Edgar Filing: ING GROEP NV

Form 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 6-K

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16

of the Securities Exchange Act of 1934

For August 8, 2012

Commission File Number 1-14642

ING Groep N.V.

Amstelveenseweg 500

1081-KL Amsterdam

The Netherlands

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F x Form 40-F ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T rule 101(b)(1): ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T rule 101(b)(7): ¨

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes ¨ No x

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b).

This Report contains a copy of the following:

(1)	The Press Release issued on August 8, 2012.


		CORPORATE COMMUNICATIONS


PRESS RELEASE		8 August 2012

ING posts 2Q12 underlying net profit of EUR 1,045 million

•

ING Group’s 2Q12 net result was EUR 1,171 million, or EUR 0.31 per share, including divestments and special items. The results of Asia Insurance/IM are reported as results from discontinued operations.

•

Bank underlying result before tax amounted to EUR 995 million despite higher risk costs and de-risking measures.

•

Insurance operating result improved to EUR 304 million. Underlying result before tax was EUR 229 million, including hedge gains and the change in the provision for separate account pension contracts in the Benelux.

•

ING’s capital position improved further. The Bank’s core Tier 1 ratio strengthened to 11.1%. The Insurance IGD solvency ratio rose to 240%. Given ING’s priority to repay the Dutch State, no interim dividend will be paid in 2012.

Chairman’s Statement

“ING posted solid second-quarter results. In these uncertain times the financial strength of the company is our highest priority: capital, liquidity and funding have all improved,” said Jan Hommen, CEO of ING Group. “As the eurozone crisis deteriorated, we accelerated our efforts to de-risk the investment portfolio at the Bank, and brought down our Spanish exposure to reduce the funding mismatch in that country. At Insurance, we continued to hedge to protect regulatory capital, leading to volatility in IFRS earnings.”

“Provisions for loan losses at the Bank increased as the macroeconomic environment weakened, and the net interest margin declined, despite easing competition for savings. We increased our vigilance on costs, and expenses declined for the second consecutive quarter. Progress on balance sheet optimisation is gaining traction, with integration initiatives reaching EUR 7.2 billion in the seven months ended in July. Commercially, the Bank generated strong retail deposit growth of EUR 4.3 billion during the second quarter, further strengthening the funding profile. Demand for lending remains weak, but total lending rose modestly as ING continued to support clients with their financial needs.”

“We continue to work tirelessly to deliver on our performance improvement plans and prepare our banking and insurance businesses for their independent futures. The sales process for our Insurance and Investment Management businesses in Asia is on track, and ING US made an important step with its inaugural benchmark debt issuance as it works to separate its funding and liquidity from the Group ahead of its planned IPO. For Insurance Europe, we are stepping up our efforts as we prepare for the base case of an IPO. As the Group moves forward with its transformation, our employees continue to place the utmost priority on the needs of our customers to deliver the exemplary service and products they require.”

Key Figures¹


	2Q2012			2Q2011			Change			1Q2012			Change			1H2012			1H2011			Change
ING Group key figures (in EUR million)
Underlying result before tax Group		1,224			1,617			-24.3	%		892			37.2	%		2,116			3,397			-37.7	%
of which Bank		995			1,145			-13.1	%		1,126			-11.6	%		2,120			2,678			-20.8	%
of which Insurance		229			472			-51.5	%		-234						-4			719			-100.6	%
Underlying net result		1,045			1,271			-17.8	%		543			92.4	%		1,588			2,497			-36.4	%
Net result		1,171			1,507			-22.3	%		680			72.2	%		1,851			2,888			-35.9	%
Net result per share (in EUR)²		0.31			0.40			-22.5	%		0.18			72.2	%		0.49			0.76			-35.5	%
Total assets (end of period, in EUR billion)											1,242			-0.4	%		1,237			1,241			-0.3	%
Shareholders’ equity (end of period, in EUR billion)											48			6.1	%		51			40			25.4	%
Underlying return on equity based on IFRS-EU equity⁴		8.5	%		12.7	%					4.6	%					6.6	%		12.4	%
Banking key figures
Underlying interest margin		1.26	%		1.38	%					1.32	%					1.29	%		1.39	%
Underlying cost/income ratio		58.4	%		60.4	%					58.8	%					58.6	%		58.1	%
Underlying risk costs in bp of average RWA		72			43						59						65			39
Core Tier 1 ratio											10.9	%					11.1	%		9.4	%
Underlying return on equity based on IFRS-EU equity⁴		7.9	%		10.5	%					8.6	%					8.2	%		11.5	%
Insurance key figures
Operating result ( in EUR million)		304			565			-46.2	%		258			17.8	%		562			918			-38.8	%
Investment margin / life general account invested assets (in bps)³		133			119						134
Administrative expenses / operating income (Life & ING IM)		46.7	%		39.4	%					48.7	%					47.7	%		41.3	%
Underlying return on equity based on IFRS-EU equity⁴		5.4	%		8.1	%					-3.5	%					1.1	%		5.5	%

The footnotes relating to 1-4 can be found on page 14 of this press release.

Note: Underlying figures are non-GAAP measures and are derived from figures according to IFRS-EU by excluding impact from divestments and special items.

ING GROUP CONSOLIDATED RESULTS

The second quarter of 2012 was marked by heightened tension in the eurozone sovereign debt crisis, volatile financial markets and a weakening macroeconomic environment as the effects of the ongoing crisis became increasingly tangible on the real economy. Against this backdrop, ING continued to de-risk its balance sheet and maintained hedges at Insurance to protect regulatory capital, which impacted ING’s results in the quarter. Despite this challenging environment, results held up well and ING Group posted a second-quarter underlying net profit of EUR 1,045 million.

ING Bank posted solid second-quarter results despite losses from proactive de-risking, pressure on the underlying interest margin, and elevated levels of risk costs that exceed through-the-cycle norms. The gross result, before risk costs, rose 5.9% from a year ago and declined only 2.0% sequentially. The Bank’s underlying result before tax was EUR 995 million, down 13.1% year-on-year and 11.6% lower than in the first quarter of 2012, reflecting higher risk costs.

The Bank continued to optimise its balance sheet throughout the quarter, attracting strong retail deposit inflows and growing lending while simultaneously curtailing balance sheet growth. Retail Banking generated EUR 4.3 billion of net funds entrusted inflow, and ING continued to support its clients’ funding needs, realising a total net lending production of EUR 2.9 billion.

During the second quarter, ING Insurance maintained its focus on protecting regulatory capital. Despite the ongoing financial market volatility, results increased sequentially both on an operating and underlying basis. The operating result was EUR 304 million, 17.8% higher than in the first quarter. This increase was fuelled by seasonally higher dividend income and general account asset growth, which lifted the investment margin. Operating results were down 46.2% year-on-year, due to positive non-recurring items in the second quarter of 2011, coupled with a lower technical margin and lower Non-life results in the current quarter. The second-quarter 2012 underlying result before tax was EUR 229 million, including positive results on regulatory capital hedges in the US Closed Block VA.

