Corporate Communications

Amsterdam, 2 November 2017

ING posts 3Q17 net result of EUR 1,376 million

ING records continued commercial growth and further progress on Think Forward strategic priorities

ING grew retail customer base in 3Q17 by 400,000 to 36.9 million, and primary relationships reached 10.5 million
Net core lending in 3Q17 increased by EUR 8.0 billion; net customer deposit infl ow amounted to EUR 4.2 billion

ING 3Q17 underlying pre-tax result of EUR 1,995 million

Strong result refl ects business growth at resilient margins and low risk costs
ING Group 3Q17 four-quarter rolling ROE improves to 11.0%; ING Group fully loaded CET1 ratio remained stable at 14.5%

CEO statement

"We look back on a quarter in which our businesses performed well as we make progress on accelerating our Think Forward transformation programmes," said Ralph Hamers, CEO of ING Group. "In the Netherlands, cost savings from earlier transformation eff orts are coming through now. Our global customer base grew to 36.9 million, including an increase in the number of primary customers to 10.5 million. We always put our customers fi rst, and in the midst of the transformation programmes these results are quite an achievement."

"The results also confi rm that we are on the right path in transforming ING into the bank of the future as we strive to empower people to stay a step ahead in life and in business by being clear, easy, consistent and convenient. We know there's much to learn from others through this process, and we see value in combining strengths through cooperation. An example is our recently announced partnership with online wealth manager Scalable Capital in Germany. This expands our off ering with digital investment management services, also known as robo-advice. We will continue to create and co-create customer experiences like these—those that are personal, seamless, instant and relevant."

"Our innovation partnerships take various forms. Last week we announced ING Ventures, a EUR 300 million fund that will invest in start-ups and companies that have already gained some market traction. ING Ventures will help accelerate the pace of innovation, one of our priorities. Each investment will be strictly aligned with our strategy to deliver a diff erentiating customer experience."

"In order to better serve small and medium-sized enterprises (SMEs), we recently launched off erings for SMEs in Italy and France together with fi ve fi ntech partners who each cover a part of the loan process, from onboarding to disbursement. Business clients can get approval for a loan of up to EUR 100,000 within 10 minutes as we use the right risk assessment tools and combine a seamless and instant digital service with the personal touch they expect. This is a great advantage for customers who want to concentrate on running their businesses and don't want to spend too much time on banking."

"Part of helping people and businesses stay a step ahead is preparing them for the world of tomorrow. We played a role in ground-breaking sustainable fi nance projects, including acting as joint mandated lead arranger in the GBP 250 million bond for Anglian Water, the fi rst sterling (GBP) green bond in the public utility sector, and as part of the banking syndicate providing project fi nancing for one of Australia's largest solar plants."

"Overall, we've seen good commercial growth in the third quarter, with EUR 8.0 billion of net core lending growth at stable margins and a EUR 4.2 billion increase in net customer deposits. ING Group's third-quarter underlying pre-tax result was EUR 1,995 million. Operating expenses remained under control, supported by the benefi ts from ongoing cost-saving initiatives. Our focus on profi table business led to ING Group's underlying return on equity on a four-quarter rolling basis improving to 11.0% from 9.1% a year ago."

"Our continuous eff orts were recognised by being named "Best Bank in the World" by Global Finance magazine. I therefore want to conclude by thanking our employees worldwide, who are working hard every day to genuinely, energetically and skilfully serve our customers. With the dynamic, ever-changing environment we're operating in, I know it isn't always easy. I'm inspired by the ING team every day."

Investor enquiries

T: +31 (0)20 576 6396 E: [email protected]

Press enquiries T: +31 (0)20 576 5000 E: [email protected]

Investor conference call

2 November 2017 at 9:00 am CET +31 (0)20 531 5821 (NL) +44 203 365 3209 (UK) +1 866 349 6092 (US) Live audio webcast at www.ing.com

Media conference call

2 November 2017 at 11:00 am CET +31 (0)20 531 5871 (NL) +44 203 365 3210 (UK) Live audio webcast at www.ing.com

Business & Sustainability Highlights Share Information

Share Information	2
Highlights	3
Consolidated Results	4
Retail Banking	9
Wholesale Banking	13
Corporate Line	16
Geographical Split	17
Consolidated Balance Sheet	19
Risk & Capital Management	21
Economic Environment	25
Appendix	26

Financial calendar

Publication results 4Q2017:	Wednesday, 31 January 2018
Publication 2017 ING Group Annual Report:	Thursday, 8 March 2018
2018 Annual General Meeting:	Monday, 23 April 2018
Ex-date for fi nal dividend 2017 (Euronext Amsterdam)*:	Wednesday, 25 April 2018
Record date for fi nal dividend 2017 entitlement (NYSE)*:	Thursday, 26 April 2018
Record date for fi nal dividend 2017 entitlement (Euronext Amsterdam)*:	Thursday, 26 April 2018
Payment date fi nal dividend 2017 (Euronext Amsterdam)*:	Thursday, 3 May 2018
Publication results 1Q2018:	Wednesday, 9 May 2018
Payment date fi nal dividend 2017 (NYSE)*:	Friday, 11 May 2018
Publication results 2Q2018:	Thursday, 2 August 2018
Ex-date for interim dividend 2018 (Euronext Amsterdam)*:	Monday, 6 August 2018
Record date for interim dividend 2018 entitlement (Euronext Amsterdam)*:	Tuesday, 7 August 2018
Record date for interim dividend 2018 entitlement (NYSE)*:	Monday, 13 August 2018
Payment date interim dividend 2018 (Euronext Amsterdam)*:	Tuesday, 14 August 2018
Payment date interim dividend 2018 (NYSE)*:	Tuesday, 21 August 2018
Publication results 3Q2018:	Thursday, 1 November 2018
* only if any dividend is paid	All dates are provisional

Listing information

The ordinary shares of ING Group are listed on the exchanges of Amsterdam, Brussels and New York (NYSE).

Stock exchanges	Tickers (Bloomberg, Reuters)	Security codes (ISIN, SEDOL1)
Euronext Amsterdam and Brussels	INGA NA, INGA.AS	NL0011821202, BZ57390
New York Stock Exchange ING US, ING.N		US4568371037, 2452643

Relative share price performance

1 January 2016 to 30 September 2017

Share information



0.8	0.7	0.9	0.6	0.6



10.99	13.37	14.17	15.10	15.60
11.45	13.72	14.62	15.75	15.90
8.54	10.88	12.93	13.65	14.59
0.35	0.19	0.29	0.35	0.35
12.75	12.84	13.07	12.79	12.81
n.a.	0.42	n.a.	0.24	n.a.
9.1	11.1	12.1	12.7	13.0
0.86	1.04	1.08	1.18	1.22
	Shares (in millions, end of period)			3Q2016 4Q2016 1Q2017 2Q2017 3Q2017 3,878.1 3,878.5 3,883.3 3,885.3 3,885.6 3,877.3 3,877.8 3,882.4 3,884.7 3,885.0 3,877.1 3,877.6 3,878.6 3,884.0 3,884.5

1) Four-quarter rolling average

Market capitalisation (in EUR billion)

American Depositary Receipts (ADRs)

For questions related to the ING ADR program, please visit J.P. Morgan Depositary Receipts Services at www.adr.com, or contact:

Broker/Institutional Investors

please contact: J.P. Morgan Chase Bank, N.A. Depositary Receipts 4 New York Plaza, Floor 12 New York, NY 10004 In the US: (866) JPM-ADRS Outside the US: +1 866 576-2377 ADR Shareholders can contact J.P. Morgan Transfer Agent Service Center: J.P. Morgan Chase Bank, N.A. P.O. Box 64504 St. Paul, MN 55164-0504 In the US: +1 800 990 1135 Outside the US: +1 651 453 2128

Email: [email protected]

Shareholders or holders of ADRs can request a hard copy of ING's audited fi nancial statements, free of charge, at www.ing.com/publications.htm

Highlights

ING had a strong third quarter. More customers turned to us for their banking needs as we strived to off er them products and tools that make us stand out from our competitors. Here are some highlights of initiatives and partnerships that show how we are empowering people to stay a step ahead in life and in business.

ING sees fi ntech partnerships as a valuable way to learn from others and accelerate the pace of innovation. An example is our partnership with online wealth manager Scalable Capital in Germany, announced in September. Together we will off er "robo advice", or digital investment management services, to ING's retail customers in Germany. Customers will be able to register in less than 15 minutes through an entirely paperless process. With a minimum investment of EUR 10,000, they can monitor their portfolios and all account details, such as performance, risk appetite and fees, on both Scalable Capital and ING mobile apps and online portals in Germany. The partnership fi ts ING's strategic priority to create a diff erentiating customer experience that is personal, seamless and relevant.

Along with these kinds of partnerships, ING views investments in fi ntechs as a key element of our innovation strategy. Last week we announced ING Ventures, a EUR 300 million fund to accelerate the number of our fi ntech partnerships and increase business impact. Over the next four years, the fund will invest in start-ups and companies that have already gained some market traction. Each investment will be strictly aligned with our strategy to deliver a diff erentiating customer experience.

We also recently began off ering online lending to small and medium-sized enterprises in Italy and France, in line with our strategy to grow our lending business to SMEs. This has been developed with fi ve fi ntech partners who each cover a part of the loan process, from onboarding to disbursement. With this off ering, SMEs can get approval for a loan of up to EUR 100,000 within 10 minutes, as we use the right risk assessment tools and combine a seamless and instant digital service with the personal touch they expect. The service off ers great advantages for customers who want to concentrate on running their businesses and don't want to spend too much time on banking.

Construction for the circular economy

Part of helping people and businesses stay a step ahead is to prepare them for the world of tomorrow. ING has joined with Madaster, a platform that has devised digital "material passports" for buildings to stimulate construction with recyclable materials, encourage investing in smart designs and reduce waste. The partnership fi ts within ING's circular economy programme, as we rethink the way we use raw materials and resources to create a sustainable economy free of waste and harmful emissions.

We also again played a role in ground-breaking sustainable fi nance transactions, including acting as joint mandated lead arranger in the GBP 250 million bond for Anglian Water, the fi rst sterling (GBP) green bond in the public utility sector. Funds will be used to fi nance projects related to drought, resilience, energy effi ciency, and water recycling. We are also part of the banking syndicate that is providing project fi nancing for the 100 MW Clare Solar Farm in North Queensland, one of Australia's largest solar plants and the fi rst large-scale solar project there to obtain funding without government sub.

Recognition for our achievements

The recognition we receive commends us for the work we've done and motivates us to continue getting better. ING has been named "Best Bank in the World" by Global Finance magazine. They recognised ING as "the bank of the future", praising how our culture of innovation positions us to help clients survive and thrive through turbulent times. This underlines that we're on the right track, and is a powerful incentive to keep developing new products and services to empower customers and provide them with a banking experience that sets us apart from others.

ING was once again included in the Dow Jones Sustainability Index's (DJSI) World Index and Europe Index for banks. While the industry average score is 58 out of 100, ING scores 89. This year ING received a higher "environmental dimension" score, and the highest industry scores for the environmental indicators "business risks and opportunities", "climate strategy", and "environmental reporting". We also improved our scores in the areas of "corporate governance", "materiality", and "risk and crisis management".

Furthermore, the non-profi t global environmental disclosure platform CDP once again named ING a global leader in the corporate response to climate change and again awarded us a position on this year's Climate A List. The list is produced at the request of more than 800 investors with combined assets of over USD 100 trillion.

In Wholesale Banking, our new sustainable loan linking interest rate to sustainability performance and rating gained traction in the market and has successfully been used with several additional clients, including most recently Bpost, a leading postal operator in Belgium. This innovative fi nancing solution has received an award from banking industry journal GlobalCapital.

ING was also a winner at The Banker's Transaction Banking Awards, which recognise the growing importance of transaction banking and transaction services for the banking industry as a whole.

Consolidated results
	3Q2017	3Q2016	Change	2Q2017	Change	9M2017	9M2016	Change
Profit or loss (in EUR million)
Net interest income	3,490	3,385	3.1%	3,359	3.9%	10,201	9,899	3.1%
Net commission income	643	605	6.3%	714	-9.9%	2,040	1,822	12.0%
Investment income	82	139	-41.0%	43	90.7%	173	382	-54.7%
Other income	193	235	-17.9%	415	-53.5%	922	893	3.2%
Total underlying income	4,408	4,363	1.0%	4,532	-2.7%	13,336	12,997	2.6%
Staff expenses	1,286	1,250	2.9%	1,309	-1.8%	3,866	3,775	2.4%
Regulatory costs1)	94	65	44.6%	69	36.2%	638	636	0.3%
Other expenses	909	905	0.4%	933	-2.6%	2,707	2,677	1.1%
Underlying operating expenses	2,289	2,220	3.1%	2,311	-1.0%	7,211	7,088	1.7%
Gross result	2,119	2,143	-1.1%	2,221	-4.6%	6,124	5,909	3.6%
Addition to loan loss provisions2)	124	265	-53.2%	229	-45.9%	486	836	-41.9%
Underlying result before tax	1,995	1,878	6.2%	1,992	0.2%	5,639	5,073	11.2%
Taxation	595	522	14.0%	565	5.3%	1,617	1,420	13.9%
Non-controlling interests	21	20	5.0%	23	-8.7%	65	58	12.1%
Underlying net result	1,378	1,336	3.1%	1,403	-1.8%	3,957	3,595	10.1%
Special items after tax	0	0		0		0	-13
Net result Insurance Other	-3	12	-125.0%	-32		-66	-125
Net result from continuing operations	1,376	1,348	2.1%	1,371	0.4%	3,890	3,458	12.5%
Net result from discontinued operations	0	1		0		0	443
Net result ING Group	1,376	1,349	2.0%	1,371	0.4%	3,890	3,900	-0.3%
Net result per share (in EUR)	0.35	0.35		0.35		1.00	1.01
Capital ratios (end of period)
ING Group shareholders' equity (in EUR billion)				50	0.2%	50	49	0.7%
ING Group common equity Tier 1 ratio fully loaded3)				14.5%		14.5%	13.5%
ING Group common equity Tier 1 ratio phased in				14.5%		14.5%	13.5%
Customer lending/deposits (end of period, in EUR billion)
Residential mortgages				282.4	0.1%	282.8	282.4	0.1%
Other customer lending				285.0	0.2%	285.5	273.2	4.5%
Customer deposits				533.2	0.9%	538.1	516.9	4.1%
Profitability and efficiency
Underlying interest margin	1.57%	1.55%		1.51%		1.53%	1.52%
Underlying cost/income ratio	51.9%	50.9%		51.0%		54.1%	54.5%
Underlying return on equity on IFRS-EU equity4)	11.5%	10.8%		11.7%		10.9%	9.8%
Employees (internal FTEs, end of period)				51,342	0.4%	51,550	51,776	-0.4%
Four-quarter rolling average key figures
Underlying interest margin	1.53%	1.50%		1.52%
Underlying cost/income ratio	53.8%	56.5%		53.6%
Underlying return on equity on IFRS-EU equity4)	11.0%	9.1%		10.8%
Risk
Non-performing loans/total loans (end of period)				2.1%		2.0%	2.2%
Stock of provisions/provisioned loans (end of period)				39.7%		39.3%	41.0%
Underlying risk costs in bps of average RWA	16	33		30		21	35
Risk-weighted assets (end of period, in EUR billion)				310.3	0.2%	311.0	312.8	-0.6%

1) Regulatory costs represents bank taxes and contributions to the deposit guarantee schemes ('DGS') and the (European) single resolution fund ('SRF'). 2) The amount presented in 'Addition to loan loss provisions' (which is equivalent to risk costs) includes write-off s and recoveries on loans and receivables not included in the stock of provision for loan losses.

