Amsterdam, 10 May 2017

ING 1Q17 net result EUR 1,143 million

ING continues to record commercial growth in 1Q17 with consistent focus on innovation and sustainability

Primary customer numbers up: EUR 5.7 billion net core lending growth and EUR 6.7 billion net customer deposit infl ow
ING's innovative new products and services as well as sustainability initiatives are increasingly being adopted by the market

ING 1Q17 underlying pre-tax result of EUR 1,652 million, up 39.3% year-on-year

Strong result refl ects robust loan growth at resilient margins, improved performance in Financial Markets and lower risk costs
ING Group fully-loaded common equity Tier 1 (CET1) ratio of 14.5%, up from 14.2% at year-end 2016

CEO statement

"ING had a strong fi rst quarter supported by continued commercial growth," said Ralph Hamers, CEO of ING Group. "ING's underlying pre-tax result rose 39.3% to EUR 1,652 million from a year ago, refl ecting continued loan growth, good cost control and relatively low risk costs. Wholesale Banking's contribution was particularly strong, led by higher income from Financial Markets and commissions. While the fi rst-quarter net result declined to EUR 1,143 million from EUR 1,257 million a year ago, this is explained by a EUR 506 million profi t from the sale of shares in NN Group in the fi rst quarter of 2016."

"We continued to innovate in Wholesale Banking, where Easy Trading Connect reached a milestone by successfully completing the fi rst test of a large oil trade using blockchain technology, in cooperation with one of our clients and a major French bank. This proves that the commodity trade fi nance sector, where processes are largely paper-based and labour intensive, can be digitalised. We also collaborated with our client Royal Philips, acting as Sustainability Coordinator in the creation of the fi rst syndicated loan where the pricing is linked to the client's Sustainalytics rating. If the rating goes up, the interest rate on the EUR 1 billion revolving credit facility goes down—and vice versa. This is an example of how companies are increasingly integrating sustainability into their business objectives."

"We're innovating across other areas of the bank as well. For example, with Payconiq, the mobile payments platform developed by ING, launched in Belgium in 2015 and now supported by two other Belgian banks. The number of Belgian retailers using the service has increased to 25,000 from 6,500 in July of last year. Following this success, ING and fi ve other Dutch banks announced plans to launch Payconiq in the Netherlands this summer."

"I am proud that all of the innovations highlighted above were developed by ING and then adopted by other banks. This underscores our record as a digital banking leader and shows that we're able to provide an experience for customers that makes us stand out from our competitors. This approach is just one of the reasons why our Net Promoter Score has improved to number one in eight countries, up from seven countries last quarter. ING had 36.1 million customers as at 31 March 2017, including 9.85 million primary bank customers, which is an increase of 8.4% year-on-year."

"Our net core lending grew by EUR 5.7 billion in the quarter, well diversifi ed across Retail and Wholesale Banking, and net customer deposits increased by EUR 6.7 billion. Stable margins and higher commissions helped drive a 39.5% increase in the underlying net result compared with the fi rst quarter of 2016. Operating expenses were well controlled, despite seasonally high regulatory costs, while risk costs remained low. ING Group's fully loaded CET1 ratio increased by 0.3 percentage point to 14.5% at the end of March 2017, while the four-quarter underlying return on equity improved to 10.8% from 8.1% a year ago."

"As we announced in October 2016, ING is uniting people, platforms and processes to build the bank of the future. In Belgium, ING and our trade union partners agreed on a Social Plan that supports employees whose jobs may be impacted and results in a lower number of compulsory lay-off s, while staying in line with the fi nancial impact we estimated in October."

"We said farewell to CFO Patrick Flynn this week and will do the same for CRO Wilfred Nagel in August. I'm grateful for all that they have done for ING and for me personally over the years. As of this week, we welcome Koos Timmermans and Steven van Rijswijk to the Executive Board, and Roland Boekhout to the Management Board Banking. Their leadership will help drive ING's transformation into the digital bank of the future as we focus on remaining relevant for our customers, thereby ensuring our own sustainable success."

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

10 May 2017 at 9:00 am CET +31 (0)20 341 8241 (NL) +44 203 365 3209 (UK) +1 866 349 6092 (US) Live audio webcast at www.ing.com

Media conference call

10 May 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
Business & Sustainability 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
Ex-date for fi nal dividend 2016 (Euronext Amsterdam)	Wednesday, 10 May 2017
Record date for fi nal dividend 2016 entitlement (NYSE):	Thursday, 11 May 2017
Record date for fi nal dividend 2016 entitlement (Euronext Amsterdam):	Thursday, 11 May 2017
Payment date fi nal dividend 2016 (Euronext Amsterdam):	Thursday, 18 May 2017
Payment date fi nal dividend 2016 (NYSE):	Thursday, 25 May 2017
Publication results 2Q2017:	Wednesday, 2 August 2017
Ex-date for interim dividend 2017 (Euronext Amsterdam)*:	Friday, 4 August 2017
Record date for interim dividend 2017 entitlement (Euronext Amsterdam)*:	Monday, 7 August 2017
Record date for interim dividend 2017 entitlement (NYSE)*:	Monday, 14 August 2017
Payment date interim dividend 2017 (Euronext Amsterdam)*:	Monday, 14 August 2017
Payment date interim dividend 2017 (NYSE)*:	Monday, 21 August 2017
Publication results 3Q2017:	Thursday, 2 November 2017
* 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

Share information
				1Q2016 2Q2016 3Q2016 4Q2016 1Q2017
Shares (in millions, end of period)
Total number of shares				3,871.5 3,878.0 3,878.1 3,878.5 3,883.3
- Treasury shares	1.0	1.1	0.8	0.6	0.9
- Shares outstanding				3,870.5 3,876.9 3,877.3 3,877.9 3,882.4
Average number of shares				3,869.4 3,875.8 3,877.1 3,877.6 3,878.6
Share price (in euros)
End of period	10.63	9.18	10.99	13.37	14.17
High	12.45	11.47	11.45	13.72	14.62
Low	9.30	8.61	8.54	10.88	12.93
Net result per share (in euros)	0.32	0.33	0.35	0.19	0.29
Shareholders' equity per share (end of period in euros)	12.61	12.66	12.75	12.84	13.07
Dividend per share (in euros)	n.a.	0.24	n.a.	0.42	n.a.
Price/earnings ratio1)	11.8	8.1	9.1	11.1	12.1
Price/book ratio	0.84	0.73	0.86	1.04	1.08

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 55164-0854 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

Relative share price performance

Business & Sustainability Highlights

ING's purpose is to empower people to stay a step ahead in life and in business. To be successful, we must keep getting better in the face of changing customer behaviour and industry dynamics. That's why we are transforming into one digital banking platform—uniting our people, platforms and processes to build the bank of the future.

Innovation is a key part of this. This doesn't only mean bringing new ideas to the market, but also continuously tracking and improving them to ensure they keep fulfi lling the needs of our customers. Such is the case with Payconiq, the mobile payments platform created by ING and launched in Belgium in 2015, and now supported by two other leading Belgian banks. The number of Belgian retailers using the service has increased to 25,000 from 6,500 in July 2016. After this success, ING and fi ve other Dutch banks announced plans to launch Payconiq in the Netherlands this summer.

Another ING innovation that's proven to be a success is Twyp Cash, a cashback app in Spain that allows customers to withdraw cash using their smartphones when making purchases at 3,500 retailers and petrol stations, completely for free. It has grown in popularity, reaching up to 300,000 customers in the six months since its launch.

Making banking easier

In Germany, we made progress on accelerating our Think Forward strategy by further digitalising banking to create a seamless, easier and more convenient customer experience. Measures include introducing a fully digital account-opening process in only three steps; and much faster processing of loan applications through a digital income check, even for customers who receive their income at another bank.

We continued to innovate in all our business lines. In Wholesale Banking, Easy Trading Connect reached a milestone with the successful completion of the fi rst test of a large oil trade using blockchain technology, in cooperation with one of our clients and a major French bank. Easy Trading Connect was conceived in ING's internal "Bootcamp" innovation contest, which it won in 2016. In the trial, the time to process a transaction was reduced from 3 hours to 25 minutes. This breakthrough proves that the commodity trade fi nance sector, where processes are largely paper-based and labour intensive, can be digitalised. Easy Trading Connect can bring clients greater effi ciency, lower costs, reduce operational and fraud risks, and increase transparency.

A sustainable world

ING believes that banking must play a signifi cant role in fi nancing and facilitating society's shift to sustainability. One way we do this is by fi nancing sustainable projects and clients that are environmental outperformers in their sector.

A notable recent deal was our fi nancing of the Green Highland Hydro portfolio, consisting of 10 hydroelectric power projects in rivers in Scotland that, when completed, will generate clean electricity equivalent to the consumption of 20,000

households. We also built on our relationship with Dutch electricity transmission system operator TenneT, supporting its launch of the market's fi rst corporate green hybrid bond. TenneT will use the proceeds to fi nance its green investment portfolio, including off shore wind transmission projects in Germany.

We are seeing that companies are increasingly integrating sustainability into their business objectives. We collaborated with our client Royal Philips, acting as Sustainability Coordinator in the creation of the fi rst syndicated loan where the pricing is linked to the client's Sustainalytics rating. If the rating goes up, the interest rate on the EUR 1 billion revolving credit facility goes down—and vice versa. This innovative new product has already seen demand from other clients, and we expect to see a continuing increase in clients making business decisions based on sustainability criteria.

Being sustainable is not just about creating new services and products, but also about constantly evaluating our existing business. On 21 March, ING announced the transfer of our part in the loan in the controversial Dakota Access pipeline, following a process that culminated in a constructive dialogue between ING and representatives from the Standing Rock Sioux Tribe. The transaction had the full support of the Tribe.

Better fi nancial decision-making

The Think Forward Initiative (TFI) is making good progress, holding its second Think Forward Summit in Munich on 15 March. TFI was started by ING and is supported by partners Microsoft, Deloitte, Dell EMC, Dimension Data and the Centre for Economic Policy Research. It brings together research and experts representing governments, academics, consumers, and the fi nancial and technology sectors to fi gure out how to help people make better fi nancial decisions.

During the Summit, participants presented the progress from fi ve projects, showing the research conducted and demos of the tools they're creating to help people. For example, the "Future self" project is looking at the relationship between fi nancial behaviour and life-changing events such as marriage or job loss, and whether visualisation can help people achieve fi nancial goals for those life-changing events. The fi ndings will be implemented in an app that will help the user visualise goals, propose actions, show the impact of daily decisions and see progress, all without confusing jargon or tools.

ING and partners are working now to translate the outcomes from the Summit into objectives for the coming years. The goal remains helping people make fi nancial decisions that are better for them, and ultimately better for society.

