ING Groep N.V. — Earnings Release 2011

Feb 9, 2012

PRESS RELEASE

9 February 2012

ING posts 2011 underlying net profi t of EUR 3,675 million

• ING Group's full-year 2011 net result was EUR 5,766 million, or EUR 1.52 per share, including divestments, discontinued operations and special items. The 4Q11 underlying net result was EUR -516 million. The 4Q11 net result was EUR 1,186 million, or EUR 0.31 per share.
• Bank underlying result before tax came in at EUR 793 million in 4Q11, including EUR 79 million of realised losses from selective de-risking at ING Direct and EUR 133 million of re-impairments on Greek government bonds. Despite pressure on savings margins, the net interest margin rose to 1.42% from 1.37% in 3Q11. Risk costs were EUR 530 million, or 65 bps of average RWA, mainly refl ecting higher losses on mid-corporate and SME lending in the Benelux.
• Insurance underlying loss before tax was EUR 1,348 million in 4Q11, mainly refl ecting the previously announced charge for the US Closed Block VA assumption changes, as well as losses on hedges in place to protect regulatory capital. The operating result rose 20.4% from 4Q10 to EUR 478 million driven by a higher investment margin, a decline in expenses and lower interest costs. The investment spread rose to 106 bps fuelled primarily by the Benelux.
• Given the uncertain fi nancial environment, increasing regulatory requirements and ING's priority to repay the Dutch State, the Executive Board will not propose to pay a dividend over 2011 at the annual General Meeting in May 2012.

Chairman's Statement

"The economic environment became more challenging in the fourth quarter of 2011. The fi nancial crisis spread further into the real economy, and uncertainty around the European sovereign debt crisis continued to erode confi dence and amplify market volatility. Despite this challenging backdrop and its inevitable impact on results, ING posted 15.1% higher full-year underlying earnings in 2011 compared with 2010," said Jan Hommen, CEO of ING Group.

"During the fourth quarter, income at the Bank was affected by losses related to further de-risking of the investment portfolio, as well as re-impairments on Greek government bonds and other market impacts. However, commercial performance remained robust. Funds entrusted grew by EUR 8.1 billion, underscoring the strong deposit-gathering ability of our franchise amid continued competition for savings in our home markets. Our strong funding profi le enabled ING Bank to continue to support customers' fi nancing needs. The capital position of the Bank remained strong, with the core Tier 1 ratio stable at 9.6% after absorbing the impact of higher capital requirements under CRD III which came into effect at year-end. As the economic recovery is expected to remain weak in 2012, we will continue to take a prudent approach to risk, capital and funding while working towards our Ambition 2015 targets."

"Our Insurance results were severely impacted by the update to policyholder behaviour assumptions on the US Closed Block VA, as announced in December, as well as losses on hedges in place to protect regulatory capital given the ongoing market turmoil. These factors led to a fourth-quarter loss on an underlying basis. However, operating results were up 20.4% from a year ago, demonstrating cost discipline and strong progress on performance improvement programmes. Signifi cant milestones in the restructuring process were achieved in 2011, including the sale of Insurance Latin America and the completion of the legal and operational separation of Insurance US, Europe and Asia. In 2012, we will continue to focus on improving returns while preparing these businesses for stand-alone futures."

Key Figures
	4Q2011	4Q20101	Change	3Q2011	Change	FY2011	FY20101	Change
ING Group key fi gures (in EUR million)
Underlying result before tax	-555	554	-200.2%	1,593	-134.8%	5,055	4,666	8.3%
Underlying net result	-516	252	-304.9%	1,262	-140.9%	3,675	3,192	15.1%
Net result	1,186	130	811.7%	1,692	-29.9%	5,766	2,810	105.2%
Net result per share (in EUR)2	0.31	0.03	933.3%	0.45	-31.1%	1.52	0.74	105.4%
Total assets (end of period, in EUR billion)				1,282	-0.2%	1,279	1,247	2.6%
Shareholders' equity (end of period, in EUR billion)				45	4.8%	47	41	14.1%
Underlying return on equity based on IFRS-EU equity	-4.5%	2.4%		11.9%		8.7%	8.1%
Banking key fi gures
Underlying result before tax (in EUR million)	793	1,428	-44.5%	1,031	-23.1%	4,740	5,738	-17.4%
Interest margin	1.42%	1.47%		1.37%		1.41%	1.42%
Underlying cost/income ratio	64.3%	57.1%		61.3%		59.6%	55.5%
Underlying risk costs in bp of average RWA	65	51		55		52	53
Core Tier 1 ratio				9.6%		9.6%	9.6%
Underlying return on equity based on IFRS-EU equity	6.8%	13.1%		8.3%		10.0%	12.9%
Insurance key fi gures
Underlying result before tax (in EUR million)	-1,348	-873		563	-339.4%	314	-1,072
Operating result (in EUR million)	478	397	20.4%	527	-9.3%	2,205	1,558	41.5%
Investment margin / life general account assets (in bps)3	106	90		103
Administrative expenses / operating income (Life & ING IM)	41.8%	43.4%		40.5%		39.8%	43.7%
Underlying return on equity based on IFRS-EU equity4	-19.1%	-16.7%		10.9%		1.4%	-5.1%

The footnotes relating to 1-4 can be found on page 14 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

Operating conditions were challenging in 2011, as fi nancial markets continued to be volatile and the macroeconomic environment deteriorated further in the second half of the year. The prolonged weakness of the economic recovery and its impact on local and capital markets were especially prominent in the fourth quarter. Despite this diffi cult context, ING Group's full-year results improved compared with 2010. Underlying net profi t for 2011 was EUR 3,675 million, up from EUR 3,192 million a year earlier.

For the fourth quarter of 2011, ING Group posted an underlying net loss of EUR 516 million, refl ecting lower results at the Bank and a loss at Insurance mainly due to the charge for the previously announced US Closed Block VA assumption changes, as well as hedge losses. ING Group's quarterly net profi t was EUR 1,186 million, supported by gains from divestments and from the liability management transactions executed in December 2011.

ING Bank recorded a fourth-quarter underlying profi t before tax of EUR 793 million compared with EUR 1,428 million a year ago and EUR 1,031 million in the third quarter of 2011. Results were down substantially from both prior periods refl ecting EUR 214 million of impairments on debt and equity securities (of which EUR 133 million was reimpairments on Greek government bonds), EUR 79 million of realised losses from selective de-risking at ING Direct, and higher risk costs. The net interest margin was 1.42%, up fi ve basis points from the previous quarter—primarily due to a recovery in Financial Markets—but down fi ve basis points relative to a year ago. Expenses declined from the fourth quarter of 2010, but rose from third-quarter levels.

