ING Groep N.V. — Earnings Release 2010

Feb 16, 2011

PRESS RELEASE

16 February 2011

ING posts 2010 underlying net profi t of EUR 3,893 million

• ING Group full-year underlying net profi t rises fourfold to EUR 3,893 million from EUR 974 million in 2009
• ING Group full-year 2010 net result EUR 3,220 million, or EUR 0.85 per share, including divestments and special items
• Group 4Q10 underlying net profi t of EUR 644 million vs. EUR 90 million in 4Q09 and EUR 1,032 million in 3Q10
• 4Q10 net result EUR 433 million, or EUR 0.11 per share, vs. net loss of EUR 712 million in 4Q09
• ING will not pay a dividend over 2010 given the fi nancial environment, regulatory requirements and priority to repay Dutch State
• Bank continues strong performance with 4Q10 underlying profi t before tax of EUR 1,479 million vs. EUR 163 million in 4Q09
• Net interest margin increases to 1.47%, up 6 basis points, supported by healthy margins on savings and lending
• Risk costs increase in 4Q10 after three quarters of decline to EUR 415 million, or 51 basis points of average risk-weighted assets
• Cost/income ratio improves to 57.2% vs. 74.5% in 4Q09; full-year 2010 cost/income ratio of 56.0% vs. 68.7% in 2009
• Core Tier 1 ratio rises to 9.6% from 9.0% at the end of 3Q10; EUR 5.9 billion core Tier 1 capital generated in 2010
• Insurance 4Q10 operating result of EUR 438 million shows improvement vs. EUR 303 million in 4Q09
• Investment spread rises to 93 bps vs. 83 bps in 4Q09 driven by the Netherlands and the US
• Underlying result before tax EUR -690 million mainly due to EUR 975 million DAC write-down in US Closed Block Variable Annuity (VA)
• Previously announced measures implemented to more closely align Insurance US reporting with US peers
• DAC write-down of EUR 975 million in US Closed Block VA booked in 4Q10
• EUR -0.7 billion equity impact from move towards fair-value accounting for reserves as of 1 Jan 2011 came in lower than expected
• US Closed Block VA reserve adequacy reinforced as of 1 January 2011 with a signifi cant buffer above the 50% confi dence level

CHAIRMAN'S STATEMENT

"ING made good progress in 2010 as we prepare to create strong stand-alone companies for banking and insurance," said Jan Hommen, CEO of ING Group. "Although the economic recovery remains fragile, and fi nancial markets continue to be volatile, ING posted an underlying net profi t of EUR 3,893 million in 2010, up from EUR 974 million a year earlier. The Bank made a strong recovery, boosting the return on IFRS equity to 13.1% and generating EUR 5.9 billion of core Tier 1 capital. Insurance is also showing early progress on its performance improvement programme, despite challenging market circumstances. The operational separation of the Bank and Insurer was completed at year-end, with arms-length agreements in place between the two businesses for all commercial cooperation and shared infrastructure. The focus for 2011 will be on preparing the Insurance company for two IPOs and working towards the repurchase of the remaining outstanding core Tier 1 securities from the Dutch State."

"The Bank fi nished the year with another strong quarter, posting an underlying profi t before tax of EUR 1,479 million, almost on par with the very strong third quarter, despite seasonally lower Financial Markets results and a small up-tick in loan loss provisions after three quarters of declines. The net interest margin increased further to 1.47%, supported by healthy margins on both savings and lending, although loan growth remains subdued in some segments. Expenses increased compared with a year earlier, when costs were fl attered by substantial accrual releases across most business lines. Compared with the third quarter, expenses were up 3.2% and the cost/income ratio increased slightly to 57.2%, driven by higher marketing and IT costs to support the growth of the business, as well as higher contributions to deposit guarantee schemes."

"Insurance continued to show progress towards its Ambition 2013 performance improvement objectives. Operating profi t for Insurance was up 44.6% to EUR 438 million, supported by a continued improvement in the investment spread to 93 basis points, as well as higher fees driven by new sales and growth in assets under management. The underlying result before tax was impacted by the write-down of EUR 975 million of deferred acquisition costs as part of the measures announced in the third quarter to improve transparency and address the reserve adequacy of the closed block variable annuity business in the US."

"The measures taken to address the US variable annuity block and the decision to bring the US reporting more into line with US peers should reduce earnings volatility from the US Closed Block VA going forward. The DAC balance for the closed block has been reduced substantially and reserve adequacy has been bolstered with a signifi cant buffer above the 50% confi dence level. As we prepare for our base case of two IPOs for Insurance, our priorities for 2011 will be the legal and operational separation within the Insurance business, and delivery on the performance improvement plans so we will be ready to move forward with the IPOs when market conditions are favourable."

KEY FIGURES

Group
	4Q2010	4Q2009	Change	3Q2010	Change	FY2010	FY2009	Change
Profi t and loss data (in EUR million)
Underlying result before tax	789	120	558%	1,512	-48%	5,343	1,159	361%
Underlying net result	644	90	616%	1,032	-38%	3,893	974	300%
Divestments and special items	-211	-801		-660		-675	-1,909
Net result	433	-712		371	17%	3,220	-935
Balance sheet data (end of period, in EUR billion)
Total assets				1,261	-2%	1,247	1,164	7%
Shareholders' equity				42	-1%	42	34	23%
Capital ratios (end of period)
ING Group debt/equity ratio				11.7%		13.3%	12.4%
Bank core Tier 1 ratio				9.0%		9.6%	7.8%
Insurance IGD Solvency I ratio				261%		255%	251%
Share information
Net result per share (in EUR)1)	0.11	-0.33		0.10	10%	0.85	-0.44
Shareholders' equity per share (end of period, in EUR)				11.23	-3%	10.99	8.95	22%
Shares outstanding in the market (average over the period, in million)				3,781	0%	3,781	2,103	80%
Other data (end of period)
Underlying return on equity based on IFRS-EU equity	6.1%	1.2%		9.8%		9.7%	4.2%
Employees (FTEs, end of period)				107,118	0%	107,106	105,757	1%

1 Result per share differs from IFRS-EU earnings per share in respect of attributions to the Core Tier 1 securities and for 2009 the recalculation of the number of outstanding shares due to the rights issue.

