Operating conditions were persistently challenging during the third quarter due to weak economic fundamentals, the low interest rate environment and financial market volatility. Despite these circumstances, ING Group continued to execute its restructuring plan while focusing on the strategic priorities for the Bank and Insurance.

ING Group posted a third-quarter underlying net profit of EUR 719 million. ING Bank recorded a solid quarter, with underlying pre-tax results up both year-on-year and sequentially. The underlying result before tax of ING Insurance declined on both quarters, primarily due to negative results on hedges to protect regulatory capital.

The third-quarter underlying result before tax of ING Bank rose 16.3% from a year ago and 2.6% from the second quarter to EUR 1,021 million. Results in the current quarter included a EUR 323 million gain on the sale of ING’s equity stake in Capital One, which largely offset the EUR 258 million impact of losses from proactive de-risking as well as the EUR 173 million negative impact of credit valuation and debt valuation adjustments (CVA/DVA) in Commercial Banking and the Corporate Line. The underlying interest margin increased to 1.33% from 1.26% in the second quarter, driven by higher interest results and a lower average balance sheet level during the quarter. Expenses were stable year-on-year, supported by ongoing cost-containment initiatives; however, expenses rose on a sequential basis as the second quarter included favourable non-recurring items. Risk costs increased 2.6% from the second quarter, but were 59.5% higher than a year ago, reflecting the weakening macroeconomic environment.

ING Bank made further progress with its Ambition 2015 priorities, recording EUR 11.0 billion in net growth of funds entrusted. Retail Banking generated EUR 6.1 billion in net inflow of funds entrusted and Commercial Banking attracted EUR 4.9 billion. Total net lending declined by EUR 2.9 billion, reflecting muted demand and pricing discipline.

Results at ING Insurance declined due to pressure on the investment margin from de-risking measures and low interest rates, as well as from lower Non-Life results in the Benelux, due to higher disability claims. Operating results for Insurance fell 21.7% sequentially and 39.3% compared with a year ago. Insurance sales (APE) declined both year-on-year and sequentially, on a constant currency basis, primarily due to lower sales in the Benelux. The third-quarter underlying result before tax was EUR 44 million, reflecting losses on hedges as Insurance continued to focus on protecting regulatory capital. Results also included a EUR 104 million charge for US Closed Block VA related to lapse rate assumption refinements following an annual review of policyholder behaviour assumptions.

ING Group’s quarterly net profit, including divestments and special items, was EUR 609 million. The third-quarter underlying effective tax rate was 29.3%.

ING Group’s third-quarter after-tax special items totalled EUR -108 million and related mainly to restructuring programmes, and separation and IPO preparation costs. After-tax separation and IPO preparation costs were EUR 26 million in the quarter and EUR 108 million year-to-date, out of an estimated total of EUR 150 million for 2012.

Third-quarter net results also include EUR 198 million in net earnings from Insurance and ING IM Asia, which are reported under discontinued operations, and EUR 200 million of net losses on divestments. The latter primarily consists of a goodwill write-off for ING Life Korea.

Insurance/IM Asia was classified as held for sale as of June 2012. In October, ING agreed to sell its insurance operations in Malaysia, Hong Kong, Macau and Thailand and its 33.3% stake in China Merchants Fund. These divestments are expected to deliver net transaction gains of approximately EUR 1.9 billion in the first half of 2013. The process for the remaining units is ongoing.