Insurance sales (APE) increased 9.0% from one year ago; on a constant currency basis, sales declined 5.0%. APE in Central and Rest of Europe rose on higher sales in the Czech Republic and Turkey. At Insurance US, APE increased, reflecting higher full service retirement plan, individual life and employee benefits sales. Sales in the Benelux declined due to lower individual life product sales in the Netherlands. On a sequential basis, total sales at ING Insurance fell 17.7% at constant currencies, mainly attributable to seasonally higher first-quarter sales in the Benelux and the US.

ING Group’s quarterly net profit was EUR 1,171 million compared with EUR 1,507 million in the second quarter of 2011 and EUR 680 million in the first quarter of 2012. The second-quarter underlying effective tax rate was 13.2%.

As of 30 June 2012, the Asian Insurance and Investment Management businesses and the reinsured Japan SPVA businesses in Corporate Reinsurance are classified as held for sale and as discontinued operations. Although no divestment transactions have yet been completed, it has been decided to write off the EUR 180 million goodwill in ING Investment Management (IIM) Korea. IFRS 5 requires a write-off of certain assets, such as goodwill, if a unit is expected to be divested below book value.

For other assets in Asia, such as investments and insurance-related assets, the regular accounting policies continue to apply and the carrying value of these assets is not impacted by the held for sale classification. Negotiations are on-going and it is too early to predict the final financial outcome with respect to the divestments of the operations held for sale.

ING Group’s second-quarter net results included EUR 188 million of net losses on divestments, which primarily consisted of the IIM Korea goodwill write-off, EUR 111 million net result from discontinued operations and EUR -3 million net result from divested units. Special items after tax were EUR 206 million positive and predominantly reflect the EUR 305 million favourable impact of a provision release following the announcement on 3 July 2012 of the new Dutch employee pension scheme, which offset other special items related to various restructuring programmes and separation and IPO preparation costs. After-tax separation and IPO preparation costs were EUR 34 million in the quarter and EUR 81 million year-to-date, out of an estimated total of EUR 150 million for 2012.

The EUR 111 million net result from discontinued operations included EUR 112 million from Insurance Asia, EUR 3 million from the Corporate Line and EUR -4 million from IIM Asia. Insurance Asia showed a solid second-quarter performance with a pro-forma underlying pre-tax result of EUR 160 million, up from EUR 135 million one year ago. Strong sales growth of non-cancer COLI products in Japan and improved mortality results in Korea drove results higher, while expenses stayed flat. Underlying pre-tax results declined from the first quarter of 2012, as that quarter included positive non-recurring items and seasonally higher premium income from Japan COLI. The Corporate Line results represent the internally reinsured Japanese SPVA guarantees and related hedges.

ING Group’s net profit per share was EUR 0.31 based on an average number of shares of 3,791 million over the second quarter. The Group’s underlying net return on IFRS-EU equity was 6.6% for the first six months of 2012.

2 ING GROUP PRESS RELEASE 2Q2012

BANKING

Banking key figures


	2Q2012			2Q2011			Change			1Q2012			Change			1H2012			1H2011			Change
Profit and loss data (in EUR million)
Underlying interest result		2,953			3,054			-3.3	%		3,052			-3.2	%		6,005			6,145			-2.3	%
Underlying income		3,689			3,663			0.7	%		3,801			-2.9	%		7,490			7,700			-2.7	%
Underlying operating expenses		2,154			2,214			-2.7	%		2,235			-3.6	%		4,388			4,476			-2.0	%
Underlying addition to loan loss provision		541			304			78.0	%		441			22.7	%		982			546			79.9	%
Underlying result before tax		995			1,145			-13.1	%		1,126			-11.6	%		2,120			2,678			-20.8	%
Key figures
Underlying interest margin		1.26	%		1.38	%					1.32	%					1.29	%		1.39	%
Underlying cost/income ratio		58.4	%		60.4	%					58.8	%					58.6	%		58.1	%
Underlying risk costs in bp of average RWA		72			43						59						65			39
Risk-weighted assets (end of period, in EUR billion, adjusted for divestm.)											300			1.3	%		303			281			8.1	%
Underlying return on equity based on IFRS equity¹		7.9	%		10.5	%					8.6	%					8.2	%		11.5	%
Underlying return on equity based on 10% core Tier 1²		9.7	%		12.7	%					10.4	%					10.0	%		14.1	%

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

²	Annualised underlying, after-tax return divided by average equity based on 10% core Tier 1 ratio.

Results from ING Bank held up well in the second quarter, despite a marked deterioration in risk costs as the macroeconomic climate weakened, as well as an increase in de-risking losses as ING reduced exposure to southern European debt. The underlying result before tax decreased to EUR 995 million, down 13.1% from one year ago and 11.6% lower than in the previous quarter. Retail deposit growth remained strong with a quarterly net production of EUR 4.3 billion. However, although retail deposit inflows were strong and client savings rates were reduced, the Bank’s interest result declined 3.2% on the first quarter. This was mainly due to margin pressure on savings stemming from lower yields on investments as well as lower interest results from Financial Markets. Expenses declined for the second consecutive quarter, both sequentially and year-on-year, supported by strong cost control.

UNDERLYING RESULT BEFORE TAX (in EUR million)

LOGO

Total underlying income was flat versus a year ago, despite EUR 178 million of realised losses from de-risking, mainly related to the sale of EUR 2.1 billion of Spanish debt securities, as well as EUR 16 million of impairments. The second quarter of 2011 included EUR 44 million of de-risking losses, and EUR 202 million of impairments, mainly on Greek government bonds. Income declined 2.9% on a sequential basis. Income in the first quarter of 2012 was heavily impacted by EUR 304 million of negative impacts from CVA/DVA adjustments and fair value changes on own Tier 2 debt. The magnitude of these impacts was less severe in the second quarter. Excluding these and other market-related impacts in both the first and the second

quarters of 2012, income was 6.2% lower quarter-on-quarter, primarily due to pressure on the interest margin.

INTEREST RESULT (in EUR million) AND INTEREST MARGIN (in %)

LOGO

The underlying interest result declined 3.3% from a year ago and 3.2% from the previous quarter. The interest result for lending activities improved versus both quarters, supported by moderate volume growth and repricing. In savings, ING continued to attract strong retail deposit inflows. Although competition for savings did ease somewhat, and client rates were reduced in several countries, the interest result on savings was impacted by lower returns in the investment portfolio due to lower interest rates and de-risking. The Bank’s second-quarter underlying interest margin was 1.26%, down from 1.32% in the first quarter of 2012. This was primarily due to the aforementioned factors, lower interest results from Financial Markets as well as a higher level of average balance sheet assets during the quarter, as reductions in short-term professional funding were largely realised at quarter-end.