Banking operations
	4Q2010	4Q2009	Change	3Q2010	Change	FY2010	FY2009	Change
Profi t and loss data (in EUR million)
Interest result	3,514	3,148	12%	3,415	3%	13,450	12,507	8%
Total underlying income	4,424	3,346	32%	4,319	2%	17,298	13,483	28%
Underlying operating expenses	2,530	2,494	1%	2,451	3%	9,685	9,263	5%
Underlying addition to loan loss provision	415	689	-40%	374	11%	1,751	2,859	-39%
Underlying result before tax	1,479	163	807%	1,494	-1%	5,862	1,361	331%
Key fi gures
Interest margin	1.47%	1.41%		1.41%		1.42%	1.32%
Underlying cost/income ratio	57.2%	74.5%		56.8%		56.0%	68.7%
Underlying risk costs in bp of average RWA	51	83		44		53	85
Risk-weighted assets (end of period, in EUR billion, adjusted for divestm.)				331	-3%	321	330	-3%
Underlying return on equity based on IFRS-EU equity	13.5%	2.9%		13.0%		13.1%	4.3%
Underlying return on equity based on 7.5% core Tier 11)	19.2%	3.5%		17.6%		17.6%	5.0%

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

Insurance operations
	4Q2010	4Q2009	Change	3Q2010	Change	FY2010	FY2009	Change
Margin analysis (in EUR million)
Investment margin	402	268	50%	383	5%	1,481	1,196	24%
Fees and premium-based revenues	1,270	1,102	15%	1,222	4%	4,903	4,362	12%
Technical margin	204	228	-11%	216	-6%	780	902	-14%
Income non-modelled life business	37	47	-21%	37	0%	136	123	11%
Life & ING IM operating income	1,912	1,645	16%	1,858	3%	7,300	6,583	11%
Administrative expenses	843	735	15%	807	4%	3,205	2,916	10%
DAC amortisation and trail commissions	513	430	19%	458	12%	1,833	1,654	11%
Life & ING IM operating expenses	1,356	1,165	16%	1,265	7%	5,038	4,570	10%
Life & ING IM operating result	556	480	16%	592	-6%	2,263	2,013	12%
Non-life operating result	69	68	1%	50	38%	235	314	-25%
Corporate line operating result	-188	-244		-169		-754	-893
Operating result	438	303	45%	473	-7%	1,743	1,434	22%
Non-operating items	-1,128	-346		-454		-2,263	-1,636
Underlying result before tax	-690	-43		18		-519	-202
Key fi gures
Administrative expenses / operating income (Life & ING IM)	44.1%	44.7%		43.4%		43.9%	44.3%
Life general account assets (end of period, in EUR billion)				167	-1%	165	143	15%
Investment margin / life general account assets1) (in bps)	93	83		87		93	83
ING IM Assets Management (end of period, in EUR billion)				378	2%	387	343	13%
Underlying return on equity based on IFRS-EU equity 2)	-9.5%	-3.0%		-0.8%		-1.8%	-0.9%

1 Four-quarter rolling average

2 Annualised underlying net result, adjusted for the after-tax allocated cost of Group core debt injected as equity into Insurance by the Group.

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.

CONSOLIDATED RESULTS

The operating environment continued to improve gradually during the fourth quarter, although the global economic recovery remained fragile and market volatility persisted. Nevertheless, ING Group's results showed a strong improvement compared with the previous year. Underlying net profi t was EUR 3,893 million for the full-year 2010, up from EUR 974 million a year earlier.

The Bank's underlying result before tax was robust in the fourth quarter at EUR 1,479 million, a ninefold increase from the same quarter of last year. Insurance results were impacted by the previously announced EUR 975 million DAC write-down in the US, which resulted in an underlying loss before tax of EUR 690 million. However, operating profi t was resilient at EUR 438 million, up 44.6% from the fourth quarter of 2009. The Group's fourth-quarter underlying net result was EUR 644 million, compared with EUR 90 million in the fourth quarter of 2009 and EUR 1,032 million in the third quarter of 2010. Net profi t for the fourth quarter was EUR 433 million.

ING Bank's net production of client balances was positive for the sixth straight quarter. Net production of funds entrusted was EUR 9.0 billion, of which EUR 8.5 billion was in Commercial Banking and related mainly to short-term deposits from asset managers and corporate treasuries. Retail Banking grew funds entrusted by EUR 0.5 billion. ING Direct generated EUR 3.4 billion of net infl ow, which was offset by a net outfl ow of EUR 2.7 billion in Retail Netherlands, mainly refl ecting outfl ows in deposits in the midcorporate segment. The net production of residential mortgages, excluding currency impacts, was EUR 5.7 billion. Other lending showed net production of EUR 3.2 billion driven by strong growth in Structured Finance.

Insurance sales (APE) rose 7.0% from the fourth quarter of 2009 and increased 3.1% compared with the third quarter of 2010, excluding currency effects. Fourth-quarter APE was driven by strong sales in Asia/Pacifi c, the US and Latin America. Assets under management (AuM) at ING Investment Management rose 2.4%, or EUR 9.2 billion, to EUR 387 billion from the end of the third quarter, primarily on positive currency effects and EUR 2.9 billion of net infl ows.

Banking

ING Bank posted another strong quarter with underlying profi t before tax of EUR 1,479 million. This was almost on par with the strong third-quarter result of EUR 1,494 million and up signifi cantly from the EUR 163 million profi t in the fourth quarter of 2009, which was heavily impacted by market-related items. Interest results held up well and the interest margin increased to 1.47%. Lending volumes were up driven by mortgages and Structured Finance, while (mid-)corporate and SME lending remained subdued. Risk costs declined from the fourth quarter of 2009 but rose versus the third quarter of 2010. Market impacts diminished compared with both periods.

Total underlying income jumped 32.2% compared with the fourth quarter of 2009 and 2.4% versus the previous quarter. The strong year-on-year increase was fuelled by higher interest results and a marked improvement in investment and other income as impairments on debt securities and negative revaluations on real estate diminished signifi cantly. Market-related impacts recorded in income were positive EUR 156 million, including a capital gain on the sale of an equity stake in Fubon Financial Holding, whereas market-related impacts totalled EUR -512 million in the fourth quarter of 2009 and EUR -27 million in the previous quarter.

Growth in client balances and a higher interest margin pushed the interest result up 11.6% from the fourth quarter of 2009. ING Bank's total interest margin was 1.47% in the fourth quarter, up six basis points from both the fourth quarter of 2009 and the third quarter of 2010. Compared with the third quarter of 2010, the interest result rose 2.9%. Despite low demand for credit facilities in General Lending, margins in both the General Lending and Structured Finance portfolios held up well compared with the previous quarters of 2010. In the mid-corporate and SME segments, increased competition and moderate lending demand pushed margins somewhat lower than levels seen in the previous quarters, especially in the Benelux. Margins for mortgages and savings remained healthy across all business lines, with improvements at ING Direct and in Retail Benelux.

Underlying operating expenses rose 1.4% from the fourth quarter of 2009, which included a number of exceptional items. Excluding these items and currency effects of EUR 74 million, operating expenses rose 9.2% due to additional costs for the new deposit guarantee scheme in Belgium this quarter, higher marketing expenses to support the ING brand, the year-on-year increase in staff costs and increased IT project costs. Exceptional items in the fourth quarter of 2009 included a provision for the Dutch deposit guarantee scheme following the bankruptcy of DSB Bank, a downward accrual adjustment related to deferral of incentive compensation, and higher impairments on real estate development projects and foreclosed properties. Compared with the third quarter of 2010, expenses were up 3.2%. The cost/ income ratio improved to 57.2% versus 74.5% in the fourth quarter of 2009 but rose compared with 56.8% in the third quarter of 2010.

After three consecutive quarters of decline, risk costs increased by EUR 41 million from the third quarter of 2010 to EUR 415 million. The increase in Retail Netherlands was mainly due to a model update on the Dutch mortgage portfolio to refl ect lower anticipated recovery rates. At ING Direct, risk costs rose due to the use of updated loss data in Germany and a EUR 21 million adjustment related to interest on modifi ed loans in the US. Nevertheless, risk costs at ING Direct were substantially lower than a year ago, refl ecting signs of stabilisation in the US housing market. Risk costs in the current quarter amounted to 51 basis points of average risk-weighted assets (RWA) compared with 83 basis points in the fourth quarter of 2009 and 44 basis points in the previous quarter. For the coming year, risk costs as a percentage of RWA are expected to be slightly below the level of 2010.