Consolidated results
	1Q2017	1Q2016	Change	4Q2016	Change
Profit or loss (in EUR million)
Net interest income	3,352	3,248	3.2%	3,341	0.3%
Net commission income	682	607	12.4%	611	11.6%
Investment income	48	71	-32.4%	39	23.1%
Other income	314	161	95.0%	470	-33.2%
Total underlying income	4,396	4,087	7.6%	4,461	-1.5%
Staff expenses	1,271	1,267	0.3%	1,264	0.6%
Regulatory costs1)	474	496	-4.4%	209	126.8%
Other expenses	865	873	-0.9%	895	-3.4%
Underlying operating expenses	2,611	2,636	-0.9%	2,369	10.2%
Gross result	1,785	1,451	23.0%	2,093	-14.7%
Addition to loan loss provisions2)	133	265	-49.8%	138	-3.6%
Underlying result before tax	1,652	1,186	39.3%	1,955	-15.5%
Taxation	456	329	38.6%	557	-18.1%
Non-controlling interests	21	16	31.3%	17	23.5%
Underlying net result	1,175	842	39.5%	1,381	-14.9%
Special items after tax	0	-13		-787
Net result Insurance Other	-32	-78		158	-120.3%
Net result from continuing operations	1,143	751	52.2%	752	52.0%
Net result from discontinued operations	0	506		-2
Net result ING Group	1,143	1,257	-9.1%	750	52.4%
Net result per share (in EUR)	0.29	0.32		0.19
Capital ratios (end of period)
ING Group shareholders' equity (in EUR billion)	51	49	4.0%	50	1.9%
ING Group common equity Tier 1 ratio fully-loaded3)	14.5%	12.9%		14.2%
ING Group common equity Tier 1 ratio phased in3)	14.5%	13.0%		14.1%
Customer lending/deposits (end of period, in EUR billion)
Residential mortgages	283.6	280.0	1.3%	282.5	0.4%
Other customer lending	283.1	259.1	9.3%	278.9	1.5%
Customer deposits	533.7	505.6	5.6%	522.9	2.1%
Profitability and efficiency
Underlying interest margin	1.52%	1.51%		1.52%
Underlying cost/income ratio	59.4%	64.5%		53.1%
Underlying return on IFRS-EU equity ING Group4)	9.6%	7.0%		11.1%
Employees (internal FTEs, end of period)	51,464	52,088	-1.2%	51,546	-0.2%
Four-quarter rolling average key figures
Underlying interest margin	1.52%	1.47%		1.52%
Underlying cost/income ratio	53.1%	59.1%		54.2%
Underlying return on IFRS-EU equity ING Group4)	10.8%	8.1%		10.1%
Risk
Non-performing loans/total loans (end of period)	2.0%	2.3%		2.1%
Stock of provisions/provisioned loans (end of period)	39.9%	39.8%		39.9%
Underlying risk costs in bps of average RWA	17	33		18
Risk-weighted assets (end of period, in EUR billion)	309.8	318.4	-2.7%	314.3	-1.4%

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) The interim profi t not included in CET1 is the fi nal dividend over 2016 of EUR 1,629 million, and the interim profi t not included in CET1 capital in 1Q17 amounting to EUR 853 million. 4) Annualised underlying net result divided by average IFRS-EU shareholders' equity excluding declared dividends and 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 fi rst-quarter 2017 results, driven by continued business growth and lower risk costs. The net result declined to EUR 1,143 million from EUR 1,257 million in the fi rst quarter of 2016, but this decline is fully explained by the EUR 506 million net result from discontinued operations, as we sold a stake in NN Group in the year-ago quarter. The fi rst-quarter 2017 net result from continuing operations rose 52.2% to EUR 1,143 million from EUR 751 million in the fi rst quarter of 2016. The fully loaded CET1 ratio for ING Group strengthened to 14.5% at the end of March 2017 from 14.2% at year-end 2016.

The underlying net result, which is the net result from continuing operations excluding special items and excluding the revaluation result of warrants on NN Group and Voya shares, rose to EUR 1,175 million from EUR 842 million in the fi rst quarter of 2016 refl ecting the strong business momentum. The underlying return on ING Group's IFRS-EU equity* in the fi rst quarter, which was impacted by seasonally high regulatory costs, improved to 9.6% from 7.0% a year ago. On a four-quarter rolling basis, the underlying return on ING Group's IFRS-EU equity was 10.8%.

Net interest income and net commission income increased both year-on-year and sequentially. Commercial performance was again robust in the fi rst quarter of 2017: ING grew net core lending by EUR 5.7 billion and attracted EUR 6.7 billion of net customer deposits. Operating expenses remained under control, supported by the benefi ts from ongoing cost-saving initiatives, resulting in an improvement of the fourquarter average rolling cost/income ratio to 53.1%. Risk costs and the NPL ratio declined further in the quarter. Compared with the fourth quarter of 2016, the underlying net result fell 14.9%. This decline was caused by the seasonally high regulatory costs in the fi rst quarter of the year.

Underlying results

The strong fi rst-quarter 2017 underlying result before tax of EUR 1,652 million was mainly attributable to continued loan growth, consistent cost control and relatively low risk costs. The strong performance was also supported by higher revenues in Financial Markets and higher commission income. Regulatory expenses were EUR 474 million and broadly in line with the prior-year quarter, but substantially higher than the

EUR 209 million recorded in the fourth quarter of 2016. Risk costs declined further to EUR 133 million, or 17 basis points of average risk-weighted assets. Year-on-year, the underlying result before tax rose 39.3%. Compared with the fourth quarter of 2016, the underlying result before tax decreased 15.5%, which is largely explained by the aforementioned impact from regulatory expenses.

Total underlying income

Total underlying income rose 7.6% year-on-year to EUR 4,396 million. The increase was supported by a 3.2% rise in net interest income, largely refl ecting volume growth in customer lending and in customer deposits. Income was furthermore supported by 12.4% higher net commission income, attributable to both Retail and Wholesale Banking. Other income rose by more than EUR 150 million, mainly at Financial Markets, due to positive market conditions for the Equities and Rates businesses.

Compared with the fourth quarter of 2016, total underlying income decreased by EUR 65 million, or -1.5%. The decline was primarily visible in Retail Netherlands as well as in the Corporate Line (due to higher hedging costs), while revenues from Financial Markets were higher sequentially.

Total customer lending rose by EUR 5.4 billion in the fi rst quarter of 2017 to EUR 566.7 billion. Net growth in the core lending book of Retail and Wholesale Banking (excluding Bank Treasury and the run-off portfolios, and adjusted for currency impacts) was EUR 5.7 billion in the fi rst quarter of 2017.

First-quarter net core lending growth was well diversifi ed across Retail and Wholesale Banking. Residential mortgages increased by EUR 0.9 billion, as a further decline in Retail Netherlands was more than off set by mortgage growth in most other countries. Other net core lending grew by EUR 4.8 billion, of which EUR 1.8 billion was in Retail Banking. In Wholesale Banking, other net core lending grew by EUR 3.0 billion and was fully attributable to General Lending & Transaction Services.

Customer deposits increased by EUR 10.8 billion to EUR 533.7 billion in the fi rst quarter of 2017. The net growth of customer deposits in Retail and Wholesale Banking (excluding Bank Treasury and adjusted for currency impacts) was EUR 6.7 billion. Retail Banking generated a net infl ow of EUR 6.4 billion, with growth in all segments except for Belgium. In Wholesale Banking, net customer deposits increased by EUR 0.3 billion.

Underlying net interest income rose 3.2% to EUR 3,352 million from EUR 3,248 million in the fi rst quarter of 2016. Net interest income excluding Financial Markets increased by 4.4% in the same period. Net interest income on customer lending activities rose, driven by higher volumes in both mortgages and non-mortgage customer lending, and the overall lending margin was stable. The interest result on customer deposits declined compared with a year

* ING has changed the calculation of underlying return on IFRS-EU equity as explained on page 8.

ago as volume growth was more than off set by margin pressure on both savings and current accounts due to lower reinvestment yields. The development of the interest result was furthermore supported by higher interest results from allocated Bank Treasury activities and the Corporate Line. The net interest income at Financial Markets, which is volatile in nature, declined by EUR 35 million year-on-year. Compared with the fourth quarter of 2016, total net interest income increased by EUR 11 million, or 0.3%, as higher interest results in Retail Challengers & Growth Markets outpaced declines in the other segments, notably in Retail Netherlands.

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

The fi rst-quarter 2017 underlying net interest margin was stable at 1.52% compared with the fourth quarter of 2016, despite a one-basis-point negative impact from the lower interest result in Financial Markets. Sequentially, the interest margin on lending activities narrowed somewhat, especially in Wholesale Banking. The interest margin on savings and current accounts also declined somewhat due to the impact from the persistently low interest rate environment. Further reductions of client savings rates in the fi rst quarter were limited to the Netherlands, Spain and Germany. These negative impacts were compensated by higher interest results in Bank Treasury.

Net commission income increased 12.4% to EUR 682 million from EUR 607 million in the fi rst quarter of 2016. The increase was driven by almost all segments and products, with notable growth in Retail Challengers & Growth Markets and Wholesale Banking's Industry Lending. Compared with the fourth quarter of 2016, commission income rose by EUR 71 million, or 11.6%, predominantly in Industry Lending, supported by higher fees from deals where ING acted as lead arranger or bookrunner, and seasonally higher fee income on investment products in Retail Belgium.

Investment income fell to EUR 48 million from EUR 71 million in the fi rst quarter of 2016. The decline was caused by EUR 30 million of lower realised gains on the sale of debt securities, partly off set by a higher realised result on the sale of equity securities. Compared with the fourth quarter of 2016, investment income rose by EUR 9 million.

Other income increased to EUR 314 million from EUR 161 million in the fi rst quarter of 2016, mainly attributable to higher revenues from Financial Markets driven by positive market conditions versus the very weak fi rst quarter a

year ago. Compared with the fourth quarter of 2016, which included substantially higher Bank Treasury items due to strong money markets results and positive hedge ineff ectiveness, other income declined by EUR 156 million. The credit and debt valuation adjustments (CVA/DVA) in Wholesale Banking and the Corporate Line were EUR 30 million positive in the fi rst quarter of 2017, compared with EUR 35 million one year ago and EUR 14 million in the fourth quarter of 2016.

Operating expenses

Underlying operating expenses declined by EUR 25 million, or -0.9%, compared with the fi rst quarter of 2016, but increased by EUR 242 million, or 10.2%, sequentially. The strong increase compared with the previous quarter was solely attributable to the seasonally higher regulatory costs in the fi rst quarter, as ING is required to recognise certain annual charges (such as contributions to the European single resolution fund and annual bank taxes in Belgium) in full in the fi rst quarter. Excluding regulatory costs—which were EUR 474 million in the fi rst quarter of 2017 versus EUR 496 million one year ago—expenses were largely unchanged compared with the fi rst quarter of 2016, refl ecting ongoing cost-saving initiatives, principally in Retail Netherlands. Expenses in most other segments increased due to investments and higher IT costs related to business growth and the transformation programmes announced at the ING Investor Day on 3 October 2016. The newly announced programmes are expected to result in EUR 900 million of additional gross annual cost savings by 2021.

Compared with the fourth quarter of 2016, expenses excluding regulatory costs decreased by EUR 23 million, or -1.0%, especially in Retail Netherlands and Retail Other Challengers & Growth Markets.

ING's fi rst-quarter underlying cost/income ratio was 59.4% compared with 64.5% one year ago and 53.1% in the previous quarter. On a four-quarter rolling basis, which reduces the seasonal impact of the regulatory costs, the underlying cost/ income ratio further improved to 53.1% from 59.1% a year ago and 54.2% in the previous four-quarter rolling period.

The total number of internal staff declined in the fi rst quarter by 82 FTEs to 51,464 FTEs at the end of March 2017. Declines in internal staff were mainly recorded in the Benelux, Turkey

and Poland. They were partly off set by FTE increases in the Challenger countries (especially in Germany) and in the international network of Wholesale Banking in order to support commercial growth.

Addition to loan loss provisions

Addition to loan loss provisions (in EUR million)

ING recorded EUR 133 million of risk costs in the fi rst quarter of 2017, down from EUR 265 million a year ago and EUR 138 million in the previous quarter.

Risk costs in Retail Netherlands declined in line with improved macroeconomic conditions and the positive momentum in the Dutch housing market. First-quarter risk costs were EUR 17 million compared with EUR 29 million in the previous quarter and EUR 49 million in the fi rst quarter of 2016. The declines were mainly caused by a lower net addition for Dutch business lending, which fell to EUR 7 million in the current quarter. In Retail Belgium, risk costs were EUR 36 million, which is almost stable year-on-year and sequentially. Net additions in the Retail Challengers & Growth Markets were EUR 45 million, down from EUR 67 million one year ago, but

Addition to loan loss provisions in Wholesale Banking was EUR 35 million, down from EUR 117 million in the fi rst quarter of 2016 and only slightly higher than the EUR 31 million recorded in the previous quarter, which benefi ted from releases in Ukraine and Spain. In this quarter, risk costs were low due to releases for larger clients in the Netherlands, Asia and Latin America, and despite some additions for the shipping and oil & gas sector and the Italian lease run-off book.

little changed from EUR 42 million in the previous quarter.