ING continued to optimise its balance sheet by leveraging the strength of its retail deposit-gathering capabilities and by increasing lending without growing the total balance sheet. Retail Banking generated EUR 4.3 billion of net funds entrusted inflow, of which EUR 2.6 billion was in the Netherlands and EUR 1.9 billion in Germany. Funds entrusted at Commercial Banking declined by EUR 6.1 billion as short-term deposits were partly substituted with

ING GROUP PRESS RELEASE 2Q2012 3

longer-term CD/CPs. ING continued to grow its loan portfolio, even as the demand for loans remained muted in the current environment. The production of residential mortgages was EUR 3.1 billion, with increases in all regions. Commercial Banking lending showed a net decline of EUR 1.3 billion, particularly in Real Estate Finance, as ING takes a conservative approach to underwriting. That decline was partly offset by EUR 1.1 billion of net growth in other Retail Banking lending.

Consistent and strong cost control across the Bank supported the decline in underlying operating expenses, both sequentially and year-on-year, for the second consecutive quarter. Expenses were down 2.7% from one year ago, driven by ongoing cost containment, lower performance-related personnel expenses and a reimbursement from the old deposit guarantee scheme (DGS) in Belgium. These factors more than offset the impact of annual salary increases, inflation and higher bank levies. Compared with the first quarter of 2012, expenses declined 3.6%. This decrease was mainly due to lower performance-related personnel expenses (stemming from the new Dutch collective labour agreement which was announced on 28 June 2012) and the DGS reimbursement in Belgium, and despite higher marketing costs. The underlying cost/income ratio improved to 58.4% in the quarter, and was 56.2% excluding market impacts and CVA/DVA adjustments.

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

LOGO

The further deterioration in the macroeconomic environment had a clear impact on second-quarter risk costs, which increased 22.7% from the first quarter of 2012 and 78.0% from the second quarter of 2011. The increase versus the first quarter of this year was driven by Industry Lending in Commercial Banking, primarily within commercial real estate, and higher additions for Dutch mortgages reflecting lower house prices in the Netherlands. Non-performing loans in the total Dutch mortgage portfolio remained stable at 1.2%. Second-quarter risk costs were lower in Retail Belgium and in Retail International on a sequential basis; the latter included a provision for a CMBS in the first quarter of 2012. Total second-quarter risk costs at ING Bank were 72 basis points of average risk-weighted assets. ING expects risk costs to

remain elevated, reflecting the weakening of the economic climate.

Results from Retail Banking were solid in the second quarter despite elevated risk costs. The underlying result before tax declined 9.0% versus last year to EUR 504 million, almost fully attributable to higher risk costs. The result was down 18.3% on the previous quarter as de-risking efforts were accelerated amid the eurozone crisis, resulting in EUR 172 million of losses. Despite some easing in the competition for savings, the interest result remained under pressure, reflecting the impact of the low interest rate environment and de-risking in the investment portfolio. Operating expenses decreased on both comparable quarters.

Commercial Banking results were impacted by an increase in loan loss provisions, particularly in Real Estate Finance due to the continued weakening of commercial real estate markets in the second quarter. This led to a decline in underlying results before tax to EUR 420 million, down 33.4% from the second quarter of 2011 and 31.3% compared with the first quarter of 2012. The gross result, before risk costs, held up well, declining 5.0% year-on-year and 10.2% from the first quarter, as cost reductions partially offset a decline in income.

The underlying result before tax of Corporate Line Banking improved to a profit of EUR 71 million compared to a loss of EUR 40 million in the second quarter of 2011. The improvement was mainly due to three factors: positive fair value changes on part of ING Bank’s own Tier 2 debt due to a widening in ING’s credit spread, lower financing charges, and higher income on capital surplus.

ING Bank’s quarterly net result was EUR 884 million. Special items after tax were positive at EUR 169 million and primarily reflect the EUR 218 million favourable impact of a provision release following the announcement on 3 July 2012 of the new Dutch pension scheme. Other special items amounted to EUR -49 million after tax and mainly related to restructuring expenses in the Netherlands, costs related to the separation of Bank and Insurance and EUR 16 million of additional after-tax charges following the final settlement with US authorities concerning transactions subject to sanctions by the US.

The year-to-date underlying return on IFRS-EU equity decreased to 8.2% from 11.5% in the first half of 2011. The decline reflects a higher equity base as well as the impact of lower earnings that were primarily due to pressure on the interest margin and elevated levels of risk costs that exceed through-the-cycle norms. The Ambition 2015 target for return on IFRS-EU equity is 10-13%.

4 ING GROUP PRESS RELEASE 2Q2012

INSURANCE

Insurance key figures


	2Q2012			2Q2011			Change			1Q2012			Change			1H2012			1H2011			Change
Margin analysis (in EUR million)
Investment margin		475			455			4.4	%		425			11.8	%		900			811			11.0	%
Fees and premium-based revenues		765			777			-1.5	%		790			-3.2	%		1,554			1,577			-1.5	%
Technical margin		92			222			-58.6	%		82			12.2	%		175			371			-52.8	%
Income non-modelled life business		6			9			-33.3	%		4			50.0	%		11			22			-50.0	%

Life & ING IM operating income		1,338			1,463			-8.5	%		1,301			2.8	%		2,639			2,781			-5.1	%

Administrative expenses		625			576			8.5	%		633			-1.3	%		1,258			1,148			9.6	%
DAC amortisation and trail commissions		318			288			10.4	%		324			-1.9	%		642			589			9.0	%

Life & ING IM operating expenses		943			864			9.1	%		957			-1.5	%		1,900			1,737			9.4	%

Life & ING IM operating result		395			599			-34.1	%		344			14.8	%		739			1,044			-29.2	%

Non-life operating result		31			67			-53.7	%		7			342.9	%		39			108			-63.9	%
Corporate line operating result		-122			-100						-94						-216			-234

Operating result		304			565			-46.2	%		258			17.8	%		562			918			-38.8	%

Non-operating items		-75			-93						-491						-566			-199

Underlying result before tax		229			472			-51.5	%		-234						-4			719			-100.6	%

Key figures
Administrative expenses / operating income (Life & ING IM)		46.7	%		39.4	%					48.7	%					47.7	%		41.3	%
Life general account invested assets (end of period, in EUR billion)											131			3.8	%		136			125			8.8	%
Investment margin / life general account invested assets¹(in bps)		133			119						134
ING IM Assets under Management (end of period, in EUR billion)											284			3.2	%		293			263			11.4	%
Underlying return on equity based on IFRS-EU equity²		5.4	%		8.1	%					-3.5	%					1.1	%		5.5	%

¹	Four-quarter rolling average

²	Annualised underlying net result divided by average IFRS-EU equity

ING Insurance continued to focus on protecting regulatory capital amid the volatile financial markets in the second quarter. Results increased sequentially on both an operating and an underlying basis, despite the challenging environment. The Insurance operating result rose 17.8% from the first quarter, as seasonally higher dividend income and growth in general account assets pushed the investment margin higher. Compared with a year ago, operating results were down 46.2%, due in part to positive non-recurring items in the investment and technical margins last year, as well as pressure on Non-life results in the Benelux. Underlying results before tax were EUR 229 million, supported by positive results on regulatory capital hedges in the US Closed Block VA.