3) Interim profi t not included in CET1 capital in 9M17 amounting to EUR 1,626 million (9M16: EUR 2,970 million, and 1H17: EUR 1,706 million). 4) Annualised underlying net result divided by average IFRS-EU shareholders' equity excluding interim profi t not included in CET1 capital as from 1Q2017. Note: Underlying fi gures are non-GAAP measures. These are derived from fi gures according to IFRS-EU by excluding the impact from divestments, special items, Insurance Other, and discontinued operations. See the Appendix for a reconciliation between GAAP and non-GAAP fi gures.

ING posted strong third-quarter 2017 results, primarily driven by continued business growth at resilient interest margins and lower risk costs. The net result rose slightly to EUR 1,376 million from EUR 1,349 million in the third quarter of 2016. Commercial performance was robust in the third quarter of 2017. At comparable FX rates and excluding Bank Treasury and the run-off portfolios, ING grew net core lending by EUR 8.0 billion, despite heightened competition in some of our markets. Net customer deposits grew by EUR 4.2 billion. Risk costs declined to 16 basis points of average risk-weighted assets, which is well below our through-the-cycle average of 40-45 basis points. ING Group's fully loaded CET1 ratio remained stable at 14.5%, as risk-weighted assets increased slightly (mainly due to higher operational RWA and volume growth, partly off set by currency impacts and positive risk migration) and EUR 0.5 billion of net profi t was included in capital. Similar to the previous two quarters, we reserved EUR 0.9 billion of net profi t for future dividend payments.

The underlying net result, defi ned as the net result from continuing operations excluding special items after tax and excluding the result on warrants on NN Group and Voya shares, rose 3.1% to EUR 1,378 million from EUR 1,336 million in the third quarter of 2016. The underlying return on ING Group's IFRS-EU equity increased to 11.5% from 10.8% in the yearago quarter, proving our focus on profi table growth in competitive markets. On a four-quarter rolling basis, the underlying return on equity improved to 11.0%.

Income increased slightly year-on-year, supported by resilient interest margins and increased commission income, partly off set by lower investment income. Operating expenses remained under control, as higher expenses in primarily the Challengers & Growth Markets were largely off set by the benefi ts from ongoing cost-saving initiatives. The third-quarter 2017 cost/income ratio was 51.9%. On a four-quarter rolling basis, the cost/income ratio improved to 53.8% from 56.5% one year ago. Compared with the second quarter of 2017, which included a one-time gain on the sale of an equity stake from the real estate run-off portfolio, the underlying net result declined 1.8%.

Underlying results

The strong third-quarter 2017 underlying result before tax of EUR 1,995 million was mainly attributable to continued loan growth at resilient margins, solid commission income (albeit lower than in the exceptionally strong previous quarter) and the EUR 54 million annual dividend from Bank of Beijing. Risk costs were low at EUR 124 million, or 16 basis points of average risk-weighted assets. Year-on-year, the underlying result before tax rose 6.2%, driven by lower risk costs. Compared with the second quarter of 2017, the underlying result before tax rose 0.2%.

Total underlying income

Total underlying income was slightly higher at EUR 4,408 million compared with EUR 4,363 million in the third quarter of 2016, which included a release of reserves in the Corporate Line and a EUR 32 million gain from the sale of Kotak Mahindra Bank shares, whereas the current quarter included a EUR 24 million gain on the sale of MasterCard shares in Turkey. The 1.0% increase year-on-year was supported by a 3.1% rise in net interest income (largely caused by the decision to end some hedge relationships, resulting in a EUR 91 million shift from 'other income' to 'net interest income') and a 6.3% increase in net commission income, mainly visible in Retail Banking. These increases were largely off set by lower investment and other income. The decline in other income was due to the impact of the decision to end some hedge relationships.

Compared with the second quarter of 2017, which included a EUR 97 million one-off gain in the real estate run-off portfolio, total underlying income fell by EUR 123 million, or 2.7%. The decline was mainly visible in Wholesale Banking; this was in addition to the one-off gain in the real estate run-off portfolio in the previous quarter, mainly caused by lower Financial Markets and Bank Treasury income. Also Retail Belgium recorded a decline in income, which was primarily due to ongoing margin pressure and lower fee income from investment products after an exceptionally strong second quarter. These factors were partly off set by the annual dividend from Bank of Beijing and higher income in Retail Netherlands and the Corporate Line. Total CVA/DVA impacts in Wholesale Banking and in the Corporate Line were limited at EUR -1 million in the third quarter of 2017 versus EUR -72 million one year ago and EUR -42 million in the second quarter of 2017.

Total customer lending rose by EUR 0.9 billion in the third quarter of 2017 to EUR 568.3 billion, as volume growth was largely off set by negative currency impacts. Adjusted for currency impacts and excluding Bank Treasury and the run-off portfolios of WUB and Lease, net growth in the core lending book of Retail and Wholesale Banking was EUR 8.0 billion. Third-quarter net core lending growth was well diversifi ed across Retail and Wholesale Banking. Residential mortgages increased by EUR 2.4 billion due to further mortgage growth outside the Netherlands. In the

Netherlands, the core lending mortgage book declined by EUR 0.2 billion. Other net core lending grew by EUR 5.6 billion, of which EUR 0.9 billion was in Retail Banking. In Wholesale Banking, other net core lending grew by EUR 4.7 billion and was largely attributable to General Lending & Transaction Services and to a lesser extent to Real Estate Finance.

Customer deposits increased by EUR 4.9 billion to EUR 538.1 billion in the third quarter of 2017. The net growth of customer deposits in Retail and Wholesale Banking (excluding an increase in Bank Treasury and adjusted for currency impacts) was EUR 4.2 billion. Retail Banking generated a net infl ow of EUR 2.2 billion, with growth in all segments, except in Germany where customer deposits declined by EUR 0.5 billion. In Wholesale Banking, net customer deposit growth was EUR 2.0 billion.

Underlying net interest income increased by 3.1% to EUR 3,490 million from EUR 3,385 million in the third quarter of 2016. A large part of this increase was related to the decision to end some hedge relationships. This led to a EUR 91 million increase in net interest income versus a similar decrease in other income in the third quarter of 2017. Furthermore, the net interest income in Corporate Line increased, due to among others the maturity of highcost legacy bonds, which reduces the funding costs of the bank. This was partly off set by a decline in Financial Markets net interest income, which is volatile in nature. Net interest income on customer lending was stable, as higher volumes in mortgages and other customer lending were off set by a lower overall lending margin. The interest result on customer deposits declined slightly compared with a year ago as volume growth was more than off set by margin pressure on savings and current accounts due to lower reinvestment yields.

Compared with the second quarter of 2017, total net interest income increased 3.9%, mainly caused by the ending of some hedge relationships and a EUR 41 million higher interest result in Financial Markets.

Interest result (in EUR million) and interest margin (in %)

The third-quarter 2017 underlying net interest margin was 1.57% compared with 1.51% in the second quarter of 2017. Of this increase, four basis points were caused by the decision to end some hedge relationships and two basis points by a higher interest result in Financial Markets. Sequentially, the interest margin on lending activities stabilised, whereas the

interest margin on savings and current accounts slightly narrowed due to the negative impact from the low interest rate environment. The negative impact was partly contained by a further lowering of client savings rates in some countries. In the third quarter of 2017, the client savings rate was reduced further in the Netherlands, Germany and Austria.

Net commission income rose 6.3% to EUR 643 million from EUR 605 million in the third quarter of 2016. The increase was recorded in most segments and products, with relatively strong growth in Retail Challengers & Growth Markets and in Retail Netherlands. Compared with the previous quarter, commission income fell by EUR 71 million, or 9.9%, predominantly in Wholesale Banking and Retail Belgium after a very strong second quarter of 2017 for both segments.

Investment income fell to EUR 82 million from EUR 139 million in the third quarter of 2016, which had been supported by EUR 66 million of realised gains on debt and equity securities (of which EUR 32 million related to the sale of Kotak Mahindra Bank shares) compared with EUR 27 million of gains in the third quarter of 2017 (including a EUR 24 million gain on the sale of MasterCard shares in Turkey). The remaining decrease was mainly due to lower dividend income, even though the annual dividend from Bank of Beijing rose by EUR 6 million to EUR 54 million. Sequentially, investment income rose by EUR 39 million, driven by the Bank of Beijing dividend.

Other income declined to EUR 193 million from EUR 235 million in the third quarter of 2016, primarily due to the aforementioned EUR 91 million accounting impact from the decision to end some hedge relationships in the third quarter of 2017. Excluding this impact, other income rose by EUR 49 million, mainly due to higher revenues from Financial Markets and a one-time gain on the additional transfer of EUR 0.5 billion of WUB mortgages to NN Group, whereas the third quarter of 2016 was supported by positive one-off results in Corporate Line due to the release of revaluation reserves. Sequentially, other income fell by EUR 222 million, primarily due to the accounting impact of ending of some hedge relationships and the EUR 97 million one-off gain on the sale of an equity stake in the real estate run-off portfolio that was recorded in the second quarter of 2017. Financial Markets other income was also lower due to subdued customer activity.

Operating expenses

Underlying operating expenses increased by EUR 69 million, or 3.1%, compared with the year-ago quarter. Regulatory expenses were EUR 94 million; this is EUR 29 million higher than in the third quarter of 2016, which included negative regulatory costs in Germany following the decision to fulfi l some DGS contributions via irrevocable payment commitments. Expenses excluding regulatory costs rose by EUR 40 million, or 1.9%, to EUR 2,195 million. This was mainly due to higher expenses in Retail Challengers & Growth Markets, partly off set by a decline in Retail Netherlands driven by ongoing cost savings and the release of provisions, mainly related to the new collective labour

agreement, whereas last year included additional restructuring costs. The increase in Retail Challengers & Growth Markets was due to, among others, a litigation provision recorded in Spain in the current quarter, higher investments in strategic projects, and higher marketing and staff expenses to support business growth.

Compared with the second quarter of 2017, expenses declined by EUR 22 million, or 1.0%, despite a EUR 25 million increase in regulatory costs.

ING's third-quarter underlying cost/income ratio was 51.9% compared with 50.9% one year ago and 51.0% in the previous quarter. On a four-quarter rolling basis, which reduces the seasonal impact of regulatory costs, the underlying cost/income ratio improved to 53.8% from 56.5% one year ago, but was slightly higher than the 53.6% in the previous four-quarter rolling period.

The total number of internal staff increased by 208 FTEs in the third quarter to 51,550 FTEs at the end of September 2017, driven by FTE increases in the Netherlands, as well as in most of the Challengers & Growth Markets and the international network of Wholesale Banking in order to support commercial growth. These increases were partly off set by declines in Belgium and Turkey.

Addition to loan loss provisions

ING recorded EUR 124 million of net additions to loan loss provisions in the third quarter of 2017, down from EUR 265 million a year ago and EUR 229 million in the previous quarter. The lower level of risk costs was driven by a benign credit environment in most markets where ING is active.

Net additions to loan loss provisions in Wholesale Banking were EUR 46 million, down from EUR 97 million recorded in the third quarter of 2016 and EUR 135 million in the previous quarter. The strong decline compared with the second quarter of 2017 was the result of a limited number of increases, partially off set by some signifi cant releases. Risk costs for the Italian lease run-off book remained at an elevated level, but decreased compared with the previous quarter.

Retail Netherlands recorded net risk cost releases of EUR 22 million in line with improved macroeconomic conditions and the positive momentum in the Dutch housing market,

compared with a net addition of EUR 43 million in the third quarter of 2016 and EUR 12 million in the previous quarter. In Retail Belgium, risk costs were EUR 28 million, compared with EUR 51 million one year ago and EUR 13 million in the previous quarter. Net additions in the Retail Challengers & Growth Markets were EUR 71 million and broadly in line with the risk costs recorded in the previous and year-ago quarter.

Addition to loan loss provisions (in EUR million)

The non-performing loan (NPL) ratio of ING Group was 2.0% compared with 2.1% at the end of June 2017. Total thirdquarter risk costs improved to 16 basis points of average risk-weighted assets (RWA) versus 33 basis points in the third quarter of 2016 and 30 basis points in the second quarter of 2017. This is well below ING's through-the-cycle risk cost average of 40-45 basis points.

Underlying result before tax

ING's third-quarter 2017 underlying result before tax was EUR 1,995 million, up from EUR 1,878 million one year ago. The increase was due to lower risk costs and slightly higher income, partly off set by higher expenses. Quarter-onquarter, the underlying result before tax marginally rose 0.2%, as the positive impact of lower risk costs and lower operating expenses compensated for a decline in income, which was largely caused by the one-time gain on the sale of an equity stake from the real-estate run-off portfolio in the second quarter of 2017.

Underlying result before tax (in EUR million)

Underlying net result

ING's underlying net result amounted to EUR 1,378 million. This is 3.1% higher than the EUR 1,336 million recorded in the third quarter of 2016, but down 1.8% from EUR 1,403 million in the second quarter of 2017. The eff ective underlying tax rate was 29.8% compared with 27.8% a year ago and 28.4% in the previous quarter.

