ING Groep N.V. — Earnings Release 2013

Nov 6, 2013

PRESS RELEASE

6 November 2013

ING records 3Q13 underlying net profi t of EUR 891 million

• • Group underlying net profi t of EUR 891 million from EUR 844 million in 3Q12 and EUR 957 million in 2Q13
• 3Q13 net profi t EUR 101 million, or EUR 0.03 per share, including discontinued operations, special items and divestments
• Bank underlying result before tax of EUR 1,103 million, in line with 3Q12 but down 3.8% sequentially
• Net interest margin rose to 1.44% in 3Q13 and the cost/income ratio for the fi rst nine months of 2013 improved to 55.2%
• Risk costs declined 10.4% from 2Q13, but remained elevated at EUR 552 million, or 80 bps of average RWA
• Core Tier 1 ratio rose to 12.4%, or 12.1% on a pro-forma basis including today's payment to the State and the IABF unwind

• Insurance EurAsia operating result rose to EUR 218 million, up 89.6% versus 3Q12 but 14.8% lower than 2Q13

• Results driven by higher investment margin, lower expenses from the Benelux transformation plan and improved Non-life results
• Underlying pre-tax result of EUR 136 million; up versus 3Q12 but down sequentially due to seasonality of dividend income in 2Q13
• Insurance EurAsia IGD solvency ratio lower at 255% refl ecting the change in NN Life's solvency ratio and the sale of ING Life Korea

• ING is advancing further into the end phase of its restructuring programme, which will now be completed by 2016

• EUR 1.125 billion payment to Dutch State completed today; agreement reached on unwinding of Illiquid Assets Back-up Facility
• Sale of ING Life Korea expected to close by year-end; ING Life Japan to be included within the base case IPO of ING Insurance
• ING Group's stake in ING U.S. reduced to 57%; Group double leverage covered by remaining stakes in ING U.S. and SulAmérica

CHAIRMAN'S STATEMENT

"ING continued to make strong progress on its restructuring programme in the third quarter, advancing further into the end phase of our transformation," said Ralph Hamers, CEO of ING Group. "At the same time, our businesses recorded another good set of quarterly results while delivering on our strategic priorities."

"Under a new agreement with the European Commission, the total restructuring of ING Group will now be completed two years earlier, by the end of 2016. The divestment of the Asian insurance and investment management activities is almost complete. The sale of ING Life Korea is expected to close by year-end. We have carefully explored and evaluated several divestment options for ING Life Japan, and have now included this business within the scope of the base case IPO of ING Insurance. Preparations for the base case IPO are progressing well and we will be ready to go to the market in 2014. The successful sale of 38 million ING U.S. shares in October brought our stake down to 57% and moves us close to meeting the requirement to divest more than 50% of the U.S. by the end of 2014. The EUR 4.8 billion of leverage in the Group holding company is covered by the proceeds from our share sales of ING U.S. and SulAmérica this year, together with the market values of our remaining stakes in these companies."

"We are grateful for the support the Dutch State extended to us during the crisis. Strong capital generation at the Bank facilitated the payment of another tranche of core Tier 1 securities today, reducing the principal amount of outstanding State aid to EUR 1.5 billion. We are also very pleased to have reached an agreement with the State on the unwinding of the Illiquid Assets Back-up Facility."

"The various performance improvement programmes and restructuring initiatives underway across the company are on track, and the results are encouraging. Underlying pre-tax results at ING Bank were solid at EUR 1,103 million, driven by an increase of the net interest margin to 1.44%. Commercially, the net infl ow of funds entrusted was sound at EUR 1.9 billion. Risk costs declined from both previous quarters, but remained elevated. Strong cost control continues to be a priority at the Bank and is evident in the improvement of the cost/income ratio to 55.2% for the fi rst nine months of 2013, despite additional restructuring charges in the third quarter from ongoing reorganisations. The year-to-date return on IFRS-EU equity was 9.3%, within reach of our 2015 target."

"The Bank's capital position strengthened further to a 12.1% pro-forma core Tier 1 ratio, after today's payment to the Dutch State and including the estimated impact from unwinding the IABF. ING Bank is continuously working to optimise its capital structure and is already meeting most of the CRD IV requirements. In order to reinforce our capital adequacy ahead of upcoming regulation, we are launching exchange offers for EUR 4.7 billion of outstanding subordinated debt into two CRD IV-compliant securities. We have also announced our intention to call a USD 2.0 billion hybrid with an 8.5% coupon, which will reduce our cost of capital."

"At Insurance EurAsia, both operating and underlying results improved compared with a year ago, rising to EUR 218 million and EUR 136 million, respectively. Third-quarter results primarily refl ected a higher investment margin, lower expenses as a result of the transformation programme in Insurance Benelux, and better performance in Non-life. On a sequential basis, results at Insurance EurAsia declined mainly due to seasonally higher dividend income in the second quarter."

"We are proud of the fi nancial and strategic progress that we have achieved this quarter. I am very determined and excited to be leading ING during this next phase of its transformation, and am convinced that our focused, simpler and stronger company is well positioned to help our customers and society prosper, and to grow our business."

ING GROUP CONSOLIDATED RESULTS

ING Group key fi gures
	3Q2013	3Q20121	Change	2Q2013	Change	9M2013	9M20121	Change
Profi t and loss data (in EUR million)
Underlying result before tax	1,219	1,126	8.3%	1,307	-6.7%	3,884	3,172	22.4%
of which Bank	1,103	1,110	-0.6%	1,147	-3.8%	3,419	3,272	4.5%
of which Insurance EurAsia	136	10	1,260.0%	182	-25.3%	402	-143
of which Insurance Other	-20	6		-22		63	44	43.2%
Underlying net result	891	844	5.6%	957	-6.9%	2,837	2,289	23.9%
Net gains/losses on divestments	-950	-200		-16		-26	84
Net result from divested units	1	-54				-37	-34
Net result from discontinued operations Insurance/IM Asia	143	198		-98		200	472
Net result from discontinued operations Insurance ING U.S.2	79	-46		-23		-140	193
Special items	-63	-83		-32		-141	-325
Net result	101	659	-84.7%	788	-87.2%	2,693	2,678	0.6%
Net result per share (in EUR)3	0.03	0.17	-82.4%	0.21	-85.7%	0.71	0.70	1.4%
Capital ratios (end of period)
Shareholders'equity (in EUR billion)				50	-0.7%	50	51	-2.1%
ING Group debt/equity ratio				7.2%		7.8%	12.3%
Bank core Tier 1 ratio				11.8%		12.4%	12.1%
Insurance EurAsia IGD Solvency I ratio				304%		255%	265%
Other data (end of period)
Underlying return on equity based on IFRS-EU equity4	7.2%	6.8%		7.3%		7.3%	6.4%
Employees (FTEs, end of period, adjusted for divestments)				75,798	0.1%	75,899	78,068	-2.8%

1 The comparative fi gures of this period have been restated to refl ect the new pension accounting requirements under IFRS, which took effect on 1 January 2013. 2

The results of Insurance ING U.S. have been transferred to "net result from discontinued operations" as of the third quarter of 2013. 3

Result per share differs from IFRS earnings per share in respect of attributions to the core Tier 1 securities. 4

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

ING Group posted a third-quarter underlying net profi t of EUR 891 million, driven by solid performance at both ING Bank and Insurance EurAsia. As of the third quarter of 2013, Insurance ING U.S. is classifi ed as held for sale and as discontinued operations.

UNDERLYING NET RESULT - GROUP (in EUR million)

ING Bank recorded a solid third-quarter underlying result before tax of EUR 1,103 million and made progress towards its Ambition 2015 targets.

UNDERLYING RESULT BEFORE TAX - BANK (in EUR million)

The interest margin strengthened to 1.44%, nine basis points higher than one year ago and up two basis points from the second quarter. Cost-containment programmes continued to yield savings, with expenses down 0.3% year-on-year. However, on a sequential basis, expenses rose 1.4% due to additional restructuring charges incurred in the third quarter as the Bank

further streamlines its operating base. Risk costs remained elevated amid the ongoing weak macroeconomic environment, but declined compared with both previous quarters. The Bank's return on IFRS-EU equity for the fi rst nine months of 2013 improved to 9.3% compared with 8.8% in the same period of 2012, while the cost/income ratio declined to 55.2% from 56.7% in the fi rst nine months of 2012.

Net infl ow of funds entrusted at ING Bank remained positive and amounted to EUR 1.9 billion in the third quarter. Retail Banking generated EUR 2.1 billion of net infl ow, driven by continued growth outside of the Netherlands. Total net lending declined by EUR 0.4 billion, refl ecting muted demand and pricing discipline.

