposit guarantee scheme by ING Direct USA and seasonally lower marketing expenses.

Commercial Banking excluding ING Real Estate reported an underlying result before tax of EUR 202 million. Results fell 66.0% from the third quarter of 2010. This was due entirely to a loss in Financial Markets that was caused by EUR 182 million of impairments on Greek government bonds and generally unfavourable market conditions. A signifi cant widening of bid/offer, country and credit spreads resulted in signifi cant additions to reserves on the existing inventory of

trades with clients, partly offset by gains due to lower fair value of issued structured notes. In addition, funding costs increased due to illiquid money markets. Excluding Financial Markets, the underlying result was stable, supported by higher income from Structured Finance, which benefi ted from strong refi nancing volumes. This helped to mitigate a 60.0% jump in risk costs which was caused mainly by additional provisioning for some specifi c fi les in Structured Finance and higher risk costs in General Leasing. Commercial Banking's underlying result before tax was 68.7% lower than the second quarter of 2011, also primarily due to the loss in Financial Markets and the challenging operating environment.

ING Real Estate posted an underlying result before tax of EUR 34 million versus a EUR 25 million loss in the third quarter of 2010 and a profi t of EUR 13 million in the second quarter of 2011. The improvement in results from last year was primarily attributable to lower negative fair value changes and impairments. Compared with the second quarter of 2011, results increased mainly on higher income and lower risk costs in Real Estate Finance.

The underlying result before tax of Corporate Line Banking improved to EUR 16 million compared to a loss of EUR 84 million in the third quarter of 2010. This improvement was mainly caused by positive fair value changes on the Bank's own debt due to the increase in ING's credit spreads, partly offset by higher fi nancing charges.

The net result of the Bank was EUR 1,193 million including divestments and special items after tax. The net gain on divestments was EUR 520 million and mainly related to the sales of CRES and ING Car Lease. Special items after tax were EUR -42 million and primarily related to the merger of the Dutch retail activities, the Belgian transformation programme and costs related to the separation of Banking and Insurance.

ING Bank's year-to-date underlying return on IFRS-EU equity decreased to 11.4% from 13.0% in the fi rst nine months of 2010. This was entirely attributable to EUR 455 million of Greek bond impairments recorded in 2011. The year-to-date underlying return on equity based on a 7.5% core Tier 1 ratio was 16.5%, exceeding the 2013 target of 13-15%.

RETURN ON EQUITY BANK (in %)

Underlying return on equity based on 7.5% core Tier 1 (quarterly) Underlying return on equity based on IFRS-EU equity (year-to-date)

INSURANCE

Insurance key fi gures1
	3Q2011	3Q20102	Change	2Q2011	Change	9M2011	9M20102	Change
Margin analysis (in EUR million)
Investment margin	452	367	23.2%	476	-5.0%	1,301	1,026	26.8%
Fees and premium-based revenues	1,149	1,094	5.0%	1,147	0.2%	3,506	3,302	6.2%
Technical margin	136	209	-34.9%	260	-47.7%	591	556	6.3%
Income non-modelled life business	19	37	-48.6%	24	-20.8%	69	99	-30.3%
Life & ING IM operating income	1,756	1,708	2.8%	1,907	-7.9%	5,467	4,982	9.7%
Administrative expenses	715	749	-4.5%	724	-1.2%	2,159	2,198	-1.8%
DAC amortisation and trail commissions	475	437	8.7%	458	3.7%	1,415	1,264	11.9%
Life & ING IM operating expenses	1,191	1,185	0.5%	1,182	0.8%	3,574	3,461	3.3%
Life & ING IM operating result	565	522	8.2%	725	-22.1%	1,893	1,520	24.5%
Non-life operating result	39	34	14.7%	68	-42.6%	149	118	26.3%
Corporate line operating result	-77	-142		-103		-314	-477
Operating result	527	415	27.0%	690	-23.6%	1,728	1,162	48.7%
Non-operating items	34	-689		-17		-65	-1,360
Underlying result before tax	561	-274		673	-16.6%	1,663	-198
Key fi gures
Administrative expenses / operating income (Life & ING IM)	40.7%	43.9%		38.0%		39.5%	44.1%
Life general account assets (end of period, in EUR billion)				156	9.6%	171	165	3.6%
Investment margin / life general account assets3 (in bps)	104	84		99
ING IM Assets under Management (end of period, in EUR billion)				326	1.2%	330	329	0.3%
Underlying return on equity based on IFRS-EU equity4	10.9%	-4.6%		11.3%		9.3%	-0.9%

1 Insurance operating and underlying fi gures exclude the Insurance Latin American pension, life insurance and investment management operations, following the announced sale of these businesses on 25 July 2011. The result of Insurance Latin America has been transferred to "net result from discontinued operations." Previous periods have been restated.

The result of this period has been restated to refl ect the change in accounting policy, i.e. the move towards fair value accounting for Guaranteed Minimum Withdrawal Benefi ts for life in the US Closed Block VA as of 1 January 2011. 3 Four-quarter rolling average

4 Annualised underlying net result divided by average IFRS-EU equity. (The 2010 quarterly results are adjusted for the after-tax allocated cost of Group core debt injected as equity into Insurance by the Group.)

The third-quarter operating result at ING Insurance was EUR 527 million, up 27.0% from a year ago. The increase was driven mainly by a higher investment margin, higher fees and premium-based revenues, and lower administrative expenses. Compared with the previous quarter, the operating result was 23.6% lower, due to seasonally higher dividend income as well as positive nonrecurring items in the second quarter. The underlying result before tax in the third quarter was EUR 561 million, as favourable hedging results in the Benelux more than offset impairments, including EUR 200 million on Greek government bonds. All Greek government bonds are now impaired to the 30 September 2011 market value.

The operating result from Life Insurance and Investment Management rose 8.2% from the third quarter of last year on an increase in the investment margin and on higher fees and premium-based revenues. Compared with the second quarter of 2011, the operating result from Life Insurance and Investment Management was 22.1% lower, as the secondquarter investment margin was supported by seasonally high dividend income and nonrecurring items in the Netherlands. Additionally, the second-quarter technical margin was boosted by the early surrender of a contract with a large pension fund.