Net result ING Group

ING Group's third-quarter net result increased to EUR 1,376

Segment Reporting: Retail Banking Consolidated Results

million from EUR 1,349 million in the third quarter of 2016 and EUR 1,371 million in the second quarter of 2017. The net result of ING Group also includes the net result from Insurance Other (included under continuing operations) and – when applicable - special items and the net result from discontinued operations.

In the third quarter of 2017, ING Group's net result from Insurance Other was a loss of EUR 3 million, refl ecting a lower valuation of warrants on NN Group and Voya shares compared with the end of June 2017. In the year-ago quarter, the valuation of warrants on NN Group and Voya shares resulted in a profi t of EUR 12 million, whereas in the second quarter of 2017 a loss of EUR 32 million was recorded on the warrants. At the end of September 2017, ING Group held warrants for approximately 35 million shares in NN Group at an exercise price of EUR 40.00 per share, and warrants for almost 20 million shares in Voya at an exercise price of USD 48.75 per share. The combined book value of these warrants was EUR 100 million at quarter-end.

In the third quarter of 2017, a special item was recorded for a tax charge at ING Australia Holdings Ltd related to the years 2007-2013, for which a full reimbursement will be received from NN Group. The bottom-line impact for ING is nil, but it aff ected both the tax and other income lines in the consolidated statement of profi t or loss. In the fi rst two quarters of 2017, there were no special items. In 2016, special items after tax were only recorded in the fi rst quarter (EUR -13 million, related to older restructuring programmes in Retail Netherlands) and in the fourth quarter of the year (EUR -787 million of restructuring provisions related to the digital transformation programmes as announced at ING's Investor Day in October 2016).

In 2017, there are no discontinued operations. In the fi rst nine months of 2016, ING Group recorded a net result of EUR 443 million on the discontinued operations of NN Group, of which EUR 1 million was recorded in the third quarter.

In the third quarter of 2017, ING Group's underlying return on IFRS-EU equity was 11.5%. This is higher than the 10.8% reported over the third quarter of 2016, but slightly lower than the 11.7% in the previous quarter. On a four-quarter rolling basis, which eliminates the seasonality in results, the underlying return on ING Group's average IFRS-EU equity improved to 11.0% from 9.1% one year ago, and was 0.2%-point higher than in the previous four-quarter rolling period. As per the end of the fi rst quarter of 2017, ING Group's return on equity is calculated using IFRS-EU shareholders' equity after excluding 'interim profi t not included in CET1 capital'. As of 30 September 2017, this amounted to EUR 1,626 million, which is equal to the dividend paid over 2016 (following ING's decision to reserve one-third of the aggregate prior-year dividend in each of the fi rst three quarters of the fi nancial year) minus the interim dividend 2017 paid in August.

ING Group's net result per share was EUR 0.35 in the third quarter of 2017, based on an average number of shares outstanding of 3,884.5 million during the quarter.

Segment Reporting: Retail Banking

Retail Benelux: Consolidated profi t or loss account
	Retail Benelux		Netherlands		Belgium
In EUR million	3Q2017	3Q2016	3Q2017	3Q2016	3Q2017	3Q2016
Profit or loss
Net interest income	1,370	1,399	924	911	446	488
Net commission income	240	230	148	139	93	91
Investment income	6	10	3	9	3	1
Other income	110	110	64	72	46	38
Total underlying income	1,726	1,749	1,138	1,132	588	617
Expenses excl. regulatory costs	807	873	454	527	352	346
Regulatory costs	20	38	21	19	-1	19
Operating expenses	827	911	475	546	351	365
Gross result	899	838	663	585	236	252
Addition to loan loss provisions	7	94	-22	43	28	51
Underlying result before tax	893	744	685	542	208	202
Customer lending/deposits (end of period, in EUR billion)1)
Residential mortgages	153.6	158.4	115.8	123.2	37.8	35.2
Other customer lending	76.9	78.0	35.0	37.0	41.8	41.0
Customer deposits	224.0	216.7	140.5	135.6	83.5	81.1
Profitability and efficiency1)
Cost/income ratio	47.9%	52.1%	41.8%	48.3%	59.8%	59.1%
Return on equity based on 12.0% common equity Tier 12)	25.4%	21.4%	34.3%	25.6%	12.7%	14.8%
Employees (internal FTEs, end of period)	17,135	17,759	8,893	9,099	8,241	8,661
Risk1)
Risk costs in bps of average RWA	3	44	-17	33	32	61
Risk-weighted assets (end of period, in EUR billion)	84.5	85.3	49.3	52.3	35.3	33.0

1) Key fi gures based on underlying fi gures. 2) Underlying after-tax return divided by average equity based on 12.0% CET1 ratio (annualised).

Retail Benelux

"Pre-tax result in the Netherlands rose 26% year-on-year, as stable income was accompanied by signifi cantly lower expenses, supported by the ongoing cost-saving initiatives and net releases of risk costs refl ecting the continued positive macroeconomic conditions in the Netherlands.

In Belgium, results showed a moderate improvement year-on-year, driven by stable lending growth, which partly off set the pressure on margins. Expenses remained relatively stable, whereas risk costs declined.

In the third quarter, we made signifi cant progress in realising the intended digital transformation. Among other steps, decisions have been made on rationalising and/or merging local products into a single shared future product catalogue.

I am proud of the signifi cant eff orts and effi cient collaboration between our colleagues in the Netherlands and Belgium, which will enable us to deliver a diff erentiating customer experience. As we work hard to achieve this outcome, we continue to give our clients' interests the highest priority."

Roland Boekhout, Member Management Board Banking, Head of Market Leaders

Retail Netherlands

Retail Netherlands posted a very strong third-quarter underlying result before tax of EUR 685 million, up 26.4% from the third quarter of 2016. Income was resilient versus a year ago as higher savings margins and a one-off result in the WUB portfolio off set the negative impact of lower lending volumes. Underlying expenses were EUR 71 million lower year-on-year. This was mainly driven by the benefi ts of cost-saving programmes and the release of provisions, whereas the third quarter of 2016 included additional redundancy costs. The third-quarter 2017 result was furthermore supported by negative risk costs refl ecting the continued positive economic development in the Netherlands. Sequentially, the underlying result before tax rose 21.2%, mainly driven by lower expenses and lower risk costs. The return on equity, based on a 12% common equity Tier 1 ratio, rose to 34.3% for the quarter.

Total underlying income was resilient year-on-year at EUR 1,138 million. Underlying income increased 0.5%, supported by a higher interest margin on savings and higher

Segment Reporting: Retail Banking

commission income from current accounts. In addition, there was a positive one-off result due to an additional sale of EUR 0.5 billion of mortgages from the WestlandUtrecht Bank (WUB) run-off portfolio to NN Group. These increases were off set by the impact of lower lending volumes in both mortgages (due to repayments in the core mortgage book and run-off in the WUB portfolio) and business lending, combined with lower lending margins. Sequentially, income slightly increased by 1.9%, driven by the one-off result in the WUB mortgage book. The decision to end some hedge relationships in the third quarter of 2017 resulted in a EUR 38 million increase in net interest income; this was fully off set by a similar decrease in other income.

Customer lending decreased by EUR 3.3 billion in the third quarter to EUR 150.8 billion, of which EUR -1.7 billion was in Bank Treasury-related items and EUR -1.3 billion in the WUB run-off portfolio. Excluding these items, net core lending decreased by EUR 0.4 billion, of which EUR -0.2 billion was in mortgages and EUR -0.2 billion in other lending. Net customer deposits (excluding Bank Treasury) increased by EUR 0.6 billion, due to infl ows in current accounts.

Underlying operating expenses fell 13.0% from a year ago to EUR 475 million. The decline was mainly due to the benefi ts coming through from the ongoing cost-saving initiatives as well as one-off items in the third quarter of 2016 (additional redundancy provisions) and in the third quarter of 2017 (release of provisions, mainly related to the new collective labour agreement). Sequentially, expenses fell 11.9%, mainly caused by some one-off items in the second and third quarters of 2017 and supported by ongoing cost-saving initiatives.

Third-quarter 2017 risk costs were EUR -22 million, compared with EUR 43 million a year ago and EUR 12 million in the previous quarter. Risk costs were negative as a result of releases in mortgages and business lending, refl ecting the continued positive macroeconomic conditions in the Netherlands.

Risk-weighted assets decreased by EUR 1.4 billion in the third quarter of 2017 to EUR 49.3 billion, mainly refl ecting positive risk migration in the Dutch mortgage portfolio driven by increased house prices.

Retail Belgium

Retail Belgium, including Luxembourg, posted a third-quarter 2017 underlying result before tax of EUR 208 million, up 3.0% from a year ago, but 31.6% lower than in the previous quarter. The underlying result before tax was EUR 6 million higher than in the third quarter of 2016, refl ecting both lower expenses and lower risk costs, partly off set by lower income. Sequentially, the underlying result before tax dropped by EUR 96 million; this was predominantly due to lower fee income on investment products after an exceptionally strong second quarter, lower net interest results following margin

pressure on savings and current accounts, as well as higher risk costs. Expenses increased because the previous quarter included a downward adjustment in regulatory costs. The return on equity, based on a 12% common equity Tier 1 ratio, was 12.7% for the quarter.

Underlying result before tax - Retail Belgium (in EUR million)

Total underlying income was EUR 588 million, down 4.7% from the year-ago quarter, mainly due to continued margin pressure on savings and current accounts as a result of the low interest rate environment, and to lower renegotiation and prepayment fees on mortgages. Compared with the second quarter of 2017, underlying income declined by EUR 66 million, or 10.1%, mainly due to lower commission income (as the second quarter included a high infl ow of assets under management) and a decrease in net interest income as volume growth could not off set the pressure on margins. Investment income declined by EUR 13 million.

Underlying operating expenses were EUR 351 million, down 3.8% from a year ago. This was mainly the result of lower regulatory expenses, as the year-ago quarter included EUR 19 million of regulatory costs following new legislation on Belgian bank taxes. Sequentially, expenses increased 4.5% as the second quarter of 2017 included a downward adjustment of the DGS contribution. Excluding regulatory costs, expenses increased 0.6% sequentially.

Customer lending increased by EUR 0.8 billion in the third quarter to EUR 79.7 billion. Net core lending, which excludes Bank Treasury products, also grew by EUR 0.8 billion, and included a EUR 1.0 billion increase in mortgages and a EUR 0.2 billion decrease in other customer lending. Customer deposits rose by EUR 0.8 billion to EUR 83.5 billion, with the infl ows primarily in current accounts.

Third-quarter 2017 risk costs were EUR 28 million, or 32 basis points of average risk-weighted assets, compared with EUR 51 million a year ago and EUR 13 million in the previous quarter.

Risk-weighted assets in the third quarter of 2017 increased by EUR 0.5 billion to EUR 35.3 billion, mainly refl ecting increased operational risk-weighted assets.

Segment Reporting: Retail Banking

Retail Challengers & Growth Markets: Consolidated profi t or loss account
	Retail Challengers & Growth Markets		Germany		Other
In EUR million	3Q2017	3Q2016	3Q2017	3Q2016	3Q2017	3Q2016
Profit or loss
Net interest income	1,056	977	438	439	618	538
Net commission income	151	132	53	47	98	85
Investment income	81	87	2	0	79	87
Other income	-19	40	-24	-9	5	49
Total underlying income	1,269	1,237	470	478	799	759
Expenses excl. regulatory costs	682	589	229	199	453	390
Regulatory costs	60	30	19	-8	41	38
Operating expenses	742	619	248	191	494	428
Gross result	527	618	222	287	305	331
Addition to loan loss provisions	71	74	2	5	69	69
Underlying result before tax	455	544	220	282	236	262
Customer lending/deposits (end of period, in EUR billion)1)
Residential mortgages	128.2	122.6	69.7	68.2	58.5	54.4
Other customer lending	37.2	34.0	11.9	10.8	25.3	23.2
Customer deposits	249.9	236.2	132.3	125.3	117.7	110.9
Profitability and efficiency1)
Cost/income ratio	58.5%	50.0%	52.7%	39.9%	61.9%	56.4%
Return on equity based on 12.0% common equity Tier 12)	16.0%	17.4%	22.5%	24.0%	12.7%	14.0%
Employees (internal FTEs, end of period)	22,735	22,493	4,680	4,462	18,055	18,030
Risk1)
Risk costs in bps of average RWA	38	40	3	9	55	56
Risk-weighted assets (end of period, in EUR billion)	75.3	73.9	25.0	25.5	50.3	48.4

1) Key fi gures based on underlying fi gures. 2) Underlying after-tax return divided by average equity based on 12.0% CET1 ratio (annualised).

Retail Challengers & Growth Markets

"Retail Challengers & Growth markets recorded another solid quarter in 3Q2017 and maintained strong customer momentum, adding 180,000 primary customers. Core lending balances as well as assets under management also continued their strong growth. Diversifi cation of our product portfolio is helping us to achieve a strong fi nancial performance despite the challenging market environment characterised by low interest rates in Europe.

We are proud that we are continuously improving our customer proposition across all C&G markets. A good example is our partnership with Scalable Capital, a digital investment manager off ering online wealth management services to customers in Germany. In Poland, ING has started off ering an online tool for entrepreneurs to test their business ideas.

Looking to the future, we are staying focused on our Think Forward initiatives, in particular building our Model Bank and implementing Project Welcome in Germany."

Aris Bogdaneris, Member Management Board Banking, Head of Challengers & Growth Markets

Retail Germany

Retail Germany, including Austria, recorded a third-quarter 2017 underlying result before tax of EUR 220 million, down from EUR 282 million in the third quarter of 2016. The decrease was largely attributable to higher regulatory costs (EUR 27 million), higher expenses from investments in Project Welcome, and higher marketing and personnel expenses to support business growth. Compared with the second quarter of 2017, the result before tax increased by EUR 6 million. The increase was mainly driven by higher net interest income, which benefi ted from the lowering of the core savings rate in mid-August. ING Germany continued its strong business momentum, adding 43,000 primary customers in the quarter and growing net core customer lending by EUR 0.7 billion. The return on equity, based on a 12% common equity Tier 1 ratio, was a healthy 22.5% for the quarter.

Underlying result before tax - Germany (in EUR million)

Total underlying income was EUR 470 million, down 1.7% from the third quarter of 2016. The decline was mainly caused by lower Bank Treasury-related revenues (mostly negative hedge ineff ectiveness results), partly off set by higher commission income. Net interest income was broadly

Segment Reporting: Wholesale Banking Retail Banking

stable, as core savings rate adjustments and higher lending volumes helped to off set the impact of the low interest rate environment on savings margins. The core savings rate in Germany was lowered by 10 basis points in mid-August 2017 (previous adjustment was in March 2017). Compared with the second quarter of 2017, total income increased 3.3%, mainly due to a higher interest result, which benefi ted from the core savings rate adjustment in August, continued lending growth and higher mortgage prepayment fees. This was partly off set by lower hedge ineff ectiveness results.