OPERATING RESULT INSURANCE EURASIA (in EUR million)

Results at Insurance EurAsia showed signifi cant improvement compared with the third quarter of last year, on both an operating and underlying basis. The third-quarter operating result was EUR 218 million, up 89.6% from one year ago. The improvement refl ects a higher investment margin following the partial transfer of assets and liabilities from WestlandUtrecht Bank to NN Bank, lower expenses resulting from the transformation programme in the Benelux, improved results in the Non-life business and lower

funding costs. The underlying result before tax rose to EUR 136 million from EUR 10 million one year ago. On a sequential basis, both the operating and underlying results of Insurance EurAsia declined, as the second quarter of 2013 included seasonally higher dividend income and a strong Non-life result.

Total new sales (APE) at Insurance EurAsia decreased 4.7% yearon-year, on a constant currency basis, as 17.3% sales growth in Central and Rest of Europe was more than offset by a 32.4% drop in APE in the Benelux. Compared with the previous quarter, total new sales at Insurance EurAsia decreased 7.2% on a constant currency basis. The decline primarily refl ects a 16.7% decline in Central and Rest of Europe on seasonally lower thirdquarter sales, which was only partially offset by a 15.0% increase in APE in the Benelux, driven by renewals of corporate pensions in the Netherlands.

ING Group's third-quarter net profi t was EUR 101 million compared with EUR 659 million in the third quarter of 2012 and EUR 788 million in the previous quarter. Losses on divestments in the third quarter were EUR -950 million, refl ecting the estimated loss on the sale of ING Life Korea, which was announced in August 2013. Special items after tax totalled EUR -63 million and primarily related to costs for previously announced restructuring programmes in Bank and Insurance.

ING Group's quarterly net profi t included the net results from Insurance and Investment Management Asia and Insurance ING U.S., which are both recorded under net result from discontinued operations.

The net result from discontinued operations of Insurance and Investment Management Asia decreased to EUR 143 million compared with EUR 198 million one year ago, but improved from EUR -98 million in the previous quarter. The net result from the discontinued Insurance Asia operations declined 16.9% to EUR 103 million compared with the third quarter of last year, mainly due to the sales of the businesses in Malaysia, Hong Kong, Thailand, India, and KB Life. Excluding these businesses, the underlying result before tax of Insurance Asia rose 17.7% to EUR 146 million (or 39.0% excluding currency effects), mainly due to a EUR 25 million gain on the sale of securities in Japan. The net result from the internally reinsured Japanese SPVA guarantees and related hedges declined to EUR 41 million from EUR 78 million a year ago, but improved from EUR -190 million in the previous quarter. The result for the current quarter refl ects positive hedge results, driven by a decrease in fi nancial market volatility, partially offset by appreciation in the value of the underlying funds, which are not immediately fully refl ected in IFRS reserves for the guaranteed death benefi t block. The net result from ING Investment Management Asia improved by EUR 3 million to EUR -1 million compared with a year ago.

In light of ING's intention to divest its remaining stake in ING U.S. over time, as of the third quarter 2013, ING U.S. is classifi ed as

held for sale and reported in ING Group's IFRS fi nancial statements under net results from discontinued operations.

The third-quarter 2013 net result from discontinued operations of Insurance ING U.S. was EUR 79 million, a signifi cant improvement compared with EUR -46 million one year ago and EUR -23 million in the second quarter of 2013. The third-quarter underlying result before tax rose to EUR 155 million versus EUR 47 million in the third quarter of 2012 and EUR -19 million in the previous quarter. The substantial improvement in the underlying result before tax compared with both comparable quarters was primarily driven by EUR 97 million of investment gains related to recoveries on previously impaired assets and better hedge results related to the US Closed Block VA. This hedge programme is focused on protecting regulatory and rating agency capital rather than mitigating IFRS earnings volatility. The third-quarter 2013 underlying result before tax also refl ected favourable DAC and other intangible unlocking of EUR 106 million in the Retirement, Annuities, and Individual Life businesses related to the annual update of assumptions, which was completed in the quarter. This partially offset a loss of EUR 161 million related to updating policyholder behaviour assumptions and mortality assumptions in the US Closed Block VA, also in the third quarter.

NET RESULT PER SHARE (in EUR)

ING Group's quarterly net profi t per share was EUR 0.03 based on an average number of shares of 3,836 million over the third quarter. The Group's underlying net return on IFRS-EU equity was 7.3% for the fi rst nine months of 2013.

Changes 4Q2013 and 1Q2014

As announced on 6 November 2013, after carefully exploring and evaluating the options available for the divestment of ING Life Japan, ING Group will include ING Life Japan with ING's European insurance and investment management businesses in the base case Initial Public Offering (IPO) of ING Insurance in 2014, subject to market and other conditions. As a result, as of the fourth quarter of 2013, ING Life Japan and the Japanese Closed Block VA guarantees reinsured to ING Re will no longer be classifi ed as held for sale and discontinued operations.

Changes in segmentation

In the context of the IPO preparations, ING Insurance is working to implement a number of changes to increase transparency and bring accounting and hedging for the Japanese Closed Block VA more into line.

ING will adjust its reporting structure to better align its segmentation according to the businesses that it comprises, their governance and internal management, and to refl ect the decision to divest ING Life Japan with the IPO of ING Insurance. The new reporting segments for ING Insurance as of the fourth quarter are as follows:

• Netherlands Life
• Netherlands Non-life
• Insurance Europe
• Japan Life
• Japan Closed Block VA
• Investment Management
• Other

Japan Life, representing the COLI business, and the Japan Closed Block VA, will both be reported separately to refl ect the distinct nature of these two Japanese businesses. The Japan Closed Block VA business has a reserve inadequacy of approximately EUR 0.6 billion at the 50% confi dence level, as of 30 September 2013. This inadequacy is currently offset by surplus adequacies in other businesses in the same business line, predominantly the Japan COLI business and ING Life Korea. Under ING's existing accounting policies, the net insurance liability of any business line must be adequate at the 50% confi dence level. The separate reporting of the Japan Closed Block VA business line will therefore trigger a charge in the fourth quarter of approximately EUR 0.6 billion before tax (based on fi gures at the end of the third quarter) to restore the reserve inadequacy of that business line to the 50% confi dence level.

This charge will mainly be refl ected as a write-down of all deferred acquisition costs (DAC) of the Japan Closed Block VA. The fi nal P&L impact, which will be refl ected in the fourth quarter of 2013, will depend on market developments and other factors in the quarter.

Accounting for GMDB in Japan Closed Block VA

In addition, ING Insurance is studying a move towards fair value accounting on the reserves for Guaranteed Minimum Death Benefi ts (GMDB) of the Japan Closed Block VA as of the fi rst quarter of 2014. Such a move would improve the alignment of the book value of the GMDB reserves with their market value, better refl ect the economic value of these guarantees and improve the alignment of the accounting for the guarantees with the accounting for the related hedges. Furthermore, such a move would make the accounting for the GMDB consistent with the accounting on the reserves for Guaranteed Minimum Accumulation and Withdrawal benefi ts.

As at the end of the third quarter of 2013, the difference between the current book value and the estimated fair value of the GMDB reserves was approximately EUR 0.4 billion, but may change based on market developments and other factors at the time the move would be implemented. Implementation of fair value accounting for GMDB would represent a change in accounting policy under

IFRS with a transitional impact being refl ected only in shareholders' equity as of 1 January 2014. Results for comparative periods would be restated accordingly.

These measures, if implemented, are expected to eliminate the DAC balance and improve the reserve adequacy on the Japan Closed Block VA. The accounting for the Japan Closed Block VA guarantees would be consistent and more in line with the related hedges.

NN Life separate account pension business

ING Insurance is also considering to refi ne the market interest rate assumption that is used in determining certain components of the insurance liabilities for the separate account pension business in the Netherlands as of the fourth quarter of 2013. Such refi nement would represent a change in accounting estimate under IFRS and the impact thereof would be refl ected directly in the profi t and loss account. If implemented in the fourth quarter of 2013, this refi nement would impact the insurance liabilities for the relevant separate account pension business by less than 2%; the resulting one-off charge to the P&L would be approximately EUR 160 million (before tax).