Although competition for savings increased in the fourth quarter, ING Bank continued to show strong deposit growth with funds entrusted rising by EUR 8.1 billion (excluding currency impacts). The net infl ow of funds entrusted at Retail Banking was EUR 5.6 billion, of which EUR 3.2 billion was at ING Direct and EUR 2.5 billion at Retail Netherlands, supported by year-end campaigns. Commercial Banking reported a EUR 2.6 billion net increase in funds entrusted.

Residential mortgage net production was EUR 3.9 billion, driven primarily by ING Direct. The moderate growth was consistent with low market demand, as well as ING's policy to selectively grow this lending class while maintaining pricing discipline. The overall demand for other lending remained subdued given the challenging macroeconomic

environment. As a result, other lending showed a EUR 4.0 billion net decrease as a EUR 4.8 billion decline at Commercial Banking was only partly offset by EUR 0.8 billion of net growth in Retail Banking.

The operating result of ING Insurance improved year-onyear, rising 20.4% to EUR 478 million on a higher investment margin, lower interest expenses, and lower administrative expenses due to a non-recurring expense reduction in the US. Compared with the third quarter of 2011, the operating result was down 9.3%, primarily due to lower fees and premium-based revenues.

The fourth-quarter underlying result before tax of Insurance was EUR -1,348 million. The loss was due mainly to the EUR 1,099 million charge for the US Closed Block VA assumption changes announced in December 2011, as well as EUR 348 million of losses on hedges focused on protecting regulatory capital in the Benelux and the US.

Insurance sales (APE) rose 3.0% year-on-year, or 4.6% on a constant currency basis, driven by growth in Asia/Pacifi c, Central and Rest of Europe, and the Benelux. On a sequential basis, APE at ING Insurance was 0.6% lower, or down 3.1% excluding currency effects, primarily due to seasonally lower sales in Asia/Pacifi c.

ING Group's quarterly net profi t was EUR 1,186 million compared with EUR 130 million in the fourth quarter of 2010 and EUR 1,692 million in the third quarter. The fourth-quarter underlying effective tax rate was 12.4%.

Fourth-quarter net results included EUR 1,288 million of gains on divestments, of which EUR 995 million was attributable to the Latin American Insurance businesses and EUR 265 million to the sale of Real Estate Investment Management in Europe and Asia. Net results from divested units and discontinued operations totalled EUR 10 million. Special items after tax amounted to a gain of EUR 403 million. The EUR 718 million gain from the liability management transaction executed in December 2011 was partially offset by costs for various restructuring programmes, including EUR -118 million for the Retail Netherlands change programme (announced in November 2011) and EUR -67 million for strategic repositioning initiatives at Commercial Banking. After-tax separation and IPO preparation costs were EUR 85 million in the quarter and EUR 202 million for the full-year 2011, well within the previously announced amount of EUR 250 million after tax.

The quarterly net profi t per share for ING Group was EUR 0.31 compared with EUR 0.03 in the fourth quarter of 2010 and EUR 0.45 in the third quarter. The average number of shares used to calculate earnings per share over the fourth quarter was 3,784 million, unchanged from the third quarter. The Group's underlying net return on IFRS-EU equity was 8.7% for the full-year 2011.

BANKING

Banking key fi gures
	4Q2011	4Q2010	Change	3Q2011	Change	FY2011	FY2010	Change
Profi t and loss data (in EUR million)
Underlying interest result	3,449	3,539	-2.5%	3,318	3.9%	13,562	13,555	0.1%
Underlying income	3,704	4,288	-13.6%	3,792	-2.3%	15,855	16,816	-5.7%
Underlying operating expenses	2,381	2,450	-2.8%	2,325	2.4%	9,447	9,336	1.2%
Underlying addition to loan loss provision	530	410	29.3%	437	21.3%	1,667	1,742	-4.3%
Underlying result before tax	793	1,428	-44.5%	1,031	-23.1%	4,740	5,738	-17.4%
Key fi gures
Interest margin	1.42%	1.47%		1.37%		1.41%	1.42%
Underlying cost/income ratio	64.3%	57.1%		61.3%		59.6%	55.5%
Underlying risk costs in bp of average RWA	65	51		55		52	53
Risk-weighted assets (end of period, in EUR billion, adjusted for divestm.)				320	3.4%	330	319	3.7%
Underlying return on equity based on IFRS equity1	6.8%	13.1%		8.3%		10.0%	12.9%
Underlying return on equity based on 10% core Tier 12	7.4%	14.0%		9.0%		10.9%	13.1%

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

Annualised underlying, after-tax return divided by average equity based on 10% core Tier 1 ratio.

The fourth quarter of 2011 was marked by a deepening of the European sovereign debt crisis, ongoing fi nancial market volatility and negative sentiment for the short-term economic outlook. These challenging conditions inevitably impacted the Bank's results. Although the net interest margin rose on a sequential basis to 1.42%, pressure on interest results remained, particularly on savings. Risk costs increased both year-on-year and from the third quarter, refl ecting the uneven economic recovery. Investment income was also adversely affected by the diffi cult environment, leading to negative market impacts including re-impairments on Greek government bonds. The total Greek government bond portfolio has now been written down by almost 80%.

Total underlying income fell 13.6% compared with the fourth quarter of 2010 to EUR 3,704 million. The decline was primarily caused by EUR 133 million of re-impairments on Greek government bonds, EUR 81 million of impairments on other debt and equity securities, as well as EUR 79 million of realised losses from selective de-risking at ING Direct. The fourth quarter of 2010 included EUR 30 million of impairments next to a EUR 189 million capital gain on the sale of an equity stake in Fubon Financial Holding. Excluding the aforementioned items, income declined by 3.2% versus the fourth quarter of 2010. Compared with the third quarter of 2011, total income was 2.3% lower.

The interest result decreased 2.5% from the fourth quarter of 2010, but it rose 3.9% from the third quarter of 2011. The increase was largely due to higher net interest income

in Financial Markets, which fuelled a fi ve basis-point widening of the total interest margin to 1.42%. Nevertheless, margins remained under pressure as wholesale funding costs and deposit rates increased. In the Benelux, the pressure on savings margins was especially prominent in the Netherlands; however, this was partly compensated by higher margins on lending. ING Direct's total interest margin declined versus the third quarter, refl ecting margin compression in most countries stemming from the low interest rate environment and increased competition. Margins in the Commercial Banking lending books improved slightly on the previous quarter.

Underlying operating expenses were 2.8% lower than in the fourth quarter of 2010. In addition to stringent cost control, the decline also refl ected lower deposit insurance premiums, IT expenditures and performance-related personnel expenses. These factors more than offset a modest year-on-year increase in staff costs and impairments on software and goodwill. The impairments, combined with

higher marketing costs from year-end campaigns in several countries, lifted operating expenses 2.4% from the third quarter of 2011. The fourth-quarter underlying cost/income ratio was 64.3%, or 58.2% excluding market impacts.