Total customer lending rose by EUR 1.3 billion in the third quarter to EUR 81.6 billion. Net core lending, which excludes Bank Treasury products, increased by EUR 0.7 billion, of which EUR 0.4 billion was residential mortgages and EUR 0.3 billion consumer lending. Customer deposits decreased slightly this quarter to EUR 132.3 billion, mainly due to the adjustment of the core savings rate and a shift of customer balances to investment products.

Operating expenses rose 29.8% from a year ago to EUR 248 million. Regulatory expenses increased by EUR 27 million, as the year-ago quarter benefi ted from the decision to fulfi l some DGS contributions via irrevocable payment commitments. Excluding regulatory costs, operating expenses rose 15.1% from a year ago to EUR 229 million. This increase was mainly related to higher investments in Project Welcome, higher marketing expenses, as well as a higher headcount to support business growth. Compared with the previous quarter, expenses excluding regulatory costs increased 3.2%, mainly refl ecting higher staff costs.

Risk costs were benign at EUR 2 million versus EUR 5 million in the third quarter of 2016 and EUR 5 million in the second quarter of 2017. Third-quarter 2017 risk costs were low at 3 basis points of average risk-weighted assets, refl ecting the continued benign credit environment in Germany.

Risk-weighted assets increased by EUR 0.5 billion in the third quarter to EUR 25.0 billion, mainly due to lending growth and increased operational risk-weighted assets.

Retail Other Challengers & Growth Markets

Retail Other Challengers & Growth Markets posted an underlying result before tax of EUR 236 million, down from EUR 262 million recorded in the third quarter of 2016. The decrease was mainly attributable to a litigation provision booked in Spain. Both quarters benefi ted from some nonrecurring items. The prior-year quarter included a EUR 32 million one-time gain following the reduction of ING's stake in Kotak Mahindra Bank. Similarly, a one-time gain of EUR 24 million was recognised in the current quarter from the sale of MasterCard shares in Turkey. In addition, the annual Bank of Beijing dividend was received in the third quarter and amounted to EUR 54 million compared with EUR 48 million in the same period last year. Excluding the aforementioned items, the underlying result before tax increased single digit, refl ecting business and revenue growth, of which a large part was realised in Australia and the Growth Markets.

Compared with the second quarter of 2017, the underlying result before tax decreased by EUR 7 million. The decrease was in addition to the aforementioned items mainly caused by lower income (including a loss in the UK legacy portfolio and lower commission income in Turkey) and higher expenses for business growth and strategic projects, as well as higher risk costs. The return on equity, based on a 12% common equity Tier 1 ratio, was 12.7% for the quarter.

Total underlying income rose to EUR 799 million from EUR 759 million in the same period of last year. The increase was mainly driven by improved commercial results in Australia, Poland, Romania, as the non-recurring items and the Bank of Beijing dividend largely off set each other. Compared with the second quarter of 2017, underlying income increased by EUR 51 million, driven by the annual Bank of Beijing dividend.

Customer lending grew by EUR 1.0 billion in the third quarter to EUR 83.8 billion. Excluding currency impacts and Bank Treasury, net core lending grew by EUR 2.2 billion and was mainly generated in Poland, Australia and Turkey. Of the total growth, EUR 1.2 billion was in mortgages and EUR 1.0 billion in other lending. Net customer deposits, excluding currency impacts and Bank Treasury, increased by EUR 1.4 billion, primarily refl ecting net infl ows from customers in Australia, Romania and Turkey.

Operating expenses rose by EUR 66 million from a year ago to EUR 494 million. This was mainly due to the litigation provision booked in Spain; higher marketing and staff expenses in most of the countries to support business growth; and higher investments related to strategic projects. Compared with the previous quarter, operating expenses increased by EUR 53 million due to the aforementioned impacts.

Risk costs remained stable at EUR 69 million compared with the third quarter of 2016, and increased by EUR 6 million on a sequential basis.

Risk-weighted assets increased by EUR 0.6 billion in the third quarter of 2017 to EUR 50.3 billion, mainly refl ecting lending growth and increased operational risk-weighted assets, partly off set by currency impacts.

Segment Reporting: Wholesale Banking

Wholesale Banking: Consolidated profi t or loss account
	Total Wholesale Banking		Industry Lending		General Lending & Transaction Services		Financial Markets		Bank Treasury & Other
In EUR million	3Q2017	3Q2016	3Q2017	3Q2016	3Q2017	3Q2016	3Q2017	3Q2016	3Q2017	3Q2016
Profit or loss
Net interest income	967	964	538	528	282	261	107	138	41	37
Net commission income	252	244	147	132	92	93	21	22	-9	-3
Investment income	-3	15	-6	-4	0	0	0	-1	4	20
Other income excl. CVA/DVA	164	169	17	4	11	9	123	93	12	64
Underlying income excl. CVA/DVA	1,380	1,392	696	660	385	362	251	252	49	118
CVA/DVA	2	-42					2	-42
Total underlying income	1,382	1,350	696	660	385	362	253	210	49	118
Expenses excl. regulatory costs	624	617	167	154	188	179	226	220	44	65
Regulatory costs	13	-2	1	-4	0	-4	6	-6	6	12
Operating expenses	638	615	168	150	188	175	232	214	51	77
Gross result	745	735	528	510	198	187	21	-4	-2	41
Addition to loan loss provisions	46	97	-4	86	21	3	1	4	28	4
Underlying result before tax	698	638	532	425	177	184	20	-8	-31	37
Customer lending/deposits (end of period, in EUR billion)1)
Residential mortgages	1.0	1.4	0.0	0.0	0.0	0.0	0.0	0.0	1.0	1.4
Other customer lending	171.5	160.4	109.6	107.0	54.6	45.8	0.9	1.0	6.3	6.6
Customer deposits	64.3	64.2	1.8	1.1	49.2	49.2	4.7	5.1	8.7	8.8
Profitability and efficiency1)
Cost/income ratio	46.1%	45.6%	24.1%	22.7%	48.7%	48.3%	91.7%	102.0%	104.4%	65.0%
Return on equity based on 12.0% common equity Tier 12)	10.3%	10.9%	18.5%	16.6%	9.2%	9.9%	0.0%	-1.3%	-16.2%	16.6%
Employees (internal FTEs, end of period)	11,677	11,521
Risk1)
Risk costs in bps of average RWA	12	26	-2	54	18	3	1	5	123	16
Risk-weighted assets (end of period, in EUR billion)	148.2	148.8	67.3	63.2	47.0	45.2	24.9	30.1	9.0	10.3

1) Key fi gures based on underlying fi gures. 2) Underlying after-tax return divided by average equity based on 12.0% CET1 ratio (annualised).

Wholesale Banking

"Wholesale Banking had a solid quarter, delivering healthy returns with expenses and risk costs well under control. Income remained robust on the back of annual growth in Industry Lending and GL&TS. Sequentially, low market volatility resulted in lower income in Financial Markets.

We continue to innovate and made further progress by launching a new trade finance back-end system and channel for letters of credit and collections in the Benelux. The system supports automation, standardisation and better reporting, while the new channel called InsideBusiness Trade, provides a seamless and secure digital way for our clients to manage their trade portfolios.

Also, in the sustainability area we have partnered with Madaster as part of our circular economy efforts. Madaster has devised a digital "material passport" that is meant to stimulate the use of recyclable materials, encourage the investment in "smart" designs that support the circular economy and reduce waste. This quarter we also opened a new representative office in Bogota, Colombia; we can now provide additional financing solutions on top of our existing lending capabilities."

Isabel Fernandez, Member Management Board Banking, Head of Wholesale Banking

Wholesale Banking delivered a solid profi t before tax of EUR 698 million in the third quarter of 2017, refl ecting continued business growth in Industry Lending and General Lending & Transaction Services, well-controlled expenses and low risk costs. Financial Markets results increased year-on-year, due to a positive swing in CVA/DVA impacts, but results were lower than in the fi rst two quarters of 2017 due to seasonally lower customer activity. Wholesale Banking overall maintained positive business momentum, with EUR 4.7 billion of net core lending growth (excluding currency eff ects) in the third quarter. The return on equity, based on a 12% common equity Tier 1 ratio, was 10.3%.

Underlying result before tax - Wholesale Banking (in EUR million)

Total underlying income was 2.4% higher than in the third quarter of 2016, but 13.0% lower than in the previous quarter. Credit and debt valuation adjustments (CVA/DVA) amounted to EUR 2 million for the current quarter compared with EUR -42 million in the same quarter of last year and EUR -39 million in the second quarter of 2017.

Segment Reporting: Wholesale Banking

Total underlying income excluding CVA/DVA impacts was down 0.9% year-on-year and decreased 15.2% compared with the second quarter of 2017. The year-on-year decrease is mainly attributable to lower Bank Treasury & Other revenues on the back of negative revaluations on derivatives used for hedging purposes, which could not be fully compensated by higher revenues in Industry Lending and General Lending & Transaction Services. Sequentially, the decrease was mainly related to lower revenues in Bank Treasury & Other (whereby the second quarter of 2017 included a EUR 97 million gain on the sale of an equity stake in the real estate run-off portfolio), lower commission income in the lending businesses (which can be volatile across quarters) after the strong prior quarter, and lower Financial Markets revenue, which was connected to seasonally lower client activity in the third quarter.

The interest result increased 0.3% from the third quarter of 2016, as higher interest results in General Lending & Transaction Services, Industry Lending and Bank Treasury were only partly off set by lower interest results in Financial Markets. On a sequential basis, the interest result was up 2.8% due to higher net interest income in Financial Markets (which is volatile by nature); that more than off set the slight decrease in Industry Lending net interest income, which was mainly caused by currency impacts.

Commission income was up 3.3% from the same quarter of last year, but down 15.2% from the very strong previous quarter. Compared with the third quarter of 2016, commission income increased mainly in Industry Lending. Sequentially, lower commission income was mainly reported in Financial Markets (notably Corporate Finance), General Lending & Transaction Services, and Industry Lending.

Investment income declined to EUR -3 million from EUR 15 million in the third quarter of 2016, which included a one-off settlement and dividend income. Compared with the second quarter of 2017, which included the gain on the sale of an equity stake in Corporate Investments, investment income fell by EUR 14 million.

Total other income amounted to EUR 166 million, up from EUR 127 million a year ago, but down from EUR 340 million in the previous quarter. The year-on-year variance was mainly attributable to CVA/DVA volatility in Financial Markets. Sequentially, the decrease is mainly due to the EUR 97 million gain on the sale of an equity stake in the real estate run-off portfolio recorded in the previous quarter combined with lower other income in Financial Markets.

Operating expenses increased to EUR 638 million from EUR 615 million in the third quarter of 2016. Most of the increase was explained by EUR 15 million of higher regulatory costs. The remaining year-on-year cost growth was mainly related to wage infl ation and higher headcount to support business growth, whereas the year-ago quarter included an IT-related restructuring provision in Bank Treasury & Other. Sequentially, operating expenses decreased by EUR 37 million, or 5.5%,

notwithstanding EUR 6 million of higher regulatory costs in the current quarter. The main reason for the quarter-on-quarter variance was the Luxembourg litigation provision that was recorded in the second quarter of 2017.

Risk costs for Wholesale Banking amounted to EUR 46 million, or 12 basis points of average RWA, which is down from EUR 97 million in the third quarter of 2016 and EUR 135 million in the previous quarter. The low risk costs in the current quarter, which are well below our through-the-cycle average of 40-45 basis points, were supported by net releases for larger clients in Asia and the UK combined with limited new additions during the quarter.

Risk-weighted assets increased by EUR 0.1 billion in the third quarter to EUR 148.2 billion, mainly refl ecting volume growth and a model adjustment, off set by currency impacts and positive risk migration.

Industry Lending

Underlying result before tax -

Industry Lending posted an underlying result before tax of EUR 532 million, up 25.2% year-on-year due to higher income and lower risk costs. Compared with the second quarter of 2017, the underlying result before tax was up 18.8%, entirely due to lower risk costs, while net interest income declined due to negative FX eff ects. Commission income was lower following the strong previous quarter.

Income increased 5.5% on the same quarter of last year, driven by continued volume growth in Structured Finance and Real Estate Finance, slightly off set by negative FX eff ects. The year-on-year core lending growth, excluding FX eff ects, totalled EUR 6.3 billion, of which EUR 3.5 billion was related to Structured Finance and EUR 2.7 billion to Real Estate Finance. In the third quarter of 2017, net core lending grew by EUR 0.9 billion.

Expenses were 12.0% higher than in the same quarter of 2016, mainly due to higher headcount and investments to support business growth. Sequentially, expenses decreased 3.4%.

Risk costs amounted to EUR -4 million due to some large releases from Structured Finance fi les in Asia and the UK. Risk costs were down substantially from EUR 86 million in the third quarter of 2016 and EUR 94 million in the previous quarter.

Segment Reporting: Wholesale Banking

General Lending & Transaction Services

Underlying result before tax -

General Lending & Transaction Services (in EUR million)

The underlying result before tax from General Lending & Transaction Services was EUR 177 million, down 3.8% yearon-year, mainly due to higher risk costs compared to the low level in the prior-year quarter. Revenues were up yearon-year on the back of higher transaction services income (which benefi ted from higher Working Capital Solutions volumes), while higher volumes in General Lending largely compensated for the margin pressure in this segment. Compared with the previous quarter, the underlying result before tax declined 11.5%, mainly due to lower commission income (following the strong previous quarter) and higher risk costs (compared to the low level in the previous quarter).

Income rose 6.4% year-on-year, mainly attributable to Payments & Cash Management, Working Capital Solutions and Bank Mendes Gans. Working Capital Solutions income grew due to continued lending growth. Stronger income in Payments & Cash Management was primarily attributable to higher commission income. Bank Mendes Gans recorded higher income due to improved margins and higher volumes. Sequentially, income declined 2.8%, mainly due to lower margins and commission income in General Lending. Trade Finance Services income was also down due to lower commission income.

Year-on-year, net customer lending (excluding currency eff ects) grew by EUR 10.5 billion, of which EUR 4.6 billion was attributable to General Lending, EUR 4.4 billion to Working Capital Solutions and EUR 1.5 billion to other products. In the third quarter, net core lending growth was EUR 4.1 billion.