ING continues to discuss various options for ING Life Japan, including its closed block VA business. However, the closing of sales of ING’s other Asian insurance units may trigger a charge to strengthen reserves for the Japanese closed block VA under ING’s reserve adequacy policy. ING measures reserve adequacy at business line level, where excess reserves in other Asian business units currently offset a shortfall related to the Japanese closed block VA. As transactions close, if the aggregate reserves for the remaining businesses fall below the 50% confidence level, the shortfall must be recognised immediately in the profit & loss account. The reserve inadequacy for the Japanese insurance business, including the VA guarantees reinsured to ING Re, was approximately EUR 0.5 billion at the 50% confidence level at 30 September 2012. This is comprised of an inadequacy of approximately EUR 1.1 billion for the closed block VA, offset by a sufficiency of EUR 0.6 billion for the corporate-owned life insurance business. The nature and timing of any P&L charge from such reserve inadequacy depends on the closing of other divestments in Asia as well as various options currently under investigation for ING Life Japan. Further announcements will be made if and when appropriate.

Following the announced divestments of ING Direct Canada and ING Direct UK in August and October, these units were transferred to held for sale in the third quarter. These two divestments are expected to yield net transaction gains totalling EUR 0.8 billion in the fourth quarter of 2012.

ING Bank posted solid third-quarter results as the gain on the sale of ING’s equity stake in Capital One largely offset losses from de-risking and the negative impact from credit valuation and debt valuation adjustments (CVA/DVA). The underlying result before tax rose to EUR 1,021 million, up 16.3% from the third quarter of 2011 and 2.6% higher than in the second quarter of this year. The underlying interest margin improved on a sequential basis to 1.33%. Expenses were stable compared with a year ago, reflecting ongoing cost-containment efforts. Risk costs increased versus both comparable periods reflecting the weak macroeconomic environment.

Total underlying income rose 10.5% versus a year ago, supported by the EUR 323 million gain on the sale of ING’s equity stake in Capital One. De-risking losses amounted to EUR 258 million as Retail Banking sold EUR 2.4 billion of European debt securities, leading to a EUR 5 billion risk-weighted assets release. Income also included EUR 173 million of negative impacts from CVA/DVA adjustments in Commercial Banking and the Corporate Line. Impairments were limited to EUR 10 million, whereas the third quarter of 2011 included EUR 311 million of impairments (mainly on Greek government bonds), EUR 58 million of de-risking losses and EUR 146 million of positive CVA/DVA adjustments. Total underlying income increased 3.4% from the second quarter of 2012, which included EUR 178 million of de-risking losses and EUR 52 million of positive CVA/DVA adjustments. Excluding the aforementioned items and other market-related impacts, income rose 6.5% on the same quarter a year ago and 3.2% quarter-on-quarter, primarily due to higher interest results.

The underlying interest margin rose to 1.33% from 1.26% in the second quarter, driven by both a higher interest result as well as a lower average balance sheet level during the quarter. The interest result rose 2.2% from a year ago and 3.6% sequentially, primarily due to strong interest results at Financial Markets. The interest result for lending activities improved versus both quarters, supported by moderate volume growth in mortgages and re-pricing. In savings, ING continued to attract strong retail deposit inflows. Although client rates were reduced in several countries, the interest result on savings declined due to lower returns from the investment portfolio, reflecting the low interest rate environment and the impact of de-risking.

ING Bank’s strong deposit-gathering capabilities generated EUR 11.0 billion in net funds entrusted growth during the quarter, demonstrating further progress on the Bank’s Ambition 2015 priorities. Retail Banking generated EUR 6.1 billion of net funds entrusted inflow, of which EUR 4.6 billion was in Retail International and EUR 1.5 billion in the Benelux. The net inflow of funds entrusted at Commercial Banking was EUR 4.9 billion, mainly due to higher current accounts and corporate deposits. Total net lending declined by EUR 2.9 billion reflecting muted demand and pricing discipline. Although net production of residential mortgages was EUR 2.7 billion, lending at Commercial Banking showed a net decline of EUR 5.3 billion, and Other Retail Banking lending decreased by EUR 0.4 billion.