BANKING

Banking key fi gures
In EUR million	3Q2013	3Q20121	Change	2Q2013	Change	9M2013	9M20121	Change
Profit & loss
Interest result	2,936	2,972	-1.2%	3,006	-2.3%	8,858	8,797	0.7%
Commission income	546	532	2.6%	582	-6.2%	1,682	1,662	1.2%
Investment income	78	393	-80.2%	52	50.0%	255	566	-54.9%
Other income	213	-106		212	0.5%	696	77	803.9%
Total underlying income	3,774	3,791	-0.4%	3,853	-2.1%	11,490	11,102	3.5%
Staff and other expenses	2,081	2,076	0.2%	2,064	0.8%	6,239	6,123	1.9%
Intangibles amortisation and impairments	39	51	-23.5%	26	50.0%	104	175	-40.6%
Operating expenses	2,120	2,127	-0.3%	2,090	1.4%	6,343	6,298	0.7%
Gross result	1,655	1,664	-0.5%	1,762	-6.1%	5,147	4,804	7.1%
Addition to loan loss provision	552	554	-0.4%	616	-10.4%	1,728	1,533	12.7%
Underlying result before tax	1,103	1,110	-0.6%	1,147	-3.8%	3,419	3,272	4.5%
of which Retail Banking	745	464	60.6%	664	12.2%	2,016	1,590	26.8%
of which Commercial Banking	360	437	-17.6%	532	-32.3%	1,482	1,500	-1.2%
of which Corporate Line	-2	209	-101.0%	-50		-78	182	-142.9%
Key figures
Underlying interest margin	1.44%	1.35%		1.42%		1.41%	1.32%
Underlying cost/income ratio	56.2%	56.1%		54.3%		55.2%	56.7%
Underlying risk costs in bp of average RWA	80	77		89		83	70
Risk-weighted assets (end of period, in EUR billion, adjusted for divestm.)	271,211	279,337	-2.9%	277,632	-2.3%	271,211	279,337	-2.9%
Return on equity based on IFRS-EU equity2	9.4%	9.2%		9.5%		9.3%	8.8%
Return on equity based on 10.0% core Tier 13	12.2%	11.8%		12.4%		12.3%	11.0%

1 The comparative fi gures of this period have been restated to refl ect the new pension accounting requirements under IFRS which took effect on 1 January 2013.

Annualised underlying net result divided by average IFRS-EU equity. 3 Annualised underlying after-tax return divided by average equity based on 10.0% core Tier 1 ratio.

ING Bank posted solid third-quarter results as the interest margin strengthened to 1.44% and risk costs declined. The underlying result before tax was almost stable year-on-year at EUR 1,103 million, as higher margins on both savings and lending largely compensated for a lower level of lending assets. Results declined 3.8% from the second quarter, mainly due to a negative swing in credit and debt valuation adjustments (CVA/DVA). Expenses were 0.3% lower year-on-year, but rose slightly on a sequential basis, refl ecting EUR 56 million of additional restructuring charges in the third quarter. Risk costs remained elevated amid the continued weak macroeconomic environment, but declined by EUR 64 million from the previous quarter.

ING Bank continued to demonstrate good progress towards its Ambition 2015 targets. The year-to-date return on IFRS-EU equity rose to 9.3%, while the cost/income ratio improved to 55.2% for the fi rst nine months of 2013. ING Bank's balance sheet declined following the transfer of EUR 4.9 billion of assets and EUR 3.7 billion of liabilities from WestlandUtrecht Bank (WUB) to ING Insurance, and the sale of EUR 2.2 billion of Dutch mortgages and EUR 0.9 billion of US Real Estate Finance loans during the quarter. Excluding these items, and adjusted for currency impacts, the Bank attracted EUR 1.9 billion of net funds entrusted, while net lending declined by EUR 0.4 billion in the quarter.

Total underlying income was EUR 3,774 million, down just 0.4% year-on-year. The third quarter of 2012 included a EUR 323 million gain on the sale of ING's equity stake in Capital One, as well as EUR 197 million of losses from selective de-risking and EUR 175 million of negative CVA/DVA adjustments recorded in

Commercial Banking and the Corporate Line. In the current quarter, CVA/DVA adjustments were EUR -8 million, whereas the planned de-risking of the investment portfolio was completed at the end of 2012. Excluding CVA/DVA, de-risking losses and the gain on Capital One, underlying income declined 1.5%, or EUR 58 million, as higher income in Retail Banking was more than offset by lower income in Bank Treasury, mainly due to a lengthening of the Bank's funding profi le and lower positive revaluations of derivatives used for hedging purposes. On a sequential basis, underlying income decreased 2.1%, mainly due to Bank Treasury and Financial Markets, which was partly caused by a EUR 60 million decline in CVA/DVA impacts.

The underlying interest margin improved by two basis points to 1.44% from 1.42% in the second quarter, following a decline of the average size of the balance sheet. The interest result declined 2.3% to EUR 2,936 million, refl ecting the partial transfer of WestlandUtrecht Bank's mortgage and savings portfolios to ING Insurance and the sale of Dutch mortgages. In addition, the interest result in Bank Treasury was lower, and the depreciation of most currencies against the euro also had a negative impact. The interest result on funds entrusted increased due to an improvement of the interest margin as client savings rates were lowered in several countries. The interest result on lending activities declined due to lower volumes and a slightly lower margin. Compared with the third quarter of 2012, the underlying interest result was 1.2% lower, mainly due to a lengthening of the Bank's funding profi le. The interest result on funds entrusted rose, refl ecting higher volumes and a slight improvement of the interest margin. The interest result on lending remained fl at as repricing of the loan book compensated for the impact of lower volumes.

ING Bank attracted a net infl ow of funds entrusted (adjusted for WUB transfers and currency impacts) of EUR 1.9 billion during the third quarter. Retail Banking generated EUR 2.1 billion of net infl ow, driven by continued growth outside of the Netherlands. Total net lending declined by EUR 0.4 billion (also adjusted for the sale of Dutch mortgages and US Real Estate Finance loans), refl ecting muted demand and pricing discipline. Net production of residential mortgages was EUR 1.9 billion and was generated primarily outside the Netherlands. Other lending declined by EUR 2.3 billion, mainly in business lending in the Benelux.

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

Cost-saving initiatives at the Bank are on track, helping to offset the impact of infl ation, higher pension costs and additional restructuring costs recorded in the third quarter. Underlying operating expenses declined 0.3% from a year ago to EUR 2,120 million, despite EUR 55 million of higher pension costs (caused by a reduction in the discount rate at the end of 2012) and EUR 56 million of additional restructuring costs taken during the third quarter. This was mainly offset by the impact of the announced cost-savings initiatives, the partial transfer of WUB staff to ING Insurance, lower impairments on real estate development projects and favourable currency impacts. Year-to-date, average staff expenses, excluding pension costs per FTE, were slightly lower than a year ago. Compared with the second quarter of 2013, operating expenses rose by EUR 30 million, or 1.4%. This increase was mainly due to the additional restructuring costs in Retail Netherlands, Retail Belgium and Commercial Banking and EUR 10 million of higher impairments on real estate development projects, which were only partly offset by lower expenses at WUB following the transfer of staff to ING Insurance. The underlying cost/income ratio was 56.2% in the third quarter of 2013, bringing the yearto-date ratio to 55.2%, down from 56.7% in the fi rst nine months of 2012.

Risk costs declined 10.4% from the second quarter, but remained elevated. ING Bank added EUR 552 million to the provision for loan losses, down from EUR 616 million in the second quarter and EUR 554 million one year ago. The improvement compared with the second quarter mainly refl ects lower additions in Retail Rest of World, General Lending and the Lease run-off portfolio, as well as some releases in Real Estate Finance. Risk costs for Dutch mortgages were stable at EUR 82 million, but were signifi cantly higher than a year ago, with non-performing loans increasing to 1.8% from 1.6% at the end of the second quarter. Risk costs for business lending in Retail Netherlands remained elevated and rose to EUR 126 million. Risk costs in Structured Finance in Commercial Banking rose due to one specifi c fi le. Total NPLs at ING Bank were 2.7% of credit outstandings, down from 2.8% at the end of the second quarter. Total underlying risk costs were 80 basis points of average risk-weighted assets. For the coming quarters, ING expects risk costs to remain elevated at around these levels amid the weak economic climate.

The underlying result before tax from Retail Banking rose to EUR 745 million from EUR 664 million in the second quarter, driven by improved margins on savings in most regions. This offset the impact from the transfer of Dutch assets and liabilities to ING Insurance and the sale of EUR 2 billion of Dutch mortgages during the quarter. Risk costs fell by EUR 46 million on the previous quarter, supported by declines in most countries. Year-on-year, the underlying result before tax jumped 60.6%.

Commercial Banking recorded an underlying result before tax of EUR 360 million, down 17.6% year-on-year as a reduction in expenses and lower risk costs were more than offset by lower income from Bank Treasury, Real Estate & Other as the Bank lengthened its funding profi le. Compared with the previous quarter, the result before tax dropped 32.3%, mainly due to lower positive CVA/DVA adjustments in Financial Markets and lower results in Bank Treasury.

The underlying result before tax of Corporate Line Banking was a loss of EUR 2 million versus a profi t of EUR 209 million last year, which contained a EUR 323 million gain on the sale of ING's equity stake in Capital One. Excluding this gain, the result was up strongly, refl ecting lower interest expenses on debt. The underlying pre-tax result in the second quarter of 2013 was EUR -50 million.

ING Bank's third-quarter net result was EUR 801 million, including EUR -19 million of special items after tax. These items primarily refl ect after-tax charges for the previously announced restructuring programmes in Retail Netherlands.