Retail Banking's underlying result before tax more than tripled from the fourth quarter of 2009 to EUR 806 million. This strong improvement was driven by a 14.6% rise in the interest result, fuelled by higher margins on savings and mortgages and volume growth, especially in the Benelux, the US and Germany. Impairments at ING Direct US were lower than a year ago because delinquencies fl attened in the US RMBS portfolio. Risk costs declined 27.3% from the fourth quarter of 2009, particularly in the US, supporting the quarterly results. These positive trends more than offset higher expenses related to investments in the business and increased marketing costs. Compared with the third quarter of 2010, profi t before tax fell 20.0% due to higher expenses, particularly in Retail Benelux, and increased risk costs.

Retail Netherlands' underlying result before tax was EUR 304 million, up from EUR 276 million in the fourth quarter of 2009 but down from EUR 377 million in the previous quarter. In the current quarter, income was strong due to higher margins on mortgages and savings, while expenses rose due to marketing campaigns and business investments. Risk costs remained elevated in the Netherlands, primarily due to a model update for mortgages refl ecting lower anticipated recovery rates.

Retail Belgium reported an underlying result before tax of EUR 91 million, down from EUR 97 million in the same quarter of 2009 and EUR 140 million in the third quarter of 2010. Despite higher volumes, income was only slightly higher than in the fourth quarter of 2009. This could not compensate for a rise in expenses due to additional one-time costs for the new Belgian national deposit guarantee scheme.

ING Direct's result improved to EUR 363 million from a loss of EUR 177 million in the fourth quarter of 2009. This strong quarterly performance relative to last year was mainly fuelled by lower impairments on the US investment portfolio, higher interest results and lower risk costs. The fourth-quarter results declined 11.9% from the third quarter of 2010, largely as a result of higher marketing expenses and risk costs in the fourth quarter.

Retail Banking Central Europe's underlying profi t before tax was EUR 39 million in the fourth quarter compared with EUR 34 million in the same period of 2009. A modest increase in income, partly due to favourable currency effects, and lower risk costs more than offset an increase in expenses. Profi t in the third quarter of 2010 was EUR 44 million.

The underlying result before tax of Retail Asia doubled to EUR 10 million from the fourth quarter of 2009. This was due to higher income and declining risk costs, which together mitigated an increase in expenses due to additional pension provisions, higher staff costs and business growth. Profi t was down signifi cantly compared to EUR 36 million in the third quarter of 2010, as that quarter included EUR 18 million of dividends from the Bank of Beijing and a one-time EUR 11 million gain on the sale of an investment in India.

The underlying result before tax for Commercial Banking excluding ING Real Estate jumped 39.1% from the fourth quarter of 2009 to EUR 534 million, driven by higher income and lower risk costs. Income was up 19.7% on margin and volume increases in Structured Finance, as well as on income growth in the clientrelated Financial Markets business. Commission income rose on higher fees in Structured Finance, while other income improved primarily due to favourable valuation results on non-trading derivatives in Financial Markets. These positive commercial factors more then compensated for a 46.8% year-on-year increase in costs mainly resulting from currency effects, downward accrual adjustments related to deferral of incentive compensation in the fourth quarter of 2009 and market-related items. Excluding these impacts, operating expenses were up 16.7%. This was primarily due to investments in the business and higher staff costs. Costs rose sequentially by 5.1% versus the third quarter of 2010. Compared with the third quarter of 2010, the underlying result before tax declined 10.1%, largely due to seasonality in Financial Markets' income.

ING Real Estate returned to profi t in the fourth quarter, with an underlying result before tax of EUR 80 million. The Investment Management and Finance businesses, as well as ING's own Investment Portfolio, each posted a quarterly profi t and an improvement in results compared with last year, while the Development business narrowed its loss. In the fourth quarter, negative revaluations and impairments at ING Real Estate continued to decline and were EUR 56 million compared with EUR 406 million in the fourth quarter of 2009 and EUR 102 million in the previous quarter.

On 1 November 2010, ING closed the sale of its 50% stake in the ING Summit Industrial Fund LP, as well as the sale of ING Real Estate Canada, the manager of Summit. The sale of the other 50% stake, owned by the ING Industrial Fund, ING Group's coinvestor in Summit, closed in the same transaction. Results from Summit are now recorded under 'net result from divested units' and are excluded from the underlying results.

The Corporate Line Banking posted a positive underlying result before tax of EUR 59 million compared to losses of EUR 180 million in the fourth quarter of 2009 and EUR 84 million in the previous quarter. The main contributor to the quarterly profi t was the EUR 189 million capital gain on the sale of an equity stake in

Fubon Financial Holding. This more than offset fair value changes on ING's own senior and covered bonds which turned negative.

The net result of the Bank was EUR 1,009 million. This includes an net operating profi t of EUR 7 million from the divested Summit units and EUR -154 million of special items after tax, mainly related to the merger of the Dutch retail activities, the transformation programme in Belgium, restructuring and IT decommissioning, as well as separation costs.

The underlying full-year return on equity for the Bank was 13.1% based on IFRS-EU equity. The full-year 2010 return on equity based on a 7.5% core Tier 1 ratio was 17.6%, exceeding the Ambition 2013 target of 13-15%.

Insurance

The operating result of ING Insurance was EUR 438 million, up 44.6% from the fourth quarter of 2009 but down 7.4% from the previous quarter. The investment margin and fees and premiumbased revenues both grew compared with the fourth quarter of 2009 and the third quarter of 2010. However, administrative expenses rose, DAC amortization and trail commissions increased and the technical margin declined relative to both comparative periods. The underlying result before tax in the fourth quarter of 2010 was heavily impacted by a DAC write-down related to the reporting of the US Closed Block VA as a separate business line.

The operating result from Life Insurance and Investment Management was EUR 556 million, up 15.8% from the same quarter of 2009 (or 6.1% excluding currency effects), but 6.1% lower than the previous quarter (or 4.8% excluding currencies).

The investment margin improved to EUR 402 million, up from EUR 268 million in the fourth quarter of 2009 and EUR 383 million in the third quarter of 2010. The strong increase compared with the fourth quarter of 2009 was attributable to reinvestments into fi xed income securities in the Netherlands and the US and accretion of previously impaired securities. The increase in the investment margin compared with the third quarter of 2010 was primarily driven by the US and Asia/Pacifi c. The four-quarter rolling average investment spread improved to 93 basis points from 87 basis points in the third quarter of 2010 and 83 basis points in the fourth quarter of 2009. The investment spread for the stand-alone fourth quarter rose to 97 basis points from 75 basis points a year earlier.

Fees and premium-based revenues grew 15.2% from the same quarter of 2009 to EUR 1,270 million, driven mainly by higher fees in Asia/Pacifi c, ING Investment Management and Latin America. Investment Management fees rose on higher AuM, while in Asia/ Pacifi c fees were boosted by strong sales in Japan and Malaysia. In Latin America, positive pension fund performance lifted fee income, as did higher fees on fund deposits. Fees and premiumbased revenues rose 3.9% versus the third quarter of 2010. This was mainly driven by strong individual life sales and higher fund values in the US, higher income in the US Closed Block VA and higher fees on AuM at ING Investment Management.