The non-performing loan (NPL) ratio of ING Group improved to 2.0% compared with 2.1% at the end of December 2016. Total fi rst-quarter risk costs were 17 basis points of average riskweighted assets (RWA) versus 18 basis points in the previous quarter and 33 basis points in the fi rst quarter of 2016, which is well below ING's through-the-cycle guidance range for risk costs of 40-45 basis points of average RWA.

Underlying result before tax

ING's fi rst-quarter 2017 underlying result before tax was EUR 1,652 million, up 39.3% from a year ago, due to higher income and lower expenses and risk costs. Quarteron-quarter, the underlying result before tax fell 15.5%, predominantly due to higher regulatory costs.

Underlying result before tax (in EUR million)

Underlying net result

ING's underlying net result rose to EUR 1,175 million from EUR 842 million in the fi rst quarter of 2016, but declined from EUR 1,381 million in the fourth quarter of 2016. The eff ective underlying tax rate was 27.6% compared with 27.7% a year ago and 28.5% in the previous quarter.

Net result ING Group

ING Group's fi rst-quarter net result decreased to EUR 1,143 million compared with EUR 1,257 million in the fi rst quarter of 2016 and EUR 750 million in the fourth quarter of 2016. The net result of ING Group also includes the special items after tax, the net result from Insurance Other (included under continuing operations) and the net result from discontinued operations.

In the fi rst quarter of 2017, there were no special items versus EUR -13 million of special items after tax in the fi rst quarter of 2016, which were fully related to restructuring programmes in Retail Netherlands that had been announced before 2013. In the fourth quarter of 2016, special items after tax amounted to EUR -787 million (or EUR -1,141 million pre-tax) and related fully to the digital transformation programmes as announced at ING's Investor Day on 3 October 2016.

In the fi rst quarter of 2017, ING Group's net result from Insurance Other was a loss of EUR 32 million. The loss refl ects a lower valuation of warrants on Voya and NN Group shares compared with the end of December 2016. The loss in the year-ago quarter was EUR 78 million. The fourth quarter of 2016 included a profi t of EUR 158 million on the valuation of the warrants.

ING Group holds warrants for approximately 35 million shares in NN Group at an exercise price of EUR 40.00 per share, and warrants for approximately 26 million shares in Voya at an exercise price of USD 48.75 per share. The combined book value of these warrants was EUR 162 million at the end of March 2017.

Currently, there are no discontinued operations. In the fi rst quarter of 2016, ING Group recorded a net result of EUR 506 million on the discontinued operations of NN Group following the sale of an equity stake in NN Group. The fi nal stake in NN Group was sold in April 2016.

The fi rst-quarter 2017 underlying return on ING Group's average IFRS-EU equity was 9.6%, up from 7.0% in the fi rst quarter of 2016. In both quarters ROE was negatively aff ected

Segment Reporting: Retail Banking Consolidated Results

by the impact of seasonally high regulatory costs charged in the fi rst quarter. On a four-quarter rolling basis, which eliminates this timing impact, the underlying return on ING Group's average IFRS-EU equity improved to 10.8% from 8.1% a year ago and 10.1% in the previous four-quarter rolling period. With eff ect from the end of the fi rst quarter of 2017, the ING Group ROE is calculated using IFRS-EU shareholders' equity after excluding 'interim profi t not included in CET1 capital'. As at 31 March 2017, this is comprised of the fi nal dividend over 2016 of EUR 1,629 million and the interim profi t not included in CET1 capital in the fi rst quarter of 2017 amounting to EUR 853 million.

ING Group's net result per share was EUR 0.29 in the fi rst quarter of 2017, based on an average number of shares outstanding of 3,878.6 million during the quarter.

Segment Reporting: Retail Banking

Retail Benelux: Consolidated profi t or loss account
	Retail Benelux		Netherlands		Belgium
In EUR million	1Q2017	1Q2016	1Q2017	1Q2016	1Q2017	1Q2016
Profit or loss
Net interest income	1,364	1,388	889	924	475	464
Net commission income	265	249	151	137	114	112
Investment income	15	47	11	17	4	30
Other income	77	23	25	1	52	22
Total underlying income	1,721	1,707	1,076	1,079	645	627
Expenses excl. regulatory costs	836	930	496	601	340	329
Regulatory costs	282	255	86	94	196	161
Operating expenses	1,118	1,185	582	695	536	490
Gross result	603	522	494	384	109	138
Addition to loan loss provisions	53	81	17	49	36	32
Underlying result before tax	550	442	477	336	73	106
Customer lending/deposits (end of period, in EUR billion)1)
Residential mortgages	155.1	160.2	118.9	125.7	36.2	34.4
Other customer lending	76.0	76.8	34.6	37.7	41.4	39.2
Customer deposits	218.0	213.2	137.1	132.1	80.8	81.1
Profitability and efficiency1)
Cost/income ratio	65.0%	69.4%	54.1%	64.4%	83.1%	78.0%
Return on equity based on 12.0% common equity Tier 12)	16.3%	12.5%	24.7%	15.0%	4.6%	8.1%
Employees (internal FTEs, end of period)	17,420	18,349	8,945	9,533	8,475	8,816
Risk1)
Risk costs in bps of average RWA	26	36	14	34	42	40
Risk-weighted assets (end of period, in EUR billion)	81.9	87.6	46.9	55.7	35.0	31.8

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); changed from 10.0% CET1 ratio in previous reports.

Retail Benelux

"On 30 March, we reached an agreement with our trade union partners on a social plan in Belgium related to the transformation plan that was announced last October. Various collective agreements were signed that include a lower number of compulsory lay-off s and a plan for fl exible working conditions. I am delighted that an agreement has been reached and that we can support our employees during this process. With this agreement, we can take the next steps in our transformation to an integrated banking platform in the Netherlands and Belgium in order to deliver a diff erentiated customer experience.

In the Netherlands, the fi rst-quarter pre-tax results of 2017 were up 42% year-on-year, as stable income was accompanied by signifi cantly lower expenses, fl owing from the ongoing cost-saving initiatives, and lower risk costs. Mortgage volumes were down again this quarter but business lending volumes stabilised. In Belgium, results excluding regulatory costs showed moderate improvement, driven by stable lending growth that off set the pressure on customer deposit margins. Costs increased due to higher regulatory costs, while risk costs remained stable at the current level."

Koos Timmermans, Member and Vice-chairman Management Board Banking

Retail Netherlands

The fi rst-quarter 2017 underlying result before tax of Retail Netherlands was EUR 477 million, up 42.0% from the fi rst quarter of 2016, driven by strong cost control and low risk costs. Income was resilient versus a year ago due to higher fee income on current accounts and higher Financial Markets related revenues, which more than off set lower income from lending products. Underlying expenses were EUR 113 million lower year-on-year, mainly driven by ongoing costsaving initiatives. Risk costs fell to EUR 17 million compared with EUR 49 million in the fi rst quarter of 2016, refl ecting the improved credit environment in the Netherlands. The underlying result before tax was down 5.0% from the previous quarter, mainly due to the fact that the prior quarter benefi ted from high Bank Treasury revenues.

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

Total underlying income was almost stable year-on year at EUR 1,076 million. Higher fee income on current accounts and higher Financial Markets revenues compensated for lower net interest income. The interest result on lending products declined mainly due to lower volumes, while lending

Segment Reporting: Retail Banking

margins remained stable year-on-year. The interest result on customer deposits was also lower as margin erosion on current accounts more than off set volume growth in both savings and current accounts. Compared with the fourth quarter of 2016, income declined 6.0%. This decrease was mainly due to lower income from Bank Treasury (which was high in the fourth quarter due to hedge ineff ectiveness) and lower interest results from mortgages and savings; these factors were only partly compensated by the higher commission income on current accounts. Lower income from mortgages was mainly related to customer prepayments and run-off in the WUB portfolio, whereas the interest result on savings declined due to further margin pressure.

Customer lending decreased by EUR 1.8 billion in the fi rst quarter, of which EUR -0.8 billion was in the WUB run-off portfolio and EUR -0.2 billion in Bank Treasury related items. Excluding these items, net core lending decreased by EUR 0.8 billion, of which EUR -1.0 billion was in mortgages, whereas other lending grew by EUR 0.2 billion; this broke the trend of steady volume declines since the fi nancial crisis. Net customer deposits (excluding Bank Treasury) grew by EUR 2.1 billion.

Underlying operating expenses were EUR 582 million, which is EUR 113 million, or 16.3%, lower than a year ago. The decrease in expenses was supported by ongoing cost-saving initiatives. Additionally, the fi rst quarter of 2016 had included a restructuring provision. Sequentially, expenses fell by 5.2% due to lower marketing expenses and advisory fees and the benefi ts from the cost-saving initiatives, and despite higher regulatory costs.

First-quarter risk costs declined to EUR 17 million, or 14 basis points of average risk-weighted assets, compared with EUR 49 million one year ago and EUR 29 million in the previous quarter. The decline was due to lower net additions in both mortgages and business lending, refl ecting the improvement in the Dutch economy and in the housing market.

Risk-weighted assets decreased by EUR 2.2 billion to EUR 46.9 billion in the fi rst quarter of 2017, mainly due to positive risk migration in the mortgage and business lending portfolios combined with lower volumes.

Retail Belgium

The fi rst-quarter 2017 underlying result before tax of Retail Belgium was EUR 73 million, down 31.1% from one year ago and 71.0% lower than in the previous quarter. These declines were mainly due to higher regulatory costs, which are predominantly booked in the fi rst quarter of each year. Excluding regulatory costs, the pre-tax result was EUR 268 million, which is slightly higher on both comparable quarters and was supported by modest income growth.

Total underlying income was EUR 645 million, or 2.9% higher than a year ago. Net interest income increased 2.4% year-onyear, as higher results from business lending (refl ecting both higher margins and volumes) and mortgages (mainly driven by higher volumes) outweighed lower interest results from customer deposits due to continued pressure on margins owing to the low rate environment. A further decline in savings margins is expected, as ING has already reached the legal fl oor for client savings rates in Belgium. On a sequential basis, total underlying income rose 2.2%, mainly driven by higher commission income refl ecting increased income from investment products as a result of seasonally higher mutual funds infl ows in the fi rst quarter.

Customer lending increased by EUR 0.8 billion in the fi rst quarter, of which EUR 0.5 billion was related to mortgages (both in ING Bank Belgium and Record Bank) and EUR 0.3 billion to other customer lending. Customer deposits decreased slightly by EUR 0.3 billion to EUR 80.8 billion, as an increase in current accounts was more than off set by a decrease in savings accounts.

Underlying operating expenses were EUR 536 million, up 9.4% from a year ago and 56.3% higher than in the fourth quarter of 2016. Both increases were largely caused by higher regulatory costs, as the full-year contributions for the European single resolution fund, Belgian deposit guarantee scheme and Belgian bank taxes were recorded in the fi rst quarter. (In 2016, part of the Belgian bank taxes were booked in the third quarter as a result of new legislation.) Excluding regulatory costs, operating expenses increased 3.3% year-onyear and 1.5% sequentially, primarily due to legal claims and accelerated depreciation.

First-quarter risk costs were EUR 36 million, or 42 basis points of average risk-weighted assets, compared with EUR 32 million a year ago and EUR 36 million in the previous quarter.

Risk-weighted assets in the fi rst quarter of 2017 increased by EUR 0.8 billion to EUR 35.0 billion, mainly for mid-corporates and mortgages.