The investment margin was up 23.2% from the third quarter of 2010 to EUR 452 million. This was mainly attributable to the Netherlands, driven by reinvestment into fi xed income securities, and dividends on private equity, real estate funds and fi xed income funds. The investment margin was higher in the US as a result of reinvestment into longer-term bonds in combination with higher income from amortisation related to certain assets. The investment margin declined 5.0% compared with the second quarter of 2011, principally due to higher dividend income on equity securities and EUR 28 million of nonrecurring items in the Netherlands recorded in that quarter. The four-quarter rolling average investment spread strengthened further, rising to 104 basis points from 84 basis points in the third quarter last year and 99 basis points in the previous quarter.

INVESTMENT MARGIN (in EUR million)

Fees and premium-based revenues increased 5.0% from the same quarter of 2010 to EUR 1,149 million. The increase was primarily driven by Asia/Pacifi c, where fees and premiumbased revenues rose on growth in most businesses, as well as due to the inclusion of the Malaysian Employee Benefi ts business. On a sequential basis, fees and premium-based revenues at ING Insurance were fl at.

The technical margin was EUR 136 million compared with EUR 209 million in the third quarter of 2010 and EUR 260 million in the second quarter of 2011. The majority of the decline versus the third quarter of 2010 was attributable to an increase in guarantee provisions in the Benelux during the current quarter, as well as lower amortisation of the gain related to the transfer of the US group reinsurance business. The decrease in the Insurance technical margin from the second quarter was mainly due to the EUR 70 million positive impact from a surrender of a contract with a large pension fund in the Netherlands in that quarter.

Administrative expenses for Life Insurance and Investment Management were EUR 715 million, down 4.5% from a year ago and 1.2% lower than the second quarter of 2011. Compared with the second quarter, expenses in Central and Rest of Europe decreased 8.0% and expenses in the US declined 0.5%. The third-quarter ratio of administrative expenses to operating income was 40.7%. The ratio improved versus the third quarter of last year, but increased slightly from the second quarter of 2011 as the positive impact of lower expenses was offset by substantially lower operating income due to the impact of seasonal and incidental items in the second quarter.

LIFE INSURANCE AND INVESTMENT MANAGEMENT ADMINISTRATIVE EXPENSES (in EUR million), AND ADMINISTRATIVE EXPENSES / OPERATING INCOME RATIO (in %)

The non-life operating result of ING Insurance rose to EUR 39 million from EUR 34 million in the third quarter of 2010 due to lower claims. Compared with the second quarter of 2011, the non-life operating result was 42.6% lower. This was mainly due to higher claims in the third quarter and a provision release, which supported second-quarter results.

The Corporate Line operating result improved to EUR -77 million from EUR -142 million in the third quarter of 2010, primarily due to lower interest on hybrids and debt. Additionally, the third quarter of last year was adversely impacted by a EUR 335 million charge resulting from changes to variable annuity policyholder behaviour

assumptions. ING will conduct its annual review of actuarial assumptions for the Japanese SPVA and US Closed Block VA businesses in the fourth quarter of 2011.

The underlying result before tax for Insurance was EUR 561 million compared to a loss of EUR -274 million in the third quarter of last year and a profi t of EUR 673 million in the second quarter of 2011.

Third-quarter non-operating items totalled EUR 34 million. Gains/losses and impairments on investments were EUR -330 million including EUR 200 million of impairments on Greek government bonds, as well as EUR 185 million of losses on Italian government bond sales and EUR 86 million of losses on subprime mortgage investment sales as ING further derisked the investment portfolio. Higher capital gains on equities of EUR 150 million provided an offset to these items. Revaluations were EUR 290 million and mainly refl ect a EUR 250 million gain on equity options put in place to hedge regulatory capital in the Netherlands. If these hedges remain in place and equity markets recover the gains could reverse; however, the regulatory capital position would be stabilised. Market and other impacts were EUR 74 million as a EUR 199 million positive change in the provision for separate account pension contracts (net of hedging) in the Netherlands more than offset negative results in the US and other regions.

The quarterly net result for Insurance was EUR 499 million including EUR 13 million net result from discontinued operations in Latin America, EUR 5 million of losses on divestments and EUR -80 million of special items after tax consisting mainly of expenses associated with the separation of Insurance for the base case of two IPOs. The underlying return on IFRS-EU equity for Insurance was 9.3% for the fi rst nine months of 2011.

RETURN ON EQUITY INSURANCE (year-to-date)

Insurance sales (APE) rose 0.3% from the third quarter of 2010 and 7.1% from the second quarter of 2011. Excluding currency effects, sales increased 6.5% and 5.2%, respectively. Compared with the second quarter of 2011, sales rose 30.2% in Asia/Pacifi c (25.7% excluding currency effects) primarily due to seasonality. APE was up 1.5% (but declined 0.7% excluding currency effects) in the US on strong Full Service Retirement Plan sales and Employee Benefi t sales, which more than doubled from the second quarter. APE declined in Central and Rest of Europe on a sequential basis, refl ecting a seasonal pattern in the region. Sales in the Benelux were lower than in the second quarter, mostly due to lower corporate pension sales.