OPERATING RESULT (in EUR million)

LOGO

The operating result from Life Insurance and Investment Management jumped 14.8% from the previous quarter to EUR 395 million, primarily fuelled by a higher investment margin. The operating result was 34.1% lower year-on-year, mainly due to positive non-recurring items in both the technical and investment margins in the Benelux in the second quarter of 2011, as well as lower results from the US Closed Block VA in the current quarter.

The investment margin was EUR 475 million, up 9.5% from the first quarter but down 2.1% versus the second quarter of last year, excluding currency effects. The sequential increase was driven by seasonally higher dividends in the Benelux, and growth in general account assets and lower average crediting rates in the US. The investment margin was lower year-on-year, as the second quarter of 2011 included EUR 28 million of positive one-time items that lifted the investment margin. The decline was also caused by the impact of de-risking measures taken in the Benelux in the second half of 2011, offset by the improvements in the US investment margin in the current quarter. The four-quarter rolling average investment spread was 133 basis points. The investment spread is expected to decline gradually in 2012, mainly reflecting on-going de-risking of the investment portfolio in the Benelux.

INVESTMENT MARGIN (in EUR million)

LOGO

Fees and premium-based revenues declined 1.5% from one year ago to EUR 765 million. Higher premium-based revenues in the current quarter in the US were more than offset by lower results in the US Closed Block VA, as well as lower fees in Central & Rest of Europe stemming from a

ING GROUP PRESS RELEASE 2Q2012 5

shift in product mix and pension fund regulatory changes in Poland and Hungary. Fees and premium-based revenues declined 3.2% sequentially as first-quarter sales in the Benelux were seasonally higher.

The technical margin declined to EUR 92 million from EUR 222 million in the second quarter of 2011, as that quarter included a EUR 70 million non-recurring item in the Benelux. Results in the current quarter also reflect the negative impact of the current low interest rate environment on the guarantee provisions for individual life insurance contracts in the Benelux, as well as a lower mortality result in Individual Life in the US. Compared with the previous quarter, the technical margin rose 12.2%, mainly due to an addition to guarantee provisions related to group life contracts in the Benelux in the first quarter.

Life & ING IM administrative expenses were up 8.5% from a year ago, but flat excluding currency effects. Second-quarter expenses reflect the continued focus on prudent cost containment in all regions and lower project costs related to the establishment of a regional IT organisation in Central & Rest of Europe. These positive factors were offset by higher expenses for Solvency II and the creation of NN Bank in the Benelux. Compared with the previous quarter, expenses were down 1.3%, or 3.1% excluding currency effects. This decline was caused by lower expenses in Central & Rest of Europe due to the annual financial institutions tax in Hungary, incurred in the first quarter.

LIFE INSURANCE AND INVESTMENT MANAGEMENT ADMINISTRATIVE EXPENSES (in EUR million), AND ADMINISTRATIVE EXPENSES / OPERATING INCOME RATIO (in %)

LOGO

The Non-life operating result declined to EUR 31 million from EUR 67 million one year ago. This decline was largely caused by continued unfavorable claims experience in Disability & Accident due to the effects of the Dutch economic downturn. On a sequential basis, the Non-life operating result increased by EUR 24 million, in part driven by non-recurring reserve releases in Property & Casualty.

The Corporate Line operating result was EUR -122 million compared with EUR -100 million in the second quarter of 2011. This decline was mainly due to lower results from Sul America and higher corporate expenses.

The underlying result before tax of Insurance was EUR 229 million, down from EUR 472 million one year ago, due to the lower operating result and despite a EUR 18 million

improvement in market-related items. The underlying result before tax improved from EUR -234 million in the first quarter of 2012 as that quarter included EUR 570 million of negative results on hedges to protect regulatory capital.

Gains/losses and impairments on investments were EUR -54 million, including EUR 45 million of impairments on equities and EUR 44 million of losses and impairments on debt securities, primarily from de-risking. Partially offsetting these impacts was EUR 43 million of capital gains on sales of public equities, mainly in the Benelux.

Revaluations were EUR 21 million and primarily reflect EUR 101 million of positive revaluations of CMO investments in the US and EUR 20 million positive revaluation result in Central & Rest of Europe driven by the unwinding of interest rate hedges. These items more than compensated for a EUR 73 million loss related to the agreement to sell a portfolio of limited partnership interests in the US and EUR -32 million of real estate revaluations in the Benelux.

Market and other impacts were EUR -42 million, including a EUR 46 million non-recurring pension curtailment charge in the US. Furthermore there was a EUR 258 million gain on hedges (net of reserve changes) in the US Closed Block VA as the hedge programme continues to focus on protecting regulatory capital rather than mitigating earnings volatility. This was offset by a EUR -241 million change in the provision for guarantees on separate account pension contracts (net of hedging) in the Benelux.

The quarterly net result for Insurance was EUR 288 million. This included a EUR 111 million net result from Asia Insurance and Investment Management, reported under discontinued operations, and EUR 188 million of net losses on divestments. The latter mainly consists of a EUR 180 million goodwill write-off for IIM Korea. Special items after tax were EUR 37 million and predominantly reflect a EUR 87 million favourable impact of a provision release following the new Dutch employee pension scheme, announced on 3 July 2012, which offset other costs related to restructuring programmes and separation expenses.

New sales (APE) were EUR 668 million, up 9.0% from one year ago. However, on a constant currency basis, sales were down 5.0% year-on-year. Sales in Central and Rest of Europe rose 8.8% as higher sales in the Czech Republic and Turkey more than compensated for lower sales in Poland and Hungary. At Insurance US, sales rose 1.1%, reflecting higher full service retirement plan, individual life and employee benefits sales. Sales in the Benelux declined 6.7%, due to lower sales from individual life products in the Netherlands. Compared with the previous quarter, total Insurance sales fell 17.7% at constant currencies, mainly attributable to seasonally higher sales in the Benelux and the US in the first quarter.