The technical margin was EUR 204 million, down 10.5% from the fourth quarter of 2009. This was largely due to a lower technical result in the US individual life segment, a one-time negative reserve development in the US Closed Block VA and lower surrender and mortality results in Japan. In addition, the fourth quarter of 2009 included EUR 23 million of releases of rider provisions in Poland and Hungary. The technical margin declined 5.6% from the third quarter of 2010.

Life Insurance and Investment Management administrative expenses rose 14.7% from the fourth quarter of 2009. The fourth quarter of 2009 included accrual adjustments related to deferral of incentive compensation particularly in Investment Management, the US and Asia/Pacifi c, and the release of a provision related to the closure of SPVA in Japan. Excluding the impact of the accrual adjustments as well as currency effects of EUR 52 million, expenses rose modestly by 0.5%. Compared with the third quarter of 2010, expenses rose 4.5% or 6.4% excluding currency effects.

The life operating result of Insurance Benelux increased more than sevenfold from the fourth quarter of 2009 to EUR 122 million. This was attributable to a higher technical margin, a rise in fee income, cost reductions, and a higher investment margin due to reinvestments. The technical margin rose mainly due to the increase in interest rates, which led to EUR 22 million of lower guarantee provisions, and the release of a provision related to the discontinuation of pension contracts which contributed EUR 11 million. Fees and premium-based revenues also increased as the result of changes in the product mix and higher fund values. Compared with the third quarter of 2010, the life operating result was up 4.3%, mainly due to a higher technical margin.

Insurance Central and Rest of Europe's life operating result was EUR 63 million, down 43.8% from the fourth quarter of 2009. The decline in results was mainly attributable to lower fees and premium-based revenues and higher costs, including the EUR 8 million fi nancial institutions tax in Hungary. Additionally, the fourth quarter of 2009 included the release of product rider provisions in Poland and Hungary totalling EUR 23 million, which was recorded in the technical margin. Compared with the third quarter of 2010, the life operating result was 16.0% lower. A lower technical margin and higher expenses were the main reasons for this decrease.

The life operating result of Insurance US, excluding the US Closed Block VA business, rose to EUR 171 million, 40.2% higher than the fourth quarter of 2009 as market conditions improved. The increase was attributable to higher investment margins and fee income, which more than mitigated a decline in the technical margin. The increase in the investment margin was primarily driven by lower interest rate swap expense, reinvestments into fi xed income securities, accretion of income on previously impaired securities due to improved market values and higher prepayment fees. Life operating results were 17.1% higher than in the third quarter of 2010 as both the investment margin and fee income increased.

As of the fourth quarter of 2010, the US Closed Block VA business is reported separately from the rest of the Insurance US business. The operating result for the US Closed Block VA in the fourth quarter was EUR 1 million compared with EUR 6 million in the fourth quarter of 2009 and EUR 21 million in the third quarter of 2010. The decrease from the fourth quarter of 2009 was primarily caused by a lower technical margin, which refl ects a one-time negative reserve development recorded in the fourth quarter of 2010 as well as lower fees and premium-based revenues. These factors were partially compensated by a higher investment margin and lower administrative expenses and DAC amortisation. The decline versus the third quarter was mainly due to a lower technical margin and higher DAC amortisation.

The life operating result for Latin America was EUR 46 million, up 21.1% (or 4.5% at constant currencies) from the fourth quarter of 2009 as fee income grew from higher sales and client balances. Fee income rose on pension fund performance in Mexico, while fees on fund deposits in other Latin American countries increased, consistent with economic growth and wage infl ation. The life operating result fell 29.2% compared with the third quarter of 2010, mainly due to higher expenses, of which the majority related to the roll-out of new wealth management products throughout the region in the fourth quarter of 2010. Additionally, the third quarter of 2010 included the positive impact of a change in revenue recognition of fee income.

Insurance Asia/Pacifi c's life operating result was EUR 109 million, which was fl at versus the same period of 2009, but down 16.2% excluding currency effects. This was attributable to a decline in the technical margin and higher life expenses, partly offset by an increase in the investment margin and fees and premium-based revenues. The increase in life expenses was primarily due to accrual adjustments related to deferral of incentive compensation and the release of a provision related to the closure of SPVA in Japan, both recorded in the fourth quarter of 2009, and currency impacts. Excluding the impact of the accrual adjustments and currency effects, the life operating result was 12.0% lower. Compared with the third quarter of 2010 the life operating result was down 13.5%, mainly due to declines in fees and premiumbased revenues and the technical margin.

ING Investment Management's operating profi t declined 41.6%, or 44.4% excluding currency effects, to EUR 45 million from EUR 77 million in the fourth quarter of 2009. Although fees were up strongly, the increase was outstripped by a 53.5% rise in administrative expenses, which was mainly caused by accrual adjustments related to deferral of incentive compensation in the fourth quarter of 2009, the introduction of the fi xed service fee and currency effects. Compared with the third quarter of 2010, Investment Management's operating result rose 4.7%.

The non-life operating result of ING Insurance was EUR 69 million, which was relatively unchanged compared with EUR 68 million in the same quarter of 2009. However, non-life results were EUR 19 million higher than the third quarter of 2010 due to strong fourth-quarter results in the Benelux driven by lower expenses.

The Corporate Line operating result was EUR -188 million compared with EUR -244 million in the fourth quarter of 2009. The improvement was primarily due to lower interest paid on hybrids resulting from the transfer of hybrid capital from ING Insurance to ING Bank in the fourth quarter of 2009, as well as the conversion of a EUR 1 billion hybrid from fi xed to fl oating rate interest payments in April 2010. The operating loss in the third quarter of 2010 was EUR -169 million.

ING Insurance posted a quarterly underlying result before tax of EUR -690 million compared to EUR -43 million in the same quarter of 2009 and a profi t of EUR 18 million in the third quarter of 2010. The loss in the current period refl ects a EUR 975 million DAC write-down in Insurance US. As previously indicated, this write-down relates to the reporting of the US Closed Block VA business as a separate business line.

Gains/losses and impairments on investments diminished signifi cantly to EUR -36 million from EUR -177 million in the fourth quarter of 2009 and EUR -126 million in the third quarter.

Market and other impacts worsened to EUR -1,096 million in the fourth quarter and consisted primarily of the DAC write-down related to the US Closed Block VA. Market and other impacts totalled EUR -157 million in the same quarter of 2009 and EUR -603 million in the third quarter of 2010. These fi gures included the impact of policyholder behaviour assumption changes in Japan and the US of EUR -343 million in the fourth quarter of 2009 and EUR -356 million in the third quarter of 2010.

The fourth-quarter net result for Insurance was EUR -576 million and includes a EUR 16 million gain on divestments and EUR -75 million of special items. Included within special items were EUR 26 million of after-tax separation expenses.