BALANCE SHEET AND CAPITAL MANAGEMENT

Balance sheet and capital management key fi gures
	ING Group		ING Bank N.V.		ING Verzekeringen N.V.		Holdings/Eliminations
End of period, in EUR million	30 Sept. 11	30 June 11	30 Sept. 11	30 June 11	30 Sept. 11 30 June 11		30 Sept. 11	30 June 11
Balance sheet data
Financial assets at fair value through P&L	270,177	255,190	150,503	136,540	119,893	120,125	-219	-1,475
Investments	214,894	207,807	85,984	88,477	128,910	119,330
Loans and advances to customers	597,083	589,108	573,698	565,869	32,093	30,380	-8,708	-7,141
Assets held for sale	61,955	61,188	59,159	58,014	2,796	3,174
Other assets	138,187	127,438	104,202	93,702	41,463	38,074	-7,478	-4,338
Total assets	1,282,296	1,240,731	973,546	942,602	325,155	311,083	-16,405	-12,954
Shareholders' equity	44,528	40,288	33,760	32,486	22,466	19,461	-11,698	-11,659
Minority interests	748	832	681	715	82	94	-15	23
Non-voting equity securities	3,000	3,000					3,000	3,000
Total equity	48,276	44,120	34,441	33,201	22,548	19,556	-8,713	-8,637
Debt securities in issue	139,790	151,593	131,038	142,925	3,912	3,895	4,840	4,773
Insurance and investment contracts	267,063	259,599			267,063	259,599
Customer deposits/other funds on deposit	458,620	458,262	469,660	464,954			-11,040	-6,692
Financial liabilities at fair value through P&L	152,362	123,174	148,795	121,423	4,128	3,240	-561	-1,489
Liabilities held for sale	62,767	58,991	61,471	57,502	1,296	1,489
Other liabilities	153,418	144,992	128,141	122,597	26,208	23,304	-931	-910
Total liabilities	1,234,020	1,196,610	939,105	909,401	302,607	291,527	-7,692	-4,318
Total equity and liabilities	1,282,296	1,240,731	973,546	942,602	325,155	311,083	-16,405	-12,954
Capital ratios (end of period)
ING Group debt/equity ratio	13.4%	13.9%
Bank core Tier 1 ratio			9.6%	9.4%
Insurance IGD Solvency ratio					242%	252%

During the third quarter, ING Group's balance sheet increased by EUR 42 billion to EUR 1,282 billion, including EUR 20 billion of positive currency impacts. The balance sheet growth was driven primarily by EUR 13 billion of higher cash and balances with central banks, and by the higher market valuation of derivatives as a result of lower interest rates.

Shareholders' equity increased to EUR 44.5 billion (or EUR 11.76 per share), mainly due to the quarterly net profi t of EUR 1.7 billion and higher revaluation reserves resulting from lower interest rates.

SHAREHOLDERS' EQUITY (in EUR billion)

ING Bank's core Tier 1 ratio increased from 9.4% to 9.6% in the third quarter. Core Tier 1 capital rose by EUR 1 billion, largely driven by retained earnings, including the proceeds from the closing of the sale of ING Car Lease and part of ING Real Estate Investment Management. Risk-weighted assets (RWA) increased by EUR 5.2 billion during the quarter, mainly due to currency impacts. The EUR 2 billion RWA release following the closing of the ING Car Lease

divestment was offset by risk migration. ING Bank has a currency hedging programme in place to offset RWA movements due to foreign exchange differences in the currency translation reserve.

The Insurance Groups Directive (IGD) ratio decreased to 242% at the end of September 2011 from 252% at the end of June 2011. This was mainly due to the deterioration in market conditions whereby the change in the statutory test of adequacy for certain Dutch entities was not fully offset by higher revaluation reserves on debt securities. Required capital increased slightly to EUR 8.5 billion.

The Group debt/equity ratio declined to 13.4% at the end of September from 13.9% at the end of June 2011. Adjusted equity of ING Group increased by EUR 2.3 billion, refl ecting EUR 1.7 billion of retained earnings and EUR 0.7 billion of currency effects. Group core debt remained stable.

Although capital markets and money markets deteriorated signifi cantly in the third quarter of 2011, ING was still able to maintain access to short- and long-term funding sources, for acceptable prices and tenors. During the quarter, ING Bank issued a total of EUR 3.5 billion in debt markets including EUR 0.5 billion of senior unsecured debt, EUR 2.7 billion of covered bonds and EUR 0.3 billion of RMBS. Total long-term funding issued year-to-date as of 30 September was EUR 20 billion, compared with EUR 10.7 billion of ING Bank's (including subsidiaries) long-term debt maturing in 2011.

OTHER DEVELOPMENTS

Strategic Measures

The weakening economic environment, more stringent regulatory requirements and changing customer expectations are putting pressure on volumes and margins. In order to remain competitive, Retail Banking Netherlands is taking decisive steps to further reduce costs by decreasing expenses while maintaining customer focus and further improving operational excellence.

Over the past years, Retail Netherlands has streamlined its organisation signifi cantly by combining Postbank and ING Bank. In many areas, product offerings have been simplifi ed and most of the business has been transferred to a single IT platform. At the same time, investments have been made to enhance the customer experience by remodelling branches, improving call center data systems, optimising the sales force and investing in internet services. Today's announcement marks the next step in this transformation. Further improvements will be implemented in the coming years to improve customer service by reducing complexity and streamlining workfl ows. To deliver faster and more accurate service for our customers, and broaden the ability for customers to manage their fi nances through their preferred channel, ING will make additional IT investments of approximately EUR 200 million in the coming two years. These investments will help further reduce costs and improve service.

The strategic programme will result in a workforce reduction of around 2,000 full-time equivalents (FTEs) in 2012 and 2013, mostly in the mid- and back-offi ces and corporate staff. Of the total redundancies, 300 FTEs are expected to come from natural attrition. Additionally, external positions will be reduced by around 700 FTEs. These measures as well as additional savings mainly from reduced general expenses are expected to lead to structural cost savings reaching a run-rate of approximately EUR 300 million from 2014 onwards. A charge of EUR 235 million will be booked as a special item in the fourth quarter of 2011, including a EUR 215 million redundancy provision.

Further details of the programme will become available in the coming months. The workforce measures will be made in accordance with local regulations and will be discussed with the respective stakeholders. Where redundancies are unavoidable, ING is committed to treating affected employees with its customary care and respect.

Update on legal entity restructuring and governance

As ING continues to prepare for two IPOs of its Insurance businesses, important steps have been made to realign the legal structure and governance of the insurance operations. Regulatory approvals are nearing completion to create a new holding company for the European and Asian insurance and investment management activities, called

ING Insurance EurAsia, under ING Verzekeringen NV. The US insurance and investment management operations will continue to be part of a separate, already existing legal entity (ING America Insurance Holdings). This change in legal structure is an important step towards the IPO preparation, while representing 'no regrets' steps that in no way limit strategic fl exibility on execution. It will allow ING to optimise the capital structure of the separate entities and complete the disentanglement process in order to be able to move quickly towards the IPOs when market conditions become favourable. At the same time, fl exibility is maintained with respect to the timing and order of the planned IPOs.

