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

UNDERLYING NET RESULT - GROUP (in EUR million)

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

UNDERLYING RESULT BEFORE TAX - BANK (in EUR million)

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

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

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

OPERATING RESULT INSURANCE EURASIA (in EUR million)

Results at Insurance EurAsia showed significant improvement compared with the third quarter of last year, on both an operating and underlying basis. The third-quarter operating result was EUR 218 million, up 89.6% from one year ago. The improvement reflects a higher investment margin following the partial transfer of assets and liabilities from WestlandUtrecht Bank to NN Bank, lower expenses resulting from the transformation programme in the Benelux, improved results in the Non-life business and lower funding costs. The underlying result before tax rose to EUR 136 million from EUR 10 million one year ago. On a sequential basis, both the operating and underlying results of Insurance EurAsia declined, as the second quarter of 2013 included seasonally higher dividend income and a strong Non-life result.

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

ING Group’s third-quarter net profit was EUR 101 million compared with EUR 659 million in the third quarter of 2012 and EUR 788 million in the previous quarter. Losses on divestments in the third quarter were EUR -950 million, reflecting the estimated loss on the sale of ING Life Korea, which was announced in August 2013. Special items after tax totalled EUR -63 million and primarily related to costs for previously announced restructuring programmes in Bank and Insurance.

ING Group’s quarterly net profit included the net results from Insurance and Investment Management Asia and Insurance ING U.S., which are both recorded under net result from discontinued operations.

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

In light of ING’s intention to divest its remaining stake in ING U.S. over time, as of the third quarter 2013, ING U.S. is classified ed as held for sale and reported in ING Group’s IFRS financial statements under net results from discontinued operations.

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

NET RESULT PER SHARE (in EUR)

ING Group’s quarterly net profit per share was EUR 0.03 based on an average number of shares of 3,836 million over the third quarter. The Group’s underlying net return on IFRS-EU equity was 7.3% for the first nine months of 2013.

Changes 4Q2013 and 1Q2014

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

Changes in segmentation

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

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

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

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

Accounting for GMDB in Japan Closed Block VA

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

As at the end of the third quarter of 2013, the difference between the current book value and the estimated fair value of the GMDB reserves was approximately EUR 0.4 billion, but may change based on market developments and other factors at the time the move would be implemented. Implementation of fair value accounting for GMDB would represent a change in accounting policy under IFRS with a transitional impact being reflected only in shareholders’ equity as of 1 January 2014. Results for comparative periods would be restated accordingly.

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

NN Life separate account pension business

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

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

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

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

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

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

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

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

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

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

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

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

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

The underlying result before tax of Corporate Line Banking was a loss of EUR 2 million versus a profit of EUR 209 million last year, which contained a EUR 323 million gain on the sale of ING’s equity stake in Capital One. Excluding this gain, the result was up strongly, reflecting lower interest expenses on debt. The underlying pre-tax result in the second quarter of 2013 was EUR-50 million.

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

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

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

OPERATING RESULT INSURANCE EURASIA (in EUR million)

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

INVESTMENT MARGIN - EURASIA (in EUR million)

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

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

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

ADMINISTRATIVE EXPENSES - EURASIA (in EUR million)

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

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

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

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

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

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

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

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

ING Group

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

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

ING Bank

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

Insurance EurAsia

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

CAPITAL MANAGEMENT

Capital ratios ING Group

Capital ratios ING Bank

Capital ratios ING Insurance

ING Group

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

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

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

ING Bank

ING Bank’s core Tier 1 ratio improved further to 12.4% at the end of September 2013 from 11.8% at the end of June. The strong increase reflects a retained profit of EUR 0.8 billion and a reduction in risk-weighted assets (RWA). RWA declined mainly due to the sale and transfer of WUB loans as well as a sale of US Real Estate Finance loans and updates to models.

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

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

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

ING Insurance

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

Insurance ING U.S.

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

BUSINESS AND SUSTAINABILITY HIGHLIGHTS

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

Supporting small- and medium-sized enterprises

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

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

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

ING launches new insurance distribution model in Turkey

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

SRI Novethic Label for ING Investment Management

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

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

ING in Society

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

External reviews of ING’s sustainability performance

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

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