The year-to-date underlying return on IFRS-EU equity improved to 9.3% from 8.8% in the fi rst nine months of last year as higher earnings more than offset the impact of a modest increase in the average equity base. The year-to-date underlying return on equity based on a 10% core Tier 1 ratio was 12.3% compared with 11.0% in the same period of 2012.

INSURANCE EURASIA

Insurance EurAsia key fi gures
In EUR million	3Q20134	3Q20121	Change	2Q2013	Change	9M2013	9M20121	Change
Margin analysis (in EUR million)
Investment margin	175	130	34.6%	194	-9.8%	496	482	2.9%
Fees and premium-based revenues	346	356	-2.8%	351	-1.4%	1,076	1,099	-2.1%
Technical margin	105	89	18.0%	105	0.0%	296	269	10.0%
Income non-modelled life business	5	3	66.7%	6	-16.7%	15	14	7.1%
Life Insurance & Investment Management operating income	630	578	9.0%	657	-4.1%	1,884	1,864	1.1%
Administrative expenses	277	288	-3.8%	279	-0.7%	851	881	-3.4%
DAC amortisation and trail commissions	92	99	-7.1%	95	-3.2%	289	311	-7.1%
Life Insurance & Investment Management operating expenses	369	387	-4.7%	374	-1.3%	1,140	1,192	-4.4%
Life Insurance & Investment Management operating result	261	191	36.6%	283	-7.8%	744	673	10.5%
Non-life operating result	29	16	81.3%	45	-35.6%	71	65	9.2%
Corporate line operating result	-72	-92		-72		-262	-292
Operating result	218	115	89.6%	256	-14.8%	552	446	23.8%
Non-operating items	-82	-105		-74		-150	-589
Underlying result before tax	136	10	1260.0%	182	-25.3%	402	-143
Key fi gures
Administrative expenses / operating income (Life Insurance & Investment Management)	44.0%	49.8%		42.5%		45.2%	47.3%
Life insurance new sales (APE)	142	153	-7.2%	157	-9.6%	533	585	-8.9%
Life general account invested assets (end of period, in EUR billion)	72	67	7.5%	67	7.5%	72	67	7.5%
Investment margin / life general account invested assets (in bps)2	99	97		94
Investment Management Assets under Management (end of period, in EUR billion)	176	180	-2.2%	176	0.0%	176	180	-2.2%
Underlying return on equity based on IFRS-EU equity3	2.0%	0.2%		3.0%		2.1%	-0.7%

1 The comparative fi gures of this period have been restated to refl ect the new pension accounting requirements under IFRS, which took effect on 1 January 2013. 2

Four-quarter rolling average. 3 Annualised underlying net result divided by average IFRS-EU equity.

4 As of 1 July 2013, part of the portfolios of WUB have been transferred to NN Bank; results have been reported under Life Insurance & Investment Management.

The underlying result before tax improved signifi cantly compared with the third quarter of last year, mainly driven by a higher investment margin, tight cost control and lower negative marketrelated items. The underlying result before tax improved to EUR 136 million from EUR 10 million last year. Results were down on a sequential basis mainly due to seasonally higher dividend income in the second quarter.

OPERATING RESULT INSURANCE EURASIA (in EUR million)

The operating result for Insurance EurAsia jumped 89.6% to EUR 218 million from a year ago. The result benefi ted from a higher investment margin refl ecting the partial transfer of assets and liabilities from WestlandUtrecht Bank (WUB) to NN Bank, lower expenses as a result of tight cost control throughout Europe, improved results from the Non-life business and lower funding costs (refl ected in the Corporate Line). Compared with the previous quarter, the operating result decreased 14.8%, as the second quarter was supported by seasonally higher dividend income and strong Non-life results, which were only partially offset by higher results at NN Bank.

INVESTMENT MARGIN - EURASIA (in EUR million)

The investment margin was EUR 175 million in the third quarter, up 34.6% from a year ago. The increase refl ects the transfer of EUR 4.7 billion of mortgages, a EUR 0.2 billion consumer fi nance portfolio and EUR 3.7 billion of consumer savings from WUB to NN Bank in the third quarter. Excluding this transfer, the investment margin increased 19.2% mainly as a result of lower additions to the provision for profi t sharing and lower interest rebates, both in the Benelux. Compared with the second quarter of 2013, the investment margin fell 9.8%, largely due to seasonally higher dividends on public equities in the Benelux received in that quarter, partly compensated by a higher net interest result following the aforementioned transfers from WUB to NN Bank. The four-quarter rolling average investment spread of Insurance EurAsia was 99 basis points, up 5 basis points from the second quarter, as the increase in the four-quarter Life investment margin outweighed the increase in the average Life general account invested assets. The partial transfer of the portfolios from WUB to NN Bank did not have a signifi cant impact on the investment spread.

Fees and premium-based revenues decreased 2.8% from a year ago to EUR 346 million. The decline was mainly due to lower premium income in the Dutch retail life business. In addition, the third quarter of 2012 benefi ted from an investment performance bonus in the Polish pension fund. Fees and premium-based revenues declined 1.4% from the previous quarter, primarily in Investment Management due to seasonally higher securities lending fees received in the second quarter.

The technical margin increased 18.0% to EUR 105 million yearon-year due to a better morbidity result and an addition to group life provisions a year ago, both in the Benelux. These items were partially offset by lower surrender and morbidity results in Greece and lower mortality results in the Benelux. The technical margin was fl at compared with the previous quarter.

ADMINISTRATIVE EXPENSES - EURASIA (in EUR million)

Administrative expenses for Life Insurance and Investment Management were down 6.3% from a year ago, excluding currency effects and the partial transfer of WUB to NN Bank. The decline was supported by the impact of the transformation programme in the Benelux and strong cost control throughout Europe. The partial transfer from WUB led to an increase of 369 FTEs and an increase in administrative expenses of EUR 10 million in the quarter. Pension costs in the Netherlands rose year-on-year as a result of a decrease in the discount rate at the end of 2012. Administrative expenses declined 4.0% sequentially, excluding currency effects and the partial transfer of WUB to NN Bank, due to cost-control programmes and savings initiatives, as well as the impact of holidays on personnel expenses and lower VAT expenses.

The Non-life operating result rose to EUR 29 million from EUR 16 million in the third quarter of 2012. The increase refl ects more favourable claims experience in Disability & Accident following management actions to restore profi tability, as well as additional reserve strengthening in the third quarter of last year. The Non-life operating result fell by EUR 16 million from the previous quarter, which benefi ted from seasonally higher investment income and more favourable claims experience within Property & Casualty.

The Corporate Line operating result improved by EUR 20 million year-on-year to EUR -72 million due to lower interest expenses on subordinated debt, which were partially offset by lower results at ING Reinsurance. The Corporate Line operating result remained fl at on a sequential basis.

The third-quarter underlying result before tax of Insurance EurAsia rose to EUR 136 million from EUR 10 million in the same period of 2012, driven by the higher quarterly operating result and the lower negative impact of market-related items.

Gains/losses and impairments on investments were EUR -11 million including impairments on real estate and losses on the sale of debt securities in the Benelux, which were partially offset by gains on the sale of debt securities in ING Re and Central and Rest of Europe. Revaluations amounted to zero in the third quarter. Market and other impacts totalled EUR -71 million and largely refl ect a movement in the provision for guarantees on separate account pension contracts (net of hedging) of EUR -64 million in the Benelux.

Insurance and Investment Management EurAsia posted a thirdquarter net result of EUR -768 million, including the EUR 950 million estimated loss on the sale of ING Life Korea (announced in the third quarter) and EUR -44 million of special items after tax. These two factors were only partly offset by the EUR 143 million net result from discontinued operations in Insurance and Investment Management Asia and a net result from divested units of EUR 1 million. Third-quarter special items primarily consisted of a one-off loss related to the AZL pension curtailment and additional IT expenses for the accelerated transformation programme in the Benelux. As announced in November of 2012, additional IT expenses totalling EUR 75 million after tax will be incurred over 2013 and 2014 to improve processes and systems, of which EUR 32 million has been incurred in the fi rst nine months of 2013.

NEW SALES (APE) - EURASIA (in EUR million)

Total new sales (APE) on a constant currency basis decreased 4.7% year-on-year as 17.3% sales growth in Central and Rest of Europe was more than offset by a 32.4% drop in APE in the Benelux. In Central and Rest of Europe, pension sales jumped 23.1% from a year ago, mainly driven by pension regulation changes and sales initiatives in Turkey. Life sales in Central and Rest of Europe rose 16.7% year-on-year, mainly due to strong sales in Poland and strong tied-agency sales in Spain. The decline in APE in the Benelux refl ects lower sales of retail insurance and pension products in the Netherlands and lower single premium sales in Belgium stemming from the low interest rate environment. Compared with the previous quarter, total new sales at Insurance EurAsia decreased 7.2% on a constant currency basis. This primarily refl ects a 15.0% increase in APE in the Benelux (driven by renewals of corporate pensions in the Netherlands), which was more than offset by a 16.7% decline in APE due to seasonally lower sales in Central and Rest of Europe.