6 ING GROUP PRESS RELEASE 2Q2012

BALANCE SHEET AND CAPITAL MANAGEMENT


Balance Sheet and Capital Management key figures

	ING Group						ING Bank N.V.						ING Verzekeringen N.V.						Holdings/Eliminations
End of period, in EUR million	30 June 12			31 Mar. 12 pro forma¹			30 June 12			31 Mar. 12			30 June 12			31 Mar. 12 pro forma¹			30 June 12		31 Mar. 12 pro forma¹
Balance sheet data
Financial assets at fair value through P&L		244,584			239,079			136,833			132,261			107,990			107,012			-239		-194
Investments		205,318			195,058			88,795			86,278			116,523			108,780
Loans and advances to customers		610,204			603,696			586,093			581,022			28,242			27,744			-4,131		-5,070
Other assets		113,265			143,675			88,720			121,116			33,548			32,169			-9,002		-9,610

Total assets excl. assets held for sale		1,173,371			1,181,508			900,441			920,677			286,303			275,705			-13,372		-14,874

Assets held for sale		63,876			60,222									63,876			60,222

Total assets		1,237,248			1,241,729			900,441			920,677			350,179			335,927			-13,372		-14,874

Shareholders’ equity		50,514			47,616			36,629			35,307			25,165			23,531			-11,280		-11,222
Minority interests		927			831			745			729			158			84			24		18
Non-voting equity securities		3,000			3,000															3,000		3,000

Total equity		54,441			51,447			37,374			36,036			25,323			23,615			-8,256		-8,204

Debt securities in issue		157,926			163,968			149,196			155,035			1,547			3,425			7,183		5,508
Insurance and investment contracts		234,252			228,866									234,252			228,866
Customer deposits/other funds on deposit		472,916			474,533			483,377			485,481									-10,461		-10,948
Financial liabilities at fair value through P&L		136,341			138,798			133,030			136,013			3,762			3,134			-451		-349
Other liabilities		119,813			127,011			97,465			108,112			23,736			19,780			-1,388		-881

Total liabilities excl. liabilities held for sale		1,121,248			1,133,176			863,068			884,641			263,297			255,205			-5,117		-6,670

Liabilities held for sale		61,559			57,107									61,559			57,107

Total liabilities		1,182,807			1,190,283			863,068			884,641			324,856			312,312			-5,117		-6,670

Total equity and liabilities		1,237,248			1,241,729			900,441			920,677			350,179			335,927			-13,372		-14,874

Captal ratios (end of period)
ING Group debt/equity ratio		12.3	%		12.7	%
Bank core Tier 1 ratio								11.1	%		10.9	%
Insurance IGD Solvency ratio														240	%		225	%

¹	Adjusted for transfer of Insurance/IM Asia to assets/liabilities held for sale

ING Group’s balance sheet decreased by EUR 4 billion to EUR 1,237 billion in the second quarter. Excluding EUR 22 billion of positive currency impacts, the balance sheet decreased by EUR 26 billion. This was driven by optimisation at the Bank, which improved the liquidity portfolio, reduced leverage and brought the total Bank balance sheet back down to the targeted EUR 900 billion level. ING Bank cut CD/CP issuance after a strong inflow of short-term funding in the first quarter, and consequently reduced cash and balances with central banks by EUR 30 billion (reflected in other assets). Retail client deposits rose, and customer lending grew without realising total balance sheet growth.

Shareholders’ equity increased by EUR 2.9 billion to EUR 50.5 billion (or EUR 13.29 per share), mainly due to the quarterly net profit of EUR 1.2 billion, higher revaluation reserves, and positive exchange rate differences.

The Bank’s core Tier 1 ratio strengthened to 11.1% from 10.9% at 31 March 2012. Shareholders’ equity increased in the second quarter, driven by the quarterly net profit and currency changes. Risk-weighted assets increased by EUR 3.8 billion, largely due to currency impacts.

ING Bank issued EUR 3.6 billion of debt during the second quarter. In the six months ended June 2012, ING Bank has issued EUR 15.4 billion of debt with a tenor of more than one year compared to EUR 18 billion of long-term debt maturing during the full year 2012. In early July, ING Bank

capitalised on increased market optimism and issued an additional EUR 3.1 billion of long-term funding, bringing the year-to-date total issuance above EUR 18 billion.

The Insurance Group Directive (IGD) ratio increased from 225% to 240%. The increase was mainly due to retained earnings, currency effects, revaluations on fixed income and equity securities and the application of a different valuation curve to calculate the Test of Adequacy deficit/surplus for the Dutch entities following the Dutch Central Bank’s July 2012 announcement in anticipation of Solvency II. EU required capital rose primarily due to currency impacts.

ING US issued a USD 850 million senior note in July 2012, marking an important step towards its standalone future. ING US will use the proceeds for general corporate purposes, including the repayment of shorter-term debt.

The Group’s debt/equity ratio improved to 12.3% from 12.7% reflecting an increase in shareholders’ equity, while Group core debt was relatively stable.

ING’s policy is to pay dividends in relation to the long-term underlying development of cash earnings. Dividends will only be paid when the Executive Board considers such a dividend appropriate. Given the uncertain financial environment, increasing regulatory requirements and ING’s priority to repay the Dutch State, no interim dividend will be paid over the first six months of 2012.

ING GROUP PRESS RELEASE 2Q2012 7

BUSINESS AND SUSTAINABILITY HIGHLIGHTS

ING recognises and strives to proactively address the changing consumer preferences and societal demands faced by the financial industry. Strategic initiatives focused on customer centricity, operational excellence and sustainability are at the core of the Group strategy.

Focus on customer centricity

Customer satisfaction is high on ING’s agenda. The Net Promoter Score (NPS) is one methodology with which ING assesses customer loyalty and satisfaction. Since 2009, ING has been implementing NPS throughout the organisation to benchmark its businesses against local competitors.

The relationship NPS programme is active in all countries where ING Bank operates. By focusing on customers’ daily experience, and gathering feedback at critical moments of truth in the banking relationship, relationship NPS helps ING to identify opportunities to improve its products, processes and distribution channels. The most recent NPS data available for ING’s banking operations in Canada, France, Germany, Italy and Spain indicate that ING ranked first versus their respective local competitors. ING Bank in Austria, Belgium, the Netherlands, Poland and the UK each ranked second in their respective markets. ING Insurance is currently completing the implementation of a relationship NPS in all units; scores will be evaluated by country during the course of this year.

ING aims to be at the forefront of modern banking distribution as customer preferences and technology evolve. Customer behaviour and feedback have revealed that customers are more active than ever in using mobile and internet channels to conduct banking transactions, share opinions on these services, and interact with their financial institution. To address these trends, ING has deployed best practices across every ING retail unit to develop and/or improve its user-friendly and safe mobile banking capabilities. The result in the Netherlands, in particular, has been a great success with almost 1.5 million downloads, making it the most used banking app in the country. As of the second quarter of 2012, all ING retail units provide mobile banking capabilities to their customers.

Furthermore, ING has expanded its social media presence in its main markets, implementing monitoring tools and stepping up ING’s online interaction to bring the company closer to its customers. For example, ING Direct Canada recently launched a campaign called “Money Movement”, which aims to educate clients on saving and spending while engaging in a dialogue with them through all of the major social media platforms. Other business units have leveraged social media in similar campaigns. ING Direct Spain is one of the most advanced users of social media, reaching 100,000 fans on Facebook in May 2012.

ING in Society

Sustainability forms an integral part of ING’s corporate strategy. ING’s sustainability approach focuses on achieving long-term business success for both ING and its clients while contributing towards economic development, a healthy environment and a stable society. During the second quarter of 2012, ING made further progress in embedding sustainability into its overall corporate strategy and business activities.