The EurAsia entity will set up new funding programs and commence debt issuance in due course. AIH will also optimise its funding structure independent from the Group and will repay remaining intercompany debt. After the IPOs, ING Verzekeringen NV will become a legacy entity and will be wound down over time in an orderly manner, also using the cash proceeds from the sale of the Latin American insurance business. ING Verzekeringen intends to approach investors and counterparties closer to the fi rst IPO to address the consequences arising from the restructuring, including change of control provisions in some instruments which would likely be triggered by the IPOs.

As a result of the change in legal structure, the governance within ING Insurance will be adapted. Management Board Insurance (MBI) members Lard Friese, with responsibility for Insurance (Europe and Asia), Gilbert Van Hassel, with responsibility for Investment Management (Europe and Asia), and Matt Rider, Chief Administrative Offi cer, will step down from the MBI. They will form the Management Board Insurance EurAsia together with Jan Hommen (CEO), Patrick Flynn (CFO) and Wilfred Nagel (CRO). These changes are effective 3 November 2011. In the US, the Management Board of ING America Insurance Holdings is composed of Jan Hommen (Chairman), Patrick Flynn (CFO), Wilfred Nagel (CRO), Rodney O. Martin Jr. (CEO), Alain Karaoglan (Executive VP Finance & Strategy), Rob Leary (President and COO) and Ewout Steenbergen (CFO Insurance US).

Update on regulatory measures and law enforcement agencies investigations

As previously disclosed, ING Bank is in discussions with authorities in the US concerning transactions subject to sanctions by the US, including ING Bank's compliance with Offi ce of Foreign Asset Control (OFAC) requirements. ING Bank is cooperating fully with the investigations and expects to engage in discussions to resolve these matters with the US authorities; however, it is not yet possible to reliably estimate the timing or amount of any potential settlement, which could be signifi cant.

BUSINESS AND SUSTAINABILITY HIGHLIGHTS

ING strives to build its banking and its insurance businesses on sound business ethics and good corporate citizenship in order to ensure customer loyalty, employee engagement, and hence satisfactory returns for our shareholders. As a refl ection of this commitment, we have embedded social, ethical and environmental criteria into our fi nancing and investment policies and business ambitions. We aim to ensure that our strategic decision-making is always based on fi nancial as well as nonfi nancial performance objectives.

We strive to meet our customers' expectations by providing the right products and services to the right customers for the right returns. ING also constantly monitors market and regulatory developments, engages with customer representative groups, and tests its products to ensure their suitability for customer needs.

ING will report on developments concerning these priorities on a quarterly basis.

Meeting customer needs

In the Netherlands, Nationale-Nederlanden's (NN) legal expenses insurance product and its home insurance product won best-in-class awards from the 'Consumentenbond', the country's primary consumer advocate organisation. In addition, NN launched three 'bank annuity' products to meet the demand for low-cost, no-frills and tax-deferred ways to save for retirement.

In the US, ING Insurance was recognised as best-in-class among defi ned contribution investment managers, according to an independent survey of 1,600 US defi ned contribution plan sponsors in 2011. The survey focused on criteria such as organisational stability, performance, product innovation, investment team experience and understanding of the market.

In the Netherlands, ING Business Banking introduced an easy and innovative 'test' to help clients realise their ambitions and address their fi nancial needs. In this service, ING uses its sector knowledge to provide clients with indepth views on their respective industry and business.

ING Bank Slaski and ING Bank Turkey have implemented changes in how they handle customer complaints. The changes have reduced the amount of time needed to resolve complaints and enable ING to better analyse customer feedback, which in turn is used to further improve ING's processes, products and service. The Net Promoter Score (NPS) for the complaints handling process at ING Bank Slaski improved signifi cantly over the last nine months. NPS, a methodology to measure customer loyalty, is being implemented throughout ING.

Contributing to positive change

A key element in ING's understanding of good corporate citizenship is our ambition to contribute to positive change for society and the environment, in particular by strengthening the business case for sustainability. We do this by sharing our knowledge with customers so they can make more informed decisions about sustainable investing, as well as by actively stepping up our own fi nancing efforts in this fi eld.

An example of how we share our knowledge is a report published in September 2011 by ING's Economics Department called 'Renewable energy in the Netherlands until 2020'. It concluded that the volume of sustainable energy investments needs to rise to at least EUR 10 billion per year from the current EUR 2 billion in order for the Dutch government to achieve its sustainable energy targets for 2020. In addition, ING called upon the government, business community and fi nancial and knowledge institutions to join forces and formulate a 'Green Delta Plan.' In July, ING also stepped up its own efforts to promote and fi nance sustainable energy by co-fi nancing the offshore wind farm project 'Global Tech 1' in Germany, the largest-ever project-fi nanced deal in the German offshore wind sector.

External sustainability rankings

Each year various independent research organisations investigate companies on their social, environmental and ethical performance. This research is used for benchmarking and to construct sustainable indices, many of which include ING.

In the third quarter, ING was again selected for the Dow Jones Sustainability World Index (DJSI World). ING has been part of the DJSI World since the index's establishment in 1999. ING was rated 72 out of 100, while the industry average score in the insurance sector increased to 48. ING was removed from the DJSI Europe Index, despite maintaining a constant numerical score versus last year.

For the 11th consecutive year, ING was included in the FTSE4Good Index, which emphasises overall corporate responsibility from a risk perspective. Of the 2,400 companies assessed, 900 were identifi ed as top sustainability performers and ING was again included in this group.

For the second year running, Sustainalytics ranked ING number one amongst 91 global peers that offer diversifi ed fi nancial services. ING was assessed on its overall sustainability agenda, which spans from commitments to global initiatives to specifi c policy statements that restrict investing and fi nancing in certain companies.