Segment Reporting: Retail Banking

Retail Challengers & Growth Markets: Consolidated profi t or loss account
	Retail Challengers & Growth Markets		Germany		Other
In EUR million	1Q2017	1Q2016	1Q2017	1Q2016	1Q2017	1Q2016
Profit or loss
Net interest income	1,007	942	416	432	591	510
Net commission income	138	108	48	41	91	67
Investment income	12	10	10	4	2	6
Other income	34	49	-11	0	45	48
Total underlying income	1,192	1,108	463	477	729	631
Expenses excl. regulatory costs	623	578	225	195	398	383
Regulatory costs	102	139	52	101	50	38
Operating expenses	725	717	277	295	448	422
Gross result	467	391	186	182	281	210
Addition to loan loss provisions	45	67	2	8	43	59
Underlying result before tax	422	324	185	174	238	151
Customer lending/deposits (end of period, in EUR billion)1)
Residential mortgages	127.4	118.4	68.8	66.3	58.6	52.0
Other customer lending	34.6	34.2	10.7	12.3	23.9	21.9
Customer deposits	248.8	230.1	131.6	121.0	117.1	109.1
Profitability and efficiency1)
Cost/income ratio	60.8%	64.7%	59.8%	61.9%	61.4%	66.8%
Return on equity based on 12.0% common equity Tier 12)	13.8%	10.2%	16.4%	15.2%	12.5%	7.7%
Employees (internal FTEs, end of period)	22,541	22,353	4,611	4,335	17,929	18,018
Risk1)
Risk costs in bps of average RWA	25	36	3	13	36	48
Risk-weighted assets (end of period, in EUR billion)	72.8	73.7	24.2	24.9	48.6	48.8

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); changed from 10.0% CET1 ratio in previous reports.

Retail Challengers & Growth Markets

"I am proud to see that the positive development in the Retail Challengers & Growth Markets continues into 2017 and that we maintained good momentum in primary customer growth during the fi rst quarter. Our fi nancial performance remained strong, despite the challenging market environment characterised by low interest rates. We continued to optimise pricing across our network, in combination with a further diversifi cation of our product portfolio, and Australia is an excellent example of our Think Forward strategy at work this past quarter. Our continued focus on generating fee income has led to a 28% increase year-on-year.

Usage of the digital channels continues to rise in all countries, validating the attractiveness of our digitalfi rst strategy. The number of digital contacts increased 22% year-on-year. Looking ahead, I'm confi dent that we will continue delivering on our Think Forward priorities, such as working on our transformation in fi ve of our Challenger Markets towards 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's fi rst-quarter 2017 underlying result before tax was EUR 185 million, up from EUR 174 million in the fi rst quarter of 2016. Business momentum remained strong, with continued growth in the number of customers and in volumes. As the growth in customer deposits outpaced customer lending, and savings repricing only happened towards the end of the quarter, there was some pressure on margins, leading to a modest decline in net interest income year-on-year. In addition, higher expenses were incurred for investments in Project Welcome and due to increased headcount, both to support future business growth. These impacts were more than off set by EUR 49 million of lower regulatory expenses. Compared with the fourth quarter of 2016, the result before tax dropped by EUR 136 million. The decrease was mainly due to seasonally higher regulatory expenses and risk costs, whereas the fourth quarter had included a EUR 23 million refund on regulatory costs and a EUR 46 million net release in risk costs.

Underlying result before tax - Germany (in EUR million)

Segment Reporting: Wholesale Banking Retail Banking

Total underlying income was EUR 463 million, down 2.9% from the fi rst quarter of 2016. The decline was mainly caused by lower net interest income and lower hedge ineff ectiveness results, which were partly off set by commission income growth and higher gains realised on the sale of bonds. Net interest income recorded a small drop, refl ecting the impact of the low interest rate environment on margins. The core savings rate in Germany was reduced by 15 basis points in mid-March 2017 (previous reduction had been in the second quarter of 2016), but the full impact of the adjustment will only be visible in the second quarter. Compared with the fourth quarter of 2016, total income increased marginally by 0.4%. This was due to higher interest results and gains realised on the sale of bonds, which were off set by lower commission income and lower hedge ineff ectiveness results.

Total customer lending rose by EUR 0.9 billion in the fi rst quarter to EUR 79.5 billion. Net core lending, which excludes Bank Treasury related products, increased by EUR 0.6 billion in the fi rst quarter of 2017, of which EUR 0.3 billion was attributable to residential mortgages and EUR 0.3 billion to consumer lending. Customer deposits, excluding Bank Treasury, recorded net growth of EUR 2.7 billion in the fi rst quarter of 2017, primarily in savings accounts.

Operating expenses declined by EUR 18 million from a year ago to EUR 277 million, due to a EUR 49 million drop in regulatory costs. Excluding regulatory costs, fi rst-quarter operating expenses were EUR 225 million, up 15.4% from a year ago. The increase was mainly due to higher headcount at both ING Germany and Interhyp to support business growth and maintain the momentum of growth in customers and primary relationships, as well as investments in Project Welcome. Compared with the previous quarter, expenses excluding regulatory costs increased by 8.2%, mainly refl ecting higher staff costs, increased marketing expenses and higher expenses from investments in Project Welcome.

Risk costs were negligible at EUR 2 million compared with EUR 8 million in the fi rst quarter of 2016 and EUR -46 million in the fourth quarter of 2016. Fourth-quarter 2016 risk costs included a release of EUR 44 million, refl ecting model updates for mortgages.

Risk-weighted assets decreased by EUR 1.2 billion in the fi rst quarter to EUR 24.2 billion, mainly refl ecting a model update for mortgages.

Retail Other Challengers & Growth Markets

The underlying result before tax of Retail Other Challengers & Growth Markets increased to EUR 238 million from EUR 151 million in the fi rst quarter of 2016. The increase was mainly attributable to revenue growth in most countries combined with lower risk costs. These factors were only partly off set by higher regulatory and other expenses. Compared with the fourth quarter of 2016, the underlying result before tax increased by EUR 63 million, mainly attributable to lower risk costs and lower expenses for staff and strategic projects.

Underlying result before tax - Retail Other Challengers & Growth Markets (in EUR million)

Total underlying income rose by EUR 98 million to EUR 729 million compared with a year ago. This increase was due to improved commercial results across most countries, attributable to continued growth in the number of customers and in lending and deposit volumes. The lowering of the core savings rate in Spain in the fi rst quarter further supported results. On a sequential basis, underlying income remained stable at EUR 729 million, as lower realised gains from the sale of bonds and lower commission income were fully compensated by higher net interest income.

Customer lending grew by EUR 3.6 billion in the fi rst quarter to EUR 82.5 billion. Excluding currency impacts and Bank Treasury, net core lending grew by EUR 2.1 billion (of which EUR 1.2 billion in mortgages and EUR 0.9 billion in other lending), with a large part generated in Australia, Poland and Spain. Net customer deposits, excluding currency impacts and Bank Treasury, increased by EUR 1.8 billion, primarily refl ecting net infl ows from customers in Australia and Spain.

Operating expenses rose 6.2% from a year ago to EUR 448 million. This was due to higher IT and professional services expenses related to strategic projects, as well as higher staff and regulatory expenses, partly off set by currency impacts. Compared with the fourth quarter of 2016, operating expenses decreased by EUR 19 million, or -4.1%, due to lower expenses for marketing and strategic projects, as well as currency impacts.

Risk costs were EUR 43 million versus EUR 59 million in the fi rst quarter of 2016 and EUR 87 million in the previous quarter. The fi rst quarter of 2017 included a release of EUR 21 million due to model updates for mortgages in Italy, whereas risk costs in the fourth quarter 2016 included a portfolio addon for SMEs and mid-corporates in Turkey.

Risk-weighted assets rose by EUR 1.2 billion in the fi rst quarter of 2017 to EUR 48.6 billion, mainly refl ecting lending growth and the increased value of ING's stake in Kotak Mahindra Bank.

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	1Q2017	1Q2016	1Q2017	1Q2016	1Q2017	1Q2016	1Q2017	1Q2016	1Q2017	1Q2016
Profit or loss
Net interest income	955	925	555	495	268	250	89	124	43	55
Net commission income	280	251	155	131	98	84	27	36	0	0
Investment income	23	15	-4	-5	0	0	1	0	26	20
Other income excl. CVA/DVA	251	102	0	-2	13	11	203	85	35	8
Underlying income excl. CVA/DVA	1,510	1,293	705	620	379	345	321	245	104	83
CVA/DVA	36	23					36	23
Total underlying income	1,545	1,316	705	620	379	345	356	268	104	83
Expenses excl. regulatory costs	608	573	161	149	187	179	227	214	32	32
Regulatory costs	91	102	17	21	19	23	31	53	24	4
Operating expenses	698	676	178	170	206	202	258	267	57	37
Gross result	847	641	528	450	174	143	98	2	48	46
Addition to loan loss provisions	35	117	17	98	-13	2	0	4	31	14
Underlying result before tax	813	524	511	353	187	141	98	-2	17	32
Customer lending/deposits (end of period, in EUR billion)1)
Residential mortgages	1.1	1.4	0.0	0.0	0.0	0.0	0.0	0.0	1.1	1.4
Other customer lending	172.5	147.4	113.6	99.1	51.6	39.5	1.1	1.2	6.2	7.5
Customer deposits	67.2	62.6	1.8	1.1	50.5	47.3	4.8	4.5	10.1	9.7
Profitability and efficiency1)
Cost/income ratio	45.2%	51.3%	25.2%	27.4%	54.2%	58.5%	72.5%	99.4%	54.3%	44.5%
Return on equity based on 12.0% common equity Tier 12)	12.7%	8.2%	18.7%	14.6%	10.0%	8.1%	8.7%	0.6%	-5.7%	-2.8%
Employees (internal FTEs, end of period)	11,500	11,383
Risk1)
Risk costs in bps of average RWA	9	31	10	63	-11	2	0	4	122	48
Risk-weighted assets (end of period, in EUR billion)	151.9	151.1	69.4	60.8	46.3	44.5	26.3	34.4	9.9	11.4

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); changed from 10.0% CET1 ratio in previous reports.

"We made great strides in the innovation area this quarter: we successfully completed the trial for Easy Trading Connect, a blockchain based commodity trade fi nance platform, in cooperation with a major French bank and one of our clients. The trial proved that the sector can be digitalised with blockchain technology, bringing clients greater speed and effi ciency, lower costs and lower fraud risks. We also collaborated with our client Royal Philips to create the fi rst syndicated loan where the pricing is linked to the client's Sustainalytics rating. And we supported the launch of the fi rst corporate green hybrid bond, issued by Dutch electricity transmission system operator TenneT.

Financially, it was an excellent quarter for Wholesale Banking as we delivered a near record pre-tax profi t with all divisions contributing to the improved result: we saw continued lending growth, driven this quarter by General Lending & Transaction Services; Industry Lending reported another strong quarter helped by higher commissions; and Financial Markets also posted much improved results."

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

Wholesale Banking Wholesale Banking recorded a strong profi t before tax, refl ecting the good performance in Industry Lending and General Lending & Transaction Services (supported by year-on-year asset growth), improved Financial Markets results, and a low level of risk costs.

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

The underlying result before tax was EUR 813 million in the fi rst quarter of 2017, up from EUR 524 million one year ago and EUR 748 million in the previous quarter. Income increased on both comparable quarters due to higher revenues from Financial Markets and steady income growth in the other product groups. Operating expenses were well contained, refl ecting continued traction in our ongoing cost-saving initiatives and despite seasonally high regulatory costs. Risk costs remained extremely low at 9 basis points of average risk-weighted assets due to an overall benign risk environment, resulting in releases from loan loss provisions.

Segment Reporting: Wholesale Banking

Total underlying income rose 17.4% from the fi rst quarter of 2016 and increased 5.0% from the previous quarter. Credit and debt valuation adjustments (CVA/DVA) amounted to EUR 36 million for the quarter compared with EUR 23 million in the fi rst quarter of last year and EUR 6 million in the previous quarter.

Total underlying income, excluding CVA/DVA impacts, grew 16.8% compared with the fi rst quarter of 2016. The increase was mainly related to higher Financial Markets income (versus a very weak fi rst quarter in 2016) and ongoing volume growth in Industry Lending and in General Lending & Transaction Services. Sequentially, income excluding CVA/DVA impacts increased 3.1%, mainly due to higher income in Financial Markets and in Industry Lending. This more than off set lower income at Bank Mendes Gans, which had benefi ted from positive interest rate developments in the fourth quarter of 2016.