Principles for Sustainable Insurance signed by ING

ING became a founding signatory of the UN Principles for Sustainable Insurance (UN PSI), which were launched on 19 June 2012 at the UN Conference on Sustainable Development. The Principles are a global, voluntary and aspirational framework for the industry, specifically focusing on the risks and opportunities associated with environmental, social and governance (ESG) issues.

First project finance in UK onshore wind farm

In April 2012, ING financed an onshore wind farm project in the UK for the first time, further diversifying its European Energy portfolio. ING acted as arranger, agent, security trustee, account bank and IRS/FX hedge provider in the EUR 24 million, 16.4 MW AES Yelvertoft wind project on behalf of AES Wind Generation. This financing contributes to the UK government’s objective to source 15% of the UK’s total energy needs from renewable sources by 2020.

Equator Principles Association Steering Committee

In May 2012, ING was elected as the new Chair of the Equator Principles (EPs) Steering Committee. Since adopting the EPs in 2003, ING has been a consistent contributor to their development and an active member of the Steering Committee and several working groups. ING participates in the industry debate on social risks, and prior to its appointment as Chair, ING led the Social Risks Working Group. In addition, ING is in dialogue with the OECD on the implications of the proposed OECD Guidelines for Multi-National Enterprises. One of the first tasks in the Chair role is leading the EP III Stakeholder Consultation and Public Comment process.

Showcasing the food industry and sustainability

In June, ING’s Economics Department published a report titled ‘Food 2030; Collaborating with a new mindset’, which explores the trends and challenges in the food industry. The various actors in the food supply chain are confronted with ongoing pressure for higher volumes at lower prices, as a result of which margins will continue to decrease. While environmental and public health issues are becoming increasingly important, the sector’s innovation potential is at stake and sustainable sourcing and processing are required. ING will continue to support companies that fulfill a frontrunner role in the transition process, both by servicing their financing needs and by using its industry knowledge to provide tailor-made advice.

8 ING GROUP PRESS RELEASE 2Q2012

APPENDIX 1 ING GROUP: CONSOLIDATED PROFIT AND LOSS ACCOUNT

ING Group: Consolidated profit and loss account


	Total Group¹				Total Banking				Total Insurance
in EUR million	2Q2012		2Q2011		2Q2012		2Q2011		2Q2012		2Q2011
Gross premium income		4,739		4,626						4,739		4,626
Interest result Banking operations		2,929		3,051		2,953		3,054
Commission income		916		955		569		589		346		367
Total investment & other income		2,772		1,722		167		21		2,620		1,815

Total underlying income		11,355		10,355		3,689		3,663		7,705		6,808

Underwriting expenditure		6,513		5,448						6,513		5,448
Staff expenses		1,777		1,750		1,285		1,324		492		426
Other expenses		1,149		1,183		813		848		335		336
Intangibles amortisation and impairments		56		42		56		42

Operating expenses		2,981		2,976		2,154		2,214		827		762
Interest expenses Insurance operations		87		6						127		123
Addition to loan loss provisions		541		304		541		304
Other		8		3						8		3

Total underlying expenditure		10,131		8,738		2,695		2,518		7,475		6,336

Underlying result before tax		1,224		1,617		995		1,145		229		472

Taxation		162		333		261		253		-99		80
Minority interests		17		12		20		11		-2		1

Underlying net result		1,045		1,271		714		881		331		390

Net gains/losses on divestments		-188		25				25		-188
Net result from divested units		-3		105				106		-3		-1
Net result from discontinued operations²		111		215						111		215
Special items after tax		206		-109		169		-52		37		-57

Net result		1,171		1,507		884		960		288		547

¹	Including intercompany eliminations

²	The results of Insurance/IM Asia (2012 and 2011 periods) and Insurance Latin America (2011 periods) have been transferred to “net result from discontinued operations”.

ING GROUP PRESS RELEASE 2Q2012 9

APPENDIX 2 ING GROUP: CONSOLIDATED BALANCE SHEET

ING Group: Consolidated balance sheet


	ING Group						ING Bank N.V.				ING Verzekeringen N.V.						Holdings/Eliminations
in EUR million	30 June 2012		31 March 2012 pro forma¹		31 March 2012		30 June 2012		31 March 2012		30 June 2012		31 March 2012 pro forma¹		31 March 2012		30 June 2012		31 March 2012 pro forma¹		31 March 2012
Assets
Cash and balances with central banks		16,181		45,055		46,587		13,990		43,894		11,162		10,640		12,172		-8,971		-9,479		-9,479
Amounts due from banks		47,395		50,441		50,441		47,395		50,441
Financial assets at fair value through P&L		244,584		239,079		262,863		136,833		132,261		107,990		107,012		130,796		-239		-194		-194
Investments		205,318		195,058		219,148		88,795		86,278		116,523		108,780		132,870
Loans and advances to customers		610,204		603,696		606,032		586,093		581,022		28,242		27,744		30,080		-4,132		-5,070		-5,070
Reinsurance contracts		5,679		5,554		5,632						5,679		5,554		5,632
Investments in associates		2,255		2,018		2,330		849		835		1,375		1,166		1,477		31		17		17
Real estate investments		1,342		1,358		1,443		253		264		813		816		902		276		278		278
Property and equipment		2,746		2,774		2,840		2,361		2,398		386		376		442
Intangible assets		2,929		2,937		3,550		1,843		1,765		1,251		1,337		1,950		-165		-165		-165
Deferred acquisition costs		4,670		4,617		10,054						4,670		4,617		10,054
Other assets		30,069		28,920		30,809		22,030		21,519		8,212		7,663		9,552		-173		-262		-262

Total assets excl. assets held for sale		1,173,371		1,181,508		1,241,729		900,441		920,677		286,303		275,705		335,927		-13,372		-14,874		-14,874
Assets held for sale		63,876		60,222								63,876		60,222

Total assets		1,237,248		1,241,729		1,241,729		900,441		920,677		350,179		335,927		335,927		-13,372		-14,874		-14,874

Equity
Shareholders’ equity		50,514		47,616		47,616		36,629		35,307		25,165		23,531		23,531		-11,280		-11,222		-11,222
Minority interests		927		831		831		745		729		158		84		84		24		18		18
Non-voting equity securities		3,000		3,000		3,000												3,000		3,000		3,000

Total equity		54,441		51,447		51,447		37,374		36,036		25,323		23,615		23,615		-8,256		-8,204		-8,204