Insurance sales (APE) rose 7.0% from the fourth quarter of 2009 and increased 3.1% compared with the third quarter of 2010, excluding currency effects. The improvement in sales compared with the fourth quarter of 2009 was due to the US, Asia/Pacifi c and Latin America. In the US (excluding the US Closed Block VA), new sales increased driven by higher sales of stable value retirement plans, Universal Life products and term products. APE growth in Asia/Pacifi c was driven by the strong performance of ING's bancassurance partners in Malaysia, Thailand, Korea and China and continued sales strength in Japan, including the launch of a new COLI Increasing Term product. The APE increase in Latin America was mainly related to higher sales of mandatory pension products in Mexico. The inclusion of tax-favoured voluntary pension sales in Colombia and mutual fund sales in Chile also contributed to the increase.

Net profi t

ING Group's net profi t for the full-year 2010 was EUR 3,220 million compared to a net loss in 2009 of EUR 935 million. The fourth-quarter 2010 net profi t was EUR 433 million, versus a loss of EUR 712 million in the same quarter of last year and a profi t of EUR 371 million in the third quarter of 2010.

Divestments and special items recorded in the fourth quarter of 2010 totalled EUR -211 million after tax and related primarily to various restructuring programmes and separation costs. After-tax separation costs were EUR 46 million in the fourth quarter and totalled EUR 85 million for the full-year, in line with projected estimates.

The underlying effective tax rate was 14.5% in the fourth quarter, mainly caused by tax-exempt results in the Bank and by the taxation of the US Insurance loss against the high US rate. The underlying effective tax rate was 25.3% for the full-year 2010.

The net profi t per share was EUR 0.11 in the fourth quarter compared to a loss of EUR 0.33 in the fourth quarter of 2009 and a profi t of EUR 0.10 in the third quarter of 2010. The average number of shares used to calculate earnings per share over the quarter was 3,781 million.

Return on equity

The full-year 2010 underlying net return on equity for ING Group was 9.7% compared with 4.2% for the full-year 2009. The underlying return on equity for the Bank increased to 13.1% for the full-year 2010 from 4.3% in 2009. The underlying return on equity for Insurance was -1.8% for the full-year 2010 compared with -0.9% in 2009.

RETURN ON EQUITY (year-to-date)

BALANCE SHEET

ING Group's balance sheet decreased by EUR 14 billion to EUR 1,247 billion in the fourth quarter of 2010. This was mainly due to lower trading assets and reduced amounts due from banks, which were partially offset by positive currency effects.

At ING Bank, 'Financial assets at fair value through P&L' declined by EUR 19 billion due to lower trading and non-trading derivatives mainly due to lower market valuations following increased longterm interest rates. 'Loans and advances to customers' rose by EUR 8 billion to EUR 613 billion, driven by currency effects and lending growth, particularly in residential mortgages.

ING was a net receiver of deposits on the interbank market, with the net amount up by EUR 1 billion, as market participants continue to deposit short-term money at ING Bank. 'Customer deposits' rose by EUR 9 billion to EUR 511 billion. Individual savings accounts grew by EUR 4 billion, or EUR 2 billion at constant currencies. Corporate deposits rose by EUR 5 billion.

At Insurance, 'investments for risk of policyholders' increased by EUR 6 billion from currency effects and positive market appreciation. 'Deferred acquisition costs' (DAC) declined by EUR 0.3 billion, or EUR 0.6 billion excluding currency effects. 'Insurance and investment contracts' rose by EUR 6 billion to EUR 271 billion at year-end, primarily due to currency effects.

Group shareholders' equity declined by EUR 0.9 billion to EUR 41.6 billion (or EUR 10.99 per share) at the end of December. This was caused by a negative change in revaluation reserves, mainly due to higher interest rates, which was partly offset by positive exchange rate differences and the fourth-quarter net result.

CAPITAL MANAGEMENT

ING's capital position remained strong, supported by EUR 5.9 billion of core Tier 1 capital generation from the Bank in 2010. This was mainly driven by EUR 4.4 billion of net profi t and a reduction in risk-weighted assets adjusted for currency movements of EUR 20 billion.

The Bank's core Tier 1 ratio increased to 9.6% from 9.0% at the end of the third quarter. Available core Tier 1 capital increased by EUR 0.8 billion, driven by EUR 1.0 billion of retained earnings, which were partly offset by a dividend upstream of EUR 0.2 billion related to the sale of the equity stake in Fubon Financial Holding.

The Insurance Groups Directive (IGD) ratio for Insurance decreased to 255% at year-end from 261% at the end of September 2010. This decrease was mainly due to the impact of higher interest rates on available capital. During the quarter, ING Group converted EUR 1.5 billion of hybrids into equity in ING Insurance. The reduction of hybrids will reduce interest costs refl ected in the Corporate Line Insurance. In addition, from 2011 onwards, the Group will discontinue allocating ING Group core debt expenses to ING Insurance as it prepares for the separation of the Insurance company. The preparations for a legal entity restructuring, in line with the base case of two Insurance IPOs, are expected to be fi nalised in the fi rst half of 2011.

The Group debt/equity ratio rose to 13.3% from 11.7% at the end of the third quarter, refl ecting the EUR 1.5 billion debt for equity conversion, which increased core debt to EUR 8.5 billion from EUR 7.1 billion at the end of September 2010. The Group's adjusted equity increased by EUR 1.5 billion due to the quarterly net result, positive equity revaluations and favourable currency effects. The Financial Conglomerates Directive (FiCo) ratio for ING Group decreased to 162% from 165% at the end of September 2010.

ING's policy is to pay dividends in relation to the long-term underlying development of cash earnings. Dividends will only be paid when the Executive Board considers such a dividend appropriate. Given the uncertain fi nancial environment, increasing regulatory requirements and ING's priority to repurchase the remaining outstanding core Tier 1 securities, the Executive Board will not propose to pay a dividend over 2010 at the Annual General Meeting.

ING relies upon the short-term and long-term debt capital markets for funding, and the cost and availability of debt fi nancing is signifi cantly infl uenced by our credit ratings. Credit ratings are also important when ING is competing in certain markets. In the fourth quarter of 2010, the credit ratings of ING Insurance were affi rmed by S&P (A-) and Moody's (Baa1). There were no rating changes or signifi cant rating developments for ING Group or ING Bank in the fourth quarter.

CHANGES 4Q2010 AND 1Q2011

ING announced in November 2010 that it would implement a number of key changes with regard to the US Closed Block Variable Annuity ('VA') business to increase transparency, improve reserve adequacy, reduce earnings volatility and bring accounting and hedging more into line with US peers as the company prepares for a potential US-focused IPO.

In relation to these objectives, effective 1 October 2010, ING began reporting the US Closed Block VA business as a separate business line. Comparatives have been adjusted for ease of comparability and performance evaluation. Under ING's existing accounting policies, this separation triggered a charge in the fourth quarter of 2010 to bring reserve adequacy on the new Closed Block VA business line to the 50% level as of 1 October 2010. This charge, which was previously indicated in November 2010, is refl ected in the fourth quarter results as a DAC writedown of EUR 975 million before tax (EUR 634 million after tax).

ING moved towards fair-value accounting on reserves for Guaranteed Minimum Withdrawal Benefi ts for life ('GMWB') as of 1 January 2011 in order to better refl ect the economic value of underlying benefi ts and to more closely align its accounting practice with its US peers. In connection with this, ING substantially increased the interest rate hedging position on the US Closed Block VA book. These additional hedges are not expected to cause signifi cant earnings volatility, as the results from hedging derivatives will largely be mirrored in interest related value changes of the guarantees as recorded in the fi nancial statements from the fi rst quarter of 2011 onwards.