BALANCE SHEET

Balance Sheet key fi gures

	ING Group		ING Bank N.V.		Insurance EurAsia		Insurance ING U.S. / Insurance Other / Holdings / Eliminations
End of period, in EUR million	30 Sep. 13	30 June 13 pro forma1	30 Sep. 13	30 June 13	30 Sep. 132	30 June 13	30 Sep. 13	30 June 13 pro forma1
Financial assets at fair value through P&L	157,081	160,973	130,066	133,722	27,275	27,583	-260	-332
Investments	132,024	135,165	76,419	79,119	55,605	56,032		14
Loans and advances to customers	539,641	547,794	520,673	529,165	21,846	16,969	-2,878	1,660
Other assets	97,212	92,187	88,650	83,894	12,620	13,423	-4,058	-5,130
Total assets excl. assets held for sale	925,958	936,119	815,808	825,900	117,346	114,007	-7,196	-3,788
Assets held for sale	205,217	207,479		4,033	48,622	48,068	156,595	155,378
Total assets	1,131,175	1,143,598	815,808	829,933	165,968	162,075	149,399	151,590
Shareholders' equity	49,554	49,881	35,073	34,424	16,024	16,553	-1,543	-1,096
Minority interests	3,946	3,885	921	835	65	67	2,960	2,983
Non-voting equity securities	2,250	2,250					2,250	2,250
Total equity	55,750	56,016	35,994	35,260	16,090	16,620	3,666	4,137
Debt securities in issue	137,405	137,418	131,697	129,963	270		5,438	7,455
Insurance and investment contracts	89,031	90,050			89,001	90,018	30	32
Customer deposits/other funds on deposit	478,041	470,955	478,692	475,672	4,962		-5,613	-4,717
Financial liabilities at fair value through P&L	104,148	115,391	103,695	115,052	728	632	-275	-293
Other liabilities	75,639	80,281	65,731	70,244	10,449	10,648	-541	-611
Total liabilities excl. liabilities held for sale	884,264	894,095	779,815	790,931	105,410	101,298	-960	1,866
Liabilities held for sale	191,160	193,487		3,742	44,468	44,158	146,692	145,587
Total liabilities	1,075,424	1,087,582	779,815	794,673	149,878	145,456	145,732	147,453
Total equity and liabilities	1,131,175	1,143,598	815,808	829,933	165,968	162,075	149,399	151,590

1 Adjusted for transfer of Insurance ING U.S. to assets/liabilities held for sale.

As of 1 July 2013, part of the portfolios of WestlandUtrecht Bank have been transferred to NN Bank

ING Group

ING Group's balance sheet declined by EUR 12 billion to EUR 1,131 billion in the third quarter, refl ecting EUR 9 billion of negative currency effects and the sale of Dutch mortgages and US Real Estate Finance loans. The balance sheet items of Insurance ING U.S. were transferred to assets and liabilities held for sale as per 30 September 2013.

Group shareholders' equity decreased slightly by EUR 0.3 billion to EUR 49.6 billion. The decrease was mainly due to negative currency impacts and a lower revaluation reserve of debt securities, offset by deferred interest crediting to life policyholders. Shareholders' equity per share decreased from EUR 13.00 at the end of June 2013 to EUR 12.92 on 30 September 2013.

ING Bank

ING Bank's balance sheet declined by EUR 14 billion to EUR 816 billion, mainly refl ecting the partial transfer of WestlandUtrecht Bank's (WUB) assets and liabilities to ING Insurance and the aforementioned asset sales. The negative currency impact was EUR 4 billion. Valuations of derivatives were also lower as longterm interest rates increased. ING Bank actively managed its funding profi le, refl ected in the repurchase of EUR 2 billion of government-guaranteed debt and the issuance of new CRD IVeligible Lower Tier 2 debt. Furthermore, customer deposits continued to increase. The loan-to-deposit ratio decreased to 1.05 from 1.07.

Insurance EurAsia

Total assets and liabilities of Insurance EurAsia increased by EUR 4 billion to EUR 166 billion. This was primarily due to the partial transfer of assets and liabilities from WUB to NN Bank. Shareholders' equity declined by EUR 0.5 billion to EUR 16.0 billion, refl ecting the estimated loss on the sale of ING Life Korea, which was partially offset by the capital injection from ING Group of EUR 330 million to capitalise NN Bank.

CAPITAL MANAGEMENT

Capital ratios ING Group
In EUR million, unless stated otherwise	30 Sep. 13	30 June 13
Shareholders' equity	49,554	49,881
Core Tier 1 securities	2,250	2,250
Group hybrid capital	9,073	9,277
Group leverage (core debt)	4,830	4,431
Total capitalisation (Bank and Insurance)	65,706	65,838
Required regulatory adjustments	-4,131	-4,500
Group leverage (core debt)	-4,830	-4,431
Adjusted equity	56,746	56,907
Debt/equity ratio	7.8%	7.2%
Total required capital	36,398	36,705
FiCo ratio	175%	176%

Capital ratios ING Bank
In EUR million, unless stated otherwise	30 Sep. 13	30 June 13
Shareholders' equity	35,073	34,424
Required regulatory adjustments	-1,378	-1,578
Core Tier 1	33,695	32,847
Hybrid Tier 1	6,666	6,812
Total Tier 1 capital	40,361	39,659
Other capital	7,465	6,451
BIS Capital	47,826	46,110
Risk-weighted assets	271,221	277,632
Required capital Basel II1	21,697	22,211
Required capital based on Basel I fl oor1	27,379	27,734
Basel II core Tier 1 ratio	12.4%	11.8%
Basel II Tier 1 ratio	14.9%	14.3%
Basel II BIS ratio2	17.6%	16.6%

1 Required capital is the highest of the two Pre-fl oor

Capital ratios ING Insurance

In EUR million, unless stated otherwise	30 Sep. 131	30 June 13
Shareholders' equity	14,973	22,370
Subordinated debt issued by ING Group	2,394	2,455
Required regulatory adjustments	-6,525	-1,742
Total capital base	10,841	23,082
EU required capital	5,123	8,971
IGD Solvency I ratio	212%	257%

1 ING U.S. was transferred from ING Insurance to ING Group on 30 September 2013.

ING Group

The amount of core debt at ING Group increased from EUR 4.4 billion at the end of the second quarter to EUR 4.8 billion, refl ecting the capital injection of EUR 330 million into NN Bank. The capital was upstreamed as a dividend from ING Bank to the Group in the second quarter of 2013.

In October, ING Group sold another tranche of approximately 38 million shares of Insurance ING U.S., reducing ING Group's stake to roughly 57%. The proceeds of approximately EUR 800 million will be used to reduce core debt to EUR 4.0 billion.

On 6 November 2013, ING Group paid EUR 1.125 billion to the Dutch State, funded by a dividend upstream from ING Bank to ING Group. This payment consisted of a EUR 750 million repayment of core Tier 1 securities and EUR 375 million in premiums and interest.

ING Bank

ING Bank's core Tier 1 ratio improved further to 12.4% at the end of September 2013 from 11.8% at the end of June. The strong increase refl ects a retained profi t of EUR 0.8 billion and a reduction in risk-weighted assets (RWA). RWA declined mainly due to the sale and transfer of WUB loans as well as a sale of US Real Estate Finance loans and updates to models.

The strong capital position of ING Bank allowed for a dividend payment to ING Group of EUR 1.125 billion on 6 November, which was used for the payment to the Dutch State. The dividend upstream will lead to a reduction of the Bank's core Tier 1 ratio of approximately 40 basis points. ING has reached an agreement with the Dutch State on the unwinding of the Illiquid Assets Back-up Facility (IABF). On a pro-forma basis, the unwinding of the IABF is expected to add approximately 10 basis points to ING Bank's core Tier 1 ratio. ING Bank's pro-forma core Tier 1 ratio was 12.1% at 30 September 2013, including the aforementioned estimated impacts.

ING Bank is continuously working to optimise its capital structure and is reinforcing the Bank's capital adequacy ahead of upcoming regulation. ING Bank intends to call the outstanding USD 2 billion 8.5% Tier 1 hybrid as of the 15 December 2013 call date, and on 6 November, ING announced an exchange offer on EUR 4.7 billion of existing Tier 2 securities for new CRD IV-compliant Tier 2 securities.

ING Bank is already meeting most of the Basel III requirements that will be implemented in the European Union as of 1 January 2014 through CRR/CRD IV. The total impact on ING Bank will be -170 basis points, resulting in a fully-loaded pro-forma core Tier 1 ratio of 10.4%. The impact is calculated on the basis of an immediate implementation without future management actions.