ING Bank continued to place high priority on cost-containment measures throughout the third quarter. Operating expenses increased marginally by 0.5% from the previous year, as strong cost control offset the impact of annual salary increases, higher bank levies, a one-time additional Dutch tax on employee salaries and negative currency effects. Compared with the second quarter of 2012, which included a EUR 38 million reimbursement from the old deposit guarantee scheme in Belgium and lower performance-related expenses, expenses rose 3.9%. The underlying cost/income ratio was 58.7%, or 56.9% excluding market impacts and CVA/DVA adjustments.

The restructuring provision announced today is related to an extensive strategic review of Commercial Banking’s business portfolio, which was initiated earlier this year. Against the backdrop of increasing regulatory requirements and challenging operating conditions, ING has decided to accelerate the implementation of strategic adaptations including the run-off of certain leasing units, right-sizing the equities businesses, and further operational improvements in several businesses, including PCM. These measures, which are already being implemented, are expected to result in a reduction of the workforce by around 1,000 over a period of three years, for which an after-tax provision of approximately EUR 150 million is expected to be recorded as a special item in the fourth quarter of 2012. Cost savings corresponding to these actions are expected to reach an annual run-rate of approximately EUR 260 million by 2015. The review is ongoing and may lead to further changes in the future.

Weak economic and business fundamentals continued to contribute to elevated levels of risk costs in the third quarter. Although the net addition to the provision for loan losses rose only 2.6% to EUR 555 million from the second quarter of 2012, it increased 59.5% year-on-year. The modest increase compared with the second quarter was mainly attributable to Retail Benelux, particularly the midcorporate and SME segments, and by Retail International due to further provisioning for a CMBS position. Risk costs for the Dutch mortgage portfolio were modestly lower quarter-on-quarter, despite a slight increase of

non-performing loans to 1.3%. Commercial Banking’s risk costs declined on a sequential basis, but remained elevated, notably in Real Estate Finance. Total third-quarter risk costs at ING Bank were 75 basis points of average risk-weighted assets. ING expects risk costs to remain elevated, reflecting the weakening of the economic climate.

Results at Retail Banking declined to EUR 394 million, as de-risking efforts were accelerated to free up capital and reduce the risk of rating migration. During the quarter, EUR 2.4 billion of European debt securities were sold, leading to EUR 258 million of losses and a EUR 5 billion risk-weighted assets release. Retail Banking continued to place high priority on balance sheet optimisation, recording another strong quarter of net deposit growth as well as moderate lending growth. The interest result rose for the second consecutive quarter, reflecting some easing in the competition for savings, which offset a lower return on the investment portfolio. Risk costs remained elevated and increased versus both comparable quarters, while operating expenses were stable.

Commercial Banking recorded an underlying result before tax of EUR 419 million, double the result in the third quarter of 2011 and stable from the second quarter. Market-related impacts continued to weigh on results, with negative credit and debt valuation adjustments of EUR 107 million in the third quarter of 2012 versus EUR 182 million impairments on Greek bonds in the third quarter of 2011. Excluding these items, income rose 21.3% from a year ago driven by an improvement in results at Financial Markets and Bank Treasury. Risk costs remained elevated, but declined sequentially, while operating expenses decreased slightly from last year.

The underlying result before tax of Corporate Line Banking increased both year-on-year and sequentially to EUR 207 million, reflecting the gain on the sale of ING’s equity stake in Capital One and higher income on capital surplus, which were only partly offset by negative fair value changes on the Bank’s own issued debt.

ING Bank’s quarterly net result was EUR 670 million, including the impact of divestments and special items. On 29 August and 9 October the divestments of ING Direct Canada and ING Direct UK were announced. As a result, the assets and liabilities of both businesses have been transferred to held for sale. At ING Direct UK this led to a goodwill write-off of EUR 16 million, recorded within net losses on divestments in the third quarter. The remaining results on these two transactions are expected to be recorded in the fourth quarter of 2012. Special items after tax were EUR -46 million, mainly related to restructuring expenses in the Netherlands and costs for the separation of Bank and Insurance. The underlying return on IFRS-EU equity was 8.1% for the first nine months of 2012.