Note that the move towards fair value accounting for GMWB represents a change in accounting policy under IFRS-EU. The impact on IFRS-EU shareholders' equity as of 1 January 2011, including associated DAC and tax impacts, was EUR -0.7 billion. This fi gure is signifi cantly lower than the EUR -1 to -1.3 billion estimate provided in November 2010, mainly due to the strong performance of equity markets and rising interest rates in the US during the fourth quarter.

The results of the comparative periods will be restated to refl ect the change in accounting policy and will be posted on www.ing.com as of 1 April 2011. The estimated after-tax impact on full-year earnings is EUR -0.4 billion for 2010 and EUR -0.1 billion for 2009. These impacts refl ect the retroactive accounting change for the GMWB, but do not refl ect additional hedging of interest rate risk.

As a result of the changes described above and the benefi cial market developments during the fourth quarter, as of 1 January 2011 the US Closed Block VA business reserves are adequate with a signifi cant buffer above the 50% level.

APPENDIX 1 ING GROUP: CONSOLIDATED PROFIT AND LOSS ACCOUNT

l i da d p f i t d los ING G : C 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
mill in E UR ion	4Q 201 0	4Q 200 9	4Q 201 0	4Q 200 9	4Q 201 0	4Q 200 9
Gro ium inc ss p rem om e	6,3 35	6,6 64			6,3 35	6,6 64
ult king tion Inte Ban rest res op era s	3,5 04	3,0 93	3,5 14	3,1 48
mis sion inc Com om e	1,1 81	1,1 10	669	654	512	456
al in oth er i Tot tme nt & ves nco me	1,3 39	509	240	-45 6	1,2 02	993
al u nde rly ing inc Tot om e	12, 359	11, 376	4,4 24	3,3 46	8,0 48	8,1 13
Und ritin ditu erw g ex pen re	7,2 18	6,9 35			7,2 18	6,9 35
Staf f ex pen ses	1,9 74	1,6 47	1,4 40	1,1 53	534	494
Oth er e xpe nse s	1,5 12	1,5 20	986	1,0 77	526	443
ible orti sati and im irm Inta ent ng s am on pa s	104	264	104	264
Ope rati ng exp ens es	3,5 90	3,4 31	2,5 30	2,4 94	1,0 59	937
atio Inte rest es I exp ens nsu ran ce o per ns	327	182			440	265
Add itio loa n lo isio n to ss p rov ns	415	689	415	689
Oth er	21	18			21	18
Tot al u nde rly ing dit ex pen ure	11, 570	11, 255	2,9 45	3,1 83	8,7 38	8,1 55
Und erly ing ult bef tax res ore	789	120	1,4 79	163	-69 0	-43
Tax atio n	113	17	307	-57	-19 4	74
Min orit inte rest y s	31	13	16	4	15	9
Und erly ing sul t re t ne	644	90	1,1 56	216	-51 2	-12 6
Net ins/ loss n d ives tme nts ga es o	16	273			16	273
from Net ult div d u nits este res	2	-19	7	-15	-5	-4
cial afte Spe ite r ta ms x	-22 9	-1,0 55	-15 4	-92 3	-75	-13 2
ult Net res	433	-71 2	1,0 09	-72 2	-57 6	11

1 Including intercompany eliminations

ING G : C l i da d ba lan he te et rou p on so ce s
	ING	Gr oup	ING Ba	nk NV	rzek ING Ve	erin NV gen	ldin /Eli min atio Ho gs ns
in E mill ion UR	31 Dec . 20 10	30 Sep . 20 10	31 Dec . 20 10	30 Sep . 20 10	31 Dec . 20 10	30 Sep . 20 10	31 Dec . 20 10	30 Sep . 20 10
Ass ets
Cas h a nd bala ith tral ba nks nce s w cen	13, 072	13, 342	9,5 19	9,8 20	8,6 46	9,0 45	-5,0 93	-5,5 24
ts d ue f ba nks Am oun rom	51, 828	59, 108	51, 828	59, 108
Fina ncia l as fair lue thro h p rofi d lo sets at t an va ug ss	263 ,89 4	277 ,59 2	137 ,12 6	156 ,19 9	128 ,50 3	123 ,51 4	35 -1,7	-2, 120
Inve stm ent s	234 ,24 0	232 ,72 0	110 ,89 3	108 ,64 6	123 ,34 7	124 ,07 5
Loa nd adv es t usto ns a anc o c me rs	613 ,20 4	605 ,58 0	587 ,44 9	579 ,39 3	31, 020	34, 211	-5,2 66	-8,0 24
Rein ntra cts sura nce co	5,7 89	5,7 59			5,7 89	5,7 59
Inve s in ocia stm ent tes ass	3,9 25	3,7 62	1,4 94	1,4 37	2,4 28	2,4 99	3	-17 5
Rea l es inv tate estm ent s	1,9 00	2,0 41	562	707	1,0 63	1,0 60	275	274
Pro nd ipm ty a ent per equ	6,1 32	6,1 15	5,6 15	5,6 04	517	511
Inta ible ets ng ass	5,3 72	5,2 03	2,2 65	2,3 49	3,2 56	3,0 02	-14 9	-14 9
Def d a isiti ts erre cqu on cos	10, 604	10, 867			10, 604	10, 867
held for sal Ass ets e	681	1,8 79	300	1,6 13	381	266
Oth sset er a s	36, 469	36, 731	26, 023	25, 604	10, 209	10, 751	236	376
al a Tot ts sse	1,2 47, 110	1,2 60, 698	933 ,07 3	950 ,47 8	325 ,76 4	325 ,56 0	-11 ,72 8	-15 ,34 1
Equ ity
Sha reh old ers' uity eq	41, 555	42, 476	34, 451	33, 845	20, 811	21, 003	-13 ,70 7	-12 ,37 2
Min orit inte rest s y	729	997	617	1,0 85	112	94		-18 2
("C ) Non ting uity urit ies Tie r-1 urit ies" -vo eq sec ore sec	5,0 00	5,0 00					5,0 00	5,0 00
al e ity Tot qu	47, 284	48, 472	35, 069	34, 930	20, 922	21, 097	-8,7 07	-7,5 55
Lia bili ties
Sub ord inat ed loan s	10, 645	10, 635	21, 021	21, 575	4,4 07	5,8 69	-14 ,78 4	-16 ,81 0
Deb ities in issu t se cur e	135 ,60 4	130 ,95 5	125 ,06 6	120 ,40 3	3,9 67	3,9 21	6,5 71	6,6 31
Oth er b d fu nds orro we	22, 291	26, 530			8,5 88	11, 138	13, 703	15, 392
nd inve Insu stm ent ntra cts ran ce a co	270 ,58 2	264 ,85 9			270 ,58 2	264 ,85 9
ts d o b ank Am ue t oun s	72, 852	78, 869	72, 852	78, 869
Cus er d sits d o the r fu nds de its tom epo an on pos	511 ,36 2	502 ,49 6	519 ,30 4	514 ,51 7			-7,9 43	-12 ,02 1
Fina ncia l lia bilit ies at f air valu e th h p rofi d lo t an rou g ss	138 ,53 8	157 ,35 6	136 ,58 1	155 ,39 1	3,6 77	4,1 39	-1,7 20	-2, 174
Liab ilitie s he ld f ale or s	424	1,2 24	145	1,0 09	279	215
Oth er l iabi litie s	37, 527	39, 300	23, 035	23, 784	13, 342	321 14,	50 1,1	96 1,1
Tot al l iab iliti es	1,1 99, 826	1,2 12, 226	898 ,00 4	915 ,54 9	304 ,84 2	304 ,46 3	-3,1 14	-7,7 86
Tot al e ity and lia bili ties qu	1,2 47, 110	1,2 60, 698	933 ,07 3	950 ,47 8	325 ,76 4	325 ,56 0	-11 ,72 8	-15 ,34 1