Additions to loan loss provisions rose compared with both the third quarter of 2011 and the fourth quarter of 2010. The 21.3% increase from the third quarter was mainly attributable to higher additions for the mid-corporate and SME segments in the Benelux, as well as some specifi c fi les in General Lending. At Commercial Banking, risk costs rose mainly because of these specifi c fi les, but they were lower in Structured Finance. Risk costs at ING Direct declined, mainly in Germany and the US. Total risk costs in the fourth quarter rose to 65 basis points of average risk-weighted assets versus 55 basis points in the third quarter of 2011 and 51 basis points in the fourth quarter of 2010. For the full year, underlying risk costs were 52 basis points of average risk-weighted assets, one basis point below the level observed in 2010. Excluding ING Direct USA, which is pending divestment, fourth-quarter 2011 risk costs were 61 basis points of average risk-weighted assets. Given the uncertain economic environment, ING Bank expects additions to loan loss provisions to remain elevated at around similar levels for the coming quarters.

Retail Banking's underlying result before tax declined 40.9% from a year earlier to EUR 473 million. The interest result was 4.9% lower than in the fourth quarter of 2010, mostly due to lower interest results in the Netherlands caused by margin pressure on both lending and savings. Some margin pressure was also observed in most ING Direct countries. Investment income deteriorated, mainly refl ecting EUR 100 million of re-impairments on Greek government bonds and EUR 49 million of impairments on US RMBS at ING Direct. Other income was negative, largely because of losses from selective de-risking at ING Direct and from a EUR -45 million adjustment in the valuation of derivatives related to the German mortgage book. Risk costs rose both year-on-year and sequentially, primarily refl ecting higher provisioning for the mid-corporate and SME segments in the Benelux. Additionally, when compared with the third quarter, risk costs for the Dutch mortgage portfolio were somewhat higher in the fourth quarter of 2011. Operating expenses declined 2.1% from the fourth quarter of 2010 but rose 4.5% from the previous quarter due to higher marketing expenses. Compared with the third quarter of 2011, Retail Banking's underlying result before tax fell 41.2%.

The underlying result before tax of Commercial Banking excluding ING Real Estate was EUR 426 million, down 18.1% from the fourth quarter of 2010. This was primarily due to higher risk costs for increased provisioning in Structured Finance, General Lending, and Leasing and Factoring. Income decreased 5.0%, mainly due to lower

commission income in Structured Finance from a decline in new transactions, and lower income in Other Products. The interest result was fl at compared with the fourth quarter of 2010. Expenses declined year-on-year, refl ecting lower accruals for performance-related costs. Compared with the third quarter of 2011, the underlying profi t before tax more than doubled, supported by the strong recovery of Financial Markets income and lower impairments on Greek government bonds.

ING Real Estate recorded an underlying loss before tax of EUR 50 million compared to a profi t in the four preceding quarters. The fourth-quarter loss was mainly caused by negative revaluations, partly related to the sale of investments in line with ING's strategy to reduce the investment portfolio, and higher loan loss provisions in Real Estate Finance, mainly in the Netherlands and Spain.

Corporate Line Banking's underlying result before tax was EUR -56 million compared to EUR 59 million in the fourth quarter of 2010. The decline was mainly attributable to the EUR 189 million capital gain on the sale of the equity stake in Fubon Financial Holding in the fourth quarter of 2010.

The net result of the Bank was EUR 1,253 million including EUR 265 million of net gains on the divestments of ING Real Estate Investment Management Europe and Asia, as well as EUR -19 million of operating results from these divested units. Special items after tax totalled EUR 428 million and consisted of EUR 647 million of net gains on the liability management transaction completed in December 2011 and EUR -218 million related to strategic change programmes in Retail Netherlands and Commercial Banking. Special items also included additional costs for the merger of the Dutch retail activities, the Belgian transformation programme and costs related to the separation of Banking and Insurance.

The full-year 2011 underlying return on IFRS-EU equity was 10.0% compared with 12.9% in 2010. Impairments on Greek government bonds recorded in 2011 accounted for 1.2 percentage points of the year-on-year decline. The Ambition 2015 target for return on IFRS-EU equity is 10- 13%. ING Bank's full-year 2011 underlying return on equity, based on a 10% core Tier 1 ratio, was 10.9%.

RETURN ON EQUITY BANK (in %)

Underlying return on equity based on IFRS-EU equity (year-to-date)

INSURANCE

4Q2011 4Q20101 Change 3Q2011 Change FY2011 FY20101 Margin analysis (in EUR million) Investment margin 440 381 15.5% 451 -2.4% 1,739 1,405 Fees and premium-based revenues 1,103 1,139 -3.2% 1,141 -3.3% 4,583 4,415 Technical margin 171 199 -14.1% 136 25.7% 762 754 Income non-modelled life business 20 37 -45.9% 19 5.3% 89 136 Life & ING IM operating income 1,734 1,755 -1.2% 1,747 -0.7% 7,173 6,709 Administrative expenses 725 762 -4.9% 707 2.5% 2,857 2,933 DAC amortisation and trail commissions 483 489 -1.2% 475 1.7% 1,898 1,753 Life & ING IM operating expenses 1,208 1,251 -3.4% 1,182 2.2% 4,755 4,686 Life & ING IM operating result 526 504 4.4% 565 -6.9% 2,418 2,023 Non-life operating result 39 50 -22.0% 39 188 168 Corporate line operating result -88 -157 -77 -401 -633 Operating result 478 397 20.4% 527 -9.3% 2,205 1,558	Insurance key fi gures1
							Change
							23.8%
							3.8%
							1.1%
							-34.6%
							6.9%
							-2.6%
							8.3%
							1.5%
							19.5%
							11.9%
							41.5%
	Non-operating items	-1,827	-1,271	36	-1,892	-2,630
Underlying result before tax -1,348 -873 563 -339.4% 314 -1,072
Key fi gures
Administrative expenses / operating income (Life & ING IM) 41.8% 43.4% 40.5% 39.8% 43.7%
Life general account assets (end of period, in EUR billion) 171 2.3% 175 162							8.0%
Investment margin / life general account assets2 (in bps) 106 90 103
ING IM Assets under Management (end of period, in EUR billion) 309 4.2% 322 310							3.9%
Underlying return on equity based on IFRS-EU equity3 -19.1% -16.7% 10.9% 1.4% -5.1%

1 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.

Four-quarter rolling average

3 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.)

The fourth-quarter underlying result before tax at Insurance was severely impacted by the EUR 1,099 million charge for assumption changes in the US Closed Block VA. The underlying result also refl ects EUR 348 million of losses on hedges focused on protecting regulatory capital amid volatile fi nancial markets. The operating result was EUR 478 million, up 20.4% from the fourth quarter of 2010 due to a higher investment margin, lower administrative expenses and lower interest costs. Compared with the third quarter of 2011, the operating result declined 9.3%, mainly due to lower fees and premium-based revenues and slightly higher administrative expenses.