Results from Insurance declined as de-risking measures and the low interest rate environment put pressure on the investment margin, while Non-life results in the Benelux continued to be impacted by higher disability claims. These factors reduced the total operating result for Insurance by 21.7% from the second quarter and by 39.3% compared with a year ago. Underlying results continued to be impacted by losses on hedges, as ING Insurance maintained its focus on protecting regulatory capital amid volatile financial markets.

The operating result from Life Insurance and Investment Management was EUR 357 million, declining 9.6% sequentially and 17.0% year-on-year, as an increase in the operating income was more than offset by an increase in expenses.

The investment margin decreased 5.7% from a year ago to EUR 410 million, reflecting the impact of de-risking in the Benelux since the second half of 2011 as well as the decline in interest rates. The decrease also reflects an exceptionally high level of dividends on private equity, real estate funds, and fixed income funds in the third quarter

of 2011 in the Benelux. The investment margin in the US improved, supported by growth in general account assets and lower average crediting rates. The total investment margin was down 13.7% from the second quarter of 2012, reflecting seasonally higher dividends in the second quarter in the Benelux. The four-quarter rolling average investment spread was 130 basis points, down from 133 basis points in the second quarter as a result of de-risking and the low interest rate environment.

Fees and premium-based revenues totalled EUR 784 million, down 2.0% excluding currency effects compared with a year ago and up 0.3% from the second quarter. In the US, higher fees and premium-based revenues from the ongoing businesses were more than offset by higher hedge costs and lower fees on the Closed Block VA. Central & Rest of Europe realised higher fees and premium-based revenues due to sales growth, while the Benelux posted a decline due to lower premium income.

The technical margin improved to EUR 122 million from EUR 100 million a year ago. Lower loss ratios in the Employee Benefits business and a favourable reserve

development in the closed block Group Reinsurance business supported the technical margin in the US. The technical margin in the Benelux benefited from improved mortality results in the current quarter, while the third quarter of 2011 included additions to unit-linked guarantee provisions. The total technical margin for ING Insurance increased 32.6% sequentially as the second quarter included reserve increases and volatility related to the mix of claims in the US Individual Life business.

Administrative expenses for Life & Investment Management increased 2.5% (excluding currency effects) compared with a year ago, but they were down 1.7% from the second quarter, reflecting continued focus on cost control in all regions. Cost reductions were achieved in the US and in the Benelux. However, expenses in ING IM and Central & Rest of Europe rose, reflecting investments to support growth. The ratio of administrative expenses to operating income was 47.6%.

As announced today, Insurance Europe is accelerating its transformation programme in preparation for its stand-alone future. In response to changing customer preferences and market dynamics, Insurance Europe is undertaking actions to increase its agility in the current operating environment by delayering support staff in the Netherlands and sharpen the strategic focus of its business units, in particular Nationale-Nederlanden (NN). These initiatives will result in a reduction of the workforce by around 1,350 FTEs over the period 2013-14, of which 1,075 relate to the programme at NN and 275 to support staff. A redundancy provision of approximately EUR 150 million will be recorded as an after-tax special item in the fourth quarter of 2012. Over the next two years, an additional EUR 75 million (after-tax) of investments in IT will be made in order to improve processes and systems. Cost savings generated by all of these measures are expected to reach an annual run-rate of approximately EUR 200 million by the end of 2014.

The operating result from Non-life insurance declined to EUR 11 million from EUR 38 million in the third quarter of 2011, due to continued unfavourable claims experience in Disability & Accident amid the Dutch economic downturn. On a sequential basis, the Non-life operating result was

EUR 20 million lower as the second quarter was supported by non-recurring reserve releases in Property & Casualty.

The Corporate Line operating result was EUR -130 million compared with EUR -77 million in the third quarter of 2011. This decline was mainly due to higher funding expenses in the US and lower results from Sul America.