Retail Banking: Consolidated profi t and loss account

				ail B ank Ret	ing elux Ben		ail D irec tion al Ret t & Inte rna
	al R Tot eta	il Ba nkin g	her Net	land s	Bel g	ium	Dir ING	ect	tral Cen	Eu rop e	Asi	a
in E mill ion UR	4Q 201 0	4Q 200 9	4Q 201 0	4Q 200 9	4Q 201 0	4Q 200 9	4Q 201 0	4Q 200 9	4Q 201 0	4Q 200 9	4Q 201 0	4Q 200 9
ult Inte rest res	2,6 03	2,2 71	983	881	418	388	984	798	179	170	40	34
mis sion inc Com om e	307	337	114	135	84	80	33	39	62	73	15	11
inc Inve stm ent om e	-10	-34 4	0	0	11	8	-22	-35 3	-1	1	2	0
Oth er i nco me	26	-9	27	18	-10	22	9	-45	-4	-12	4	8
al u nde rly ing inc Tot om e	2,9 26	2,2 56	23 1,1	1,0 35	503	499	1,0 04	440	235	231	61	52
St aff and oth er e xpe nse s	39 1,7	1,5 54	634	590	371	341	499	415	189	176	47	32
In ible orti sati and im irm tan ent g s am on pa s	38	-4	24	0	0	-6	13	3	0	-1	0	0
Ope rati ng exp ens es	1,7 77	1,5 50	658	590	371	335	512	417	189	175	47	32
Gro lt ss r esu	1,1 49	706	465	445	132	163	492	22	46	56	14	20
Add itio loa n lo isio n to ss p rov n	343	472	161	169	41	67	129	200	7	21	4	15
bef Und erly ing ult tax res ore	806	234	304	276	91	97	363	-17 7	39	34	10	5
s (i ) Clie nt b ala n E UR bill ion nce
Res iden tial Mo rtga ges	313 .0	283 .4	138 .2	132 .7	25. 9	23. 0	144 .6	124 .2	3.6	2.9	0.7	0.5
Oth end er L ing	86. 7	86. 7	42. 3	43. 4	27. 2	26. 7	3.5	3.1	10. 6	8.8	3.0	4.6
ds E sted Fun ntru	432 .1	413 .2	103 .7	103 .3	68. 3	69. 4	238 .1	217 .1	18. 6	17. 6	3.5	5.8
al F und AU M/M utu s	58. 4	68. 4	16. 7	16. 5	27. 9	33. 6	11. 4	9.3	2.1	1.1	0.4	7.9
fi ta bili nd effi Pro cie 1 ty a ncy
Cos t/in tio com e ra	60. 7%	68. 7%	58. 6%	57. 0%	73. 7%	67. 2%	51. 0%	94. 9%	80. 4%	75. 9%	77. 0%	62. 2%
2 Ret Eq uity urn on	17. 8%	7.7 %	22. 1%	21. 0%	25. 2%	40. 7%	17. 9%	-8.8 %	6.6 %	3.7 %	5.6 %	1.8 %
Ris k1
Risk in b f av RW A sts co p o era ge	76	113	123	136	85	144	68	115	12	41	17	67
Risk ig hte d a s (e nd of p erio d) sset -we	176 ,06 8	166 ,86 3	49, 592	49, 355	19, 141	18, 547	74, 233	69, 326	23, 174	20, 797	9,9 28	8,8 38

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)

l B k l da d p f i t d los Co ia ing : C i te t mm erc an on so ro an s a cco un
	Tot al C Ban	rcia l om me king		& P CM	Stru red ctu Fina nce		Lea sing & Fac tori ng		Fina ncia l rket Ma s		Oth er duc ts pro		Tot al C om king Ban	rcia l me l. R E exc	ING Re	al E stat e
in E mill ion UR	4Q 201 0	4Q 200 9	4Q 201 0	4Q 200 9	4Q 201 0	4Q 200 9	4Q 201 0	4Q 200 9	4Q 201 0	4Q 200 9	4Q 201 0	4Q 200 9	4Q 201 0	4Q 200 9	4Q 201 0	4Q 200 9
ult Inte rest res	950	885	225	231	290	236	49	43	272	254	1	-7	836	757	114	127
mis sion inc Com om e	365	319	56	64	137	78	12	10	-3	-12	65	91	266	230	99	89
inc Inve stm ent om e	-24	-47	9	16	3	-4	0	0	-6	-7	-1	-7	4	-2	-28	-45
Oth er i nco me	130	-77	8	6	-28	-34	65	60	17	-32	-3	-13	59	-13	72	-65
al u nde rly ing inc Tot om e	1,4 22	1,0 79	297	317	402	276	125	113	279	204	62	63	1,1 65	973	256	107
aff and oth St er e xpe nse s	677	497	150	132	90	54	58	50	225	117	49	38	571	391	106	106
ible orti sati and im irm In tan ent g s am on pa s	58	256	0	0	0	0	0	0	0	0	2	0	2	1	56	256
Ope rati ng exp ens es	735	753	150	132	90	54	58	50	225	117	51	38	574	391	161	362
Gro lt ss r esu	686	326	147	185	312	223	67	62	54	87	11	25	592	582	95	-25 5
Add itio loa n lo isio n to ss p rov n	72	217	23	49	5	114	30	35	-1	-1	0	0	58	198	15	20
Und erly ing ult bef tax res ore	614	109	124	135	307	108	37	27	55	88	11	25	534	384	80	-27 5
Clie nt b ala s (i n E UR bill ion ) nce
Res iden tial Mo rtga ges
Oth er L end ing	140 .4	133 .3	35. 9	35. 9	50. 0	43. 0	16. 7	16. 3	3.2	3.6	0.3	0.2	106 .1	99. 0	34. 3	34. 3
Fun ds E sted ntru	71. 7	58. 9	38. 0	32. 6	3.2	2.0	0.1	0.1	29. 8	23. 8	0.6	0.4	71. 7	58. 9
AU M/M al F und utu s	66. 2	64. 4													66. 2	64. 4
fi ta effi Pro bili nd cie 1 ty a ncy
Und erly ing t/in tio cos com e ra	51. 7%	69. 8%	50. 4%	41. 7%	22. 4%	19. 4%	46. 4%	44. 6%	80. 6%	57. 4%	82. 3%	60. 6%	49. 2%	40. 2%	63. 0%	339 .7%
Ret Eq uity 2 urn on	18. 8%	3.8 %	12. 6%	12. 4%	33. 0%	11. 6%	16. 0%	9.2 %	15. 8%	18. 0%	-11 .1%	35. 4%	19. 0%	13. 9%	16. 6%	-69 .6%
k1 Ris
Risk in b f av RW A sts co p o era ge	20	54	22	38	5	107	149	149	-1	-1	1	-3	18	56	40	40
Risk hte d a s (e nd of p d) ig erio sset -we	142 ,43 9	158 ,84 5	41, 216	49, 772	41, 174	45, 006	8,0 75	9,1 41	31, 319	32, 003	5,4 79	4,0 84	127 ,26 4	140 ,00 6	15, 174	18, 839