The operating result from Life Insurance and Investment Management rose 4.4% from the fourth quarter of 2010 to EUR 526 million. This increase was driven by a higher investment margin and lower expenses. Compared with the third quarter of 2011, the operating result declined 6.9%, mainly due to lower fees and premium-based revenues and despite an increase in the technical margin.

The investment margin climbed 15.5% from the fourth quarter of 2010 to EUR 440 million, attributable to higher results from real estate investments and lower profi t sharing in the Benelux. The fourth quarter of 2010 also contained negative non-recurring items which lowered the investment margin in that quarter. These factors, in combination with the benefi cial impact of reinvestments in the fi rst half of 2011 and higher dividend income received compared to 2010, lifted the four-quarter rolling average investment spread to 106 basis points. On a sequential basis, the investment margin declined 2.4%, mainly refl ecting derisking actions in the Benelux and lower dividend income from private equity and real estate. In 2012, the investment spread is expected to decline gradually, refl ecting lower yields on bonds resulting from de-risking actions mainly effected in the second half of 2011.

Fees and premium-based revenues declined 3.2% from the fourth quarter of 2010. In the US Closed Block VA, fees and premium-based revenues declined refl ecting lower assets under management and higher hedging and reserve costs, and in Central and Rest of Europe they were lower due to pension fund regulatory changes in Poland and Hungary. In Asia/Pacifi c, fees and premium-based revenues rose on sales growth in Japan, Hong Kong and Korea. Compared with

the third quarter of 2011, fees and premium-based revenues were 3.3% lower, mainly due to the US Closed Block VA and the Benelux.

The technical margin was EUR 171 million, compared with EUR 199 million in the fourth quarter of 2010. The decline was primarily caused by lower results in the Benelux and the US, which were partially offset by higher results in the US Closed Block VA and Asia/Pacifi c. The technical margin increased by EUR 35 million, or 25.7%, from the third quarter of 2011. This was largely due to improved mortality and morbidity results in Japan and Korea. Furthermore, the previous quarter included an addition to guarantee provisions in the Benelux.

Life Insurance and Investment Management administrative expenses declined 4.9% year-on-year to EUR 725 million, refl ecting ongoing cost control and the positive impact of non-recurring expense items. The primary non-recurring item was a EUR 45 million expense reduction in the US stemming from a change to ING's US employee pension plan. This more than offset the one-time provision for executing a compensation programme for customers with unit-linked products in the Benelux, as well as higher project costs in Central and Rest of Europe and Asia/Pacifi c. Compared with the third quarter of 2011, expenses rose 2.5%, or 0.7% excluding currency effects.

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 was EUR 39 million, compared with EUR 50 million in the fourth quarter of 2010. The decrease was primarily caused by higher claims in Disability & Accident in the Benelux. The non-life

operating result was fl at versus the previous quarter.

The Corporate Line operating result improved to EUR -88 million from EUR -157 million a year ago. This was mainly due to lower interest payments on hybrids since December 2010 and the discontinuation of Group core debt expense allocation to Insurance as from 1 January 2011.

Insurance posted a fourth-quarter underlying loss before tax of EUR 1,348 million. The quarterly loss was primarily due to the change in policyholder behaviour assumptions in the US Closed Block VA as well as losses on hedges focused on protecting regulatory capital.

Gains/losses and impairments on investments were EUR 16 million. The result for the current quarter includes EUR 179 million of capital gains and losses on the sale of debt securities and public equity in Europe and commercial mortgage-backed securities in the US, both resulting from de-risking and other investment portfolio management actions to protect regulatory capital. Greek government bonds were re-impaired by EUR 66 million and equity impairments were EUR 65 million in the quarter. The total Greek government bond portfolio has now been written down by almost 80%.

Revaluations were EUR -282 million, of which EUR -182 million was a loss on equity options put in place to protect regulatory capital and EUR -65 million was caused by revaluations on private equity and alternative assets.

Market and other impacts amounted to EUR -1,561 million, including the previously announced EUR 1,099 million charge for the US Closed Block VA actuarial assumption changes. The assumptions were updated for lapses, mortality, annuitisation and utilisation rates, with the most signifi cant revision coming from the adjustments of lapse assumptions. The impact of the assumption adjustments includes a charge to restore the reserve adequacy to the 50% confi dence level for the US Closed Block VA. Market and other impacts also included EUR 258 million of hedge losses (net of reserve changes) in the US Closed Block VA, and a EUR -247 million change in the provision for separate account pension contracts (net of hedging) in the Benelux.

The fourth-quarter net result of ING Insurance was EUR -68 million, including the EUR 995 million gain on the sale of the Latin American pension, life insurance and investment management operations, the EUR 26 million gain on the sale of Investment Management Australia, and a EUR 29 million net result from discontinued operations in Latin America. Special items after tax totalled EUR -25 million and mainly included costs related to restructuring programmes and separation expenses, as well as the EUR 71 million profi t from the liability management transaction executed in December 2011.

RETURN ON EQUITY INSURANCE (year-to-date)

Insurance sales (APE) rose 3.0% year-on-year, or 4.6% at constant currencies. Sales in Asia/Pacifi c were up 10.9%, driven by Japan, Malaysia, Hong Kong and China. In Central and Rest of Europe, APE grew 14.8%, partly due to higher life sales in Hungary. In the Benelux, APE rose 14.1% on higher corporate pension sales. At Insurance US, APE declined, refl ecting lower Stable Value and Fixed Annuity sales, while Full Service Retirement Plans and Individual Life product sales rose. On a sequential basis, Insurance sales were down 0.6%, or 3.1% excluding currency impacts.

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	31 Dec. 11	30 Sept. 11	31 Dec. 11	30 Sept. 11	31 Dec. 11	30 Sept. 11	31 Dec. 11	30 Sept. 11
Balance sheet data
Financial assets at fair value through P&L	262,722	270,177	136,089	150,503	126,873	119,893	-240	-219
Investments	216,503	214,894	83,802	85,984	132,700	128,910
Loans and advances to customers	602,525	597,083	577,570	573,698	32,928	32,093	-7,973	-8,708
Assets held for sale	62,483	61,955	62,483	59,159		2,796
Other assets	134,955	138,187	101,221	104,202	42,886	41,463	-9,151	-7,478
Total assets	1,279,188	1,282,296	961,165	973,546	335,387	325,155	-17,364	-16,405
Shareholders' equity	46,663	44,528	34,367	33,760	23,475	22,466	-11,179	-11,698
Minority interests	737	748	693	681	62	82	-18	-15
Non-voting equity securities	3,000	3,000					3,000	3,000
Total equity	50,400	48,276	35,060	34,441	23,537	22,548	-8,196	-8,713
Debt securities in issue	139,861	139,790	130,926	131,038	3,436	3,912	5,499	4,840
Insurance and investment contracts	278,833	267,063			278,832	267,063
Customer deposits/other funds on deposit	467,547	458,620	479,363	469,660			-11,816	-11,040
Financial liabilities at fair value through P&L	142,868	152,362	138,864	148,795	4,404	4,128	-400	-561
Liabilities held for sale	64,265	62,767	64,265	61,471		1,296
Other liabilities	135,414	153,418	112,687	128,141	25,178	26,208	-2,451	-931
Total liabilities	1,228,788	1,234,020	926,105	939,105	311,850	302,607	-9,167	-7,692
Total equity and liabilities	1,279,188	1,282,296	961,165	973,546	335,387	325,155	-17,364	-16,405
Capital ratios (end of period)
ING Group debt/equity ratio	12.7%	13.4%
Bank core Tier 1 ratio			9.6%	9.6%
Insurance IGD Solvency ratio1					225%	224%

1 The calculation of the IGD ratio has been changed in 4Q11 to ensure consistent application throughout the Group; the comparative 3Q11 ratio has been adjusted.

