November 12, 2008 01:46 ET

ING reports underlying net loss of EUR 585 million in 3Q

AMSTERDAM, NETHERLANDS--(Marketwire - November 12, 2008) -

  * Underlying net loss of EUR 585 million driven by crisis in the
    financial markets

       * Pre-tax impairments on equities, pressurised assets and
         other debt securities totalling EUR 1,505 million
       * Negative revaluations through P&L on real estate and private
         equity totalling EUR 333 million
       * Negative impact of other market-related items of EUR 265
         million through P&L
       * Net loss of EUR 478 million in line with preliminary results
         announced on 17 October
       * Net loss per share of EUR 0.22, compared to net profit per
         share of EUR 1.08 in third quarter of 2007
       * Net profit of EUR 2,982 million year-to-date, versus EUR
         6,759 million for the first nine months of 2007

  * Sound commercial performance despite difficult operating
    environment

       * Net production of client balances up EUR 38 billion,
         excluding impact of currencies, to EUR 1,528 billion
       * Retail deposits grew EUR 6.7 billion and total Bank deposits
         grew by EUR 12.9 billion excluding FX impact
       * Insurance new sales down 8.5% on a constant currency basis

  * Capital buffers reinforced following transaction with Dutch State

       * All capital ratios within target during the third quarter,
         prior to transaction with Dutch State
       * EUR 10 billion purchase of core tier-1 securities by Dutch
         State to be completed on 12 November 2008
       * Pro-forma ING Bank Tier-1 ratio will increase to 10%;
         Pro-forma Core Tier-1 ratio will increase to 8%
       * Pro-forma ING Group Debt/Equity ratio will improve to under
         10%
       * Final 2008 dividend suspended leaving total 2008 dividend at
         EUR 0.74 per share paid in August

Chairman's Statement

"The third quarter was extremely challenging for financial institutions. Financial markets deteriorated rapidly toward the end of the quarter, with steep declines in equity markets, widening credit spreads, declining property prices and the failure of several banks. Against this background, ING reported its first ever quarterly loss, following EUR 1.5 billion of impairments and losses. That brought our underlying net profit for the first nine months of the year to EUR 2.9 billion," said Michel Tilmant, CEO of ING.

"In these increasingly turbulent times, ING acted proactively to reinforce its capital base after the Dutch government made funds available to help stabilise the financial system and create a level playing field. The financial services industry is about trust, and as our customers face uncertain times it is essential that they have no reason to be concerned about the strength of ING as their financial partner. The EUR 10 billion capital injection from the Dutch State helped to reassure our customers who entrust their savings and investments to ING. In addition, the sale of our Taiwan life business will significantly reduce our exposure to long-term interest rates, reducing risks within the company. Following these transactions, our capital position is stronger and we have capacity to absorb the impact of a further deterioration in financial markets."

"ING's commercial performance was resilient, even in this challenging and highly competitive environment. Net production of client balances, excluding the impact of currencies, was EUR 38 billion in the third quarter, driven by savings and deposits growth of EUR 12.9 billion and lending growth of EUR 22.9 billion. New life sales declined 8.5% excluding currency impacts amid reduced demand for investment products. However, ING's broad product expertise enabled us to respond to customers' changing needs."

"As we approach the end of 2008, markets continue to be turbulent, so we expect pressure on asset prices to continue to impact results in the fourth quarter, while weakening economic conditions will put pressure on results into 2009. Our priority is to sustain commercial momentum by remaining focused on our customers, while managing our risks, capital and expense base with the discipline that these exceptional times require."

The full report including tables can be downloaded from the following link:

2008 Third Quarter Results ING Group: http://www.ing.com/cms/idc_cgi_isapi.dll?IdcService=GET_FILE&dDocName=350136_EN&RevisionSelectionMethod=latestReleased

The following documents can be downloaded from around 08.00 am CET from the following links:

Quarterly Report: http://www.ing.com/cms/idc_cgi_isapi.dll?IdcService=GET_FILE&dDocName=350137_EN&RevisionSelectionMethod=latestReleased

Analyst Presentation: http://www.ing.com/cms/idc_cgi_isapi.dll?IdcService=GET_FILE&dDocName=350141_EN&RevisionSelectionMethod=latestReleased

Press Presentation: http://www.ing.com/cms/idc_cgi_isapi.dll?IdcService=GET_FILE&dDocName=350139_EN&RevisionSelectionMethod=latestReleased

Group Statistical Supplement: http://www.ing.com/cms/idc_cgi_isapi.dll?IdcService=GET_FILE&dDocName=350143_EN&RevisionSelectionMethod=latestReleased

US Statistical Supplement: http://www.ing.com/cms/idc_cgi_isapi.dll?IdcService=GET_FILE&dDocName=350144_EN&RevisionSelectionMethod=latestReleased

Contacts

Media relations:
+31 20 541 5433

Press Conference call:
11:30 CET

Listen only via:
NL: +31 20 794 8500
UK: +44 20 7190 1537

Investor relations
+31 20 541 5460

Analyst Conference Calls:
09:00 CET and 14:30 CET

Listen only via:
NL: +31 20 796 5332
UK: +44 20 8515 2303
US: +1 480 629 1989

Webcast:
Available at www.ing.com

Video interviews:
Available at www.ing.com and www.cantos.com

2008 Third Quarter Results ING Group: http://hugin.info/130668/R/1268781/280313.pdf

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