APPENDIX 1 ING GROUP: CONSOLIDATED PROFIT AND LOSS ACCOUNT

f i t ING G : C l i da d p d los te t rou p on so ro an s a cco un
	al G Tot	1 rou p	al B Tot	ank ing	al In Tot	sura nce
in E mill ion UR	3Q2 011	02 3Q 201	3Q2 011	3Q 201 0	3Q2 011	02 3Q 201
ium inc Gro ss p rem om e	6,2 29	6,5 09			6,2 29	6,5 09
ult king tion Inte rest Ban res op era s	3,2 98	3,3 98	3,2 97	3,4 15
Com mis sion inc om e	984	1,0 54	611	646	373	407
al in nt & oth er i Tot tme ves nco me	4,6 59	83 1,5	-28	258	88 4,7	1,4 14
al u nde rly ing inc Tot om e	170 15,	12, 544	3,8 80	4,3 19	390 11,	8,3 30
Und ritin ditu erw g ex pen re	9,6 68	7,3 79			9,6 68	7,3 79
Staf f ex pen ses	1,8 85	1,9 00	1,3 57	1,3 85	527	515
Oth er e xpe nse s	1,3 52	1,4 07	948	954	404	454
Inta ible orti sati and im irm ent ng s am on pa s	74	113	74	113
Ope rati ng exp ens es	3,3 10	3,4 20	2,3 79	2,4 51	931	969
Inte es I atio rest exp ens nsu ran ce o per ns	123	146			223	251
Add itio loa n lo isio n to ss p rov ns	438	374	438	374
Oth er	7	6			7	6
al u nde rly dit Tot ing ex pen ure	13, 546	11, 324	2,8 17	2,8 25	10, 829	8,6 04
Und erly ult bef ing tax res ore	1,6 24	1,2 20	1,0 63	1,4 94	561	-27 4
Tax atio n	332	363	327	385	5	-22
Min orit inte rest s y	7	22	20	18	-13	3
Und erly ing sul t re t ne	1,2 85	835	715	1,0 90	570	-25 6
loss n d Net ins/ ives tme nts ga es o	516	-32	520	-26	-5	-5
ult from div d u nits Net este res		6		11		-4
ult from dis tinu ed rati Net res con ope ons	13	66			13	66
cial ite afte Spe r ta ms x	-12 2	-63 7	-42	-48	-80	-58 8
ult Net res	1,6 92	239	1,1 93	1,0 26	499	-78 7

1 Including intercompany eliminations

2 The result of this period has been restated to refl ect the change in accounting policy, i.e. the move towards fair value accounting for Guaranteed Minimum Withdrawal Benefi ts for life in the US Closed Block VA as of 1 January 2011.

l i da d ba lan he ING G : C te et rou p on so ce s
		ING Gr oup			ING Ba nk NV		ING	Ve rzek erin NV gen		Ho	ldin /eli min atio gs ns
in E mill ion UR	30 Sep . 20 11	30 Jun e 1 1	31 . 10 pro Dec for 1 ma	30 Sep . 20 11	30 Jun e 1 1	31 . 10 pro Dec for 1 ma	30 Sep . 20 11	30 Jun e 1 1	31 . 10 pro Dec for 1 ma	30 Sep . 20 11	30 Jun e 1 1	31 . 10 pro Dec for 1 ma
Ass ets
h a nd bala ith tral ba nks Cas nce s w cen	25, 077	12, 091	12, 661	22, 058	9,0 44	9,2 05	9,9 49	7,2 73	8,5 49	-6,9 30	-4,2 26	-5,0 93
ts d ue f ba nks Am oun rom	55, 098	56, 580	51, 478	55, 098	56, 580	51, 477
Fina ncia l as fair lue thro h P sets at &L va ug	270 ,17 7	255 ,19 0	263 ,17 4	150 ,50 3	136 ,54 0	137 ,12 4	119 ,89 3	120 ,12 5	127 ,78 5	-21 9	-1,4 75	-1,7 35
Inve stm ent s	214 ,89 4	207 ,80 7	212 ,35 3	85, 984	88, 477	89, 754	128 ,91 0	119 ,33 0	122 ,59 9
nd adv Loa es t usto ns a anc o c me rs	597 ,08 3	589 ,10 8	583 ,13 5	573 ,69 8	565 ,86 9	557 ,38 7	32, 093	30, 380	31, 014	-8,7 08	-7, 141	-5,2 66
Rein ntra cts sura nce co	5,8 07	5,4 47	5,7 87				5,8 07	5,4 47	5,7 87
s in ocia Inve stm ent tes ass	3,3 29	3,2 35	3,8 25	886	847	1,4 94	2,4 60	2,3 75	2,4 34	-17	13	-10 3
l es inv Rea tate estm ent s	42 1,7	43 1,7	1,9 06	501	502	562	960	961	963	281	280	381
nd ipm Pro ty a ent per equ	2,8 74	2,9 20	2,9 62	2,4 14	2,4 65	2,4 78	460	455	484
Inta ible ets ng ass	3,7 28	3,9 75	4,3 70	1,7 90	1,9 05	2,0 85	2,0 95	2,2 26	2,4 33	-15 7	-15 6	-14 8
Def d a isiti ts erre cqu on cos	10, 138	10, 021	10, 489				10, 138	10, 021	10, 489
Ass held for sal ets e	61, 955	61, 188	61, 204	59, 159	58, 014	57, 761	2,7 96	3,1 74	3,4 43
Oth sset er a s	30, 394	31, 426	33, 660	21, 455	22, 360	23, 745	9,5 95	9,3 16	9,6 78	-65 6	-25 0	237
Tot al a ts sse	1,2 82, 296	1,2 40, 731	1,2 47, 005	973 ,54 6	942 ,60 2	933 ,07 3	325 ,15 5	311 ,08 3	325 ,65 9	-16 ,40 5	-12 ,95 4	-11 ,72 7
Equ ity
Sha reh old uity ers' eq	528 44,	40, 288	40, 904	33, 760	32, 486	34, 451	22, 466	19, 461	20, 159	,69 8 -11	,65 9 -11	-13 ,70 6
Min orit inte rest y s	748	832	729	681	715	617	82	94	112	-15	23
Non ting uity urit ies -vo eq sec	3,0 00	3,0 00	5,0 00							3,0 00	3,0 00	5,0 00
Tot al e ity qu	48, 276	44, 120	46, 633	34, 441	33, 201	35, 069	22, 548	19, 555	20, 271	-8,7 13	-8,6 36	-8,7 07
Lia bili ties
Sub ord inat ed loan s	10, 844	10, 180	10, 645	19, 883	18, 924	21, 021	4,3 96	4,2 66	4,4 07	-13 ,43 5	-13 ,01 0	-14 ,78 3
Deb ities in issu t se cur e	139 ,79 0	151 ,59 3	135 ,60 4	131 ,03 8	142 ,92 5	125 ,06 6	3,9 12	3,8 95	3,9 67	4,8 40	4,7 73	6,5 71
Oth er b d fu nds orro we	21, 608	19, 526	22, 117				8,8 58	7,5 55	8,4 14	12, 750	11, 971	13, 703
nd inve Insu stm ent ntra cts ran ce a co	267 ,06 3	259 ,59 9	270 ,39 3				267 ,06 3	259 ,59 9	270 ,39 3
ts d o b ank Am ue t oun s	86, 803	81, 889	72, 052	86, 803	81, 889	72, 053
Cus er d sits d o the r fu nds de its tom epo an on pos	458 ,62 0	458 ,26 2	453 ,32 3	469 ,66 0	464 ,95 4	461 ,26 6				-11 ,04 0	-6,6 92	-7,9 43
Fina ncia l lia bilit ies at f air valu e th h P &L rou g	152 ,36 2	123 ,17 4	138 ,53 8	148 ,79 5	121 ,42 3	136 ,58 1	4,1 28	3,2 40	3,6 77	-56 1	-1,4 89	-1,7 20
Liab ilitie s he ld f ale or s	62, 767	58, 991	61, 196	61, 471	57, 502	59, 407	1,2 96	1,4 89	1,7 89
Oth er l iabi litie s	34, 165	33, 396	36, 504	21, 456	21, 785	22, 611	12, 954	11, 485	12, 742	-24 5	126	1,1 51
Tot al l iab iliti es	1,2 34, 020	1,1 96, 610	1,2 00, 372	939 ,10 5	909 ,40 1	898 ,00 5	302 ,60 7	291 ,52 7	305 ,38 9	-7,6 91	-4,3 21	-3,0 21
Tot al e ity and lia bili ties qu	1,2 82, 296	1,2 40, 731	1,2 47, 005	973 ,54 6	942 ,60 2	933 ,07 3	325 ,15 5	311 ,08 3	325 ,65 9	-16 ,40 4	-12 ,95 4	-11 ,72 7