ING Group's balance sheet was reduced by EUR 3 billion to EUR 1,279 billion in the fourth quarter. Excluding currency effects, the decrease was EUR 25 billion, due to lower trading assets and lower amounts due from banks. The decrease in trading assets, primarily at Financial Markets, was attributable to a decline in reverse repos and derivatives, and lower trading securities resulting from de-risking actions. ING Group's balance sheet will be reduced further, by EUR 62 billion, following the sale of ING Direct USA which is currently refl ected in assets/liabilities held for sale.

Shareholders' equity rose to EUR 46.7 billion (or EUR 12.33 per share). This was mainly due to the EUR 1.2 billion fourthquarter profi t and positive exchange rate differences.

ING Bank's core Tier 1 ratio was stable at 9.6% despite a EUR 10 billion increase in risk-weighted assets (RWA) mainly resulting from the implementation of the Capital Requirements Directive III. RWAs were EUR 330 billion at the end of 2011. Core Tier 1 capital rose by EUR 1 billion, primarily driven by retained earnings including the net gain from the divestments of ING Real Estate Investment Management Europe and Asia.

The restated Insurance Groups Directive (IGD) ratio increased slightly to 225% at year-end from 224% at the end of September 2011. Both available capital and required capital increased mainly due to currency effects resulting in a slight increase of the IGD ratio. The change in the capital base also includes a net gain of EUR 1 billion on the sale of ING's

pension, insurance and investment management activities in Latin America as well as a EUR 1.1 billion charge on the US Closed Block VA following an assumption review during the quarter. The calculation of required capital changed in the fourth quarter; previous periods are restated accordingly.

The Group debt/equity ratio decreased to 12.7% at year-end from 13.4% at the end of September. Adjusted equity of ING Group remained unchanged as the impact of higher shareholders' equity and lower regulatory adjustments were offset by the reduction of EUR 2.7 billion in hybrid securities resulting from the liability management transaction in December 2011. Group core debt decreased from EUR 8.5 billion to EUR 7.9 billion, mainly as a consequence of the same liability management transaction.

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 2011 at the annual General Meeting in May 2012.

As announced on 13 January 2012, ING intends to resume dividend payments on common shares when all remaining core Tier 1 securities have been repaid to the Dutch State and Basel III requirements have been met.

BUSINESS AND SUSTAINABILITY HIGHLIGHTS

ING strives to build its banking and insurance businesses on sound business ethics and good corporate citizenship to ensure customer loyalty, employee engagement and satisfactory returns for shareholders. To support this commitment, ING has embedded social, ethical and environmental criteria into its fi nancing and investment policies and business ambitions. ING aims to ensure that its strategic decision-making is always based on fi nancial and non-fi nancial performance objectives.

Meeting customer needs

To meet the growing demand for environmentally and socially responsible investment products, ING Investment Management launched the 'ING (L) Renta Fund – Euro Credit Sustainable' in the fourth quarter. This fund invests in euro-denominated debt securities issued by companies that pursue sustainable development policies while applying strict social and environmental principles. Sustainable development is also at the core of ING's sustainable product offering for equity strategies. In 2011, the 'ING Duurzaam Aandelen Fonds' (Sustainable Equity Fund) was the bestperforming Dutch sustainable equity fund, beating its benchmark, the MSCI Developed Markets World Index.

ING's commitment to sustainability and social responsibility includes efforts to continuously improve customer service. An example of this is the reduction of the administrative workload in the Payments & Cash Management (PCM) business, one of ING Commercial Banking's core products. In 2011, ING PCM launched a project to lighten the administrative burden for both clients and ING staff who handle complex international assignments. In the fourth quarter of 2011, this resulted in signifi cant process improvements: the number of documents required to be sent to clients for large PCM transactions was halved and the number of client signatures required for such transactions fell 50-75%.

Our efforts to provide customers with exemplary service and products gained recognition in several countries across Central Europe. In Poland, for example, our insurance operations won in 2011 for the second year in a row the 'Friendly Insurance Company' award from a leading fi nancial publication for providing the best customer service during the term of policy, as well as for the handling and payout of claims. In the Czech Republic, ING's 'Smart' life insurance product was named 'Best Insurance Product 2011' by fi nancial advisory service provider Fincentrum.

Contributing to communities

With around 97,000 employees in more than 40 countries, ING wants to make a positive contribution to the communities it is part of. In particular, informing the public how fi nance works is one of ING's high priorities. ING aims to empower people of all ages to achieve fi nancial independence and become self-suffi cient individuals, in

particular by investing in education. ING Chances for Children, a partnership with UNICEF, is the main programme through which ING supports quality educational programmes for children worldwide. In November and December 2011, ING employees volunteered a record 42,757 hours, an increase of nearly 10,000 hours from 2010, to support children in their education as part of the so-called ING Global Challenge.

During the fourth quarter, German retail bank ING-DiBa used social media to engage the public in its community investment activities. Through the 'DibaDu und Dein Verein' programme, ING-DiBa sponsored 1,000 non-profi t associations with EUR 1,000 each. Interested associations could register on ING-DiBa's homepage and the public voted on which associations should receive the funding. Over 17.5 million votes were cast for the 19,000 registered associations. The programme enabled ING-DiBa to sponsor a wide range of good causes related to culture, sports and children, while raising its profi le beyond its base of seven million customers.

Creating an inclusive corporate culture

ING continuously strives to create the right working environment and strengthen its performance culture. ING promotes diversity and aims to build an inclusive corporate culture in which the differences of its employees are embraced. In recognition of these efforts, ING in the US received for the sixth year in a row a 100% score by the Human Rights Campaign Foundation on its 2012 Corporate Equality Index. The index assesses 850 American companies on their efforts at achieving lesbian, gay, bisexual and transgender equality in the workplace.

