3 months 2006
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Additional information Results first quarter 2006 ING Group Note on accounting standards: As from 2005 figures based on full IFRS 2004 figures restated for IFRS excluding IAS 32/39 and IFRS 4 Figures prior to 2004 not restated, based on Dutch GAAP 2006/2005 P&L’s restated to underlying basis: impact divestments and special items are excluded from income and expenses. Underlying profit = profit excluding divestments and special items www.ing.com Additional information 3 months 2006 1 of 71 Contents (1) ING Group general Underlying profit before tax Profit before tax and underlying profit before tax Net profit and underlying net profit Insurance, pre tax impact of divestments and special items Banking, pre tax impact of divestments and special items Insurance, net profit impact of divestments and special items Banking, net profit impact of divestments and special items P&L Insurance P&L Insurance Europe P&L Insurance Americas P&L Insurance Asia/Pacific P&L Banking P&L Wholesale Banking P&L Retail Banking P&L ING Direct Insurance Europe, impact divestments and special items Insurance Americas, impact divestments and special items Insurance Asia/Pacific, impact divestments and special items Wholesale Banking, impact divestments and special items Retail Banking, impact divestment and special items Operating expenses Tax ratio Additional information 3 months 2006 2 of 71 5 of 71 6 of 71 7 of 71 8 of 71 9 of 71 10 of 71 11 of 71 12 of 71 13 of 71 14 of 71 15 of 71 16 of 71 17 of 71 18 of 71 19 of 71 20 of 71 21 of 71 22 of 71 23 of 71 24 of 71 25 of 71 26 of 71 Contents (2) ING’s capital position The composition of ING’s capital base Information on the capital base Financial leverage ING Group and ING Insurance Capital position ING Insurance Capital position ING Bank Capital position ING Bank Capital position ING Bank vs Tier I ratio ING Group insurance operations Underlying premium income (I) Underlying premium income (II) Underlying operating expenses Underlying profit before tax Developing markets Developing markets New business information, 3 months 2006 New business information, 3 months 2005 Non-life operations by class of business Underlying profit non-life insurance by class of business Ratios non-life ING Insurance investments by product type Fixed income securities by rating class Additional information 3 months 2006 3 of 71 27 of 71 28 of 71 29 of 71 30 of 71 31 of 71 32 of 71 33 0f 71 34 of 71 35 of 71 36 of 71 37 of 71 38 of 71 39 of 71 40 of 71 41 of 71 42 of 71 43 of 71 44 of 71 45 of 71 46 of 71 47 of 71 48 -51 of 71 Contents (3) ING Group banking operations Underlying Income banking operations Banking: underlying profit before tax Banking: development interest margin Underlying RAROC and economic capital Cost/income ratio (underlying) Risk costs ratio (in bps of average CRWA) Value at Risk trading and treasury positions 1Q 2006 Loan portfolio ratios 52 of 71 53 of 71 54 of 71 55 of 71 56 of 71 57 of 71 58 of 71 59 of 71 60 of 71 ING Direct 61 - 70 of 71 Disclaimer 71 of 71 Additional information 3 months 2006 4 of 71 Underlying profit before tax, 1Q 2006 Insurance Asia/Pacific 20% Life 30% Bank 55% Non-life 15% Insurance Americas 40% Life Total Insurance Europe 40% (excl. Other) ING Direct 11% Insurance Europe 43% Wholesale Banking 51% Insurance Americas 57% Retail Banking 38% Banking Additional information 3 months 2006 Non-life (excl. Other) 5 of 71 (excl. Other) Profit before tax and underlying profit before tax Insurance First quarter Profit before tax (PBT) Impact divestments PBT excl. divestments Special items Underlying PBT Additional information 3 months 2006 Banking Total 1Q 2006 1Q 2005 1Q 2006 1Q 2005 1Q 2006 1Q 2005 1,254 1,022 1,473 1,553 2,727 2,575 49 37 361 49 398 1,205 985 1,473 1,192 2,678 2,177 0 0 0 0 0 0 1,205 985 1,473 1,192 2,678 2,177 6 of 71 %ch 6 23 23 Net profit and underlying net profit Insurance First quarter Banking Total 1Q 2006 1Q 2005 1Q 2006 1Q 2005 1Q 2006 1Q 2005 929 730 1,077 1,211 2,006 1,941 30 35 0 371 30 406 divestments 899 695 1,077 840 1,976 1,535 Special items 0 0 0 0 0 0 899 695 1,077 840 1,976 1,535 Net profit Impact divestments %ch 3 Net profit excl. Underlying net profit Additional information 3 months 2006 7 of 71 29 29 Insurance, pre tax impact of divestments and special items Insurance 1Q 2006 4Q 2005 3Q 2005 2Q 2005 1Q 2005 Profit before tax 1,254 1,039 1,123 794 1,022 Australian non-life 15 Sale ING Re 20 Sale Life of Georgia -10 -1 -78 Gain ING Canada IPO 