Net interest income increased 3.2% year-on-year, as stronger interest results in Industry Lending and General Lending & Transaction Services were only partly off set by lower interest results in Financial Markets and Bank Treasury. On a sequential basis, the interest result was down 0.4% due to lower interest results in Financial Markets, which are volatile by nature. Excluding Financial Markets, net interest income rose 8.1% year-on-year, driven by ongoing volume growth, and 1.6% sequentially.

Commission income grew 11.6% from the fi rst quarter of 2016 and rose 19.1% from the previous quarter. Compared with the fi rst quarter of 2016, the commission income increase was mainly in Industry Lending due to higher fee income from deals where ING acted as lead arranger or bookrunner, as well as in General Lending & Transaction Services. Compared with the fourth quarter of 2016, higher commission income was mainly recorded in Industry Lending.

Investment income rose to EUR 23 million from EUR 15 million in the fi rst quarter of 2016 and EUR 8 million in the fourth quarter of 2016. The increase compared with both prior quarters was primarily related to the sale of an equity stake within Corporate Investments.

Total other income amounted to EUR 287 million, up from EUR 125 million in the fi rst quarter of 2016 and EUR 269 million in the previous quarter. Excluding CVA/DVA impacts, other income was EUR 251 million in the fi rst quarter of 2017 and was EUR 149 million higher than in the fi rst quarter of 2016, mainly due to stronger results on the back of more supportive market conditions. Sequentially, other income, excluding CVA/ DVA impacts, declined by EUR 12 million.

Operating expenses increased 3.3% year-on-year, mainly due to an increase in headcount to support business growth, which were partly off set by lower regulatory costs. The fi rst quarter of both 2016 and 2017 included the annual contribution to the European single resolution fund as well as the Belgian bank taxes, while the fourth quarter of 2016 included the annual

Dutch bank tax. Compared with the fourth quarter of 2016, operating expenses, excluding regulatory costs, were up 2.7%, mainly due to higher staff expenses.

The cost/income ratio improved to 45.2% in the fi rst quarter of 2017 from 51.3% a year ago and 47.0% in the previous quarter as a result of income growth. The four-quarter rolling average cost/income ratio was 44.5% in the fi rst quarter of 2017 compared with 48.9% one year ago and 45.9% in the fourth quarter of 2016.

First-quarter 2017 risk costs for Wholesale Banking were limited and amounted to EUR 35 million, or 9 basis points of average risk-weighted assets. This is EUR 4 million higher than in the previous quarter, but EUR 82 million lower than in the fi rst quarter of 2016. Risk costs in the current quarter included net releases for larger clients in the Netherlands, Asia and Latin America, whereas the previous quarter benefi ted from larger releases on Ukrainian and Spanish fi les.

Risk-weighted assets decreased by EUR 1.9 billion in the fi rst quarter of 2017 to EUR 151.9 billion, as the impact from net core lending growth was more than off set by currency impacts, model updates, book quality improvements and lower operational and market risk.

Industry Lending

Underlying result before tax -

Industry Lending posted an underlying result before tax of EUR 511 million, up strongly year-on-year due to business growth and lower risk costs. Compared with the fourth quarter of 2016, the underlying result before tax was up 3.0%, refl ecting stronger income and lower expenses.

Income increased 13.7% on the fi rst quarter of last year, driven by robust volume growth and partly supported by positive currency eff ects. Year-on-year, portfolio growth totalled EUR 11.3 billion, excluding currency eff ects, of which EUR 9.2 billion was related to Structured Finance and EUR 2.1 billion attributable to Real Estate Finance. In the fi rst quarter of 2017, net lending declined slightly by EUR 0.3 billion, excluding currency eff ects.

Expenses were 4.7% higher than in the fi rst quarter of 2016, mainly due to higher staff expenses and investments in business growth, partly off set by lower regulatory costs. Expenses decreased 8.7% from the fourth quarter of 2016, as that quarter included the annual Dutch bank tax. Excluding regulatory costs, expenses were down 4.2% sequentially.

Segment Reporting: Wholesale Banking

Risk costs were limited and amounted to EUR 17 million, including some larger releases for fi les in Asia and Latin America. Risk costs were down strongly from EUR 98 million in the fi rst quarter of 2016, but were higher than the EUR 2 million in the previous quarter, which included releases on Ukrainian and Spanish fi les.

General Lending & Transaction Services

Underlying result before tax - General Lending & Transaction Services (in EUR million) 0 50 100 150 200 114 141 ¹⁸⁴ ¹⁸⁷ ¹⁷⁵ 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017

The underlying result before tax for General Lending & Transaction Services was EUR 187 million, up 32.6% yearon-year as a result of higher income and lower risk costs. Quarter-on-quarter, the underlying result before tax rose 6.9%, mainly due to a net release in risk costs.

Income rose 9.9% year-on-year on the back of continued portfolio growth in Working Capital Solutions and stronger income in Payments & Cash Management; the latter was primarily due to higher commission income. Sequentially, income was down 3.6%, primarily in Bank Mendes Gans.

Year-on-year, net customer lending (excluding currency eff ects) grew by EUR 10.0 billion, of which EUR 5.4 billion was attributable to General Lending and EUR 4.0 billion to Working Capital Solutions. Net growth in the fi rst quarter was EUR 3.5 billion.

Operating expenses, excluding regulatory costs, increased 4.5% year-on-year, mainly refl ecting higher staff costs. Sequentially, expenses excluding regulatory costs were fl at.

Risk costs showed a net release of EUR 13 million for the quarter, mainly due to the release of a larger fi le in the Netherlands, versus a net addition of EUR 2 million in the fi rst quarter of 2016 and EUR 9 million in the previous quarter.

Financial Markets

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

Financial Markets posted an underlying result before tax of EUR 98 million, up from EUR -2 million in the fi rst quarter of 2016 and EUR 27 million in the previous quarter. The result

in the current quarter included EUR 36 million of CVA/DVA adjustments compared with EUR 23 million a year ago and EUR 6 million in the previous quarter.

Income excluding CVA/DVA adjustments grew 31.0% yearon-year due to higher income in the Equities and Rates businesses. Sequentially, income excluding CVA/DVA impacts increased 15.1%, mainly due to higher income in the Credit, Equities and Capital Markets businesses.

Operating expenses fell 3.4% year-on-year due to lower regulatory expenses. Excluding regulatory costs, expenses increased 6.1%, due to higher performance-related staff costs and increased IT expenses. Compared with the fourth quarter of 2016, expenses excluding regulatory costs increased 2.3%.

Bank Treasury & Other

Underlying result before tax -

Bank Treasury & Other booked an underlying result before tax of EUR 17 million, compared with EUR 32 million in the fi rst quarter of 2016 and EUR 50 million in the previous quarter. Income increased 25.3% from a year ago due to the sale of an equity stake within Corporate Investments and higher one-off income in the real estate run-off portfolio. Sequentially, income increased 4.0%, as the aforementioned items were largely off set by lower Bank Treasury income, which benefi ted from a strong performance in money markets in the fourth quarter of 2016.

Operating expenses rose by EUR 20 million year–on–year and more than doubled sequentially due to seasonally higher regulatory costs. Excluding regulatory costs, expenses were stable year-on-year, but rose by EUR 18 million sequentially, partially due to higher staff expenses and a one-off provision. Risk costs, mainly related to the Italian lease run-off portfolio, were EUR 31 million versus EUR 14 million one year ago and EUR 28 million in the fourth quarter of 2016.

Segment Reporting: Geographical Split Corporate Line Banking

Corporate Line: Consolidated profi t or loss account
In EUR million	1Q2017	1Q2016
Profit or loss
Net interest income	25	-7
Net commission income	-1	-1
Investment income	-3	0
Other income	-85	-36
Total underlying income	-63	-44
Expenses excl. regulatory costs	70	59
Regulatory costs	0	0
Operating expenses	70	59
Gross result	-133	-103
Addition to loan loss provisions	0	0
Underlying result before tax	-133	-103
of which:
Income on capital surplus	29	36
Financing charges	-29	-31
Other Capital Management	30	44
Capital Management excl. DVA	29	49
Bank Treasury excl. DVA	-110	-113
DVA	-5	12
Other excl. DVA	-47	-50

Corporate Line Banking posted an underlying result before tax of EUR -133 million compared with EUR -103 million in the fi rst quarter of 2016. The underlying pre-tax result decreased due to lower income and higher expenses. The deterioration in income was mainly due to higher costs for net investment hedging as well as negative DVA. Expenses were EUR 11 million higher than in the fi rst quarter of 2016, mainly due to higher shareholder expenses. The underlying result before tax in the fourth quarter of 2016 was EUR -43 million.

The Capital Management-related result, excluding DVA impacts, was EUR 29 million in the fi rst quarter of 2017 compared with EUR 49 million in the same quarter of last year.

Within the Capital Management-related results, income on capital surplus was EUR 29 million compared with EUR 36 million in the fi rst quarter of 2016. The EUR 7 million lower result was due to a higher capital benefi t allocation to the business units. The result of Other Capital Management amounted to EUR 30 million versus EUR 44 million in the same quarter of last year. The decrease was mainly caused by the higher cost of net investment hedging related to the Turkish lira.

Bank Treasury-related results primarily include the isolated legacy costs (mainly negative interest results) due to the replacement of short-term funding with long-term funding during 2012 and 2013. The fi rst-quarter result amounted to EUR -110 million compared with EUR -113 million in the same quarter of 2016.

DVA on own-issued debt was EUR -5 million compared with EUR 12 million in the fi rst quarter of 2016. The negative quarterly result was due to modest tightening of ING's credit spreads in the fi rst quarter of 2017 versus a widening in the fi rst quarter of the previous year.

The result of Other includes shareholder expenses, charges for supervision by regulators, and other income and expenses that are not allocated directly to the business units. For the fi rst quarter of 2017, the result of Other was EUR -47 million versus EUR -50 million in the fi rst quarter of 2016.

Segment Reporting: Geographical Split

Geographical split: Consolidated profi t or loss account
							Other				Wholesale Banking
	Netherlands		Belgium		Germany		Challengers		Growth Markets		Rest of World		Other1)
In EUR million							1Q2017 1Q2016 1Q2017 1Q2016 1Q2017 1Q2016 1Q2017 1Q2016 1Q2017 1Q2016 1Q2017 1Q2016 1Q2017 1Q2016
Profit or loss Net interest income	1,127	1,182	551	533	528	505	375	347	359	298	387	389	26	-6
Net commission income	224	197	139	140	60	59	56	38	73	67	131	107	-1	-1
Investment income	31	33	7	36	11	4	3	0	1	7	-2	-5	-3	-4
Other income excl. CVA/DVA	42	3	135	28	-6	4	17	13	63	68	100	52	-68	-43
Underlying income excl. CVA/DVA	1,423	1,415	832	738	594	572	450	398	496	439	617	544	-47	-53
CVA/DVA2)	28	8	7	-15	0	0	0	1	0	0	1	28	-5	12
Underlying income	1,451	1,423	839	723	594	572	450	399	496	439	617	572	-52	-41
Expenses excl. regulatory costs	644	760	428	417	252	216	237	216	233	240	251	231	72	61
Regulatory costs	105	111	226	196	53	103	23	22	43	26	24	37	0	0
Operating expenses	769	871	654	614	306	319	260	238	276	266	275	267	72	61
Gross result	682	552	185	109	288	253	191	161	220	173	342	305	-124	-103
Addition to loan loss provisions	-11	92	58	33	-1	6	40	29	53	59	-7	46	0	0
Underlying result before tax	693	460	127	76	289	247	151	132	168	115	349	259	-124	-102
Retail Banking	477	336	73	106	185	174	107	73	131	78	0	0	0	0
Wholesale Banking	216	124	54	-30	104	73	44	59	37	37	349	259	9	1
Corporate Line	0	0	0	0	0	0	0	0	0	0	0	0	-133	-103
Underlying result before tax	693	460	127	76	289	247	151	132	168	115	349	259	-124	-102
Customer lending/deposits (end of period, in EUR billion)3)
Residential mortgages	119.9	127.0	36.2	34.5	68.9	66.5	50.6	44.8	8.0	7.3	0.0	0.0	0.0	0.0
Other lending	75.2	72.9	57.4	52.7	32.8	27.7	26.9	24.3	26.8	25.7	63.9	55.0	0.0	0.7
Customer deposits	166.0	157.8	96.9	98.4	132.7	121.8	88.9	82.3	34.1	32.2	15.3	13.4	-0.2	-0.3
Profitability and efficiency3)
Cost/income ratio	53.0%	61.2%	77.9%	84.9%	51.5%	55.8%	57.6%	59.6%	55.6%	60.5%	44.5%	46.7%	n.a.	n.a.
Return on equity based on 12.0% common equity Tier 14)	21.1%	12.3%	5.4%	3.9%	17.2%	16.2%	12.5%	10.5%	10.2%	6.9%	12.7%	9.8%	-70.4%	-40.4%
Employees (internal FTEs, end of period) 12,438		12,957	9,988	10,479	4,912	4,607	4,102	3,972	15,783	16,158	4,233	3,908	8	8
Risk3)
Risk costs in bps of average RWA	-5	39	46	26	-1	7	56	43	49	52	-4	29	0	0
Risk-weighted assets (end of period, in EUR billion)	79.7	91.8	51.2	50.3	36.6	33.7	29.0	27.1	43.9	45.5	65.8	63.6	3.5	6.3

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); changed from 10.0% CET1 ratio in previous reports.