Participating in the dialogue on the future of fi nance

To earn and maintain the trust of customers and other stakeholders, it is important that ING continuously engage its stakeholders and align commercial and business decisions with its societal responsibilities. This is especially relevant in light of the ongoing global debate about the future of the fi nancial industry. In October and November 2011, ING actively participated in a series of plenary debates organised by leading Dutch academics called the 'Sustainable Finance Lab'. During these sessions, ING executives explained that ING supported measures that will contribute to a more stable fi nancial system, such as higher capital buffers and more sustainable remuneration structures. ING also voiced concerns about the possible compounding of new regulations. Particularly given major societal challenges—for example, those associated with 'greening' the energy supply and sustaining the Dutch healthcare system—ING argued that, in restructuring the regulatory framework, regulators need to take into account the role of large fi nancial institutions like ING in meeting the fi nancing and investment needs related to these challenges.

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 1	02 4Q 201	4Q 201 1	4Q 201 0	4Q 201 1	02 4Q 201
Gro ium inc ss p rem om e	6,4 63	6,2 87			6,4 63	6,2 87
ult king tion Inte Ban rest res op era s	3,3 93	3,5 29	3,4 49	3,5 39
mis sion inc Com om e	870	951	496	563	374	388
al in oth er i Tot tme nt & ves nco me	784	1,2 25	-24 2	185	1,0 08	1,1 43
al u nde rly ing inc Tot om e	11, 510	11, 993	3,7 04	4,2 88	7,8 44	7,8 18
Und ritin ditu erw g ex pen re	8,0 25	7,2 60			8,0 25	7,2 60
Staf f ex pen ses	1,7 67	1,8 76	1,2 81	1,3 75	486	500
Oth er e xpe nse s	1,4 54	1,4 54	979	971	476	483
ible orti sati and im irm Inta ent ng s am on pa s	120	103	120	103
Ope rati ng exp ens es	3,3 42	3,4 33	2,3 81	2,4 50	961	983
atio Inte rest es I exp ens nsu ran ce o per ns	162	326			199	438
Add itio loa n lo isio n to ss p rov ns	530	410	530	410
Oth er	7	10			7	10
Tot al u nde rly ing dit ex pen ure	12, 065	11, 439	2,9 11	2,8 60	9,1 92	8,6 92
Und erly ing ult bef tax res ore	-55 5	554	793	1,4 28	-1,3 48	-87 3
Tax atio n	-69	273	192	293	-26 1	-20
Min orit inte rest y s	30	30	22	16	8	13
Und erly ing sul t re t ne	-51 6	252	579	1,1 19	-1,0 95	-86 7
Net ins/ loss n d ives tme nts ga es o	1,2 88	16	265		1,0 23	16
from Net ult div d u nits este res	-19	38	-19	44		-6
ult from dis ed Net tinu rati res con ope ons	29	50			29	50
cial afte Spe ite r ta ms x	403	-22 6	428	-15 4	-25	-72
ult Net res	1,1 86	130	1,2 53	1,0 09	-68	-87 8

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.

ING Group: Consolidated balance sheet ING Group ING Bank NV ING Verzekeringen NV Holdings/eliminations in EUR million 31 Dec. 11 30 Sep. 11 31 Dec. 10pro forma1 31 Dec. 11 30 Sep. 11 31 Dec. 10pro forma1 31 Dec. 11 30 Sep. 11 31 Dec. 10pro forma1 31 Dec. 11 30 Sep. 11 31 Dec. 10pro forma1 AssetsCash and balances with central banks 31,194 25,077 12,661 28,112 22,058 9,205 11,577 9,949 8,549 -8,495 -6,930 -5,093 Amounts due from banks 45,323 55,098 51,478 45,323 55,098 51,477 Financial assets at fair value through P&L 262,722 270,177 263,174 136,089 150,503 137,124 126,873 119,893 127,785 -240 -219 -1,735 Investments 216,503 214,894 212,353 83,802 85,984 89,754 132,700 128,910 122,599 Loans and advances to customers 602,525 597,083 583,135 577,570 573,698 557,387 32,928 32,093 31,014 -7,973 -8,708 -5,266 Reinsurance contracts 5,870 5,807 5,787 5,870 5,807 5,787 Investments in associates 3,234 3,329 3,825 827 886 1,494 2,430 2,460 2,434 -23 -17 -103 Real estate investments 1,670 1,742 1,906 435 501 562 954 960 963 281 281 381 Property and equipment 2,886 2,874 2,962 2,417 2,414 2,478 469 460 484 Intangible assets 3,558 3,728 4,370 1,743 1,790 2,085 1,972 2,095 2,433 -157 -157 -148 Deferred acquisition costs 10,204 10,138 10,489 10,204 10,138 10,489 Assets held for sale 62,483 61,955 61,204 62,483 59,159 57,761 2,796 3,443 Other assets 31,016 30,394 33,660 22,363 21,455 23,745 9,410 9,595 9,678 -757 -656 237 Total assets 1,279,188 1,282,296 1,247,005 961,165 973,546 933,073 335,387 325,155 325,659 -17,364 -16,405 -11,727 Equity Shareholders' equity 46,663 44,528 40,904 34,367 33,760 34,451 23,475 22,466 20,159 -11,179 -11,698 -13,706 Minority interests 737 748 729 693 681 617 62 82 112 -18 -15 Non-voting equity securities 3,000 3,000 5,000 3,000 3,000 5,000 Total equity 50,400 48,276 46,633 35,060 34,441 35,069 23,537 22,548 20,271 -8,196 -8,713 -8,707 LiabilitiesSubordinated loans 8,858 10,844 10,645 18,408 19,883 21,021 4,367 4,396 4,407 -13,917 -13,435 -14,783 Debt securities in issue 139,861 139,790 135,604 130,926 131,038 125,066 3,436 3,912 3,967 5,499 4,840 6,571 Other borrowed funds 19,684 21,608 22,117 7,307 8,858 8,414 12,377 12,750 13,703 Insurance and investment contracts 278,833 267,063 270,393 278,832 267,063 270,393 Amounts due to banks 72,233 86,803 72,052 72,233 86,803 72,053 Customer deposits and other funds on deposits 467,547 458,620 453,323 479,363 469,660 461,266 -11,816 -11,040 -7,943 Financial liabilities at fair value through P&L 142,868 152,362 138,538 138,864 148,795 136,581 4,404 4,128 3,677 -400 -561 -1,720 Liabilities held for sale 64,265 62,767 61,196 64,265 61,471 59,407 1,296 1,789 Other liabilities 34,639 34,165 36,504 22,045 21,456 22,611 13,504 12,954 12,742 -910 -245 1,151 Total liabilities 1,228,788 1,234,020 1,200,372 926,105 939,105 898,005 311,850 302,607 305,389 -9,167 -7,692 -3,021 Total equity and liabilities 1,279,188 1,282,296 1,247,005 961,165 973,546 933,073 335,387 325,155 325,659 -17,364 -16,405 -11,727