1 Adjusted for transfer of ING Direct US, ING Car Lease and ING Latin America to assets/liabilities held for sale, and the restating to refl ect the change in accounting policy i.e. move towards fair value accounting for Guaranteed Minimum Withdrawal Benefi ts for life in the US Closed Block VA as of 1 January 2011

Retail Banking: Consolidated profi t and loss account

				ail B ank Ret	elux ing Ben		ail D al Ret irec t & Inte tion rna
	al R Tot eta	il Ba nkin g	her Net	land s	Bel g	ium	ING Dir	ect	tral Cen	Eu rop e	Asi	a
in E mill ion UR	3Q2 011	3Q 201 0	3Q 201 1	3Q 201 0	3Q 201 1	3Q 201 0	3Q 201 1	3Q 201 0	3Q 201 1	3Q 201 0	3Q 201 1	3Q 201 0
ult Inte rest res	2,4 88	2,5 23	915	964	400	403	967	974	171	139	35	43
Com mis sion inc om e	323	329	124	127	78	74	43	40	62	73	15	14
Inve inc stm ent om e	-84	43	0	4	-10	14	-97	-5	1	2	23	28
Oth er i nco me	42	59	17	3	25	25	-25	-18	15	40	8	10
Tot al u nde rly ing inc om e	2,7 69	2,9 54	1,0 57	1,0 98	494	516	888	991	248	254	81	95
aff St and oth er e xpe nse s	1,6 59	1,6 42	604	587	361	340	461	469	188	193	45	53
In ible orti sati and im irm tan ent g s am on pa s	5	10	4	-1	1	0	0	11	0	0	0	0
Ope rati ng exp ens es	1,6 64	1,6 52	609	586	362	340	460	479	187	194	45	53
Gro lt ss r esu	1,1 05	1,3 01	448	512	132	176	428	512	61	60	36	41
Add loa n lo itio isio n to ss p rov n	294	293	99	135	35	36	125	100	32	17	4	5
Und erly ult bef ing tax res ore	811	1,0 08	349	377	97	140	303	412	29	44	32	36
Clie nt b ala s (i bill ) n E UR ion nce
iden tial Res rtga mo ges	328 .3	306 .7	142 .1	136 .7	28. 1	25. 0	153 .8	141 .0	3.8	3.4	0.6	0.7
Oth er l end ing	91. 2	87. 2	42. 5	43. 7	29. 6	27. 0	4.0	3.5	11. 5	10. 3	3.7	2.8
ds e sted Fun ntru	444 .3	428 .4	104 .2	106 .3	71. 4	68. 7	246 .1	231 .4	18. 8	18. 6	3.7	3.4
al f und Au M/m utu s	53. 5	55. 7	14. 7	16. 2	26. 3	26. 5	10. 5	10. 7	1.6	1.9	0.3	0.4
fi ta bili nd effi cie 1 Pro ty a ncy
t/in tio Cos com e ra	60. 1%	55. 9%	57. 6%	53. 4%	73. 3%	65. 8%	51. 8%	48. 4%	75. 4%	76. 2%	55. 5%	56. 5%
uity 2 Ret urn on eq	17. 2%	21. 5%	28. 5%	27. 7%	20. 5%	31. 7%	13. 0%	18. 8%	4.3 %	8.9 %	18. 1%	16. 9%
Ris k1
Risk in b f av sts RW A co p o era ge	66	64	81	100	75	74	65	51	54	30	16	21
Risk ig hte d a s (e nd of p erio d) sset -we	179 ,71 9	183 ,49 6	48, 940	55, 163	18, 952	19, 392	79, 733	77, 100	22, 863	22, 468	9,2 32	9,3 73