ING Insurance

The Insurance Groups Directive (IGD) ratio for ING Insurance (INGV) declined to 212%. The decline mainly refl ects the impact of moving to the DNB Swap curve for calculating NN Life's solvency ratio, following the downgrade of France by Fitch, and the estimated loss on the sale of ING Life Korea announced in August 2013. These factors were only partially offset by positive market developments. As of 30 September 2013, the IGD ratio for ING Insurance (INGV) was adjusted for the transfer of ING U.S. and a change in the calculation methodology. Prior periods have not been restated to refl ect these adjustments

Insurance ING U.S.

Insurance ING U.S. targets capitalisation of its regulated operating companies based on local statutory rules at a level of 425% of Risk Based Capital (RBC). The estimated combined RBC ratio for ING U.S. increased from 454% at the end of the second quarter to 470% at the end of the third quarter. This change was primarily a result of statutory pre-tax income earned during the quarter.

BUSINESS AND SUSTAINABILITY HIGHLIGHTS

ING takes the interests of its stakeholders seriously. ING Bank aims to be the preferred bank for its customers by offering affordable, easy-to-understand products, good accessibility and excellent service. Likewise, the strategy of ING's insurance businesses is to be customer-driven and deliver fi rst-class products and services through multiple distribution channels.

Supporting small- and medium-sized enterprises

One of a bank's key roles is to support the economy. ING has a strong banking presence in various countries and ING aims to support local economies by offering fair products at competitive prices. In many countries around the world, small- and mediumsized companies (SMEs) are driving the economic recovery. For this reason, ING is paying special attention to the needs of the SME segment.

In the Netherlands, for example, ING contributed to the launch in September of the Orange Capital Enterprise Fund (OCE) whose mission is to nurture and promote Dutch SMEs. This is a non-listed fund to which incumbent and retired directors/owners, large businesses and institutional investors will contribute venture capital in order to help SMEs grow their operations and reach their full potential. The fund is a joint initiative of various Dutch companies from a diverse range of sectors. FrieslandCampina, ING, Schiphol Group and VDL Group are among the founding members of OCE. Prominent members of the Dutch business community have also pledged their full support to the fund.

Another initiative focused on the Dutch SME segment is the Orange Trade Mission Fund. It was launched by ING, KLM and the Dutch SME Association, and is supported by the Dutch ministry of foreign affairs. The goal of this fund is to inspire and encourage Dutch businesses to expand into foreign markets. To that end, the fund has committed to supporting ten companies each year through such activities as facilitating participation in a trade mission, sponsoring attendance at an international Trade Fair, or organising a country visit to explore promising export possibilities.

ING launches new insurance distribution model in Turkey

In Turkey, ING Insurance has launched a new alternative distribution model for insurance products. "Sigorta Cini", which stands for "Insurance Genie", is a string of retail insurance shops offering both ING products and those from competitors. In a country where insurance is typically sold through more traditional channels, such as banks and agents, ING's innovative approach offers education, speed, instant comparison of product offerings and face-to-face advice.

SRI Novethic Label for ING Investment Management

The ING Sustainable Equity Fund from ING Investment Management received the SRI Novethic Label. This classifi cation by Novethic, an independent French SRI research agency, guarantees that the processes for ING's SRI funds are both transparent and relevant for investors. It highlights the quality, clarity and consistency of the Sustainable Equity Fund's investment process

and has helped raised awareness for ING Investment Management's SRI expertise on the French market.

ING in Society

Sustainability forms an integral part of ING's corporate strategy. ING's sustainability approach focuses on achieving long-term business success for both ING and its clients while contributing towards economic development, a healthy environment and a stable society.

External reviews of ING's sustainability performance

Reviews by sustainability research fi rms and rating agencies help ING to improve its sustainability strategy and performance. In line with stakeholder expectations, ING's sustainability reporting is increasingly focused on the most material issues to its business and operations.

For some of the key sustainability benchmarks, ING's 2013 scores are as follows:

• ING is included in the DJSI World Index and the DJSI Europe Index. The DJSI World Index includes the top 10% of companies within the ordinary Dow Jones Index in terms of best-in-class performance across economic, ecological and social criteria. ING's inclusion underscores its standing as one of the leading sustainable companies within the diversifi ed fi nancials sector. ING's 2013 score of 76 is 32 points higher than the sector average of 44 points, placing ING in the 99th percentile for the sector. This improvement demonstrates ING's increased performance in integrating sustainability into its business activities. This implies that only 1% of diversifi ed fi nancials score higher than ING.
• ING increased its score for the Carbon Disclosure Project (CDP) from 93 in 2012 to 96 in 2013. The CDP's Global 500 Climate Change Report, which came out in September, assesses the activities undertaken by the top global 500 companies listed on the FTSE Global Equity Index Series to reduce the risks posed by climate change.
• For the 13th consecutive year, ING is included in the FTSE4Good Index. The FTSE4Good Index has a framework that assigns environmental, social and governance (ESG) scores and identifi es companies that meet globally recognised standards of responsible business practice. ING's score within the insurance sector improved from 86 to 92.
• Sustainalytics ranked ING sixth among its 195 global peers within the diversifi ed fi nancial services sector. The Sustainalytics review focuses mainly on environmental, social and governance policies and practices.
• ING is also included in the Vigeo Euronext Europe 120. This is a new index by Euronext and the French non-fi nancial analyst agency, Vigeo, that reviews companies across all sectors for their control of corporate responsibility risk and their contribution to sustainable development.

l da d p f i t d los ING G : C i te t rou p on so ro an s a cco un
	al G Tot	1 rou p	al B Tot	ank ing	Insu ran	sia ce E urA	Insu ce I ran	NG U.S	Insu ce O ran	the r
in E mill ion UR	3Q2 013	3Q 22 201	3Q2 013	3Q 22 201	3Q2 013	3Q 22 201	3Q2 013	3Q 22 201	3Q2 013	3Q 22 201
Gro ium inc ss p rem om e	1,3 85	1,6 03			1,3 85	1,6 03
ult king tion Inte rest Ban res op era s	2,9 19	2,9 46	2,9 36	2,9 72
Com mis sion inc om e	703	676	546	532	156	154				-10
Tot al in nt & oth er i tme ves nco me	972	951	292	287	681	645			16	30
Tot al u nde rly ing inc om e	5,9 79	6,1 76	3,7 74	3,7 91	2,2 23	2,4 02			16	20
Und ritin ditu erw g ex pen re	1,6 30	1,8 86			1,6 30	1,8 88				-2
Staf f ex pen ses	1,4 68	1,4 69	1,1 94	1,2 08	271	256			4	6
Oth er e xpe nse s	1,0 38	1,0 39	888	868	138	165			12	6
Inta ible orti sati and im irm ent ng s am on pa s	39	51	39	51
Ope rati ng exp ens es	2,5 44	2,5 59	2,1 20	2,1 27	408	422			16	11
Inte es I atio rest exp ens nsu ran ce o per ns	33	49			47	81			20	5
Add loa n lo itio isio n to ss p rov n	552	554	552	554
Oth er	2	1			2	1
al u nde rly dit Tot ing ex pen ure	4,7 60	5,0 50	2,6 71	2,6 81	2,0 87	2,3 92			36	14
Und erly ult bef ing tax res ore	1,2 19	1,1 26	1,1 03	1,1 10	136	10			-20	6
Tax atio n	309	261	265	264	51	1			-7	-4
Min orit inte rest s y	19	21	18	24	3				-2	-3
Und erly ing sul t re t ne	891	844	820	822	82	10			-10	12
ins/ loss n d ives Net tme nts ga es o	-95 0	-20 0		-16	-95 0	-20 0				16
ult from div d u nits Net este res	1	-54		-55	1
ult from dis tinu ed rati ia Net Ins /IM As res con ope ons ura nce	143	198			143	198
ult from dis tinu ed rati .3 Net Ins ING U.S res con ope ons ura nce	79	-46					79	-46
cial ite afte Spe r ta ms x	-63	-83	-19	-46	-44	-36				-1
ult Net res	101	659	801	706	-76 8	-28	79	-46	-11	27

1 Including intercompany eliminations.

2 The comparative fi gures of this period have been restated to refl ect the new pension accounting requirements under IFRS, which took effect on 1 January 2013.

3 The results of Insurance ING U.S. have been transferred to "net result from discontinued operations" as of the third quarter of 2013.