The underlying result before tax for Insurance declined to EUR 44 million. Results included a total of EUR -193 million of market-related items, which mainly related to losses on hedges in place to protect regulatory capital in the US and the Benelux, as well as a change in the provision for separate account pension contracts in the Netherlands.

Gains/losses and impairments on investments were EUR 85 million, including EUR 171 million of realised gains on the sale of equities in the Benelux and CMO securities in the US, and EUR 48 million of impairments. Losses from the sale of fixed income securities, caused by de-risking, amounted to EUR 56 million.

Revaluations totalled EUR 4 million as EUR 45 million of negative revaluations on equity hedges in the Benelux and EUR 18 million of negative real estate revaluations were largely offset by EUR 61 million of positive revaluations on private equity.

Market and other impacts amounted to EUR -282 million. The Benelux recorded a EUR 94 million charge related to guarantees on separate account pension contracts (net of hedging). Favourable DAC unlocking was EUR 173 million, driven by model refinements and assumption updates in Insurance US. For US Closed Block VA, the current quarter reflects a EUR 104 million charge related to lapse rate assumption refinements following an annual review of policyholder behaviour assumptions, and a further loss of EUR 212 million, mainly consisting of hedge results, net of reserve changes, as the hedge programme is focused on protecting regulatory capital rather than mitigating earnings volatility.

The third-quarter net result for Insurance was EUR -61 million, including a EUR 198 million net profit from Insurance and ING IM Asia, reported under discontinued operations, as well as EUR 184 million of net losses on divestments. The latter was mainly related to a EUR 200 million goodwill write-off for ING Life Korea. Special items after tax were EUR -63 million, mainly reflecting costs for restructuring programmes and separation expenses.

Insurance sales (APE) declined 1.4% year-on-year and 7.8% sequentially, on a constant currency basis, primarily due to lower sales in the Benelux.

ING Group’s balance sheet increased by EUR 11 billion to EUR 1,248 billion in the third quarter, and by EUR 16 billion excluding currency effects, mainly driven by an increase in customer deposits at ING Bank following strong inflows in Retail Banking savings accounts and in corporate deposits.

Shareholders’ equity rose to EUR 53 billion (or EUR 13.91 per share), mainly due to positive revaluations on the investment portfolio as a result of lower interest rates and lower credit spreads, and including the quarterly net profit.

ING Bank’s core Tier 1 ratio strengthened to 12.1% from 11.1% at the end of June. The increase reflects a EUR 17 billion reduction in risk-weighted assets (RWA), of which EUR 7 billion was related to the sale of ING’s equity stake in Capital One and EUR 5 billion to de-risking. The remainder was due to reduced lending volumes and a lower level of market RWA at Commercial Banking. The sale of ING Direct Canada, announced in August, is expected to have a positive impact on the core Tier 1 ratio of approximately a 0.5% percentage point on closing, which is anticipated in the fourth quarter. The sale of ING Direct UK, announced in October, is expected to close in the second quarter of 2013 with a neutral capital impact.

During the third quarter, ING Bank issued EUR 10.3 billion of long-term debt. In the nine months ended 30 September, ING Bank has issued EUR 26.4 billion of debt with a tenor of more than one year compared with EUR 18 billion of

long-term debt maturing in the whole of 2012, lengthening ING’s long-term funding profile. As a result, ING Bank’s funding needs are more than covered for 2012.

The Insurance Group Directive ratio (IGD) rose from 240% to 249% mainly due to an increase in shareholders’ equity as lower interest rates led to a rise in revaluation reserves.

The Group’s debt/equity ratio was unchanged at 12.3% as both adjusted equity and core debt remained stable.