Expenses, excluding regulatory costs, rose 5.0% year-on-year, mainly refl ecting higher staff -related costs. Sequentially, expenses excluding regulatory costs decreased 1.1%.

Risk costs amounted to EUR 21 million for the quarter versus EUR 3 million in the third quarter of 2016 and EUR 5 million in the previous quarter.

Financial Markets

Underlying result before tax -

Financial Markets posted an underlying result before tax of EUR 20 million, up from EUR -8 million in the third quarter of 2016, but down from EUR 63 million in the previous quarter. The result in the current quarter included EUR 2 million of CVA/DVA impacts compared with EUR -42 million of CVA/ DVA impacts a year ago and EUR -39 million in the previous quarter.

Income excluding CVA/DVA eff ects decreased 0.4% year-onyear. Sequentially, income excluding CVA/DVA impacts fell 22.3% due to lower income in the Equity and Capital Markets business as a result of seasonally lower client activity in the third quarter.

Operating expenses increased 8.4% year-on-year, largely due to higher regulatory expenses. Excluding regulatory costs, expenses rose 2.7%, partly related to higher IT investments. Compared with the previous quarter, expenses increased 4.5%, partly due to higher regulatory costs.

Bank Treasury & Other

Bank Treasury & Other recorded an underlying result before tax of EUR -31 million, down from EUR 37 million in the third quarter of 2016 and EUR 68 million in the previous quarter. Income decreased to EUR 49 million from EUR 118 million a year ago, due to lower Bank Treasury income and lower income from run-off products. Sequentially, income fell by EUR 143 million as the previous quarter included a EUR 97 million gain on the sale of an equity stake in the real estate run-off portfolio and higher income from Corporate Investments. Bank Treasury income also decreased on both comparable quarters due to negative revaluations on derivatives used for hedging purposes.

Operating expenses decreased by EUR 26 million year–on– year, as the year-ago quarter included an IT-related restructuring provision, while regulatory costs were EUR 6 million lower in the current quarter. Sequentially, operating expenses fell by EUR 37 million as the previous quarter included a one-off litigation provision related to a discontinued business in Luxembourg.

Risk costs, predominantly related to the Italian lease run-off portfolio, were EUR 28 million versus EUR 4 million one year ago and EUR 36 million in the second quarter of 2017.

ING Press Release 3Q2017 15

Consolidated Balance Sheet Segment Reporting: Corporate Line Banking

	Corporate Line: Consolidated profi t or loss account
In EUR million	3Q2017	3Q2016
Profit or loss
Net interest income	97	45
Net commission income	0	-1
Investment income	-3	27
Other income	-64	-43
Total underlying income	31	27
Expenses excl. regulatory costs	82	75
Regulatory costs	1	0
Operating expenses	83	75
Gross result	-52	-48
Addition to loan loss provisions	0	0
Underlying result before tax	-52	-48
of which:
Income on capital surplus	32	44
Financing charges	-20	-15
Other Capital Management	71	122
Capital Management excl. DVA	83	150
Bank Treasury excl. DVA	-70	-109
DVA	-3	-30
Other excl. DVA	-62	-58

Corporate Line Banking posted an underlying result before tax of EUR -52 million in the third quarter of 2017 compared with EUR -48 million in the same quarter of 2016.

Underlying income increased from EUR 27 million in the third quarter of 2016 to EUR 31 million, primarily due to matured high-cost legacy bonds, less negative DVA, the allocation to business units of funding costs related to debt attracted in the fi rst half of 2017, and positive hedge ineff ectiveness. These factors were largely off set by lower income on capital surplus and the impact of positive one-off results due to the release of revaluation reserves in the third quarter of 2016. The decision to end some hedge relationships in the third quarter of 2017 resulted in a EUR 27 million increase in net interest income; this was fully off set by a related decrease in other income.

Expenses were EUR 8 million higher than a year ago, mainly due to higher shareholder expenses.

The Capital Management-related result, excluding DVA, was EUR 83 million in the third quarter of 2017 compared with EUR 150 million in the same quarter of last year. Income on capital surplus was EUR 32 million compared with EUR 44 million in the third quarter of 2016. The EUR 12 million lower result was mainly due to a higher capital benefi t allocation to the business units. Financing charges increased mainly due to remaining reinsurance and settlement costs related to previous ING Group entities. The result of Other Capital Management amounted to EUR 71 million versus EUR 122 million in the third quarter of 2016, which included positive one-off results due to the release of revaluation reserves.

Bank Treasury-related results primarily include the isolated legacy costs (mainly negative interest results) caused by the replacement of short-term funding with long-term funding during 2012 and 2013. The third-quarter 2017 result improved to EUR -70 million from EUR -109 million one year ago. The improvement was mainly due to the positive impact of funding charges to business units in the third quarter of 2017, matured high-cost legacy bonds, and positive hedge ineff ectiveness due to the widening of spreads.

DVA on own-issued debt was EUR -3 million compared with EUR -30 million in the third quarter of 2016. The small negative quarterly result was due to a modest tightening of credit spreads in the third quarter of 2017 versus a more signifi cant tightening in the same quarter of last year.

The 'Other' result, which comprises items such as overhead costs and unallocated other expenses, decreased by EUR 4 million. This was mainly due to higher shareholder expenses.

Segment Reporting: Geographical Split

Geographical Split: Consolidated profi t or loss account
	Netherlands		Belgium		Germany		Other Challengers			Growth Markets	Rest of World	Wholesale Banking	Other1)
In EUR million							3Q2017 3Q2016 3Q2017 3Q2016 3Q2017 3Q2016 3Q2017 3Q2016 3Q2017 3Q2016 3Q2017 3Q2016 3Q2017 3Q2016
Profit or loss
Net interest income	1,153	1,187	512	564	556	530	385	341	388	333	398	385	97	46
Net commission income	206	190	113	115	65	60	57	41	79	85	122	114	0	-1
Investment income	5	16	4	12	2	0	-2	9	79	81	-4	-6	-2	27
Other income excl. CVA/DVA	98	84	73	95	-25	-7	-18	13	42	75	86	50	-62	-4
Underlying income excl. CVA/DVA	1,463	1,477	701	786	599	584	422	403	589	574	603	542	33	68
CVA/DVA 2)	-3	-1	-3	3	0	0	0	0	0	0	7	-44	-3	-30
Underlying income	1,460	1,475	699	790	599	584	422	403	588	574	610	498	30	38
Expenses excl. regulatory costs	625	717	444	439	258	221	283	215	246	248	255	235	84	80
Regulatory costs	21	17	-1	16	19	-8	16	15	29	28	9	-2	1	0
Operating expenses	646	734	443	454	277	212	299	230	276	276	264	233	85	80
Gross result	814	741	256	336	322	371	122	174	313	299	346	265	-55	-42
Addition to loan loss provisions	-16	64	36	57	-2	6	44	29	55	54	7	55	0	0
Underlying result before tax	830	677	220	279	324	366	79	144	258	244	339	210	-55	-42
Retail Banking	685	542	208	202	220	282	16	66	220	196	0	0	0	0
Wholesale Banking	145	135	12	77	104	84	63	78	38	48	339	210	-3	6
Corporate Line	0	0	0	0	0	0	0	0	0	0	0	0	-52	-48
Underlying result before tax	830	677	220	279	324	366	79	144	258	244	339	210	-55	-42
Customer lending/deposits (end of period, in EUR billion)3)
Residential mortgages	116.7	124.4	37.9	35.3	69.7	68.3	50.1	46.6	8.4	7.8	0.0	0.0	0.0	0.0
Other lending	74.9	75.7	57.4	55.4	36.2	30.4	28.5	24.8	27.6	26.7	61.0	59.4	0.0	0.8
Customer deposits	169.1	164.2	98.9	97.1	133.1	126.2	89.4	84.1	34.2	32.5	13.6	13.1	-0.1	-0.3
Profitability and efficiency3)
Cost/income ratio	44.3%	49.8%	63.3%	57.5%	46.2%	36.4%	71.0%	56.9%	46.9%	48.0%	43.2%		46.8% 280.1% 210.6%
Return on equity based on 12.0% common equity Tier 14)	26.6%	19.3%	7.5%	13.7%	19.3%	22.3%	5.1%	11.9%	16.8%	15.4%	12.1%		8.7% -87.7% -46.5%
Employees (internal FTEs, end of period)		12,430 12,507		9,713 10,288	4,998	4,754	4,206		4,034 15,819 16,052		4,375	4,132	8	8
Risk3)
Risk costs in bps of average RWA	-8	29	28	44	-2	6	59	44	50	47	4	34	2	0
Risk-weighted assets (end of period, in EUR billion)	80.2	85.6	51.2	51.2	37.8	35.7	30.1	26.8	44.2	45.2	64.3	63.1	3.2	5.1

1) Region Other consists of Corporate Line and Real Estate run-off portfolio 2) CVA/DVA reported within Wholesale Banking and Corporate Line

3) Key fi gures based on underlying fi gures 4) Underlying after-tax return divided by average equity based on 12.0% CET1 ratio (annualised).

The Netherlands

Underlying result before tax of the Netherlands rose to EUR 830 million from EUR 677 million one year ago due to lower expenses and risk costs. Income declined slightly due to margin pressure on lending products and current accounts combined with lower mortgage volumes; this was largely off set by a higher margin on savings, higher current account volumes and higher fee income. Expenses fell by EUR 88 million, or 12.0%, mainly refl ecting ongoing cost-saving initiatives and a release from provisions related to the new collective labour agreement, whereas the year-ago quarter included additional redundancy costs. Risk costs turned into a net release due to improved macroeconomic conditions.

Segment Reporting: Geographical Split

Belgium

Belgium, including ING Luxembourg, recorded an underlying result before tax of EUR 220 million versus EUR 279 million in the third quarter of 2016. The decrease was due to lower income in both Retail and Wholesale Banking. Total income fell by EUR 91 million, or 11.5%, mainly due to margin pressure and lower Financial Markets revenues, partly off set by increased lending volumes. Expenses decreased by EUR 11 million due to lower regulatory costs. Risk costs declined to EUR 36 million (28 basis points of average RWA) from EUR 57 million (or 44 basis points) one year ago. The decline in risk costs was mainly visible in the mid-corporate segment.

Underlying result before tax - Belgium (in EUR million)

Germany

The underlying result before tax of Germany, including ING Austria, fell by EUR 42 million, or 11.5%, from a year ago to EUR 324 million in the third quarter of 2017, of which EUR 27 million was caused by higher regulatory costs. Total income rose 2.6%, fuelled by volume growth and higher commission income, partly off set by lower margins on customer deposits and negative hedge ineff ectiveness results. Expenses excluding regulatory costs increased 16.7%, mainly due to higher headcount to support business growth as well as investments in Project Welcome. Risk costs were EUR -2 million, down from EUR 6 million in the third quarter of 2016.

Other Challengers

The segment Other Challengers includes ING's activities in Australia, France, Italy, Spain & Portugal, and the Czech Republic. The third-quarter 2017 result before tax declined to EUR 79 million from EUR 144 million one year ago. Income rose by EUR 19 million, mainly due to strong business growth in Australia. This was off set by EUR 69 million higher expenses, due to, among others, a litigation provision taken in Spain, and higher marketing and staff costs in most of the countries to support business growth. Risk costs increased

by EUR 15 million to EUR 44 million, mainly due to higher risk costs related to the Italian lease run-off portfolio.

Underlying result before tax - Other Challengers (in EUR million)

Growth Markets

The segment Growth Markets includes ING's activities in Poland, Romania and Turkey, as well as the Asian bank stakes. The third-quarter underlying result before tax increased by EUR 14 million to EUR 258 million compared with the third quarter of 2016, which included a EUR 32 million one-time gain following the reduction of ING's stake in Kotak Mahindra Bank. The increase was a result of higher income due to strong customer lending growth in Poland and Romania, combined with a one-time gain of EUR 24 million from the sale of MasterCard shares in Turkey. Operating expenses and risk costs remained stable.

Underlying result before tax - Growth Markets (in EUR million)

Wholesale Banking Rest of World

Wholesale Banking Rest of World encompasses ING's activities in the UK, Americas, Asia, and other countries in Central and Eastern Europe. This segment recorded an underlying result before tax of EUR 339 million, up from EUR 210 million in the third quarter of 2016, partly caused by a EUR 51 million positive swing in CVA/DVA impacts. Income excluding CVA/ DVA rose by EUR 61 million, or 11.3%, mainly due to higher Financial Markets revenues. Expenses rose by EUR 31 million, or 13.3%, mainly due to increased personnel costs and higher regulatory expenses. Risk costs declined to EUR 7 million, supported by some large releases in Asia and the UK.

Underlying result before tax - WB Rest of World (in EUR million)

Consolidated Balance Sheet

ING Group: Consolidated balance sheet

Assets				Liabilities
Cash and balances with central banks	20,667	17,894	18,144	Deposits from banks	39,023	39,248	31,964
Loans and advances to banks	30,559	27,987	28,858	Customer deposits	538,098	533,210	522,942
Financial assets at fair value through profi t or loss	141,034	143,143	122,093	- savings accounts	321,596	323,023	315,697
- trading assets	133,720	135,246	114,504	- credit balances on customer accounts	181,820	177,827	173,230
- non-trading derivatives	2,299	2,926	2,490	- corporate deposits	33,333	31,174	32,687
- designated as at fair value through profi t or loss	5,015	4,971	5,099	- other	1,349	1,186	1,328
Investments	79,245	83,441	91,663	Financial liabilities at fair value through profi t or loss	104,974	103,202	98,974
- debt securities available-for-sale	66,493	69,199	78,888	- trading liabilities	91,450	88,677	83,167
- debt securities held-to-maturity	8,898	10,306	8,751	- non-trading derivatives	2,440	2,939	3,541
- equity securities available-for-sale	3,854	3,936	4,024	- designated as at fair value through profi t or loss	11,084	11,586	12,266
Loans and advances to customers	568,508	568,237	563,660	Other liabilities	21,050	20,724	20,345
- customer lending	568,339	567,436	561,367	Debt securities in issue	91,451	98,968	103,234
- securities at amortised cost	5,021	5,835	7,471	Subordinated loans	16,653	16,340	17,223
- provision for loan losses	-4,852	-5,034	-5,178	Total liabilities	811,249	811,692	794,682
Investments in associates and joint ventures	1,066	1,066	1,141	Equity
Property and equipment	1,885	1,938	2,002	Shareholders' equity	49,770	49,685	49,793
Intangible assets	1,495	1,491	1,484	Non-controlling interests	682	674	606
Other assets	17,242	16,854	16,036	Total equity	50,452	50,359	50,399
Total assets	861,701	862,051	845,081	Total liabilities and equity	861,701	862,051	845,081

ING Group's total assets slightly decreased by EUR 0.4 billion in the third quarter to EUR 861.7 billion, including EUR 5.7 billion of negative currency impacts. Lower investments and lower fi nancial assets at fair value through profi t or loss were largely off set by higher cash and balances with central banks and higher loans and advances to banks. On the liability side, the main decrease was in debt securities in issue, which were off set by higher customer deposits and higher fi nancial liabilities at fair value through profi t or loss. Adjusted for currency impacts and excluding Bank Treasury, net core lending increased by EUR 8.0 billion, whereas net growth in customer deposits was EUR 4.2 billion. ING Group's loan-to-deposit ratio remained stable at 1.05 compared with the end of June 2017.