Risk-weighted assets - 1Q2017 Geographical split (in percentages) excluding Other

The Netherlands

The fi rst-quarter 2017 underlying result before tax of the Netherlands was EUR 693 million compared with EUR 460 million one year ago. This strong increase was driven by lower expenses refl ecting ongoing cost-saving initiatives, and lower risk costs due to improved macroeconomic conditions. Total income rose a modest 2.0%, driven by higher commission and other income, while net interest income declined due to margin pressure on current accounts and non-mortgage lending, combined with lower mortgage volumes.

Consolidated Balance Sheet Segment Reporting: Geographical Split

Belgium

Belgium, including ING Luxembourg, recorded an underlying result before tax of EUR 127 million versus EUR 76 million in the fi rst quarter of 2016. The year-on-year increase was fully attributable to Wholesale Banking due to a strong improvement in Financial Markets results after a loss in the year-ago quarter. Total income rose by EUR 116 million, or 16.0%, predominantly in Financial Markets; income in Retail Banking rose by EUR 18 million, or 2.9%. The increase in total income was partly off set by higher expenses (mainly due to EUR 30 million of higher regulatory costs) and increased risk costs.

Underlying result before tax - Belgium (in EUR million)

Germany

The underlying result before tax of Germany, including ING Austria, increased year-on-year by 17.0% to EUR 289 million, supported by EUR 50 million of lower regulatory costs. Income rose 3.8%, mainly refl ecting higher net interest income from Wholesale Banking due to volume growth. Expenses, excluding regulatory costs, increased 16.7% due to higher headcount to support business growth as well as to investments in Project Welcome. Risk costs were negligible in the quarter and in line with the prior year, while the fourth quarter of 2016 included a net release of EUR 41 million.

Underlying result before tax - Germany (in EUR million)

Other Challengers

The segment Other Challengers includes ING's activities in Australia, France, Italy, Spain & Portugal and the Czech Republic. The fi rst-quarter 2017 result before tax of this segment increased 14.4% year-on-year to EUR 151 million. Income rose 12.8% due to improved commercial results in most countries. This positive impact was partly off set by EUR 22 million of higher expenses, mainly due to higher staff costs to support business growth. Risk costs increased by EUR 11 million to EUR 40 million.

Growth Markets

The segment Growth Markets consists of ING's activities in Poland, Romania and Turkey, as well as the Asian bank stakes. The underlying result before tax of this segment increased by EUR 53 million to EUR 168 million compared with the fi rst quarter of 2016. The increase was a result of higher income due to improved commercial results in Poland, Turkey and Romania, as well as lower risk costs, mainly in Turkey. These impacts were partly off set by slightly higher expenses due to increased regulatory costs.

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

Wholesale Banking Rest of World

Wholesale Banking Rest of World includes 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 349 million, up from EUR 259 million in the fi rst quarter of 2016. The year-on-year increase was mainly related to strong business growth in Industry Lending combined with a net release in risk costs.

Consolidated Balance Sheet

ING Group: Consolidated balance sheet

in EUR million	31 Mar. 17	31 Dec. 16	31 Mar. 16		31 Mar. 17	31 Dec. 16	31 Mar. 16
Assets				Equity
Cash and balances with central banks	40,466	18,144	29,972	Shareholders' equity	50,741	49,793	48,810
Loans and advances to banks	30,857	28,858	28,085	Non-controlling interests	655	606	670
Financial assets at fair value through profi t or loss	136,536	122,093	148,738	Total equity	51,396	50,399	49,480
- trading assets	129,332	114,504	141,635	Liabilities
- non-trading derivatives	2,356	2,490	3,492	Deposits from banks	39,182	31,964	33,852
- designated as at fair value through profi t or loss	4,848	5,099	3,611	Customer deposits1)	533,737	522,942	505,557
Investments	87,310	91,663	96,412	- savings accounts	320,810	315,697	310,027
- debt securities available-for-sale	74,082	78,888	84,747	- credit balances on customer accounts	175,694	173,230	156,060
- debt securities held-to-maturity	9,083	8,751	7,566	- corporate deposits	35,746	32,687	38,217
- equity securities available-for-sale	4,145	4,024	4,099	- other	1,487	1,328	1,253
Loans and advances to customers1)	569,065	563,660	542,578	Financial liabilities at fair value through profi t or loss	110,116	98,974	121,240
- customer lending	566,739	561,367	539,136	- trading liabilities	95,330	83,167	104,963
- securities at amortised cost	7,426	7,471	9,060	- non-trading derivatives	3,070	3,541	4,074
- provision for loan losses	-5,100	-5,178	-5,618	- designated as at fair value through profi t or loss	11,716	12,266	12,203
Investments in associates and joint ventures	1,180	1,141	935	Other liabilities	20,584	20,345	20,447
Property and equipment	1,990	2,002	1,999	Debt securities in issue	113,048	103,234	122,740
Intangible assets	1,477	1,484	1,531	Subordinated loans	16,752	17,223	15,581
Other assets	15,934	16,036	17,333	Liabilities held for sale
Assets held for sale			1,315
Total assets before change accounting policy	884,815	845,081	868,897	Total liabilities before change accounting policy	833,419	794,682	819,417
Impact change accounting policy on Loans and advances to customers1)			172,695	Impact change accounting policy on Customer deposits1)			172,695
				Total liabilities	833,419	794,682	992,112
Total assets	884,815		845,081 1,041,592	Total equity and liabilities	884,815		845,081 1,041,592

1) ING changed its accounting policy for the netting of cash pooling arrangements in the second quarter of 2016. In accordance with IFRS, the comparable amounts must be adjusted. In this press release, however, the March-end 2016 cash pool balances in Loans and advances to customers and Customer deposits are still presented on a net basis in order to provide consistent information to its users.

ING Group's total assets increased by EUR 39.7 billion in the fi rst quarter to EUR 884.8 billion, including EUR 1.2 billion of currency impacts. The increase was mostly due to higher cash and balances with central banks, higher trading assets and higher loans and advances to customers. On the liability side, the balance sheet growth was mainly in trading liabilities, customer deposits, debt securities in issue and deposits from banks. Net core customer lending increased by EUR 5.7 billion, and the net production of customer deposits (excluding Bank Treasury and currency impacts) was EUR 6.7 billion. ING Group's loan-to-deposit ratio decreased slightly to 1.05 at the end of March 2017 from 1.06 at the end of December 2016.

Cash and balances with central banks

Cash and balances with central banks increased by EUR 22.3 billion to EUR 40.5 billion. This was largely due to higher customer deposits, increased CD/CPs and ING's TLTRO participation in March 2017, of which the proceeds were temporarily placed at central banks. Furthermore, cash and balances with central banks were relatively low at the end of December 2016.

Loans and advances to and deposits from banks

Loans and advances to banks increased by EUR 2.0 billion to EUR 30.9 billion. Deposits from banks increased by EUR 7.2 billion to EUR 39.2 billion, predominantly due to ING's TLTRO participation in March for EUR 7 billion.

Financial assets/liabilities at fair value

Financial assets at fair value through profi t or loss increased by EUR 14.4 billion to EUR 136.5 billion, mainly due to higher repo activity, which was only partly off set by lower trading derivatives. This movement was largely mirrored on the liability side of the balance sheet, where fi nancial liabilities at fair value through profi t or loss increased by EUR 11.1 billion. Financial assets and liabilities at fair value consist predominantly of derivatives, securities and (reverse) repos, and are mainly used to facilitate clients' needs.

Investments

Investments decreased by EUR 4.4 billion to EUR 87.3 billion, mainly due to bond sales and redemptions.

Loans and advances to customers

Loans and advances to customers increased by EUR 5.4 billion to EUR 569.1 billion. This was primarily due to EUR 5.7 billion of net core lending growth and a EUR 0.9 billion increase in short-term Bank Treasury lending, which more

Risk & Capital Management Consolidated Balance Sheet

than off set a decline in the run-off portfolios of WUB and Leasing, the ongoing transfer of WUB residential mortgages to NN Group, and the repayment of subordinated debt by NN Group. Retail Banking grew its net core lending assets by EUR 2.7 billion, despite a decline in the Netherlands. The growth at Retail Banking was in both residential mortgages and other customer lending. The EUR 3.0 billion net growth in Wholesale Banking was fully generated by General Lending & Transaction Services.

Debt securities in issue

Debt securities in issue increased by EUR 9.8 billion to EUR 113.0 billion. The increase was mainly caused by EUR 10.4 billion of higher CD/CPs. Other debt securities, mainly long-term debt, decreased by EUR 0.5 billion as new issuances (such as for TLAC) were largely matched by maturities.

Customer deposits

Customer deposits increased by EUR 10.8 billion to EUR 533.7 billion. The net production of customer deposits (excluding currency impacts and Bank Treasury) was EUR 6.7 billion. Retail Banking recorded EUR 6.4 billion of net production in customer deposits, of which EUR 3.6 billion was in savings deposits. Growth was visible in most countries, particularly Germany and the Netherlands. In Wholesale Banking, net customer deposits increased by EUR 0.3 billion.

Shareholders' equity

Shareholders' equity increased by EUR 0.9 billion to EUR 50.7 billion in the fi rst quarter. The increase was attributable to the EUR 1.1 billion net result for the quarter, which was partly off set by a EUR 0.2 billion decline in the cash fl ow hedge reserve.

Shareholders' equity per share increased to EUR 13.07 as per 31 March 2017 from EUR 12.84 as per 31 December 2016.