1 Adjusted for transfer of ING Direct USA, 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
	Tot al R eta	il Ba nkin g	Net her	land s		Bel ium g		Dir ect	Cen tral	Eu rop e	Asi	a
in E UR mill ion	4Q 201 1	4Q 201 0	4Q 201 1	4Q 201 0	4Q 201 1	4Q 201 0	4Q 201 1	4Q 201 0	4Q 201 1	4Q 201 0	4Q 201 1	4Q 201 0
ult Inte rest res	2,4 80	2,6 09	896	987	412	419	940	984	194	179	38	40
Com mis sion inc om e	305	304	124	111	78	84	33	33	54	62	16	15
Inve inc stm ent om e	-18 0	-10	0	0	-7	11	-17 1	-22	-3	-1	0	2
Oth er i nco me	-26	14	11	18	29	-12	-91	9	12	-5	14	4
al u nde rly ing inc Tot om e	2,5 79	2,9 17	1,0 31	1,1 16	512	501	711	1,0 04	258	235	68	61
aff and oth St er e xpe nse s	1,7 12	1,7 37	600	633	361	370	520	499	188	189	43	47
ible and In orti sati im irm tan ent g s am on pa s	25	38	21	24	5	0	-1	13	1	0	0	0
rati Ope ng exp ens es	1,7 37	1,7 75	621	657	366	370	519	512	189	189	43	47
lt Gro ss r esu	842	1,1 42	411	459	145	131	192	492	69	46	26	14
Add itio loa n lo isio n to ss p rov n	369	342	191	161	42	41	103	129	24	7	11	4
Und erly ing ult bef tax res ore	473	800	220	298	104	90	89	363	45	39	15	10
Clie nt b ala s (i bill ion ) n E UR nce
iden tial Res Mo rtga ges	337 .4	315 .8	141 .8	138 .2	28. 9	25. 9	162 .2	147 .4	4.0	3.6	0.5	0.7
Oth end ing er L	92. 1	86. 7	41. 5	42. 3	30. 7	27. 2	4.1	3.5	11. 9	10. 6	3.8	3.0
ds E sted Fun ntru	455 .7	432 .1	106 .7	103 .7	71. 3	68. 3	255 .4	238 .1	18. 8	18. 6	3.5	3.5
M/M al F und Au utu s	54. 4	58. 4	15. 2	16. 7	26. 1	27. 9	10. 9	11. 4	1.8	2.1	0.4	0.4
fi ta bili nd effi cie 1 Pro ty a ncy
Cos t/in tio com e ra	67. 4%	60. 9%	60. 2%	58. 9%	6% 71.	73. 8%	73. 0%	0% 51.	73. 3%	80. 4%	62. 4%	0% 77.
Ret uity ba sed 10 .0% re T ier 12 urn on eq on co	8.0 %	13. 3%	13. 4%	16. 3%	18. 1%	18. 8%	3.2 %	13. 4%	6.2 %	4.9 %	4.5 %	4.2 %
Ris k1
Risk in b f av RW A sts co p o era ge	82	76	155	124	86	85	52	68	42	12	47	17
of p Risk ig hte d a s (e nd erio d) sset -we	179 ,18 4	175 ,68 4	49, 348	49, 290	20, 049	19, 069	78, 756	74, 233	22, 039	23, 164	8,9 92	9,9 28

1 Key fi gures based on underlying fi gures

2 Underlying after-tax return divided by average equity based on 10.0% 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 om Ban	rcia l me king	GL & P	CM	red Stru ctu	Fin anc e	Lea sing &	Fac tori ng	Fina ncia	l M ark ets	Oth er P	rod ucts	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 1	4Q 201 0	4Q 201 1	4Q 201 0	4Q 201 1	4Q 201 0	4Q 201 1	4Q 201 0	4Q 201 1	4Q 201 0	4Q 201 1	4Q 201 0	4Q 201 1	4Q 201 0	4Q 201 1	4Q 201 0
ult Inte rest res	974	970	238	225	278	290	69	68	293	272	-23	1	856	856	118	114
mis sion inc Com om e	197	262	56	56	116	137	4	4	-30	-3	40	65	186	258	11	4
inc Inve stm ent om e	-15	-24	-11	9	-1	3	0	0	22	-6	-15	-1	-4	4	-11	-28
Oth er i nco me	10	83	10	8	-8	-28	11	14	9	17	15	1	37	12	-27	71
al u nde rly ing inc Tot om e	66 1,1	1,2 91	294	297	385	402	85	85	294	279	17	67	1,0 74	30 1,1	92	161
St aff and oth er e xpe nse s	573	597	143	150	91	90	37	37	199	225	66	54	535	555	39	42
ible orti sati and im irm In tan ent g s am on pa s	56	57	1	0	0	0	0	0	0	0	-1	2	0	2	56	55
Ope rati ng exp ens es	629	654	144	150	91	90	37	37	199	225	65	56	535	557	94	97
Gro lt ss r esu	537	637	150	147	294	312	48	48	95	54	-48	11	539	573	-2	64
Add itio loa n lo isio n to ss p rov n	161	68	47	23	33	5	34	26	-1	-1	-1	0	113	53	48	15
Und erly ing ult bef tax res ore	376	569	103	124	261	307	14	23	96	55	-47	11	426	520	-50	49
Clie nt b ala s (i n E UR bill ion ) nce
Res iden tial Mo rtga ges
Oth er L end ing	137 .3	140 .4	35. 9	35. 9	50. 5	50. 0	14. 2	16. 7	3.6	3.2	0.0	0.3	104 .2	106 .1	33. 1	34. 3
Fun ds E sted ntru	66. 4	71. 7	33. 8	38. 0	1.6	3.2	0.0	0.1	30. 5	29. 8	0.4	0.6	66. 4	71. 7
al F und Au M/M utu s	0.4	66. 2													0.4	66. 2
fi ta bili nd effi Pro cie 1 ty a ncy
Und erly ing t/in tio cos com e ra	54. 0%	50. 7%	48. 9%	50. 4%	23. 6%	22. 4%	43. 5%	43. 2%	67. 7%	80. 6%	379 .7%	83. 6%	49. 8%	49. 3%	102 .1%	60. 3%
ba sed 12 Ret uity 10 .0% re T ier urn on eq on co	7.8 %	13. 4%	8.6 %	9.4 %	19. 9%	24. 7%	-7.8 %	8.6 %	8.8 %	11. 9%	-13 .6%	-8.3 %	10. 7%	14. 1%	-23 .2%	6.9 %
k1 Ris
Risk in b f av RW A sts co p o era ge	46	19	49	22	32	5	201	157	-1	-1	-8	1	35	18	162	41
Risk hte d a s (e nd of p d) ig erio sset -we	145 ,19 0	140 ,23 7	38, 290	41, 216	41, 988	41, 174	7,0 17	6,4 32	42, 005	31, 319	4,7 48	5,4 79	134 ,04 8	125 ,62 1	11, 143	14, 616