	ING G rou	l i : C p on so	da d ba te	lan he et ce s
--	-----------------	--------------------------------	---------------------	----------------------------

	ING Gr	oup	ING Ba	nk N.V	Insu ran	ce E urA sia	Insu ce I NG U.S ran Hol din / El gs	. / I ce O the r / nsu ran imin atio ns
in E UR mill ion	30 Sep . 13	30 3 Jun e 1 for 1 pro ma	30 Sep . 13	30 Jun e 1 3	30 Sep . 13 2	30 Jun e 1 3	30 Sep . 13	30 3 Jun e 1 for 1 pro ma
Ass ets
h a nd bala ith tral ba nks Cas nce s w cen	21, 783	17, 369	20, 951	16, 928	5,6 59	5,8 99	-4,8 27	-5,4 58
ts d ue f ba nks Am oun rom	44, 270	43, 034	44, 270	43, 027				7
l as fair lue thro h P Fina ncia &L sets at va ug	157 ,08 1	160 ,97 3	130 ,06 6	133 ,72 2	27, 275	27, 583	-26 0	-33 2
Inve stm ent s	132 ,02 4	135 ,16 5	76, 419	79, 119	55, 605	56, 032		14
nd adv Loa es t usto ns a anc o c me rs	539 ,64 1	547 ,79 4	520 ,67 3	529 ,16 5	21, 846	16, 969	-2,8 78	1,6 60
Rein ntra cts sura nce co	267	274			267	273		1
s in ocia Inve stm ent tes ass	1,9 80	2,0 31	839	864	862	869	279	298
l es inv Rea tate estm ent s	1,1 73	1,2 13	112	151	791	790	270	272
nd ipm Pro ty a ent per equ	2,4 66	2,4 91	2,2 91	2,3 11	176	180	-1
ible Inta ets ng ass	1,8 79	1,9 40	1,6 42	1,6 94	395	404	-15 8	-15 8
Def d a isiti ts erre cqu on cos	706	726			706	725		1
Oth sset er a s	22, 687	23, 109	18, 546	18, 919	3,7 64	4,2 81	377	-91
al a xcl s h eld fo le Tot ts e set sse . as r sa	925 ,95 8	936 9 ,11	815 ,80 8	825 ,90 0	,34 6 117	,00 114 7	96 -7,1	-3,7 88
held for sal Ass ets e	205 ,21 7	207 9 ,47		4,0 33	48, 622	48, 068	156 ,59 5	,37 8 155
al a Tot ts sse	31, 1,1 175	43, 598 1,1	815 ,80 8	829 ,93 3	165 ,96 8	162 ,07 5	149 ,39 9	,59 0 151
Equ ity
Sha reh old ers' uity eq	49, 554	49, 881	35, 073	34, 424	16, 024	16, 553	-1,5 43	-1,0 96
Min orit inte rest y s	3,9 46	3,8 85	921	835	65	67	2,9 60	2,9 83
Non ting uity urit ies -vo eq sec	2,2 50	2,2 50					2,2 50	2,2 50
Tot al e ity qu	55, 750	56, 016	35, 994	35, 260	16, 090	16, 620	3,6 66	4,1 37
Lia bili ties
Sub ord inat ed loan s	8,4 63	8,6 45	16, 617	15, 467	3,5 00	3,5 00	-11 ,65 4	-10 ,32 2
Deb ities in issu t se cur e	137 ,40 5	137 ,41 8	131 ,69 7	129 ,96 3	270		5,4 38	7,4 55
Oth er b d fu nds orro we	13, 159	12, 032			2,6 75	2,5 41	10, 484	9,4 91
nd Insu inve stm ent ntra cts ran ce a co	89, 031	90, 050			89, 001	90, 018	30	32
ts d o b ank Am ue t oun s	32, 038	35, 156	32, 038	35, 156
er d d o the r fu nds de Cus sits its tom epo an on pos	478 ,04 1	470 ,95 5	478 ,69 2	475 ,67 2	4,9 62		-5,6 13	-4,7 17
l lia bilit at f valu e th h P Fina ncia ies air &L rou g	104 ,14 8	115 ,39 1	103 ,69 5	115 ,05 2	728	632	-27 5	-29 3
Oth er l iabi litie s	21, 980	24, 446	17, 075	19, 622	4,2 75	4,6 07	630	217
al l iab iliti xcl . lia bili ties he ld f ale Tot es e or s	884 ,26 4	894 ,09 5	779 ,81 5	790 ,93 1	105 ,41 0	101 ,29 8	-96 0	1,8 66
Liab ilitie s he ld f ale or s	191 ,16 0	193 ,48 7		3,7 42	44, 468	44, 158	146 ,69 2	145 ,58 7
al l iab iliti Tot es	1,0 75, 424	1,0 87, 582	779 ,81 5	794 ,67 3	149 ,87 8	145 ,45 6	145 ,73 2	147 ,45 3
al e ity and lia bili ties Tot qu	1,1 31, 175	1,1 43, 598	815 ,80 8	829 ,93 3	165 ,96 8	162 ,07 5	149 ,39 9	151 ,59 0

1 Adjusted for transfer of Insurance ING U.S. to assets/liabilities held for sale.

2 As of 1 July 2013, part of the portfolios of WestlandUtrecht Bank have been transferred to NN Bank.

i l B k ing l i da d p f i t d los Re : C ta te t an on so ro an s a cco un
				ail B ank Ret	ing elux Ben			ail I Ret nte	tion al rna
	al R Tot eta	il Ba nkin g	her Net	land s	Bel g	ium	Ge rma	ny	t of Res	rld Wo
in E UR mill ion	3Q2 013	3Q 201 21	3Q2 013	3Q 201 21	3Q2 013	3Q 201 21	3Q2 013	3Q 201 21	3Q2 013	3Q 201 21
fi t & lo Pro ss
ult Inte rest res	2,1 27	2,0 28	90 5	840	462	450	348	280	412	458
Com mis sion inc om e	318	304	118	117	80	79	27	21	92	86
Inve inc stm ent om e	56	26	0	0	0	2	0	0	56	23
Oth er i nco me	75	-10 5	18	15	31	38	-14	7	40	-16 4
Tot al u nde rly ing inc om e	2,5 76	2,2 53	1,0 41	972	573	570	361	309	601	403
Staf f an d o the r ex pen ses	1,4 93	1,4 64	546	539	369	361	181	168	397	396
ible and Inta orti sati im irm ent ng s am on pa s	14	6	10	5	4	1	0	0	0	0
Op tin era g e xpe nse s	1,5 07	1,4 70	556	544	373	362	181	168	397	396
lt Gro ss r esu	1,0 69	783	485	428	200	207	180	141	204	7
Add loa n lo itio isio n to ss p rov n	324	319	210	181	32	54	15	17	67	66
Und erly ing ult bef tax res ore	745	464	274	247	168	153	165	124	137	-60
Clie nt b ala s (i bill ion )2 n E UR nce
iden tial Res Mo rtga ges	277 .0	284 .9	136 .9	143 .3	30. 6	30. 2	61. 4	59. 1	48. 1	52. 3
Oth end ing er L	93. 8	94. 8	37. 3	40. 1	33. 2	32. 6	4.3	3.8	18. 9	18. 4
ds E sted Fun ntru	391 .1	375 .7	114 .0	114 .1	80. 5	74. 9	103 .5	93. 7	93. 1	93. 0
al F und AU M/M utu s	57. 1	55. 4	17. 2	15. 6	25. 4	26. 9	6.6	6.2	7.9	6.7
fi ta bili nd effi cie 2 Pro ty a ncy
t/in tio Cos com e ra	5% 58.	3% 65.	4% 53.	0% 56.	1% 65.	6% 63.	2% 50.	3% 54.	0% 66.	4% 98.
uity ba sed .0% ier 13 Ret 10 re T urn on eq on co	5% 15.	% 8.7	5% 14.	7% 14.	1% 25.	7% 21.	4% 21.	2% 13.	% 9.1	% -4.3
Ris k2
Risk in b f av sts RW A co p o era ge	92	89	149	144	62	106	27	32	64	52
Risk ig hte d a s (e nd of p erio d) sset -we	140 ,65 4	141 ,40 1	56, 360	49, 810	20, 359	20, 360	22, 366	21, 993	41, 569	49, 237

1 The comparative fi gures of this period have been restated to refl ect the new pension accounting requirements under IFRS, which took effect on 1 January 2013.