1 Key fi gures based on underlying fi gures

2 Underlying after-tax return divided by average equity based on 7.5% core Tier 1 ratio (annualised)

f i t Co ia l B k ing : C l i da d p d los te t mm erc an on so ro an s a cco un
	al C Tot om Ban	rcia l me king	GL & P	CM	Stru red ctu	Fin anc e	sing & Lea	tori Fac ng	Fina ncia	l M ark ets	Oth er P	rod ucts	al C Tot om king Ban	rcia l me l. R E exc	ING al E Re stat e
mill in E UR ion	3Q 201 1	3Q 201 0	3Q 201 1	3Q 201 0	3Q 201 1	3Q 201 0	3Q 201 1	3Q 201 0	3Q 201 1	3Q 201 0	3Q 201 1	3Q 201 0	3Q 201 1	3Q 201 0	3Q 201 1	3Q 201 0
ult Inte rest res	872	888	224	226	272	266	47	49	208	239	-2	-1	750	779	122	109
Com mis sion inc om e	290	324	53	49	145	133	11	10	-13	8	40	42	236	242	54	81
Inve inc stm ent om e	-15 0	-28	-13	-2	13	1	0	0	-16 0	4	-3	2	-16 3	5	13	-33
Oth er i nco me	41	209	10	9	-15	-29	62	53	-22	157	-11	-10	25	180	17	30
al u nde rly ing inc Tot om e	1,0 52	1,3 93	274	282	415	371	120	112	14	408	25	33	847	1,2 06	205	187
aff and oth St er e xpe nse s	610	649	137	130	97	98	55	53	184	186	68	79	540	546	70	103
ible orti sati and im irm In tan ent g s am on pa s	62	93	0	0	0	0	0	0	0	0	1	0	1	0	61	93
rati Ope ng exp ens es	672	743	137	130	97	98	55	53	184	186	69	79	541	546	131	197
lt Gro ss r esu	380	650	137	151	318	273	65	58	-17 0	222	-44	-46	306	660	74	-9
Add itio loa n lo isio n to ss p rov n	144	81	25	21	49	26	30	19	0	-1	-1	0	104	65	40	16
Und erly ing ult bef tax res ore	236	570	112	130	269	247	35	39	-17 0	223	-43	-46	202	594	34	-25
Clie nt b ala s (i bill ion ) n E UR nce
iden tial Res rtga mo ges
Oth er l end ing	140 .3	135 .8	36. 3	36. 2	51. 7	45. 2	14. 3	16. 7	3.9	3.3	0.2	0.1	106 .4	101 .5	33. 8	34. 3
ds e sted Fun ntru	63. 6	63. 1	34. 1	34. 0	2.0	3.3	0.0	0.0	27. 4	25. 1	0.0	0.7	63. 6	63. 1
M/m al f und Au utu s	30. 8	65. 3													30. 8	65. 3
fi ta bili nd effi cie 1 Pro ty a ncy
Und erly ing t/in tio cos com e ra	63. 9%	53. 3%	50. 0%	46. 3%	23. 3%	26. 4%	8% 45.	7% 47.	133 8.8 %	5% 45.	277 .6%	238 .5%	63. 9%	3% 45.	64. 0%	104 .9%
Ret uity 2 urn on eq	6.6 %	15. 7%	10. 6%	13. 0%	25. 9%	27. 0%	18. 8%	16. 9%	-21 .8%	26. 4%	-27 .4%	-30 .5%	6.6 %	19. 4%	7.0 %	-16 .0%
Ris k1
f av Risk in b RW A sts co p o era ge	43	22	26	19	49	25	166	91	0	-1	-7	-1	34	20	125	40
of p Risk ig hte d a s (e nd erio d) sset -we	135 ,92 1	143 ,07 4	38, 650	42, 617	40, 900	39, 306	6,4 97	8,2 33	32, 833	32, 866	4,1 83	5,4 87	123 ,06 3	128 ,50 9	12, 859	14, 565