Liabilities
Subordinated loans		9,089		8,686		8,687		17,108		16,473		4,286		4,173		4,173		-12,305		-11,960		-11,960
Debt securities in issue		157,926		163,968		163,968		149,196		155,035		1,547		3,425		3,425		7,183		5,508		5,508
Other borrowed funds		19,560		17,405		17,727						8,877		6,527		6,849		10,683		10,878		10,878
Insurance and investment contracts		234,252		228,866		281,554						234,252		228,866		281,554
Amounts due to banks		58,874		69,317		69,317		58,873		69,317
Customer deposits and other funds on deposits		472,916		474,533		474,533		483,377		485,481								-10,460		-10,948		-10,948
Financial liabilities at fair value through P&L		136,341		138,798		140,190		133,030		136,013		3,762		3,134		4,526		-450		-349		-349
Other liabilities		32,290		31,604		34,307		21,484		22,323		10,571		9,080		11,785		235		201		201

Total liabilities excl. liabilities held for sale		1,121,248		1,133,176		1,190,282		863,068		884,641		263,297		255,205		312,312		-5,115		-6,669		-6,669

Liabilities held for sale		61,559		57,107								61,559		57,107

Total liabilities		1,182,807		1,190,283		1,190,282		863,068		884,641		324,856		312,312		312,312		-5,115		-6,669		-6,669

Total equity and liabilities		1,237,248		1,241,729		1,241,729		900,441		920,677		350,179		335,927		335,927		-13,372		-14,874		-14,874

¹	Adjusted for transfer of Insurance/IM Asia to assets/liabilities held for sale

ING GROUP PRESS RELEASE 2Q2012 10

APPENDIX 3 RETAIL BANKING: CONSOLIDATED PROFIT AND LOSS ACCOUNT

Retail Banking: Consolidated profit and loss account


							Retail Banking Benelux												Retail International
	Total Retail Banking						Netherlands						Belgium						Germany						Rest of World
in EUR million	2Q2012			2Q2011			2Q2012			2Q2011			2Q2012			2Q2011			2Q2012			2Q2011			2Q2012			2Q2011
Interest result		2,077			2,141			844			893			431			391			284			329			517			527
Commission income		308			301			128			110			86			82			20			27			74			81
Investment income		27			-170			2			4			0			-7			-8			-57			33			-110
Other income		-110			36			0			6			25			37			-8			6			-127			-13

Total underlying income		2,302			2,307			974			1,013			543			504			287			306			498			485

Staff and other expenses		1,532			1,551			576			597			324			351			162			158			469			445
Intangibles amortisation and impairments		4			2			4			1			0			0			0			0			0			0

Operating expenses		1,536			1,553			581			598			324			351			162			158			469			445

Gross result		766			755			394			415			219			153			124			147			29			40

Addition to loan loss provision		262			200			161			90			28			50			25			21			49			40

Underlying result before tax		504			554			233			325			191			103			100			126			-20			0

Client balances (in EUR billion)¹
Residential mortgages		312.0			293.3			142.5			141.3			29.8			27.2			58.2			53.7			81.5			71.1
Other lending		95.3			90.1			41.1			42.2			32.7			29.3			3.6			3.1			17.9			15.5
Funds entrusted		406.3			383.9			113.8			105.3			73.8			72.0			91.9			86.6			126.8			119.9
AuM/Mutual funds		53.8			57.2			15.3			16.3			25.5			27.1			5.9			6.2			7.1			7.5
Profitability and efficiency¹
Cost/income ratio		66.7	%		67.3	%		59.6	%		59.1	%		59.7	%		69.6	%		56.6	%		51.8	%		94.2	%		91.8	%
Return on equity based on 10.0% core Tier 1²		9.5	%		11.9	%		14.3	%		19.6	%		27.6	%		16.7	%		12.2	%		18.1	%		-1.7	%		1.5	%
Risk¹
Risk costs in bp of average RWA		70			56			129			72			55			109			45			42			33			28
Risk-weighted assets (end of period)		152,954			144,043			50,579			49,044			20,403			18,551			21,863			20,000			60,110			56,448

¹	Key figures based on underlying figures

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

ING GROUP PRESS RELEASE 2Q2012 11

APPENDIX 4 COMMERCIAL BANKING: CONSOLIDATED PROFIT AND LOSS ACCOUNT

Commercial Banking: Consolidated profit and loss account


	Total Commercial Banking						Industry Lending						General Lending & Transaction Services						Financial Markets						Bank Treasury, Real Estate & Other
in EUR million	2Q2012			2Q2011			2Q2012			2Q2011			2Q2012			2Q2011			2Q2012			2Q2011			2Q2012			2Q2011
Interest result		853			933			390			401			293			278			125			138			46			116
Commission income		258			291			132			148			90			84			41			54			-4			5
Investment income		21			-12			7			4			9			0			-2			-14			7			-1
Other income		157			142			-18			-32			9			7			132			144			34			22

Total underlying income		1,290			1,353			511			522			401			368			296			321			82			142

Staff and other expenses		547			585			108			112			188			185			213			228			39			60
Intangibles amortisation and impairments		44			33			0			0			0			0			0			0			44			33

Operating expenses		592			619			108			112			188			185			213			228			83			93

Gross result		698			735			404			410			213			183			83			92			-1			49

Addition to loan loss provision		278			104			223			75			21			19			0			0			34			10

Underlying result before tax		420			631			181			335			192			164			83			93			-35			39

Client balances (in EUR billion)¹
Residential mortgages
Other lending		137.2			139.8			77.3			76.1			49.2			52.6			2.3			3.3			8.5			7.8
Funds entrusted		58.0			57.8			1.5			2.1			32.9			35.0			3.1			3.6			20.4			17.1
AuM/Mutual funds		0.2			0.3			0.0			0.0			0.0			0.0			0.0			0.0			0.2			0.3
Profitability and efficiency¹
Cost/income ratio		45.9	%		45.7	%		21.1	%		21.4	%		46.9	%		50.3	%		72.0	%		71.2	%		101.2	%		65.5	%
Return on equity based on 10.0% core Tier 1²		9.4	%		15.0	%		13.8	%		22.1	%		12.7	%		9.6	%		7.7	%		10.0	%		-12.2	%		20.3	%
Risk¹
Risk costs in bp of average RWA		82			31			204			67			19			16			0			0			105			28
Risk-weighted assets (end of period)		134,647			132,332			43,399			43,926			44,719			48,449			33,402			25,833			13,127			14,123

¹	Key figures based on underlying figures

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

ING GROUP PRESS RELEASE 2Q2012 12

APPENDIX 5 INSURANCE: MARGIN ANALYSIS AND KEY FIGURES

Insurance: Margin analysis and key figures


	ING Insurance						Benelux						Central & Rest of Europe						United States						US Closed Block VA						ING IM						Corporate Line
In EUR million	2Q2012			2Q2011			2Q2012			2Q2011			2Q2012			2Q2011			2Q2012			2Q2011			2Q2012			2Q2011			2Q2012			2Q2011			2Q2012		2Q2011
Investment margin		475			455			180			216			15			20			283			213			-4			7			1			-0
Fees and premium-based revenues		765			777			143			141			103			124			298			260			24			61			196			191
Technical margin		92			222			56			145			43			48			-8			23			0			6			—			—
Income non-modelled life business		6			9			1			8			5			1			0			-0			0			-0			-0			0