ING Group: Change in shareholders' equity
in EUR million	1Q2017	4Q2016
Shareholders' equity beginning of period	49,793	49,444
Net result for the period	1,143	750
Unrealised revaluations of equity securities	154	185
Unrealised revaluations of debt securities	-102	-98
Realised gains/losses equity securities transferred to profi t or loss	-8	-9
Realised gains/losses debt securities transferred to profi t or loss	-28	-28
Change in cash fl ow hedge reserve	-212	-471
Other revaluations	-202	-44
Defi ned benefi t remeasurement	9	18
Exchange rate diff erences	171	32
Changes in treasury shares	-4	1
Employee stock options and share plans	27	21
Dividend
Other		-8
Total changes	948	349
Shareholders' equity end of period	50,741	49,793

ING Group: Shareholders' equity
in EUR million	31 Mar. 17	31 Dec. 16
Share premium/capital	17,036	16,989
Revaluation reserve equity securities	2,802	2,656
Revaluation reserve debt securities	1,044	1,174
Revaluation reserve cash fl ow hedge	565	777
Other revaluation reserves	203	204
Defi ned benefi t remeasurement reserve	-362	-371
Currency translation reserve	-801	-770
Treasury shares	-12	-8
Retained earnings and other reserves	29,123	24,491
Net result year-to-date	1,143	4,651
Total	50,741	49,793

Risk & Capital Management

ING Group: Loan book1)
	Credit outstandings		Non-performing loans		NPL%
in EUR million	31 Mar. 2017	31 Dec. 2016	31 Mar. 2017	31 Dec. 2016	31 Mar. 2017	31 Dec. 2016
Residential mortgages Netherlands	121,983	123,873	1,376	1,479	1.1%	1.2%
Other lending Netherlands	34,468	33,087	2,101	2,134	6.1%	6.4%
of which business lending Netherlands	24,637	24,732	1,855	1,864	7.5%	7.5%
Residential mortgages Belgium	35,880	35,301	1,033	1,053	2.9%	3.0%
Other lending Belgium	50,187	46,038	1,357	1,388	2.7%	3.0%
of which business lending Belgium	37,372	37,096	1,065	1,090	2.8%	2.9%
Retail Benelux	242,518	238,299	5,867	6,054	2.4%	2.5%
Residential mortgages Germany	67,877	67,610	490	505	0.7%	0.7%
Other lending Germany	15,679	10,935	197	193	1.3%	1.8%
Residential mortgages Other C&G Markets	59,650	57,179	390	368	0.7%	0.6%
Other lending Other C&G Markets	25,638	24,487	903	854	3.5%	3.5%
Retail Challengers & Growth Markets	168,844	160,211	1,980	1,920	1.2%	1.2%
Industry Lending	131,979	131,221	3,181	3,188	2.4%	2.4%
of which Structured Finance	102,826	102,084	2,473 2,391		2.4%	2.3%
of which Real Estate Finance	29,153	29,137	708 797		2.4%	2.7%
General Lending & Transaction Services	84,793	80,267	1,160	1,194	1.4%	1.5%
FM, Bank Treasury & Other	17,403	13,428	932	956	5.4%	7.1%
of which General Lease run-off	2,838	2,955	872	883	30.7%	29.9%
Wholesale Banking	234,175	224,916	5,273	5,338	2.3%	2.4%
Total loan book	645,537	623,426	13,120	13,312	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 further improved in the fi rst quarter of 2017 as a result of continued lending growth and a modest decline in NPLs. ING Group's capital position improved, as the fully loaded common equity Tier 1 ratio increased to 14.5%.

Credit risk management

ING Group's non-performing loans ratio further improved compared with the previous quarter, driven by a decrease in NPL amounts, especially in residential mortgages Netherlands and in Real Estate Finance, and an increase in credit outstandings.

Within Retail Netherlands, the NPL ratio for residential mortgages continued its improving trend, as observed during the last two years. The NPL ratio further declined to 1.1% from 1.2% in the fourth quarter of 2016. For the business

lending portfolio in the Netherlands, the NPL ratio remained unchanged at 7.5%.

For Retail Belgium, the NPL ratio for the residential mortgage portfolio decreased to 2.9% from 3.0% in the previous quarter, due to higher credit outstandings. The NPL ratio of the business lending portfolio in Belgium decreased to 2.8% from 2.9% at year-end, mainly due to an increase in credit outstandings. For Retail Challengers & Growth Markets, the NPL ratio remained fl at at 1.2% as the increase in NPLs, especially in Other Challengers & Growth Markets, off set the increase in credit outstandings.

In Wholesale Banking, the NPL ratio improved to 2.3% from 2.4% in the previous quarter, driven by lending growth and lower NPL amounts. In Real Estate Finance, the NPL ratio dropped by a 0.3 percentage point to 2.4% due to lower NPLs.

vING Group: Stock of provisions1)
-----------------------------------

in EUR million	Retail Benelux	Retail Challengers & Growth Markets	Wholesale Banking	Total 1Q2017	Total 4Q2016
Stock of provisions at beginning of period	1,884	1,277	2,147	5,308	5,534
Amounts written off	-144	-22	-69	-235	-390
Recoveries of amounts written off	19		6	25	10
Increases in loan loss provisioning	208	97	119	424	539
Releases from loan loss provisioning	-155	-52	-84	-291	-401
Net additions to loan loss provisions	53	45	35	133	138
Exchange or other movements	6	-32	27	1	16
Stock of provisions at end of period	1,818	1,268	2,146	5,232	5,308
Coverage ratio 1Q 2017	31.0%	64.0%	40.7%	39.9%
Coverage ratio 4Q 2016	31.1%	66.5%	40.2%	39.9%

1) At the end of March 2017, the stock of provisions included provisions for amounts due from banks (EUR 12 million) and provisions for contingent liabilities recorded under Other Provisions (EUR 119 million).

Risk & Capital Management

ING Group's stock of provisions decreased by EUR 0.1 billion to EUR 5.2 billion in the fi rst quarter, mainly due to written-off amounts that were only partly off set by net additions. ING Group's provision coverage ratio remained stable at 39.9% compared to the previous quarter as the decrease in the stock of provisions was off set by a reduction in NPL amounts. For Retail Benelux, the coverage ratio slightly decreased as the decline in NPL amounts was more than off set by the decrease in provisions. The coverage ratio for Retail Challengers & Growth Markets declined following a decline in provisions combined with an increase in NPL amounts. The coverage ratio for Wholesale Banking increased, mainly due to a stable stock of provisions combined with a decline in NPL amounts. ING Group's loan portfolio consists predominantly of asset-based and/or well-secured loans, including Structured Finance, Real Estate Finance and residential mortgages.

Securities portfolio

ING Group's overall exposure to debt securities decreased to EUR 90.8 billion in the fi rst quarter from EUR 96.1 billion at year-end, mainly due to bond sales and redemptions. Covered bonds declined by EUR 2.3 billion and SSA bonds decreased by EUR 1.6 billion. The revaluation reserve of debt securities dropped slightly to EUR 1.0 billion after tax from EUR 1.2 billion in the fourth quarter of last year.

ING Group: Debt securities1)
in EUR billion	31 Mar. 17	31 Dec. 16
Government bonds	48.2	49.5
Sub-sovereign, supranationals and agencies (SSA)	20.8	22.4
Covered bonds	11.8	14.1
Financial institutions2)	2.6	2.5
Corporate bonds	2.2	2.1
ABS	5.2	5.5
Total	90.8	96.1

1) Excluding positions at fair value through the P&L but including securities

classifi ed as Loans & Receivables. 2) Including Central Bank bills.

Breakdown government bonds
in EUR billion	31 Mar. 17	31 Dec. 16
The Netherlands	9.2	10.1
Belgium	6.6	6.3
Poland	6.3	6.0
Germany	5.7	5.3
United States	4.4	4.0
France	4.0	5.3
Austria	3.8	4.3
Spain	2.6	2.6
Finland	2.2	2.3
Turkey	0.6	0.7
Italy	0.2	0.3
Other	2.6	2.5
Total	48.2	49.5

Funding and liquidity

In the fi rst quarter, ING Group issued EUR 6.6 billion of senior debt and Tier 2 bonds, which were more than off set by maturities, early repayments and redemptions. This resulted in a net decrease of EUR 0.5 billion in long-term debt securities. ING Group's loan-to-deposit ratio, excluding securities recognised at amortised cost, decreased slightly to 1.05 at the end of March 2017 from 1.06 at year-end 2016. The liquidity position was above the minimum requirements.

Market risk

In the fi rst quarter, the average Value-at-Risk (VaR) remained stable at EUR 7 million compared to the previous quarter. The overnight VaR for ING Group's trading portfolio fl uctuated between EUR 6 million and EUR 9 million.

ING Group: Consolidated VaR trading books

in EUR million	Minimum	Maximum		Average Quarter-end
Foreign exchange	1	4	2	1
Equities	2	4	4	4
Interest rate	4	8	5	4
Credit spread	4	7	5	6
Diversifi cation			-8	-9
Total VaR1)	6	9	7	6

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.

Risk & Capital Management

ING Group: Capital position
	2019 rules (fully loaded)		2017/2016 rules (phased in)
in EUR million	31 Mar. 17	31 Dec. 16	31 Mar. 17	31 Dec. 16
Shareholders' equity (parent)	50,741	49,793	50,741	49,793
- Interim profi t not included in CET1 capital 1)	-2,482	-1,629	-2,482	-1,629
- Other regulatory adjustments	-3,299	-3,596	-3,321	-3,698
Regulatory adjustments	-5,781	-5,225	-5,803	-5,327
Available common equity Tier 1 capital	44,960	44,568	44,939	44,466
Additional Tier 1 securities 2)	6,598	7,706	6,598	7,706
Regulatory adjustments additional Tier 1	0	0	-401	-809
Available Tier 1 capital	51,559	52,274	51,136	51,364
Supplementary capital - Tier 2 bonds 3)	10,186	9,488	10,186	9,488
Regulatory adjustments Tier 2	106	109	10	-86
Available BIS capital	61,851	61,871	61,332	60,765
Risk-weighted assets	309,796	314,325	309,796	314,325
Common equity Tier 1 ratio	14.5%	14.2%	14.5%	14.1%
Tier 1 ratio	16.6%	16.6%	16.5%	16.3%
Total capital ratio	20.0%	19.7%	19.8%	19.3%
Leverage Ratio	4.5%	4.8%	4.5%	4.7%

1) The interim profi t not included in CET1 is the fi nal dividend over 2016 of EUR 1,629 million, and the interim profi t not included in CET1 capital in 1Q17 amounting to EUR 853 million. 2) Including EUR 3,018 million, which is CRR/CRD IV-compliant, and EUR 3,580 million to be replaced as capital recognition is subject to CRR/CRD IV grandfathering rules. 3) Including EUR 8,047 million, which is CRR/CRD IV-compliant, and EUR 2,139 million to be replaced as capital recognition is subject to CRR/CRD IV grandfathering rules.

Capital ratios

ING Group's capital ratios further strengthened in the fi rst quarter of 2017. The fully loaded common equity Tier 1 ratio for ING Group rose to 14.5% at the end of the fi rst quarter of 2017, which is an increase of 0.3 percentage point from the end of December 2016. Common equity Tier 1 capital rose by EUR 0.4 billion, mainly due to the inclusion of EUR 0.3 billion of net profi t stemming from the fi rst-quarter earnings. The remaining interim profi t, amounting to EUR 0.9 billion, has not been included in common equity Tier 1 capital, but has been reserved for future dividend payments. This follows ING's decision henceforth to reserve one third of the aggregate prior year dividend in each of the fi rst three quarters of the fi nancial year. This refi nement in the treatment of interim profi ts is consistent with ING's aim to pay a progressive dividend over time, and it will also result in a smoother quarterly development of ING Group's capital position. The increase in the common equity Tier 1 capital ratio was further driven by EUR 4.5 billion lower risk-weighted assets (RWA).

ING Group's fully loaded Tier 1 ratio (including grandfathered securities) remained stable at 16.6% compared to the end of December 2016. This is a result of the increase in common equity Tier 1 capital (as explained above), which off set the redemption of a USD 1.1 billion grandfathered additional Tier 1 instrument in March 2017. The fully loaded total capital ratio (including grandfathered securities) increased to 20.0% at the end of March 2017 from 19.7% in the previous quarter. The increase of 0.3 percentage point refl ects ING Group's EUR 0.8 billion inaugural Tier 2 transaction in February 2017.

ING Group's phased in common equity Tier 1 ratio rose from 14.1% at the end of December 2016 to 14.5% at the end of March 2017. The phased in Tier 1 ratio increased to 16.5%, while the phased in total capital ratio rose strongly to 19.8%. 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. The start of 2017 marks another year of getting closer towards the convergence of the phased-in calculations with the fully loaded approach. 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 31 March 2017 was 4.5%, a decrease of 0.3 percentage point compared to the end of December 2016. The decline was attributable to the aforementioned redemption of a grandfathered Tier 1 instrument, as well as an increase in the total balance sheet from a seasonally low year-end 2016.