1 Key fi gures based on underlying fi gures

2 Underlying after-tax return divided by average equity based on 7.5% core Tier 1 ratio (annualised)

f i g in ly is a d ke 1 Ins Ma ura nc e: rg an a s n y ure s
	ING Ins	ura nce	Ben	elux	Cen tral & Eur	t of Res ope	ited Un	Sta 2 tes	US Clo sed	Blo ck V A2	Asi a/Pa	cifi c	ING IM		Co rate rpo	lin e
mill In E UR ion	3Q 201 1	3Q2 010	3Q2 011	3Q2 010	3Q2 011	3Q2 010	3Q2 011	3Q2 010	3Q2 011	3Q2 010	3Q2 011	3Q2 010	3Q2 011	3Q2 010	3Q2 011	3Q2 010
Inve in stm ent ma rg	45 2	367	187	119	19	22	230	212	-1	1	15	10	2	4
d p -ba sed Fee ium s an rem rev enu es	1,1 49	1,0 94	146	131	108	117	259	267	39	20	370	345	227	215
hni cal Tec in ma rg	13 6	209	36	51	45	46	12	53	5	7	38	52	-	-
del led life bus Inco ines me non -mo s	19	37	9	8	3	6	0	0	-0	-0	7	23	0	0
Life tin inc & ING IM op era g om e	1,7 56	1,7 08	378	308	174	191	502	532	44	28	430	431	228	218
Adm inis ive trat exp ens es	71 5	749	144	143	69	66	192	226	20	18	112	116	179	180
d tr ail c DA C a rtisa tion mis sion mo an om s	47 5	437	50	49	51	49	161	160	28	-11	185	189	1	1
Life & ING IM ex pen ses	1,1 91	1,1 85	193	191	119	115	353	386	48	8	297	304	180	181
Life tin sul & ING IM t op era g re	56 5	522	185	117	55	75	149	146	-4	21	133	126	48	37
-life ting ult Non op era res	39	34	36	32	2	1	-	-	-	-	1	1	-	-
Line ting ult Cor ate por op era res	-77	-14 2													-77	-14 2
tin sul Op t era g re	52 7	415	220	149	57	76	149	146	-4	21	134	127	48	37	-77	-14 2
Gai ns/l nd imp airm ent oss es a s	-33 0	-12 7	-10 8	18	-16 0	0	-72	-15 8	0	4	8	11	-0	-1	2	-0
alua tion Rev s	29 0	192	230	29	-	-	62	204	-0	1	-2	-1	-1	-8	2	-33
rket & o the r im Ma ts pac	74	-75 4	199	-2	-	-	-54	-46	-23	-34 9	-24	3	-	-	-25	-36 0
Und erly ing ult bef tax res ore	56 1	-27 4	541	194	-10 3	76	86	145	-27	-32 4	117	140	47	28	-99	-53 4
Life bu sin fi g Ins - N ura nce ew ess ure s
Sing le p ium rem s	2,5 64	2,9 05	521	547	161	137	56 1,7	2,0 03	-	81	126	138	-	-	-	-
Ann ual miu pre ms	75 5	717	36	45	59	59	241	247	-	-	41 9	366	-	-	-	-
New sal es ( APE )	1,0 11	1,0 08	88	100	75	73	417	447	-	8	431	380	-	-	-	-
Key fi g ure s
Gro ium inc ss p rem om e	6,2 29	6,5 09	1,3 05	1,3 78	471	465	2,5 62	2,8 48	97	115	1,7 88	1,6 97	-	-	6	7
ife Adm / op ting inc e (L & IN G IM ) . ex pen ses era om	40. 7%	43. 9%	38. 1%	46. 4%	39. 7%	34. 6%	38. 2%	42. 5%	45. 5%	64. 3%	26. 0%	26. 9%	78. 5%	82. 6%
Life (en f pe ) al a d o riod , in EUR bil lion unt ets ge ner cco ass	17 1	165	65	63	7	8	66	64	7	6	25	22	1	2	-	-
Life et ( )3 Inve in / al a in b stm ent unt ma rg ge ner cco ass ps	10 4	84	100	75	98	95	142	122	50	-32	29	20	19	112
n fo r lif for risk licy hol der Prov isio e in & inve stm ntra cts sura nce . co po (en d o f pe riod )4	10 9,3 23	114 ,50 3	22, 001	23, 528	3,3 76	3,6 63	33, 252	32, 686	29, 544	33, 104	21, 150	21, 399	-	-	-	-
duc tion clie nt b alan (in bil lion ) Net EUR pro ces	-2. 7	-1.0	-0.7	-0.5	0.2	0.6	-0.5	-0.0	-0.6	-0.6	-0.5	0.1	-0.6	-0.6	-	-
Clie nt b alan (en d o f pe riod , in EUR bil lion ) ces	38 5.0	385 .9	69. 7	70. 0	24. 9	27. 8	93. 5	93. 0	30. 3	33. 8	44. 0	41. 7	122 .6	119 .6	-	-
Adm inis ive es ( l) trat tota exp ens	85 7	888	244	240	70	67	192	226	20	18	113	117	179	180	39	40

Insurance operating and underlying fi gures exclude the Insurance Latin American pension, life insurance and investment management operations, following the announced sale of these business on 25 July 2011. The result of Insurance Latin America has been transferred to "net result from discontinued operations". Previous periods have been restated.

The result has been restated to refl ect the change in accounting policy, i.e. the move towards fair value accounting for Guaranteed Minimum Withdrawal Benefi ts for life in the US Closed Block VA as of 1 January 2011

Four-quarters rolling average

3Q2010 includes EUR 124 million for Latin America

ENQUIRIES

Investor enquiries

T: +31 20 541 5460 E: investor.relations@ing.com

Press enquiries

T: +31 20 541 5433 E: media.relations@ing.com

Investor conference call, media conference call and webcast

Jan Hommen, Patrick Flynn, Koos Timmermans and Matt Rider will discuss the results in an analyst and investor conference call on 3 November 2011 at 9:00 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 9676 (US) and via live audio webcast at www.ing.com.

A media conference call will be held on 3 November 2011 at 11:00 CET. Journalists are invited to join the conference in listen-only mode at +31 20 794 8500 (NL) or +44 20 7190 1537 (UK) and via live audio webcast at www.ing.com.

DISCLAIMER

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 fi nancial information in this document, the same accounting principles are applied as in the 3Q2011 ING Group Interim Accounts. All fi gures 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 fi nancial markets, including developing markets, (3) the implementation of

Additional information is available in the following documents on www.ing.com:

• ING Group Quarterly Report
• ING Group Statistical Supplement
• ING Group Historical Trend Data
• ING Group Analyst Presentation
• ING Group Condensed consolidated interim fi nancial information for the period ended 30 September 2011

ING's restructuring plan to separate banking and insurance operations, (4) 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, (5) the frequency and severity of insured loss events, (6) changes affecting mortality and morbidity levels and trends, (7) changes affecting persistency levels, (8) changes affecting interest rate levels, (9) changes affecting currency exchange rates, (10) changes in general competitive factors, (11) changes in laws and regulations, (12) changes in the policies of governments and/or regulatory authorities, (13) conclusions with regard to purchase accounting assumptions and methodologies, (14) changes in ownership that could affect the future availability to us of net operating loss, net capital and built-in loss carry forwards, and (15) ING's ability to achieve projected operational synergies. 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, and any other document or presentation to which it refers, do not constitute an offer to sell, or a solicitation of an offer to buy, any securities.

3 Result per share differs from IFRS earnings per share in respect of attributions to the core Tier 1 securities.

Notes from the front page table:

Insurance operating and underlying fi gures exclude the Insurance Latin American pension, life insurance and investment management operations, following the announced sale of these businesses on 25 July 2011. The result of Insurance Latin America has been transferred to "net result from discontinued operations." Previous periods have been restated.

The fi gures of this period have been restated to refl ect the change in accounting policy, i.e., the move towards fair value accounting for Guaranteed Minimum Withdrawal Benefi ts for life in the US Closed Block VA as of 1 January 2011.

⁴ Annualised underlying net result divided by average IFRS-EU equity. (For Insurance, the 2010 quarterly results are adjusted for the after-tax allocated cost of Group core debt injected as equity into Insurance by the Group)