Bancherul - BANCI / ENGLISH / ING reports underlying net loss of EUR 585 million in 3Q

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

Pre-tax impairments on equities, pressurised assets and other debt securities totalling EUR 1,505 million

Negative revaluations through P&L on real estate and private equity totalling EUR 333 million

Negative impact of other market-related items of EUR 265 million through P&L

Net loss of EUR 478 million in line with preliminary results announced on 17 October

Net loss per share of EUR 0.22, compared to net profit per share of EUR 1.08 in third quarter of 2007

Net profit of EUR 2,982 million year-to-date, versus EUR 6,759 million for the first nine months of 2007

Sound commercial performance despite difficult operating environment

Net production of client balances up EUR 38 billion, excluding impact of currencies, to EUR 1,528 billion

Retail deposits grew EUR 6.7 billion and total Bank deposits grew by EUR 12.9 billion excluding FX impact

Insurance new sales down 8.5% on a constant currency basis

Capital buffers reinforced following transaction with Dutch State

All capital ratios within target during the third quarter, prior to transaction with Dutch State

EUR 10 billion purchase of core tier-1 securities by Dutch State to be completed on 12 November 2008

Pro-forma ING Bank Tier-1 ratio will increase to 10%; Pro-forma Core Tier-1 ratio will increase to 8%

Pro-forma ING Group Debt/Equity ratio will improve to under 10%

Final 2008 dividend suspended leaving total 2008 dividend at EUR 0.74 per share paid in August

Chairman's Statement

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

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

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

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