Risk-weighted assets (RWA)

At the end of March 2017, ING Group's total RWA were EUR 309.8 billion, which is EUR 4.5 billion lower than they were at the end of the previous quarter. The decrease includes a EUR 0.5 billion impact from foreign currency movements, mainly caused by the depreciation of the US dollar and the Turkish lira. At constant FX rates, the decrease was primarily due to a reduction in credit risk-weighted assets of EUR 2.5 billion. This decline refl ects three impacts: positive risk migration in Retail Netherlands (primarily mortgages) and Wholesale Banking; the impact from model adjustments; and the repayment of subordinated debt by NN Group. These elements more than off set the impact from volume growth on credit risk-weighted assets. Market riskweighted assets were approximately stable at EUR 6.6 billion, while operational risk-weighted assets declined by EUR 1.4 billion to EUR 39.1 billion.

Economic Environment Risk & Capital Management

ING Group: Composition of RWA
in EUR billion	31 Mar. 17	31 Dec. 16
Credit RWA	264.1	267.1
Operational RWA	39.1	40.5
Market RWA	6.6	6.7
Total RWA	309.8	314.3

Resolution strategy

ING has made signifi cant progress ahead of the formal implementation of TLAC/MREL legislation. In November 2016, we concluded that ING Group should be our designated resolution entity; this has been endorsed by the Single Resolution Board (SRB). Following these announcements in February 2017, ING Group successfully issued EUR 0.8 billion of Tier 2 bonds. Subsequently, a debut Holdco senior note of EUR 1.5 billion was issued on 9 March, followed by a landmark multi-tranche issuance of USD 4 billion Holdco senior notes on 21 March. All bonds have performed well, which confi rms a successful start to ING's TLAC issuance strategy. On 11 April 2017, EUR 1.0 billion ING Bank Tier 2 bonds were exchanged for ING Group Tier 2 notes at similar terms.

Ratings

During the fi rst quarter of 2017, the ratings from S&P, Moody's and Fitch remained unchanged. However, Moody's changed its outlook on ING Bank N.V. from stable to positive, as affi rmed on 17 March 2017.

Main credit ratings of ING on 9 May 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	A1	Positive	A+	Stable

Economic Environment

Economic activity

Eurozone economic data continued to show strength in the fi rst quarter of 2017. Purchasing managers are becoming increasingly upbeat and EU political risks do not yet seem to have had a negative eff ect on business confi dence.
In the US, purchasing managers' sentiment has been weakening recently. Initial optimism about President Trump's election promises to stimulate the economy have shown signs of fading.

Currency markets

• The strengthening of the US dollar has reversed somewhat as expectations of US Fed rate hikes have been scaled down and President Trump's pro-growth proposals seem to get watered down.

Credit markets

Credit spreads continued roughly to trade sideways as investors await clues with respect to a number of uncertainties.
Markets are unsure about the precise nature and timing of policy changes in the US, such as the scope to step up fi scal stimulus, the push for deregulation and the possibility of a more protectionist trade agenda.
In Europe, it is uncertain to what extent anti-euro sentiment will become manifest in the upcoming elections. The implications of Brexit are still uncertain, and potentially impactful.

Basis points

Stock markets

Since the failure to repeal Obamacare, the rally in US equity prices has halted as markets start to question how much of President Trump's anticipated tax cuts and spending increases will be passed by Congress.
The Euro Area FTSE 300 Index has been increasing quite strongly since December 2016 on the back of a string of positive economic data and the ECB's promise to keep interest rates low.

Index

Consumer confi dence

• The eurozone job market recovery is in full swing and consumer confi dence remains at a high level. This set the eurozone up for accelerating consumption growth during the fi rst quarter.

Interest rates

As the US labour market is at around full employment levels and infl ation is essentially in line with the Fed's target, monetary policy is becoming less accommodative. Dampened sentiment towards political strength and fi scal stimulus, as well as a fl ight to safety due to geopolitical developments, have halted the increase of longer-term yields.
With the eurozone's core infl ation remaining stagnant at too low levels and only very limited infl ationary pressures on the horizon, the ECB has signalled that rates won't be increased any time soon; they may even be lowered.

Percentages

Appendix

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	1Q2017	1Q2016	1Q2017	1Q2016	1Q2017	1Q2016	1Q2017	1Q2016
Net interest income	3,352	3,248			-	-	3,352	3,248
Net commission income	682	607			-	-	682	607
Investment income	48	71			-	-	48	71
Other income	282	82			-32	-78	314	161
Total income	4,364	4,009	-	-	-32	-78	4,396	4,087
Expenses excl. regulatory costs	2,137	2,157	17		-		2,137	2,140
Regulatory costs	474	496		-	-		474	496
Operating expenses	2,611	2,653	-	17	-	-	2,611	2,636
Gross result	1,753	1,356	-	-17	-32	-78	1,785	1,451
Addition to loan loss provisions	133	265			-	-	133	265
Result before tax	1,620	1,091	-	-17	-32	-78	1,652	1,186
Taxation	456	324		-4	-		456	329
Non-controlling interests	21	16			-		21	16
Net result from continuing operations	1,143	751	-	-13	-32	-78	1,175	842
Net result from discontinued operations	-	506
Net result ING Group	1,143	1,257

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	1Q2017	1Q2016	1Q2017	1Q2016	1Q2017	1Q2016	1Q2017	1Q2016
Net interest income	3,352	3,248	2,371	2,330	955	925	25	-7
Net commission income	682	607	403	357	280	251	-1	-1
Investment income	48	71	27	56	23	15	-3	-0
Other income	314	161	111	72	287	125	-85	-36
Total underlying income	4,396	4,087	2,913	2,815	1,545	1,316	-63	-44
Expenses excl. regulatory costs	2,137	2,140	1,459	1,508	608	573	70	59
Regulatory costs	474	496	384	394	91	102	0	0
Operating expenses	2,611	2,636	1,843	1,902	698	676	70	59
Gross result	1,785	1,451	1,071	913	847	641	-133	-103
Addition to loan loss provisions	133	265	98	148	35	117	0	-0
Underlying result before tax	1,652	1,186	972	766	813	524	-133	-103
Taxation	456	329	267	208	230	150	-41	-29
Non-controlling interests	21	16	17	14	4	3	-	-
Underlying net result	1,175	842	688	545	579	371	-92	-74
Special items after tax	-	-13	-	-13	-	-	-	-
Net result Banking	1,175	829	688	532	579	371	-92	-74
Net result Insurance Other	-32	-78
Net result from continuing operations	1,143	751
Net result from discontinued operations	-	506
Net result ING Group	1,143	1,257

ING Group: Profi tability and effi ciency
	ING Group		Retail Banking		Wholesale Banking		Corporate Line Banking
In EUR million	1Q2017	1Q2016	1Q2017	1Q2016	1Q2017	1Q2016	1Q2017	1Q2016
Cost/income ratio (continuing operations)	59.8%	66.2%
Underlying cost/income ratio	59.4%	64.5%	63.3%	67.6%	45.2%	51.3%	n.a.	n.a.
ING Group's total return on IFRS-EU equity1)	9.3%	10.4%
ING Group's underlying return on IFRS-EU equity1)	9.6%	7.0%

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

Appendix

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	1Q2017	1Q2016	1Q2017	1Q2016	1Q2017	1Q2016	1Q2017	1Q2016	1Q2017	1Q2016	1Q2017	1Q2016	1Q2017	1Q2016	1Q2017	1Q2016
Net interest income	3,352	3,248	1,127	1,182	551	533	528	505	375	347	359	298	387	389	26	-6
Net commission income	682	607	224	197	139	140	60	59	56	38	73	67	131	107	-1	-1
Investment income	48	71	31	33	7	36	11	4	3	-0	1	7	-2	-5	-3	-4
Other income	314	161	70	11	142	14	-6	4	17	14	64	68	101	80	-73	-31
Total underlying income	4,396	4,087	1,451	1,423	839	723	594	572	450	399	496	439	617	572	-52	-41
Expenses excl. regulatory costs	2,137	2,140	664	760	428	417	252	216	237	216	233	240	251	231	72	61
Regulatory costs	474	496	105	111	226	196	53	103	23	22	43	26	24	37	0	0
Operating expenses	2,611	2,636	769	871	654	614	306	319	260	238	276	266	275	267	72	61
Gross result	1,785	1,451	682	552	185	109	288	253	191	161	220	173	342	305	-124	-103
Addition to loan loss provisions	133	265	-11	92	58	33	-1	6	40	29	53	59	-7	46	0	-0
Underlying result before tax	1,652	1,186	693	460	127	76	289	247	151	132	168	115	349	259	-124	-102
Retail Banking	972	766	477	336	73	106	185	174	107	73	131	78	-	-	-	-
Wholesale Banking	823	524	216	124	54	-30	104	73	44	59	37	37	349	259	9	1
Corporate Line	-143	-103	-	-	-	-	-	-	-	-	-	-	-	-	-133	-103
Underlying result before tax	1,652	1,186	693	460	127	76	289	247	151	132	168	115	349	259	-124	-102
Taxation	456	329	174	115	44	17	97	85	43	45	35	21	101	72	-37	-28
Non-controlling interests	21	16	-	-	2	-1	1	0	-	-	19	16	-	-	-	-
Underlying net result	1,175	842	519	345	81	59	191	161	108	87	114	77	249	187	-87	-75
Special items after tax	-	-13	-	-13	-	-	-	-	-	-	-	-	-	-	-	-
Net result Banking	1,175	829	519	332	81	59	191	161	108	87	114	77	249	187	-87	-75
Net result Insurance Other	-32	-78
Net result from continuing operations	1,143	751
Net result from discontinued operations	-	506
Net result ING Group	1,143	1,257

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 corporate strategy, which is evidenced by ING Group shares 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. Insofar as they could have an impact in Belgium, all projects described are proposed intentions of the bank. No formal decisions will be taken until the information and consultation phases with the Work Council have been properly fi nalised.

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

Further information

All publications related to ING's 1Q17 results can be found at www.ing.com/1q17, 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)

See also ing.world, ING Group's online magazine, which can be found in the About Us section on www.ing.com.

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.

funding, as well as conditions in the credit and capital markets generally, including changes in borrower and counterparty 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.

AI assistant

ING Groep N.V. — Earnings Release 2017

3854_iss_2017-05-10_dd1eb8c9-ccf2-4ce2-88ed-fa68749cccd9.pdf

ING 1Q17 net result EUR 1,143 million

ING continues to record commercial growth in 1Q17 with consistent focus on innovation and sustainability

ING 1Q17 underlying pre-tax result of EUR 1,652 million, up 39.3% year-on-year

CEO statement

Investor enquiries

Investor conference call

Media conference call

Business & Sustainability Highlights Share Information

Table of contents

Listing information

Market capitalisation (in EUR billion)

American Depositary Receipts (ADRs)

Broker/Institutional Investors

Relative share price performance

Business & Sustainability Highlights

Making banking easier

A sustainable world

Better fi nancial decision-making

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

Underlying result before tax - Germany (in EUR million)

Segment Reporting: Wholesale Banking Retail Banking

Retail Other Challengers & Growth Markets

Segment Reporting: Wholesale Banking

Segment Reporting: Wholesale Banking

Industry Lending

Underlying result before tax -

Segment Reporting: Wholesale Banking

General Lending & Transaction Services

Financial Markets

Bank Treasury & Other

Segment Reporting: Geographical Split Corporate Line Banking

Segment Reporting: Geographical Split

Risk-weighted assets - 1Q2017 Geographical split (in percentages) excluding Other

The Netherlands

Consolidated Balance Sheet Segment Reporting: Geographical Split

Belgium

Germany

Underlying result before tax - Germany (in EUR million)

Other Challengers

Growth Markets

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

Wholesale Banking Rest of World

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

Risk & Capital Management Consolidated Balance Sheet

Debt securities in issue

Customer deposits

Shareholders' equity

Risk & Capital Management

Credit risk management

Risk & Capital Management

Securities portfolio

Funding and liquidity

Market risk

ING Group: Consolidated VaR trading books

Risk & Capital Management

ING Groep N.V. Earnings Release 2017