SOURCE: ING Group

February 20, 2008 01:07 ET

ING's 4Q results show strength in challenging environment

AMSTERDAM, NETHERLANDS--(Marketwire - February 20, 2008) -



  * 4th-Quarter underlying net profit up 23.9% to EUR 2,617 million,
    supported by gains on equities

       * Underlying profit supported by EUR 1,028 million of gains on
         ABN Amro and Numico shares in 4Q
       * Net profit increases 18.1% to EUR 2,482 million, or EUR 1.18
         per share

  * Full-year underlying net profit increases 19.4% to EUR 9,172
    million

       * Net profit rises 20.1% to EUR 9,241 million, or EUR 4.32 per
         share
       * Annual dividend proposed at EUR 1.48 per share, an increase
         of 12% from 2006

  * Business profile and risk management shield ING from direct
    impact of credit and liquidity crisis

       * EUR 194 million pre-tax losses through P&L on subprime and
         related issues in 4Q
       * No impairments on Alt-A RMBS, reflecting high intrinsic
         credit quality of ING's portfolio
       * EUR 751 million negative revaluations on subprime, Alt-A,
         CDOs through shareholders' equity in 4Q
       * Capital position remains strong with ratios well within
         targets
       * Tier-1 ratio to increase to 9.9% under Basel II as of 1
         January 2008

  * ING shows robust commercial growth, despite more challenging
    environment

       * New life insurance sales up 26.8% in 4Q, driven by Central
         Europe, Asia, the US and Latin America
       * Volumes in banking continue to grow, with loans and advances
         to customers up EUR 24.5 billion in 4Q
       * Embedded value of the life business up 17.1% in 2007 to EUR
         32,460 million on new business contribution

Chairman's Statement

"In 2007 we continued to deliver on our strategic priorities without distraction from the market turmoil," said Michel Tilmant, Chairman of ING. "We made significant investments to grow organically, we acquired new platforms for growth in developing markets, such as Oyak Bank in Turkey, and we expanded our pension franchise in Latin America. We also embarked on initiatives to improve efficiency, including the transformation of our Retail Banking businesses in the Benelux."

"Our business profile and solid risk management have helped shield ING from the direct impact of the credit and liquidity crisis. Impairments, markdowns and trading losses through the P&L were limited to EUR 194 million before tax in the fourth quarter. There were no impairments on our Alt-A mortgage-backed securities, reflecting the high intrinsic credit quality of the portfolio. Market circumstances led to negative revaluations of EUR 751 million before tax on subprime and Alt-A RMBS and CDOs through shareholders' equity in the fourth quarter. ING's exposure to the riskiest assets is limited, and the RMBS investments we selected have a high level of structural credit protection to absorb significant losses as the US housing crisis deepens."

"As the economic uncertainty and market volatility have increased, the operating environment has become more challenging. Lower equity markets and revaluations of real estate and private equity have increased volatility in underlying earnings.ING continued to deliver strong commercial growth, as the fundamentals of our business are solid. New life sales increased 26.8% in the fourth quarter, driven by Central Europe, Asia/Pacific, Latin America and record sales of variable annuities in the US. Volumes in banking continued to grow, with loans and advances to customers up EUR 24.5 billion in the fourth quarter."

"ING's capital position is strong, particularly after the introduction of Basel II, and ING is entering 2008 in a position of strength. We have sharpened our strategic focus on banking, investments, life insurance and retirement services. We will continue to assess our business portfolio in the context of our ambition to provide retail customers with the products they need to grow savings, manage investments, and prepare for retirement. ING has ample room to fund organic expansion and add-on acquisitions, and we will continue to reinforce our franchise to drive commercial growth. Creating value for shareholders remains paramount, and ING has proven its committment to enhance shareholder returns through an attractive increase in dividends and the ongoing EUR 5.0 billion share buyback."

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

ING Group Q4 2007 results -- http://hugin.info/130668/R/1193341/241342.pdf

The following documents can be downloaded from around 07.30 am CET from the following links:

Analyst Presentation -- http://www.ing.com/cms/idc_cgi_isapi.dll?IdcService=GET_FILE&dDocName=306639_EN&RevisionSelectionMethod=latestReleased

Press Presentation -- http://www.ing.com/cms/idc_cgi_isapi.dll?IdcService=GET_FILE&dDocName=306645_EN&RevisionSelectionMethod=latestReleased

Quarterly Report -- http://www.ing.com/cms/idc_cgi_isapi.dll?IdcService=GET_FILE&dDocName=306655_EN&RevisionSelectionMethod=latestReleased

ING Group Statistical Supplement -- http://www.ing.com/cms/idc_cgi_isapi.dll?IdcService=GET_FILE&dDocName=306659_EN&RevisionSelectionMethod=latestReleased

US Statistical -- http://www.ing.com/cms/idc_cgi_isapi.dll?IdcService=GET_FILE&dDocName=306661_EN&RevisionSelectionMethod=latestReleased

Embedded Value Presentation -- http://www.ing.com/cms/idc_cgi_isapi.dll?IdcService=GET_FILE&dDocName=306663_EN&RevisionSelectionMethod=latestReleased

Embedded Value Report -- http://www.ing.com/cms/idc_cgi_isapi.dll?IdcService=GET_FILE&dDocName=306665_EN&RevisionSelectionMethod=latestReleased


Contacts

Media Relations:
T +31 20 541 5433

Investor Relations:
T +31 20 541 5571

Analyst Conference:
9:00 GMT / 10:00 CET

Press Conference:
11:30 GMT / 12:30 CET

Analyst Conference Call:
16:00 GMT / 17:00 CET / 11:00 EST
NL: +31 20 796 5332
UK: +44 20 8515 2303
US: +1 303 262 2138

Events:
20 February 2008
60 London Wall, London, UK
Video link from ING House Amsterdam
Webcast via www.ing.com


ING Group Q4 2007 results -- http://hugin.info/130668/R/1193341/241342.pdf



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