Cash and balances with central banks

Cash and balances with central banks increased by EUR 2.8 billion to EUR 20.7 billion.

Loans and advances to and deposits from banks

Loans and advances to banks increased by EUR 2.6 billion to EUR 30.6 billion. Deposits from banks decreased slightly by EUR 0.2 billion to EUR 39.0 billion.

Financial assets/liabilities at fair value

Financial assets at fair value through profi t or loss decreased by EUR 2.1 billion to EUR 141.0 billion, mainly due to lower trading derivatives and lower trading securities, partly off set by higher reverse repos. Financial liabilities at fair value through profi t or loss increased by EUR 1.8 billion, mainly due

ING Group: Consolidated balance sheet
in EUR million	30 Sep. 17	30 Jun. 17	31 Dec. 16			30 Sep. 17 30 Jun. 17 31 Dec. 16
Assets				Liabilities
Cash and balances with central banks	20,667	17,894	18,144	Deposits from banks	39,023	39,248	31,964
Loans and advances to banks	30,559	27,987	28,858	Customer deposits	538,098	533,210	522,942
Financial assets at fair value through profi t or loss	141,034	143,143	122,093	- savings accounts	321,596	323,023	315,697
- trading assets	133,720	135,246	114,504	- credit balances on customer accounts	181,820	177,827	173,230
- non-trading derivatives	2,299	2,926	2,490	- corporate deposits	33,333	31,174	32,687
- designated as at fair value through profi t or loss	5,015	4,971	5,099	- other	1,349	1,186	1,328
Investments	79,245	83,441	91,663	Financial liabilities at fair value through profi t or loss	104,974	103,202	98,974
- debt securities available-for-sale	66,493	69,199	78,888	- trading liabilities	91,450	88,677	83,167
- debt securities held-to-maturity	8,898	10,306	8,751	- non-trading derivatives	2,440	2,939	3,541
- equity securities available-for-sale	3,854	3,936	4,024	- designated as at fair value through profi t or loss	11,084	11,586	12,266
Loans and advances to customers	568,508	568,237	563,660	Other liabilities	21,050	20,724	20,345
- customer lending	568,339	567,436	561,367	Debt securities in issue	91,451	98,968	103,234
- securities at amortised cost	5,021	5,835	7,471	Subordinated loans	16,653	16,340	17,223
- provision for loan losses	-4,852	-5,034	-5,178	Total liabilities	811,249	811,692	794,682
Investments in associates and joint ventures	1,066	1,066	1,141	Equity
Property and equipment	1,885	1,938	2,002	Shareholders' equity	49,770	49,685	49,793
Intangible assets	1,495	1,491	1,484	Non-controlling interests	682	674	606
Other assets	17,242	16,854	16,036	Total equity	50,452	50,359	50,399
Total assets	861,701	862,051	845,081	Total liabilities and equity	861,701	862,051	845,081

to higher repos (approximately mirroring the reverse repos on the asset side) and higher trading securities, partly off set by lower trading derivatives. Financial assets and liabilities at fair value consist predominantly of derivatives, securities and (reverse) repos, and are mainly used to facilitate client needs.

Investments

Investments decreased by EUR 4.2 billion to EUR 79.2 billion, mainly due to bond sales and maturities.

Loans and advances to customers

Loans and advances to customers increased slightly by EUR 0.3 billion to EUR 568.5 billion, mainly due to a EUR 0.9 billion increase in customer lending and slightly lower provisions for loan losses, partly off set by EUR 0.8 billion lower securities at amortised cost. Adjusted for EUR 3.8 billion of negative currency impacts, customer lending increased by EUR 4.7 billion. This was mainly due to EUR 8.0 billion of net core lending growth, off set by a EUR 1.7 billion decrease in short-term Bank Treasury lending and a further EUR 1.4 billion decline in the run-off portfolios of WUB and Lease. Wholesale Banking grew its net core lending assets by EUR 4.7 billion, mainly in General Lending & Transaction Services. In Retail Banking, net core lending assets grew by EUR 3.3 billion, due to increases in both residential mortgages and other customer lending.

Customer deposits

Customer deposits increased by EUR 4.9 billion to EUR 538.1 billion. Adjusted for EUR 1.2 billion of negative currency impacts and a EUR 1.8 billion increase in Bank Treasury deposits, the net production of customer deposits was EUR 4.2 billion. Retail Banking recorded net production of EUR 2.2 billion, of which EUR 2.5 billion was in current

Risk & Capital Management Consolidated Balance Sheet

accounts. Savings/deposits declined by EUR 0.3 billion, primarily in Germany. In Wholesale Banking, net customer deposits increased by EUR 2.0 billion.

Debt securities in issue

Debt securities in issue decreased by EUR 7.5 billion to EUR 91.5 billion. The decrease was mainly caused by EUR 4.0 billion of lower CD/CPs. Other debt securities (mainly long-term debt) declined by EUR 3.5 billion, mainly due to maturities.

Shareholders' equity

Shareholders' equity increased slightly by EUR 0.1 billion to EUR 49.8 billion in the third quarter. The net result for the quarter of EUR 1.4 billion was largely off set by the EUR 0.9 billion payment of the interim dividend over 2017 in August, EUR -0.3 billion of currency impacts, and a lower valuation of our stake in Bank of Beijing.

Shareholders' equity per share increased to EUR 12.81 as per 30 September 2017 from EUR 12.79 as per 30 June 2017.

ING Group: Change in shareholders' equity
in EUR million	3Q2017	2Q2017
Shareholders' equity beginning of period	49,685	50,741
Net result for the period	1,376	1,371
Unrealised revaluations of equity securities	-81	-136
Unrealised revaluations of debt securities	-1	-24
Realised gains/losses equity securities transferred to profi t or loss	-3	-20
Realised gains/losses debt securities transferred to profi t or loss	-6	-13
Change in cashfl ow hedge reserve	-3	-183
Other revaluations	-5	-4
Defi ned benefi t remeasurement	-24	1
Exchange rate diff erences	-265	-420
Changes in treasury shares	0	3
Employee stock options and share plans	30	6
Dividend	-933	-1,632
Other	0	-5
Total changes	85	-1,056
Shareholders' equity end of period	49,770	49,685

ING Group: Shareholders' equity
in EUR million	30 Sep. 17	30 Jun. 17
Share premium/capital	17,044	17,042
Revaluation reserve equity securities	2,562	2,647
Revaluation reserve debt securities	999	1,007
Revaluation reserve cashfl ow hedge	379	382
Other revaluation reserves	193	199
Defi ned benefi t remeasurement reserve	-384	-361
Currency translation reserve	-1,486	-1,221
Treasury shares	-10	-10
Retained earnings and other reserves	26,583	27,486
Net result year to date	3,890	2,514
Total	49,770	49,685

Risk & Capital Management

ING Group: Loan book1)
	Credit outstandings		Non-performing loans		NPL%
in EUR million	30 Sep. 2017	30 Jun. 2017	30 Sep. 2017	30 Jun. 2017	30 Sep. 2017	30 Jun. 2017
Residential mortgages Netherlands	118,889	120,487	1,239	1,366	1.0%	1.1%
Other lending Netherlands	32,028	33,607	1,831	1,997	5.7%	5.9%
of which business lending Netherlands	24,011	24,245	1,601	1,761	6.7%	7.3%
Residential mortgages Belgium	36,899	36,411	982	1,007	2.7%	2.8%
Other lending Belgium	48,513	48,660	1,322	1,364	2.7%	2.8%
of which business lending Belgium	37,904	37,799	1,055	1,081	2.8%	2.9%
Retail Benelux	236,329	239,165	5,374	5,734	2.3%	2.4%
Residential mortgages Germany	68,964	68,496	452	467	0.7%	0.7%
Other lending Germany	15,938	14,748	206	203	1.3%	1.4%
Residential mortgages Other C&G Markets	59,765	59,019	415	365	0.7%	0.6%
Other lending Other C&G Markets	26,530	26,272	957	914	3.6%	3.5%
Retail Challengers & Growth Markets	171,197	168,535	2,030	1,949	1.2%	1.2%
Industry Lending	127,232	127,907	3,257	3,333	2.6%	2.6%
of which: Structured Finance	96,289	98,084	2,755	2,752	2.9%	2.8%
of which: Real Estate Finance	30,943	29,823	502	581	1.6%	1.9%
General Lending & Transaction Services	87,770	83,389	1,125	1,096	1.3%	1.3%
FM, Bank Treasury, Real Estate & Other	12,712	14,270	864	887	6.8%	6.2%
of which General Lease run-off	2,626	2,749	768	828	29.2%	30.1%
Wholesale Banking	227,714	225,566	5,246	5,316	2.3%	2.4%
Total loan book	635,240	633,266	12,650	12,999	2.0%	2.1%

1) Lending and money market credit outstandings, including guarantees and letters of credit but excluding undrawn committed exposures (off -balance positions).

ING Group's non-performing loans (NPL) ratio improved to 2.0% in the third quarter of 2017 as a result of lending growth and a decline in NPL amounts. ING Group's fully loaded common equity Tier 1 ratio remained stable at 14.5%.

Credit risk management

ING Group's non-performing loans ratio improved to 2.0% compared with the previous quarter, driven by a decrease in NPL amounts, especially in business lending and residential mortgages in the Netherlands, and an increase in total credit outstandings.

Within Retail Netherlands, the NPL ratio for residential mortgages further improved to 1.0% from 1.1% in the previous quarter. The fall in NPLs accounted for a continued decline in the NPL ratio of business lending Netherlands to 6.7% from 7.3% in the second quarter of 2017.

For Retail Belgium, the NPL ratio for the residential mortgages portfolio fell to 2.7% from 2.8% in the second quarter. The NPL ratio of the business lending portfolio declined to 2.8% from 2.9% in the previous quarter. For Retail Challengers & Growth Markets, the NPL ratio remained fl at at 1.2%. In Wholesale Banking, the NPL ratio decreased slightly to 2.3% from 2.4% in the previous quarter, mainly due to Real Estate Finance where the NPL ratio dropped to 1.6% from 1.9% in the prior quarter.

ING Group's stock of provisions decreased by EUR 0.2 billion to EUR 5.0 billion, as net additions were more than off set by amounts written off . The provisions coverage ratio at the consolidated level decreased to 39.3% from 39.7% in the second quarter, driven by a stronger decrease in provisions than the decline in NPL amounts. ING Group's loan portfolio consists predominantly of asset-based and/or well-secured loans, including residential mortgages, Structured Finance and Real Estate Finance.

vING Group: Stock of provisions for loan losses1)
in EUR million	Retail Benelux	Retail Challengers & Growth Markets	Wholesale Banking	Total ING Bank 3Q 2017	Total ING Bank 2Q 2017
Stock of provisions at beginning of period	1,752	1,294	2,112	5,159	5,232
Amounts written off	-145	-39	-105	-289	-241
Recoveries of amounts written off	12	2	2	16	7
Increases in loan loss provisioning	89	98	162	349	434
Releases from loan loss provisioning	-82	-27	-116	-225	-206
Net addition to loan loss provisions	7	71	46	124	229
Exchange or other movements	2	-5	-40	-43	-69
Stock of provisions at end of period	1,628	1,323	2,015	4,967	5,159
Coverage ratio 3Q 2017	30.3%	65.2%	38.4%	39.3%
Coverage ratio 2Q 2017	30.6%	66.4%	39.7%	39.7%

1) At the end of September 2017, the stock of provisions included provisions for amounts due from banks (EUR 13 million) and provisions for contingent liabilities recorded under Other Provisions (EUR 102 million).

Risk & Capital Management

Securities portfolio

ING Group's overall exposure to debt securities decreased to EUR 80.7 billion in the third quarter from EUR 85.5 billion in the second quarter, mainly due to bond sales and maturities. The main decreases were in government bonds and SSA bonds, which were down EUR 2.7 billion and EUR 1.0 billion respectively. The revaluation reserve of debt securities remained stable at EUR 1.0 billion after tax.

ING Group: Debt securities1)
in EUR billion	30 Sep. 17	30 Jun. 17
Government bonds	43.0	45.7
Sub-sovereign, supranationals and agencies (SSA)	19.1	20.1
Covered bonds	9.6	9.9
Financial institutions2)	2.2	2.4
Corporate bonds	2.2	2.2
ABS	4.6	5.3
Total	80.7	85.5

1) Excluding positions at fair value through the profi t or loss but including securities classifi ed as Loans & Receivables. 2) Including Central Bank bills.

Breakdown government bonds
in EUR billion	30 Sep. 17	30 Jun. 17
The Netherlands	8.2	8.2
United States	6.3	5.8
Poland	5.6	5.6
Belgium	5.5	6.0
Germany	4.5	5.1
Austria	3.2	3.8
France	2.2	3.1
Finland	2.2	2.2
Spain	2.0	2.2
Romania	0.6	0.7
Turkey	0.5	0.6
Other	2.0	2.2
Total	43.0	45.7

Funding and liquidity

In the third quarter, ING issued EUR 1.3 billion of long-term debt with a remaining tenor of one year or more. Most of it was Tier 2 and senior debt, and was more than off set by maturities. ING Group's loan-to-deposit ratio, excluding securities recognised at amortised cost, remained unchanged at 1.05 compared with the end of June 2017. The liquidity position exceeded the minimum requirements.

Market risk

In the third quarter, the average Value-at-Risk (VaR) decreased to EUR 6 million. The minimum and maximum of the total overnight VaR for ING Group's trading portfolio also decreased compared with the previous quarter and fl uctuated between EUR 4 million and EUR 7 million.