Life & ING IM operating income		1,338			1,463			381			509			166			192			573			496			21			74			197			191

Administrative expenses		625			576			153			142			68			75			222			193			27			20			155			146
DAC amortisation and trail commissions		318			288			44			49			54			52			183			149			37			38			1			1

Life & ING IM expenses		943			864			197			191			122			127			405			342			64			58			156			147

Life & ING IM operating result		395			599			184			318			44			66			168			154			-43			17			42			44

Non-life operating result		31			67			29			66			2			1			—			—			—			—			—			—
Corporate Line operating result		-122			-100																																	-122		-100

Operating result		304			565			212			384			47			67			168			154			-43			17			42			44			-122		-100

Gains/losses and impairments		-54			-116			-50			0			-13			-109			6			-6			0			-5			0			0			3		3
Revaluations		21			106			-44			7			20			—			41			119			1			0			10			7			-8		-28
Market & other impacts		-42			-83			-229			-109			—			—			-70			-22			258			49			—			—			-0		-0

Underlying result before tax		229			472			-111			282			53			-42			145			244			216			61			53			52			-127		-125

Life Insurance—New business figures
Single premiums		2,555			2,647			426			486			146			198			1,983			1,962			—			—			—			—			—		—
Annual premiums		412			348			69			70			72			63			271			215			—			—			—			—			—		—
New sales (APE)		668			613			111			119			87			83			469			411			—			—			—			—			—		—
Key figures
Gross premium income		4,739			4,626			1,305			1,477			453			527			2,925			2,570			114			110			—			—			-59		-58
Adm. expenses / operating income (Life & ING IM)		46.7	%		39.4	%		40.2	%		27.9	%		41.0	%		39.1	%		38.7	%		38.9	%		128.6	%		27.0	%		78.7	%		76.4	%
Life general account invested assets (end of period, in EUR billion)		136			125			60			58			7			8			64			55			5			4			—			—			—		—
Investment margin / Life general account invested assets (in bps)¹		133			119			111			97			90			98			169			149			32			55			—			—
Provision for life insurance & investm. contracts for risk policyholder (end of period)		99,525			113,947	²		22,113			21,813			3,583			3,806			40,716			34,944			33,113			32,156			—			—			—		—
Net production client balances (in EUR billion)		-2.6			-0.9			-0.6			0.1			0.1			-1.7			-0.1			-0.1			-0.6			-0.7			-1.4			1.7			—		—
Client balances (end of period, in EUR billion)		347.7			308.5			70.7			70.4			27.0			27.9			103.7			90.0			34.0			32.9			112.4			87.4			—		—
Administrative expenses (total)		730			715			248			242			69			76			222			193			27			20			155			146			9		37

¹	Four-quarter rolling average

²	2Q2011 includes EUR 21,227 million for Asia/Pacific

ING GROUP PRESS RELEASE 2Q2012 13

ENQUIRIES


Investor enquiries		Press enquiries
T: +31 20 576 6396		T: +31 20 576 5000
E: investor.relations@ing.com		E: media.relations@ing.com

Investor conference call, press conference and webcast

Jan Hommen, Patrick Flynn, Wilfred Nagel and Matt Rider will discuss the results in an analyst and investor conference call on 8 August 2012 at 9:00 CET. Members of the investment community can join the conference call at +31 20 794 8500 (NL), +44 207 190 1537 (UK) or +1 480 629 9031 (US) and via live audio webcast at www.ing.com.

A press conference will be held on 8 Augustus 2012 at 11:00 CET. Journalists are invited to join the conference at ING Amsterdamse Poort, Bijlmerplein 888, Amsterdam. Journalists can also join in listen-only mode at +31 10 29 44 228 (NL) or + 44 203 365 3207(UK) and via live audio webcast at www.ing.com.

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

•

ING Group Quarterly Report

•

ING Group Statistical Supplement

•

ING Group Historical Trend Data

•

ING Group Analyst Presentation

•

ING Group Condensed consolidated interim financial information for the period ended 30 June 2012

•

ING Bank Condensed consolidated interim financial information for the period ended 30 June 2012

•

ING Insurance Condensed consolidated interim financial information for the period ended 30 June 2012

DISCLAIMER

ING Group’s Annual Accounts are prepared in accordance with International Financial Reporting Standards as adopted by the European Union (‘IFRS-EU’).

In preparing the financial information in this document, the same accounting principles are applied as in the 2011 ING Group Annual Accounts. All figures in this document are unaudited. Small differences are possible in the tables due to rounding.

Certain of the statements contained herein are not historical facts, including, without limitation, certain statements made of future expectations and other forward-looking statements that are based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Actual results, performance or events may differ materially from those in such statements due to, without limitation: (1) changes in general economic conditions, in particular economic conditions in ING’s core markets, (2) changes in performance of financial markets, including developing markets, (3) consequences of a potential (partial) break-up of the euro, (4) the implementation of ING’s restructuring plan to separate banking and insurance operations, (5) changes in the

availability of, and costs associated with, sources of liquidity such as interbank funding, as well as conditions in the credit markets generally, including changes in borrower and counterparty creditworthiness, (6) the frequency and severity of insured loss events, (7) changes affecting mortality and morbidity levels and trends, (8) changes affecting persistency levels, (9) changes affecting interest rate levels, (10) changes affecting currency exchange rates, (11) changes in investor, customer and policyholder behaviour, (12) changes in general competitive factors, (13) changes in laws and regulations, (14) changes in the policies of governments and/or regulatory authorities, (15) conclusions with regard to purchase accounting assumptions and methodologies, (16) changes in ownership that could affect the future availability to us of net operating loss, net capital and built-in loss carry forwards, (17) changes in credit-ratings, (18) ING’s ability to achieve projected operational synergies and (19) the other risks and uncertainties detailed in the Risk Factors section contained in the most recent annual report of ING Groep N.V. Any forward-looking statements made by or on behalf of ING speak only as of the date they are made, and, ING assumes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information or for any other reason. This document does not constitute an offer to sell, or a solicitation of an offer to buy, any securities.

Notes from the front page table:

¹	The results of Insurance/IM Asia (2012 and 2011 periods) and Insurance Latin America (2011 periods) have been transferred to “net result from discontinued operations”.

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

³	Four-quarter rolling average.

⁴	Annualised underlying net result divided by average IFRS-EU equity.

Note: Underlying figures are non-GAAP measures and are derived from figures according to IFRS-EU by excluding impact from divestments and special items.

14 ING GROUP PRESS RELEASE 2Q2012

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


ING Groep N.V. (Registrant)

By:		/s/ H. van Barneveld
		H.van Barneveld
		General Manager Group Finance & Control


By:		/s/ C. Blokbergen
		C. Blokbergen
		Head Legal Department

Dated: August 8, 2012