On 1 January 2013, the revised IAS 19 on pensions will come into effect, requiring immediate recognition of ‘unrecognised actuarial gains and losses’ through equity. If this were to be applied today to 30 September figures, ING Group’s capital would be reduced by approximately EUR 2.3 billion, of which EUR 1.4 billion at Bank and EUR 0.9 billion at Insurance. The pro-forma Group debt/equity ratio would increase from 12.3% to 12.8%. The Bank’s core Tier 1 ratio would be reduced from 12.1% to 11.6%; however, this 50 basis point impact was already reflected in ING’s expected Basel III impact, which will phase out net pension assets from capital calculations over time. The IGD ratio for Insurance would decline from 249% to 240%. However, it is still uncertain whether this full effect will be reflected in capital ratios as discussions with regulatory authorities are ongoing. The recognition of ‘unrecognised actuarial gains and losses’ through equity will create volatility in equity and capital going forward.

Customer preferences and habits are changing, and the demands on the financial industry from regulators, customers, shareholders and society at large are increasing. ING recognises the importance of these trends and has initiatives focused on customer centricity, operational excellence and sustainability at the core of the Group strategy.

Customer centricity and operational excellence

ING Private Banking Netherlands has invested heavily in deepening its client relationships and in improving its services. For example, it has established client service teams with specialised advisors and introduced a new all-in pricing model to enhance transparency for clients. In recognition of these efforts, ING was named ‘Best Private Bank 2012 in the Netherlands’ by the Dutch business magazine Incompany based on research among customers of Dutch private banks. ING Private Banking received the highest scores in all four categories (service, investment results, know-how and price), underlining its increased focus on customer centricity.

While customer centricity and operational excellence help to ensure flawless service for customers, handling complaints provides a valuable opportunity to learn from customers and quickly resolve their issues. ING Bank Turkey, for example, has improved its handling of complaints so that most customer issues can now be resolved on the spot, thereby reducing reaction time and avoiding potential escalation. In July 2012, ING Bank Turkey was recognised as the most successful bank in handling customer complaints by the popular independent Turkish website Sikayertvar.com, which aggregates customer complaints of more than 9,000 companies, including financial companies. In Spain, ING Direct has turned its ‘ING Direct Ombudsman’ customer complaint centre into a driver for customer satisfaction by learning from mistakes and proactively correcting them at the source to avoid reoccurrence. As a result of this project, ING Direct Spain has been able to implement more than 100 improvements in products and processes.

In addition to information gathered through complaints processing, the Net Promoter Score (NPS) is an important method to garner customer feedback on products and services and improve problem areas. Based on insights from NPS, ING’s insurance units across Europe and Asia are revising their written customer communications to ensure that the language used is clear and free of jargon. They are also enhancing accessibility by increasing the use of electronic correspondence with customers. In the Czech Republic and Slovakia, customers have responded very positively to ING’s efforts to increase transparency and modernise its communications processes.

ING in Society

Sustainability forms an integral part of ING’s corporate strategy. ING’s sustainability approach is focused 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 third quarter of 2012, ING made further progress in embedding sustainability into its overall corporate strategy and business activities.

Tackling food and energy shortages

In July 2012, ING Bank and The International Finance Corporation (IFC) launched a USD 500 million risk-sharing facility to contribute to the Critical Commodities Finance Programme. The facility seeks to support the global trade of agricultural and energy commodities by ING clients in emerging markets by reducing the risks associated with food and energy shortages and helping to maintain stable prices for buyers in these markets.

ING IM to manage EUR 400 million FDC mandate

ING Investment Management Europe has been selected by the Luxembourg state-owned pension fund “Fonds de compensation commun au regime general de pension” to manage a EUR 400 million global equity mandate. ING IM will manage the mandate by applying its sustainable equity strategy, which identifies additional business risks and opportunities by integrating environmental, social and governance factors into the investment analysis.

External sustainability rankings

In September 2012, ING’s scores in the following sustainability benchmarks were announced:

External reviews of our sustainability performance and disclosure are highly valued by ING. For 2013, ING will expand its reporting on how its sustainability approach is reflected in its business results.