	ING Group: Consolidated VaR trading books
in EUR million	Minimum	Maximum		Average Quarter-end
Foreign exchange	1	2	1	1
Equities	1	3	2	1
Interest rate	3	5	4	4
Credit spread	3	5	4	3
Diversifi cation			-5	-4
Total VaR1)	4	7	6	5

1) The total VaR for the columns Minimum and Maximum cannot be calculated by taking the sum of the individual components since the observations for both the individual markets as well as for total VaR may occur on diff erent dates.

Other risk

ING Spain has received claims and is involved in procedures with customers regarding reimbursement of expenses associated to the formalization of mortgages. In court proceedings in fi rst instance the expense clause of the mortgage contract has been declared null and all or part of the expenses were ordered to be reimbursed by the bank. The courts in fi rst instance have applied in their rulings diff erent criteria regarding the reimbursement of expenses. ING Spain has fi led an appeal against a number of these court decisions. The outcome of the pending litigation and similar cases that may be brought in the future is uncertain. A provision has been taken. However, the aggregate fi nancial impact of the current and future litigation could change and will, amongst others, depend on an expected future ruling by the Spanish Supreme Court regarding the expenses that should be reimbursed by the banks.

Risk & Capital Management

ING Group: Capital position
	2019 rules (fully loaded)		2017 rules (phased in)
in EUR million	30 Sep. 2017	30 Jun. 17	30 Sep. 2017	30 Jun. 17
Shareholders' equity (parent)	49,770	49,685	49,770	49,685
- Interim profi t not included in CET1 capital 1)	-1,626	-1,706	-1,626	-1,706
- Other regulatory adjustments	-3,142	-3,119	-3,082	-3,092
Regulatory adjustments	-4,769	-4,825	-4,709	-4,798
Available common equity Tier 1 capital	45,002	44,860	45,062	44,888
Additional Tier 1 securities 2)	5,198	6,212	5,198	6,212
Regulatory adjustments additional Tier 1	11	0	-428	-434
Available Tier 1 capital	50,212	51,072	49,832	50,666
Supplementary capital - Tier 2 bonds 3)	11,152	10,212	11,152	10,212
Regulatory adjustments Tier 2	115	115	19	21
Available BIS capital	61,478	61,399	61,002	60,899
Risk-weighted assets	311,036	310,336	311,036	310,336
Common equity Tier 1 ratio	14.5%	14.5%	14.5%	14.5%
Tier 1 ratio	16.1%	16.5%	16.0%	16.3%
Total capital ratio	19.8%	19.8%	19.6%	19.6%
Leverage Ratio	4.5%	4.6%	4.4%	4.6%

1) The interim profi t not included in CET1 capital as per 30 September 2017 (EUR 1,626 million) included EUR 853 million for 3Q2017 (YTD 3Q2017: EUR 2,559 million)

minus the ING Group interim dividend payment of EUR 933 million, which was paid out in August 2017. 2) Including EUR 2,731 million, which is CRR/CRD IV-compliant (2Q 2017: EUR 2,827 million), and EUR 2,467 million to be replaced as capital recognition is subject to CRR/CRD IV grandfathering rules (2Q 2017: EUR 3,386 million). 3) Including EUR 9,053 million, which is CRR/CRD IV-compliant (2Q 2017: EUR 8,122 million), and EUR 2,098 million to be replaced as capital recognition is subject to CRR/CRD IV grandfathering rules (2Q 2017: EUR 2,090 million).

Capital ratios

ING Group's fully loaded common equity Tier 1 ratio remained strong at the end of the third quarter of 2017 at 14.5%, which is stable compared with the end of June 2017. Common equity Tier 1 capital rose by EUR 0.1 billion, driven by the inclusion of EUR 0.5 billion of net profi t stemming from thirdquarter earnings. This was partly off set by a reduction of EUR 0.1 billion in debt and equity reserves and a negative impact of EUR 0.3 billion from FX reserves. The latter was mainly related to the depreciation of the US dollar.

The remaining quarterly profi t of EUR 0.9 billion has been reserved for future dividend payments. This follows the decision to reserve one third of the aggregate prior-year dividend in each of the fi rst three quarters of the fi nancial year. This treatment of interim profi ts is in line with ING's aim to pay a progressive dividend over time, and facilitates a smoother quarterly capital development. The interim dividend for 2017, amounting to EUR 933 million and paid in August 2017, did not have an impact on the common equity Tier 1 ratio.

The development of the common equity Tier 1 ratio was further impacted by a slight increase of EUR 0.7 billion in risk-weighted assets (RWA). An increase in both operational RWA and credit RWA was only partly off set by a decrease in market RWA.

ING Group's fully loaded Tier 1 ratio (including grandfathered securities) declined from 16.5% at the end of June 2017 to 16.1% at the end of September. The decline was primarily driven by ING's strategy to continuously optimise its capital structure. As a result, ING redeemed USD 522 million of grandfathered securities in September 2017. In addition, a USD 500 million grandfathered Tier 1 instrument that

was redeemed in October 2017 was excluded from capital recognition in the third quarter of 2017 following ECB approval to redeem the security. The impact from the redemptions was only partly off set by the increase in CET1 capital. The fully loaded total capital ratio (including grandfathered securities) remained stable at 19.8% compared with the second quarter of 2017. This development refl ects the change in Tier 1 capital as well as the issuance of EUR 1.1 billion in Tier 2 capital during the third quarter of 2017.

ING Group's phased-in common equity Tier 1 ratio remained stable at 14.5% compared with the second quarter. The phased-in Tier 1 ratio decreased to 16.0%, and the phased-in total capital ratio remained stable at 19.6%. The developments in the phased-in capital ratios largely mirror trends in the fully loaded capital ratios in combination with the application of the transitional rules under CRR/CRDIV. All ratios remain signifi cantly ahead of regulatory requirements.

The leverage ratio of ING Group according to the Delegated Act (including grandfathered securities) takes into account the impact of grossing up the notional cash pool activities. The leverage ratio on 30 September 2017 was 4.5%, a decrease of 0.1 percentage point compared with the end of June 2017. This is mainly attributable to a decrease in Tier 1 capital.

Risk-weighted assets (RWA)

At the end of September 2017, ING Group's total RWA were EUR 311.0 billion, up EUR 0.7 billion compared with the last quarter. The increase includes EUR -2.6 billion stemming from foreign currency movements, mainly caused by the depreciation of the US dollar. At comparable FX rates, credit RWA increased by EUR 1.3 billion as volume growth and model updates were partly compensated by positive risk

Economic Environment Risk & Capital Management

migration. Market RWA decreased by EUR 0.7 billion to EUR 5.1 billion. Operational RWA increased by EUR 2.7 billion to EUR 42.0 billion, refl ecting the culmination of several regular database updates.

ING Group: Composition of RWA
in EUR billion	30 Sep. 2017	30 Jun. 2017
Credit RWA	263.9	265.2
Operational RWA	42.0	39.3
Market RWA	5.1	5.8
Total RWA	311.0	310.3

Dividend

ING paid an interim dividend with its half-year results. The cash interim dividend was set at EUR 0.24 per ordinary share, which is the same amount per share as in 2015 and 2016. The interim dividend was paid in August 2017. The Board's fi nal dividend proposal will be made at year-end, and will refl ect considerations including expected future capital requirements, growth opportunities available to the Group, net earnings, and regulatory developments.

Ratings

On 26 July 2017, S&P upgraded its long-term ratings for ING Bank N.V. to A+ (from A). The upgrade refl ects S&P's expectation that in the coming years ING will build a sizable buff er of bail-inable debt protecting ING Bank's senior creditors, while maintaining strong capital adequacy metrics thanks to resilient fi nancial performance, supportive internal capital generation, and a broadly similar risk profi le. On 27 September 2017, Moody's upgraded ING Bank from A1 to Aa3 with a stable outlook. The improvement was driven by resilient profi tability, low asset risk, a strengthening capital position, as well as the expected build-up of loss-absorbing capital at ING Group. Fitch ratings remained unchanged.

Main credit ratings of ING on 1 November 2017
Standard & Poor's				Moody's	Fitch
	Rating	Outlook	Rating	Outlook		Rating Outlook
ING Groep N.V.	A-	Stable	Baa1	Stable	A+	Stable
ING Bank N.V.	A+	Stable	Aa3	Stable	A+	Stable

IFRS 9

The Group's IFRS 9 implementation is nearing completion. It is currently expected that the IFRS 9 implementation impact on CET1 capital, taking into account the existing regulatory Provision shortfall and before any transitional relief, will be a reduction between 10 and 30 basis points.

The impact on CET 1 capital is mainly caused by the change in the classifi cation and measurement of a part of the liquidity portfolio. The IFRS 9 impacts are draft and unaudited.

Economic Environment

Economic activity

Businesses in the US and the eurozone are upbeat about the near future. This bodes well for economic growth in the remainder of the year. We expect growth in the eurozone to come in at 2.2% for 2017, the highest growth rate since 2007. Economic growth for the US is also forecasted to be 2.2% for the year, which would further lengthen the already second-longest economic recovery since World War II. The PMIs are regarded as timely indicators of underlying trends in economic activity.

Currency markets

On the back of positive economic data and declining political uncertainty, the euro has strengthened signifi cantly. As market participants may start to anticipate ECB policy normalisation, debt investors can be expected to return to eurozone markets, which would drive the euro even higher.

Credit markets

Credit spreads continued to tighten, supported by a positive economic outlook and investors' search for yield given ongoing low levels of interest rates on safer assets.

Interest rates

In the US, the Federal Reserve is very gradually increasing short-term money market rates. The European Central Bank is not about to change money market rates any time soon, but may need to reduce its bond-buying programme (QE) as this programme is approaching self-imposed limits. Against a backdrop of persistently low infl ation, bond yields in both the US and the eurozone basically moved sideways during the last quarter.

Stock markets

As the global economic recovery is broadening and all main advanced economies and emerging markets are growing in sync, stock markets remain buoyant in today's low interest rate environment, despite increased geopolitical uncertainty.

Consumer confi dence

With all eurozone economies showing positive growth now, consumer confi dence has surged to its highest reading since April 2001. Improving job prospects are a key driver of this.

Consolidated profi t or loss account: ING Group

ING Group: Consolidated profi t or loss account
	Total ING Group		of which: Divestments/Special Items			of which: Insurance Other		of which: Underlying Banking
In EUR million	3Q2017	3Q2016	3Q2017	3Q2016	3Q2017	3Q2016	3Q2017	3Q2016
Net interest income	3,490	3,385			-	-	3,490	3,385
Net commission income	643	605			-	-	643	605
Investment income	82	139			-	-	82	139
Other income	311	246	121		-3	12	193	235
Total income	4,527	4,374	121	-	-3	12	4,408	4,363
Expenses excl. regulatory costs	2,195	2,155		-	-		2,195	2,155
Regulatory costs	94	65		-	-		94	65
Operating expenses	2,289	2,220	-	-	-	-	2,289	2,220
Gross result	2,238	2,154	121	-	-3	12	2,119	2,143
Addition to loan loss provisions	124	265			-	-	124	265
Result before tax	2,113	1,890	121	-	-3	12	1,995	1,878
Taxation	717	522	121	-	-		595	522
Non-controlling interests	21	20			-		21	20
Net result from continuing operations	1,376	1,348	0	-	-3	12	1,378	1,336
Net result from discontinued operations	-	1
Net result ING Group	1,376	1,349

ING Group: Underlying profi t or loss account

	Total ING Group		of which: Retail Banking		of which: Wholesale Banking		of which: Corporate Line Banking
In EUR million	3Q2017	3Q2016	3Q2017	3Q2016	3Q2017	3Q2016	3Q2017	3Q2016
Net interest income	3,490	3,385	2,426	2,376	967	964	97	45
Net commission income	643	605	391	362	252	244	0	-1
Investment income	82	139	87	97	-3	15	-3	27
Other income	193	235	91	150	166	127	-64	-43
Total underlying income	4,408	4,363	2,995	2,985	1,382	1,350	31	27
Expenses excl. regulatory costs	2,195	2,155	1,488	1,462	624	617	82	75
Regulatory costs	94	65	80	67	13	-2	1	0
Operating expenses	2,289	2,220	1,569	1,530	638	615	83	75
Gross result	2,119	2,143	1,426	1,456	745	735	-52	-48
Addition to loan loss provisions	124	265	78	168	46	97	0	-0
Underlying result before tax	1,995	1,878	1,348	1,288	698	638	-52	-48
Taxation	595	522	343	350	241	144	12	28
Non-controlling interests	21	20	18	16	4	3	-	-
Underlying net result	1,378	1,336	988	922	454	491	-63	-76
Special items after tax	0	-	-	-	-	-	0	-
Net result Banking	1,378	1,336	988	922	454	491	-63	-76
Net result Insurance Other	-3	12
Net result from continuing operations	1,376	1,348
Net result from discontinued operations	-	1
Net result ING Group	1,376	1,349

ING Group: Profi tability and effi ciency
	ING Group			Retail Banking		Wholesale Banking		Corporate Line Banking
In EUR million	3Q2017	3Q2016	3Q2017	3Q2016	3Q2017	3Q2016	3Q2017	3Q2016
Cost/income ratio (continuing operations)	50.6%	50.8%
Underlying cost/income ratio	51.9%	50.9%	52.4%	51.2%	46.1%	45.6%	n.a.	n.a.
ING Group's total return on IFRS-EU equity1)	11.5%	10.9%
ING Group's underlying return on IFRS-EU equity1)	11.5%	10.8%

1) Annualised (underlying) net result divided by average IFRS-EU shareholders' equity excluding interim profi t not included in CET1 capital as from 1Q2017.