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)

Insurance: Margin analysis and Key fi gures

	ING Ins	ura nce	elux Ben		Cen t of Res	tral & Eu rop e	ited Un	Sta tes		US Clo sed Blo ck V A		in A rica Lat me		Asi cifi c a/Pa		ING IM		lin Co rate rpo e
In E UR mill ion	4Q 201 0	4Q 200 9	4Q 201 0	4Q 200 9	4Q 201 0	4Q 200 9	4Q 201 0	4Q 200 9	4Q 201 0	4Q 200 9	4Q 201 0	4Q 200 9	4Q 201 0	4Q 200 9	4Q 201 0	4Q 200 9	4Q 201 0	4Q 200 9
Inve in stm ent ma rg	40 2	268	99	79	21	18	229	134	12	7	19	18	22	7	-1	5	1	-0
Fee d p ium -ba sed s an rem rev enu es	1,2 70	1,1 02	141	128	130	139	272	234	43	57	111	81	327	263	245	199	0	0
Tec hni cal in ma rg	20 4	228	93	54	36	56	47	68	-14	6	5	3	37	41	-	-	-	-
life Inco del led bus ines me non -mo s	37	47	10	4	2	7	-0	-0	-0	-0	0	0	25	32	-0	3	-14 5	-19 8
Life & ING IM tin inc op era g om e	1,9 12	1,6 45	342	265	189	220	548	437	41	70	136	102	412	345	244	207	-14 5	-19 8
Adm inis ive trat exp ens es	84 3	735	154	185	74	67	214	189	17	23	66	49	118	94	198	129	32	37
d tr ail c DA C a rtisa tion mis sion mo an om s	51 3	430	66	64	52	41	162	127	23	40	24	15	185	142	1	1	15	10
Life & ING IM ex pen ses	1,3 56	1,1 65	220	249	126	107	377	315	41	64	90	64	302	236	199	129	48	48
Life tin sul & ING IM t op era g re	55 6	480	122	16	63	112	171	122	1	6	46	38	109	109	45	77	-19 3	-24 6
-life ult Non ting op era res	69	68	44	51	4	3	-	-	-	-	19	13	1	0	-	1	5	2
ult Cor Line ting ate por op era res	-18 8	-24 4
tin sul Op t era g re	43 8	303	166	67	67	115	171	122	1	6	65	51	110	109	45	77	-18 8	-24 4
Gai ns/l nd imp airm ent oss es a s	-36	-17 7	65	-11	-5	-35	-10 2	-17 2	4	26	6	-0	11	4	1	9	-15	2
alua tion Rev s	4	-12	45	-13	-	-	-3	55	-67	-25	10	8	-9	-1	3	-8	26	-28
rket the r im Ma & o ts pac	-1, 096	-15 7	-15 0	81	-10	-	-2	-1	-1,0 12	-85	-	-	11	5	-	-	67	-15 7
Und erly ing ult bef tax res ore	-69 0	-43	126	124	52	80	64	3	-1,0 75	-78	80	59	123	117	49	79	-11 0	-42 8
Life bu sin fi g Ins - N ura nce ew ess ure s
Sing le p ium rem s	3,9 10	3,1 40	513	780	243	181	2,3 17	1,4 53	82	301	656	323	100	102	-	-	-	-
ual miu Ann pre ms	80 9	717	34	118	70	79	265	235	-	-	13 4	76	306	209	-	-	-	-
sal es ( ) New APE	1,2 00	1,0 31	85	196	94	97	497	380	8	30	199	109	316	220	-	-	-	-
fi g Key ure s
Gro ium inc ss p rem om e	6,3 35	6,6 64	1,2 01	1,6 50	585	552	2,8 01	2,7 54	111	328	47	31	82 1,5	1,34 0	-	-	7	10
Adm / op ting inc e (L ife & IN G IM ) . ex pen ses era om	44. 1%	44. 7%	45. 0%	69. 8%	39. 2%	30. 5%	39. 1%	43. 2%	41. 5%	32. 9%	48. 5%	48. 0%	28. 6%	27. 2%	81. 1%	62. 3%	-22 .1%	-18 .7%
Life al a (en d o f pe riod , in EUR bil lion ) unt ets ge ner cco ass	16 5	143	61	55	8	8	63	55	6	5	2	2	23	17	1	0	-	-
Inve in / Life al a et ( in b )1 stm ent unt ma rg ge ner cco ass ps	93	83	77	67	99	102	134	113	-20	49	294	165	26	6	48	279
n fo r lif for Prov isio e in & inve risk licy hol der stm ntra cts sura nce . co po (en d o f pe riod )	12 0,9 47	105 ,08 0	22, 855	21, 037	3,7 83	3,3 18	36, 294	29, 982	35, 152	31, 702	139	97	22, 725	18, 945	-	-	-	-
duc tion clie nt b alan (in bil lion ) Net EUR pro ces	3.3	-1.5	-0.9	-0.3	0.5	0.6	-1.1	-0.8	-0.7	-0.2	0.6	0.5	0.2	0.2	4.5	-1.4	-	-
Clie nt b alan (en d o f pe riod , in bil lion ) EUR ces	45 3.8	408 .3	69. 9	68. 2	28. 6	24. 4	97. 1	87. 1	35. 9	32. 4	49. 8	36. 2	44. 2	35. 6	128 .3	124 .4	-	-
Adm inis ive es ( l) trat tota exp ens	96 7	866	243	281	76	68	214	189	17	23	66	49	119	95	198	125	33. 6	37. 9

1 Four-quarters rolling average

ENQUIRIES

Press enquiries

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

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

Investor conference call, media conference and webcast

Jan Hommen, Patrick Flynn and Koos Timmermans will discuss the results in an analyst and investor conference call on 16 February 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 9724 (US) and via live audio webcast at www.ing.com.

A press conference will be held on 16 February 2011 at 11:00 CET. Journalists are invited to join the conference at ING House, Amstelveenseweg 500, Amsterdam. Journalists can also join in listen-only mode at +31 20 794 8500 (NL) or +44 207 190 1537 (UK) and via live audio webcast at www.ing.com.

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

• ING Group Quarterly Report
• ING Group Statistical Supplement
• ING Group Historical Trend Data
• Analyst Presentation

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 2009 ING Group Annual Accounts. The Financial statements for 2010 are in progress and may be subject to adjustments from subsequent events. 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 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, (15) ING's ability to achieve projected operational synergies, and (16) the move towards fair value accounting for Guaranteed Minimum Withdrawal Benefi ts for the US Closed Block VA business line. 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.