2 Key fi gures based on underlying fi gures.

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

ia l B k ing l i da d p f i t d los Co : C te t mm erc an on so ro an s a cco un
	Tot Com rcia me	al l Ba nkin g	Ind y Le ustr	ndi ng	l Le Gen era Tra ctio nsa	ndi & ng n S ices erv	Fina ncia	l M ark ets	k Tr Ban eas ury, the & O	al E Re stat e r
in E mill ion UR	3Q2 013	21 3Q 201	3Q2 013	21 3Q 201	3Q2 013	21 3Q 201	3Q2 013	21 3Q 201	3Q2 013	21 3Q 201
fit & l Pro oss
ult Inte rest res	681	874	377	375	238	276	114	178	-49	45
mis sion inc Com om e	230	222	111	115	95	90	20	19	4	-3
Inve inc stm ent om e	23	34	16	9	0	0	0	3	7	23
Oth er i l. C VA/ DVA nco me exc	218	248	-8	-24	6	5	157	114	63	152
Und erly ing inco l. C VA/ DVA me exc	1,1 52	1,3 78	495	476	340	372	292	314	25	216
Oth er i - DV A o d n n st ruct ote nco me ure s	-26	-15 9					-26	-15 9
Oth er i - CV A/D VA der ivat ives nco me on	37	51					37	51
Tot al u nde rly ing inc om e	1,1 62	1,2 70	495	476	340	372	303	207	25	216
Staf f an d o the r ex pen ses	557	560	111	105	186	172	199	220	60	64
Inta ible orti sati and im irm ent ng s am on pa s	18	37	0	0	0	0	0	0	18	37
Op tin era g e xpe nse s	575	598	111	105	186	172	199	220	78	102
lt Gro ss r esu	587	673	384	371	154	200	103	-13	-53	115
Add loa n lo itio isio n to ss p rov n	227	235	181	142	13	62	0	0	33	31
Und erly ing ult bef tax res ore	360	437	203	229	141	137	103	-13	-86	83
Clie nt b ala s (i bill ion )2 n E UR nce
iden tial Res Mo rtga ges
Oth end ing er L	122 .9	131 .0	72. 8	75. 0	39. 0	43. 0	2.0	2.0	9.2	11. 0
ds E sted Fun ntru	73. 4	66. 2	0.7	1.0	38. 0	35. 1	3.2	3.5	31. 5	26. 7
al F und AU M/M utu s	0.2	0.2	0.0	0.0	0.0	0.0	0.0	0.0	0.2	0.2
fi ta bili nd effi cie 2 Pro ty a ncy
Cos t/in tio com e ra	5% 49.	0% 47.	5% 22.	0% 22.	8% 54.	2% 46.	9% 65.	.2% 106	.7% 311	0% 47.
uity ba sed .0% ier 13 Ret 10 re T urn on eq on co	% 9.5	5% 10.	4% 13.	2% 17.	5% 12.	% 9.0	3% 13.	1% -1.	.3% -20	5% 20.
Ris k2
Risk in b f av sts RW A co p o era ge	71	71	135	131	14	59	1	0	96	87
Risk ig hte d a s (e nd of p erio d) sset -we	125 ,34 4	129 ,29 7	986 51,	42, 802	34, 263	971 41,	24, 638	30, 530	458 14,	13, 994

1 The comparative fi gures of this period have been restated to refl ect the new pension accounting requirements under IFRS, which took effect on 1 January 2013.

2 Key fi gures based on underlying fi gures.

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

f i g ia: in ly is a d ke Ins e E urA M ura nc s arg an a s n y ure s
	al E Tot	urA sia	Ben	elux	tral Cen & Res	t of Eu rop e	Inve Ma stm ent	ent nag em	Co Lin rate rpo	e E urA sia
mill ion In E UR	3Q 201 3	3Q2 012 1	3Q 201 3	3Q2 012 1	3Q 201 3	3Q2 012	3Q 201 3	3Q2 012 1	3Q 201 3	3Q2 012
in a nal is Ins - M ura nce arg ys
in Inve stm ent ma rg	17 5	130	163	117	11	14	0	-1
d p ium -ba sed Fee s an rem rev enu es	34 6	356	131	137	108	111	107	108
hni cal in Tec ma rg	10 5	89	66	44	38	44	-	-
del led life bus ines Inco me non -mo s	5	3	0	-1	5	4	0	0
Life & tin inc Ins Inv est nt M ent ura nce me ana gem op era g om e	63 0	578	361	297	162	174	108	107
Adm inis ive trat exp ens es	27 7	288	137	135	63	72	76	81
DA C a rtisa tion d tr ail c mis sion mo an om s	92	99	35	44	58	55	0	0
Life Ins & Inv nt M est ent ura nce me ana gem ex pen ses	36 9	387	172	179	120	128	76	81
Life Ins & Inv nt M tin sul est ent t ura nce me ana gem op era g re	26 1	191	189	119	42	47	31	26
-life Non ting ult op era res	29	16	28	15	1	1	-	-
Cor Line ting ult ate por op era res	-72	-92							-72	-92
Op tin sul t era g re	21 8	115	217	134	42	48	31	26	-72	-92
Gai ns/l nd imp airm ent oss es a s	-1 1	44	-40	48	5	-6	-0	0	23	2
alua Rev tion s	0	-36	6	-31	-0	1	-	-	-6	-5
rket the Ma & o r im ts pac	-71	-11 3	-71	-11 4	-	0	-	-	0	1
Und erly ult bef ing tax res ore	13 6	10	112	36	47	43	31	26	-55	-94
Life bu fi g Ins - N sin ura nce ew ess ure s
le p Sing ium rem s	36 0	477	193	335	166	142	-	-	-	-
ual Ann miu pre ms	10 6	106	27	35	79	71	-	-	-	-
sal es ( ) New APE	14 2	153	46	68	95	85	-	-	-	-
Life fi g Ins & Inv est nt M ent - K ura nce me ana gem ey ure s
Adm ting inc / op . ex pen ses era om e	44. 0%	49. 8%	38. 0%	45. 5%	38. 9%	41. 4%	70. 4%	75. 7%
Life al a inv d a s (e nd of p erio d, i billi on) unt este sset n E UR ge ner cco	72	67	66	60	6	7	-	-
in / Life al a inv d a s (in bp s)2 Inve stm ent unt este sset ma rg ge ner cco	99	97	101	98	81	84	-	-
isio n fo r lif e in inve for risk licy hol der (en d o f pe riod Prov & stm ntra cts sura nce . co po , in E billi on) UR	24 .6	26. 4	20. 6	22. 6	4.0	3.8	-	-
duc clie nt b alan (in bil lion ) Net tion EUR pro ces	-0. 2	0.1	-0.4	-0.7	0.4	0.2	-0.3	0.7
Clie nt b alan (en d o f pe riod bil lion ) , in EUR ces	19 8.6	176 .3	74. 8	70. 9	31. 3	28. 7	92. 6	76. 7
Oth er k fi g ey ure s
Gro ium inc ss p rem om e	1,3 85	1,6 03	929	1,1 38	446	457	-	-	10	8
es ( l) Adm inis ive trat tota exp ens	40 8	422	227	224	64	73	76	81	41	44

1 The comparative fi gures of this period have been restated to refl ect the new pension accounting requirements under IFRS, which took effect on 1 January 2013.

2 Four-quarter rolling average.

ENQUIRIES

Investor enquiries

T: +31 20 576 6396 E: investor.relations@ing.com

Investor conference call and webcast

Ralph Hamers, Patrick Flynn and Wilfred Nagel will discuss the results in an analyst and investor conference call on 6 November 2013 at 9:00 a.m. CET. Members of the investment community can join the conference call at +31 20 794 8500 (NL), +44 20 7190 1537 (UK) or +1 480 629 9031 (US) and via live audio webcast at www.ing.com.

Press enquiries

T: +31 20 576 5000 E: media.relations@ing.com

Press conference and webcast

Ralph Hamers, Patrick Flynn and Wilfred Nagel will also discuss the results in a press conference on 6 November 2013 at 11:00 a.m. CET. Journalists are invited to join the conference at ING Amsterdamse Poort, Bijlmerplein 888, Amsterdam. Journalists can also join in listen-only mode at +31 20 531 5846 (NL) or +44 203 365 3210 (UK) and via live audio webcast at www.ing.com.

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

• ING Group Quarterly Report
• ING Group Statistical Supplement
• ING Group Historical Trend Data
• ING Group Analyst Presentation
• ING Group Condensed consolidated interim fi nancial information for the period ended 30 September 2013

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 3Q2013 ING Group Interim Accounts.

Certain of the statements contained herein are not historical facts, including, without limitation, certain statements made of future expectations and other forward-looking statements that are based on management's current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Actual results, performance or events may differ materially from those in such statements due to, without limitation: (1) changes in general economic conditions, in particular economic conditions in ING's core markets, (2) changes in performance of fi nancial markets, including developing markets, (3) consequences of a potential (partial) break-up of the euro, (4) the implementation of ING's restructuring plan to separate banking and insurance operations, (5) changes in the availability of, and costs associated with, sources of liquidity such as interbank funding, as well as conditions in the credit markets generally, including changes in borrower and counterparty creditworthiness, (6) the frequency and severity of insured loss events, (7) changes affecting mortality and morbidity levels and trends, (8) changes affecting persistency levels, (9) changes affecting interest rate levels, (10) changes affecting currency exchange rates, (11) changes in investor, customer and policyholder behaviour, (12) changes in general

competitive factors, (13) changes in laws and regulations, (14) changes in the policies of governments and/or regulatory authorities, (15) conclusions with regard to purchase accounting assumptions and methodologies, (16) changes in ownership that could affect the future availability to us of net operating loss, net capital and built-in loss carry forwards, (17) changes in credit-ratings, (18) ING's ability to achieve projected operational synergies and (19) the other risks and uncertainties detailed in the Risk Factors section contained in the most recent annual report of ING Groep N.V. Any forward-looking statements made by or on behalf of ING speak only as of the date they are made, and, ING assumes no obligation to publicly update or revise any forwardlooking 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.