Consolidated profi t or loss account: ING Group

ING Group: Consolidated profi t or loss account
		Total ING Group		of which: Divestments/Special Items		of which: Insurance Other		of which: Underlying Banking
In EUR million	9M2017	9M2016	9M2017	9M2016	9M2017	9M2016	9M2017	9M2016
Net interest income	10,201	9,899			-	-	10,201	9,899
Net commission income	2,039	1,822			-1	-	2,040	1,822
Investment income	173	382			-	-	173	382
Other income	978	768	121		-65	-125	922	893
Total income	13,391	12,872	121	-	-66	-125	13,336	12,997
Expenses excl. regulatory costs	6,574	6,469		17	-		6,574	6,452
Regulatory costs	638	636		-	-		638	636
Operating expenses	7,211	7,104	-	17	-	-	7,211	7,088
Gross result	6,179	5,768	121	-17	-66	-125	6,124	5,909
Addition to loan loss provisions	486	836			-		486	836
Result before tax	5,694	4,932	121	-17	-66	-125	5,639	5,073
Taxation	1,738	1,416	121	-4	-		1,617	1,420
Non-controlling interests	65	58			-		65	58
Net result from continuing operations	3,890	3,458	0	-13	-66	-125	3,957	3,595
Net result from discontinued operations	-	443
Net result ING Group	3,890	3,900

ING Group: Underlying profi t or loss account

	Total ING Group		of which: Retail Banking		of which: Wholesale Banking		of which: Corporate Line Banking
In EUR million	9M2017	9M2016	9M2017	9M2016	9M2017	9M2016	9M2017	9M2016
Net interest income	10,201	9,899	7,169	7,039	2,864	2,791	168	69
Net commission income	2,040	1,822	1,214	1,057	829	768	-3	-3
Investment income	173	382	153	310	31	45	-11	27
Other income	922	893	346	420	792	533	-216	-60
Total underlying income	13,336	12,997	8,882	8,826	4,516	4,137	-62	34
Expenses excl. regulatory costs	6,574	6,452	4,441	4,464	1,899	1,778	233	210
Regulatory costs	638	636	525	533	111	102	2	1
Operating expenses	7,211	7,088	4,966	4,997	2,010	1,880	235	210
Gross result	6,124	5,909	3,916	3,829	2,505	2,257	-297	-176
Addition to loan loss provisions	486	836	269	499	216	337	1	-0
Underlying result before tax	5,639	5,073	3,647	3,329	2,289	1,920	-298	-176
Taxation	1,617	1,420	979	903	679	560	-41	-43
Non-controlling interests	65	58	54	49	11	10	-	-
Underlying net result	3,957	3,595	2,614	2,378	1,599	1,350	-257	-133
Special items after tax	0	-13	-	-13	-	-	0	-
Net result Banking	3,957	3,582	2,614	2,365	1,599	1,350	-257	-133
Net result Insurance Other	-66	-125
Net result from continuing operations	3,890	3,458
Net result from discontinued operations	-	443
Net result ING Group	3,890	3,900

ING Group: Profi tability and effi ciency
	ING Group			Retail Banking		Wholesale Banking		Corporate Line Banking
In EUR million	9M2017	9M2016	9M2017	9M2016	9M2017	9M2016	9M2017	9M2016
Cost/income ratio (continuing operations)	53.9%	55.2%
Underlying cost/income ratio	54.1%	54.5%	55.9%	56.6%	44.5%	45.4%	n.a.	n.a.
ING Group's total return on IFRS-EU equity1)	10.7%	10.6%
ING Group's underlying return on IFRS-EU equity1)	10.9%	9.8%

1) Annualised (underlying) net result divided by average IFRS-EU shareholders' equity excluding interim profi t not included in CET1 capital as from 1Q2017.

Consolidated pro fi t or loss account: Geographical split

Geographical split: Consolidated profi t or loss account
	Total ING Group		Netherlands		Belgium		Germany		Other Challengers		Growth Markets		Wholesale Banking Rest of World		Other
In EUR million	3Q2017	3Q2016	3Q2017	3Q2016	3Q2017	3Q2016	3Q2017	3Q2016	3Q2017	3Q2016	3Q2017	3Q2016	3Q2017	3Q2016	3Q2017	3Q2016
Net interest income	3,490	3,385	1,153	1,187	512	564	556	530	385	341	388	333	398	385	97	46
Net commission income	643	605	206	190	113	115	65	60	57	41	79	85	122	114	0	-1
Investment income	82	139	5	16	4	12	2	0	-2	9	79	81	-4	-6	-2	27
Other income	193	235	95	82	70	99	-25	-7	-18	13	42	76	93	5	-65	-34
Total underlying income	4,408	4,363	1,460	1,475	699	790	599	584	422	403	588	574	610	498	30	38
Expenses excl. regulatory costs	2,195	2,155	625	717	444	439	258	221	283	215	246	248	255	235	84	80
Regulatory costs	94	65	21	17	-1	16	19	-8	16	15	29	28	9	-2	1	0
Operating expenses	2,289	2,220	646	734	443	454	277	212	299	230	276	276	264	233	85	80
Gross result	2,119	2,143	814	741	256	336	322	371	122	174	313	299	346	265	-55	-42
Addition to loan loss provisions	124	265	-16	64	36	57	-2	6	44	29	55	54	7	55	0	-0
Underlying result before tax Banking	1,995	1,878	830	677	220	279	324	366	79	144	258	244	339	210	-55	-42
Retail Banking	1,348	1,288	685	542	208	202	220	282	16	66	220	196	-	-	-	-
Wholesale Banking	698	638	145	135	12	77	104	84	63	78	38	48	339	210	-3	6
Corporate Line	-52	-48	-	-	-	-	-	-	-	-	-	-	-	-	-52	-48
Underlying result before tax	1,995	1,878	830	677	220	279	324	366	79	144	258	244	339	210	-55	-42
Taxation	595	522	179	169	105	69	105	130	33	50	35	34	111	42	27	29
Non-controlling interests	21	20	-	-	0	1	1	1	-	-	21	18	-	-	-	-
Underlying net result Banking	1,378	1,336	650	508	115	209	219	235	46	95	202	193	229	167	-82	-71
Special items after tax	0	-	-	-	-	-	-	-	-	-	-	-	-	-	0	-
Net result Banking	1,378	1,336	650	508	115	209	219	235	46	95	202	193	229	167	-82	-71
Net result Insurance Other	-3	12
Net result from continuing operations	1,376	1,348
Net result from discontinued operations	-	1
Net result ING Group	1,376	1,349

Consolidated pro fi t or loss account: Geographical split

Geographical split: Consolidated profi t or loss account
	Total ING Group		Netherlands		Belgium		Germany		Other Challengers		Growth Markets		Wholesale Banking Rest of World		Other
In EUR million			9M2017 9M2016 9M2017 9M2016 9M2017 9M2016 9M2017 9M2016 9M2017 9M2016 9M2017 9M2016 9M2017 9M2016 9M2017 9M2016
Net interest income	10,201	9,899	3,409	3,504	1,591	1,651	1,607	1,518	1,134	1,042	1,130	933	1,161	1,181	169	71
Net commission income	2,040	1,822	654	591	401	383	190	181	170	113	240	222	386	335	-3	-2
Investment income	173	382	44	78	31	51	14	48	3	20	102	172	-10	-11	-12	24
Other income	922	893	286	178	337	323	-28	22	4	55	141	211	293	133	-111	-29
Total underlying income	13,336	12,997	4,393	4,350	2,360	2,408	1,783	1,769	1,311	1,230	1,613	1,537	1,831	1,638	44	65
Expenses excl. regulatory costs	6,574	6,452	1,975	2,364	1,353	1,141	761	660	755	632	724	720	767	717	240	219
Regulatory costs	638	636	145	135	211	218	87	109	54	51	103	88	35	34	2	1
Operating expenses	7,211	7,088	2,120	2,499	1,564	1,359	848	769	809	684	827	808	801	750	241	219
Gross result	6,124	5,909	2,273	1,851	795	1,049	935	1,000	502	546	787	729	1,030	888	-197	-155
Addition to loan loss provisions	486	836	-10	258	114	182	-0	28	140	95	165	156	76	116	1	-0
Underlying result before tax Banking	5,639	5,073	2,283	1,593	682	867	935	973	362	451	622	573	954	771	-198	-155
Retail Banking	3,647	3,329	1,727	1,203	585	709	618	734	207	241	510	442	-	-	-	-
Wholesale Banking	2,289	1,920	555	390	97	158	317	239	155	210	112	131	954	771	100	22
Corporate Line	-298	-176	-	-	-	-	-	-	-	-	-	-	-	-	-298	-176
Underlying result before tax	5,639	5,073	2,283	1,593	682	867	935	973	362	451	622	573	954	771	-198	-155
Taxation	1,617	1,420	544	394	266	252	309	315	118	143	115	96	285	258	-19	-38
Non-controlling interests	65	58	-	-	3	-0	2	1	-	-	60	57	-	-	-	-
Underlying net result Banking	3,957	3,595	1,739	1,199	412	615	625	656	244	308	447	421	669	513	-179	-117
Special items after tax	0	-13	-	-13	-	-	-	-	-	-	-	-	-	-	0	-
Net result Banking	3,957	3,582	1,739	1,187	412	615	625	656	244	308	447	421	669	513	-179	-117
Net result Insurance Other	-66	-125
Net result from continuing operations	3,890	3,458
Net result from discontinued operations	-	443
Net result ING Group	3,890	3,900

ING profi le

ING is a global fi nancial institution with a strong European base, off ering banking services through its operating company ING Bank. The purpose of ING Bank is empowering people to stay a step ahead in life and in business. ING Bank's more than 51,000 employees off er retail and wholesale banking services to customers in over 40 countries.

ING Group shares are listed on the exchanges of Amsterdam (INGA NA, INGA.AS), Brussels and on the New York Stock Exchange (ADRs: ING US, ING.N).

Sustainability forms an integral part of ING's strategy, which is evidenced by the number one position among 395 banks ranked by Sustainalytics. ING Group shares are being included in the FTSE4Good index and in the Dow Jones Sustainability Index (Europe and World) where ING is among the leaders in the Banks industry group.

Important legal information

Elements of this press release contain or may contain information about ING Groep N.V. and/ or ING Bank N.V. within the meaning of Article 7(1) to (4) of EU Regulation No 596/ 2014.

Projects may be subject to regulatory approvals.

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, except as described otherwise, the same accounting principles are applied as in the 2016 ING Group consolidated annual accounts. All fi gures in this document are unaudited. Small diff erences 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 diff er materially from those expressed or implied in such statements. Actual results, performance or events may diff er materially from those in such statements due to a number of factors, including, 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) potential consequences of European Union countries leaving the European Union or a break-up of the euro, (4) changes in the availability of, and costs associated with, sources of liquidity such as interbank funding, as well as conditions in the credit and capital markets generally, including changes in borrower and counterparty

Further information

All publications related to ING's 3Q17 results can be found at www.ing.com/3q17, including a video with Ralph Hamers. The video is also available on YouTube.

Additional fi nancial information is available at www.ing.com/qr:

ING Group historical trend data
ING Group analyst presentation (also available via SlideShare)

For further information on ING, please visit www.ing.com. Frequent news updates can be found in the Newsroom or via the @ING_news Twitter feed. Photos of ING operations, buildings and its executives are available for download at Flickr. Footage (B-roll) of ING is available via ing.yourmediakit.com or can be requested by emailing [email protected]. ING presentations are available at SlideShare.

creditworthiness, (5) changes aff ecting interest rate levels, (6) changes aff ecting currency exchange rates, (7) changes in investor and customer behaviour, (8) changes in general competitive factors, (9) changes in laws and regulations and the interpretation and application thereof, (10) geopolitical risks and policies and actions of governmental and regulatory authorities, (11) changes in standards and interpretations under International Financial Reporting Standards (IFRS) and the application thereof, (12) conclusions with regard to purchase accounting assumptions and methodologies, and other changes in accounting assumptions and methodologies including changes in valuation of issued securities and credit market exposure, (13) changes in ownership that could aff ect the future availability to us of net operating loss, net capital and built-in loss carry forwards, (14) changes in credit ratings, (15) the outcome of current and future legal and regulatory proceedings, (16) ING's ability to achieve its strategy, including projected operational synergies and cost-saving programmes and (17) the other risks and uncertainties detailed in the most recent annual report of ING Groep N.V. (including the Risk Factors contained therein) and ING's more recent disclosures, including press releases, which are available on www.ING.com. Many of those factors are beyond ING's control.

Any forward looking statements made by or on behalf of ING speak only as of the date they are made, and ING assumes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information or for any other reason.

This document does not constitute an off er to sell, or a solicitation of an off er to purchase, any securities in the United States or any other jurisdiction.

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ING Groep N.V. — Earnings Release 2017

3854_iss_2017-11-02_584846c7-6c0c-479a-baf1-df4fe727bb14.pdf

ING posts 3Q17 net result of EUR 1,376 million

ING 3Q17 underlying pre-tax result of EUR 1,995 million

CEO statement

Investor enquiries

Investor conference call

Media conference call

Business & Sustainability Highlights Share Information

Table of contents

Financial calendar

Listing information

Relative share price performance

1 January 2016 to 30 September 2017

Market capitalisation (in EUR billion)

American Depositary Receipts (ADRs)

Broker/Institutional Investors

Highlights

Construction for the circular economy

Recognition for our achievements

Underlying results

Total underlying income

Operating expenses

Addition to loan loss provisions

Underlying result before tax

Underlying result before tax (in EUR million)

Underlying net result

Net result ING Group

Segment Reporting: Retail Banking Consolidated Results

Segment Reporting: Retail Banking

Retail Benelux

Retail Netherlands

Segment Reporting: Retail Banking

Retail Belgium

Segment Reporting: Retail Banking

Retail Challengers & Growth Markets

Retail Germany

Segment Reporting: Wholesale Banking Retail Banking

Retail Other Challengers & Growth Markets

Segment Reporting: Wholesale Banking

Wholesale Banking

Segment Reporting: Wholesale Banking

Industry Lending

Underlying result before tax -

Segment Reporting: Wholesale Banking

General Lending & Transaction Services

Financial Markets

Underlying result before tax -

Bank Treasury & Other

Consolidated Balance Sheet Segment Reporting: Corporate Line Banking

Segment Reporting: Geographical Split

The Netherlands

Segment Reporting: Geographical Split

Belgium

Germany

Other Challengers

Underlying result before tax - Other Challengers (in EUR million)

Growth Markets

Underlying result before tax - Growth Markets (in EUR million)

Wholesale Banking Rest of World

Underlying result before tax - WB Rest of World (in EUR million)

Consolidated Balance Sheet

ING Group: Consolidated balance sheet

Cash and balances with central banks

Loans and advances to and deposits from banks

Financial assets/liabilities at fair value

Investments

Loans and advances to customers

Customer deposits

Risk & Capital Management Consolidated Balance Sheet

Debt securities in issue

Shareholders' equity

Risk & Capital Management

Credit risk management

Risk & Capital Management

Securities portfolio

Funding and liquidity

Market risk

Other risk

ING Groep N.V. Earnings Release 2017