1 Key fi gures based on underlying fi gures

2 Underlying after-tax return divided by average equity based on 10.0% core Tier 1 ratio (annualised)

Ins Ma ura nc e: rg	in an a	ly d ke is a s n	f i g ure s y

	ING Ins	ura nce	Ben	elux	Cen t of Res	tral & Eu rop e	ited Un	Sta tes	Clo sed US	Blo ck V A1	Asi a/Pa	cifi c	ING	IM	Co rpo	Lin rate e
In E UR mill ion	4Q 201 1	4Q 201 0	4Q 201 1	4Q 201 0	4Q 201 1	4Q 201 0	4Q 201 1	4Q 201 0	4Q 201 1	4Q 201 0	4Q 201 1	4Q 201 0	4Q 201 1	4Q 201 0	4Q 201 1	4Q 201 0
Inve in stm ent ma rg	44 0	381	144	99	21	21	233	229	14	12	26	22	3	-3
Fee d p ium -ba sed s an rem rev enu es	1,1 03	1,1 39	132	141	110	130	277	272	11	43	361	327	213	225
Tec hni cal in ma rg	17 1	199	56	93	36	36	16	47	10	-14	54	37	-	-
life Inco del led bus ines me non -mo s	20	37	9	10	2	2	0	-0	-0	-0	9	25	0	0
Life & ING IM tin inc op era g om e	1,7 34	1,7 55	341	342	168	189	526	548	35	41	449	412	215	222
Adm inis ive trat exp ens es	72 5	762	169	154	83	74	174	214	20	17	117	118	162	183
d tr ail c DA C a rtisa tion mis sion mo an om s	48 3	489	50	66	51	52	164	162	22	23	195	185	1	1
Life & ING IM ex pen ses	1,2 08	1,2 51	218	220	134	126	339	377	42	41	312	302	163	184
Life sul & ING IM tin t op era g re	52 6	504	122	122	34	63	187	171	-7	1	138	109	53	38
-life ult Non ting op era res	39	50	37	44	1	4	-	-	-	-	1	1	-	-
ult Cor Line ting ate por op era res	-88	-15 7													-88	-15 7
tin sul Op t era g re	47 8	397	160	166	35	67	187	171	-7	1	139	110	53	38	-88	-15 7
ns/l nd Gai imp airm ent oss es a s	16	-42	173	65	-12 7	-5	-50	-10 2	0	4	25	11	1	1	-5	-15
alua tion Rev s	-28 2	56	-18 4	45	-1	-	-65	-3	-2	4	-4	-9	-6	3	-19	16
rket the r im Ma & o ts pac	-1, 561	-1,2 85	-24 7	-15 0	-	-10	32	-2	-1,3 60	-1,2 02	-0	11	-	-	14	67
Und erly ing ult bef tax res ore	-1, 348	-87 3	-98	126	-93	52	104	64	-1,3 68	-1,1 93	159	123	47	42	-98	-88
Life bu sin fi g Ins - N ura nce ew ess ure s
Sing le p ium rem s	2,8 27	3,2 54	491	513	233	243	1,9 74	2,3 17	-	82	129	100	-	-	-	-
ual miu Ann pre ms	72 3	650	48	34	77	70	254	240	-	-	34 3	306	-	-	-	-
sal es ( ) New APE	1,0 05	976	97	85	101	94	451	472	-	8	356	316	-	-	-	-
fi g Key ure s
Gro ium inc ss p rem om e	6,4 63	6,2 87	1,2 62	1,2 01	557	585	2,8 08	2,8 01	115	111	1,7 13	1,5 82	-	-	8	7
Adm / op ting inc e (L ife & IN G IM ) . ex pen ses era om	8% 41.	43. 4%	49. 6%	0% 45.	49. 4%	39. 2%	33. 1%	39. 1%	1% 57.	5% 41.	26. 1%	28. 6%	3% 75.	82. 4%
Life al a (en d o f pe riod , in bil lion ) unt ets EUR ge ner cco ass	17 5	162	64	61	7	8	70	63	6	6	27	23	1	1	-	-
Inve in / Life al a et ( in b )2 stm ent unt ma rg ge ner cco ass ps	10 6	90	108	77	101	99	140	134	53	-20	30	26	37	16
Prov isio n fo r lif e in & inve for risk licy hol der stm ntra cts sura nce . co po f pe (en d o riod )	11 6,5 63	120 ,94 73	22 ,20 8	22, 855	3,4 01	3,7 83	36, 412	36, 294	32, 115	35, 152	22, 427	22, 725	-	-	-	-
duc tion clie nt b alan (in bil lion ) Net EUR pro ces	-2. 5	2.8	-1.1	-0.9	0.2	0.5	-0.3	-1.1	-0.6	-0.7	0.6	0.2	-1.3	4.6	-	-
Clie nt b alan (en d o f pe riod , in bil lion ) EUR ces	39 7.8	378 .3	69. 6	69. 9	25. 0	28. 6	99. 9	97. 1	32. 9	35. 9	46. 8	44. 2	123 .5	102 .6	-	-
Adm inis ive es ( l) trat tota exp ens	88 2	891	271	243	85	76	174	214	20	17	118	119	162	183	51	39

1 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

2 Four-quarters rolling average

3 4Q2010 includes EUR 139 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, press conference and webcast

Jan Hommen, Patrick Flynn, Wilfred Nagel and Matt Rider will discuss the results in an analyst and investor conference call on 9 February 2012 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.

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. The Financial statements for 2011 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) consequences

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

A press conference will be held on 9 February 2012 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 20 7190 1537 (UK) and via live audio webcast at www.ing.com.

of a potential (partial) break-up of the euro, (4) the implementation of ING's restructuring plan to separate banking and insurance operations, (5) changes in the availability of, and costs associated with, sources of liquidity such as interbank funding, as well as conditions in the credit markets generally, including changes in borrower and counterparty creditworthiness, (6) the frequency and severity of insured loss events, (7) changes affecting mortality and morbidity levels and trends, (8) changes affecting persistency levels, (9) changes affecting interest rate levels, (10) changes affecting currency exchange rates, (11) changes in customer and policyholder behaviour, (12) changes in general competitive factors, (13) changes in laws and regulations, (14) changes in the policies of governments and/or regulatory authorities, (15) conclusions with regard to purchase accounting assumptions and methodologies, (16) changes in ownership that could affect the future availability to us of net operating loss, net capital and built-in loss carry forwards, and (17) 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 does not constitute an offer to sell, or a solicitation of an offer to buy, any securities.

Notes from the front page table:

¹ 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.

² Result per share differs from IFRS earnings per share in respect of attributions to the core Tier 1 securities. 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)