19 Sale Freeler 10 Sale Austbrokers 27 Unwinding Piraeus 34 Absence result divestments Underlying profit before tax Additional information 3 months 2006 1,205 8 of 71 1,022 1 7 8 1,103 865 985 Banking, pre tax impact of divestments and special items Banking 1Q 2006 4Q 2005 3Q 2005 2Q 2005 1Q 2005 Profit before tax 1,473 1,120 1,230 1,013 1,553 Sale Baring Asset Management -15 255 Sale 12.8% shares ING Bank Slaski 92 Restructuring NMB-Heller 47 Absence result divestments Underlying profit before tax Additional information 3 months 2006 -8 1,473 9 of 71 1,128 14 1,245 966 1,192 Insurance, net profit impact of divestments and special items Insurance 1Q 2006 4Q 2005 3Q 2005 2Q 2005 1Q 2005 Net profit 929 861 977 700 730 Australian non-life 11 Sale ING Re 13 Sale Life of Georgia -7 -39 Gain ING Canada IPO 19 Sale Freeler 10 Sale Austbrokers 25 Unwinding Piraeus 19 Absence result divestments Tax releases Underlying net profit Additional information 3 months 2006 899 10 of 71 1 1 5 130 170 100 712 793 634 6 695 Banking, net profit impact of divestments and special items Banking 1Q 2006 4Q 2005 3Q 2005 2Q 2005 1Q 2005 Net profit 1,077 979 901 851 1,211 Sale Baring Asset Management -15 269 Sale 12.8% shares ING Bank Slaski 92 Restructuring NMB-Heller 47 Absence result divestments -6 Tax releases / tax assets Underlying net profit Additional information 3 months 2006 10 148 1,077 11 of 71 837 35 916 769 840 P&L Insurance 2006 2005 1Q 12,525 2,517 606 15,648 4Q 3Q 2Q 1Q 11,694 11,440 11,443 11,130 2,528 2,629 2,583 2,176 354 573 159 609 14,576 14,642 14,185 13,915 Underwriting expenditure Other interest expenses Operating expenses Other impairments Total expenditure underlying 12,805 341 1,297 11,894 11,899 11,797 11,469 246 319 266 269 1,407 1,321 1,258 1,188 7 -1 4 13,554 13,539 13,320 12,930 Underlying profit before tax 1,205 806 399 1,022 758 264 1,103 802 301 865 514 351 985 692 293 49 17 19 1 -78 7 29 8 1,254 1,039 1,123 794 1,022 Premium income Income from investments Commission and other income Total income underlying 14,443 Of which: -Life insurance -Non-life insurance Gains/losses on divestments Profit from divested units Special items Total profit before tax Additional information 3 months 2006 12 of 71 P&L Insurance Europe 2006 Premium income Income from investments Commission and other income Total income underlying Underwriting expenditure Other interest expenses Operating expenses Other impairments Total expenditure underlying Underlying profit before tax Of which: -Life insurance -Non-life insurance 1Q 3,236 1,091 243 4,570 4Q 2,651 1,087 253 3,991 3Q 2,478 1,209 112 3,799 2Q 2,421 1,218 112 3,751 1Q 3,152 1,047 283 4,482 3,549 141 437 2,728 134 473 -1 3,334 2,678 118 466 4,127 2,837 111 477 5 3,430 3,262 3,401 118 454 3 3,976 443 311 132 561 431 130 465 374 91 490 395 95 506 396 110 34 Gains/losses on divestments Profit from divested units Special items Total profit before tax Additional information 3 months 2006 2005 477 13 of 71 10 561 465 490 516 P&L Insurance Americas 2005 2006 Premium income Income from investments Commission and other income Total income underlying Underwriting expenditure Other interest expenses Operating expenses Investment losses Total expenditure underlying Underlying profit before tax Of which: -Life insurance -Non-life insurance Gains/losses on divestments Profit from divested units Special items Total profit before tax Additional information 3 months 2006 1Q 6,196 1,092 331 7,619 4Q 5,875 1,052 127 7,054 3Q 5,997 1,147 506 7,650 2Q 5,656 1,208 -2 6,862 1Q 5,165 988 274 6,427 6,380 126 629 6,347 131 603 5,770 -24 567 5,373 73 544 7,135 6,046 -83 666 1 6,630 7,081 6,313 5,990 484 310 174 424 287 137 569 376 193 549 313 236 437 274 163 -10 19 -78 5 19 7 414 588 476 463 484 14 of 71 P&L Insurance Asia/Pacific 2006 Premium income Income from investments Commission and other income Total income underlying Underwriting expenditure Other interest expenses Operating expenses Investment losses Total expenditure underlying Underlying profit before tax Of which: -Life insurance -Non-life insurance Gains/losses on divestments Profit from divested units Special items Total profit before tax Additional information 3 months 2006 2005 1Q 3,088 251 -35 3,304 4Q 3,159 258 -68 3,349 3Q 2,960 255 -65 3,150 2Q 3,357 205 48 3,610 1Q 2,810 193 45 3,048 2,907 3 238 2,992 2 243 2,803 2 232 3,346 2 209 2,697 2 180 3,148 3,237 3,037 3,557 2,879 156 154 2 112 110 2 113 112 1 53 51 2 169 168 1 15 27 1 2 1 114 55 170 171 15 of 71 139 P&L Banking 2006 2005 1Q 2,395 705 114 447 3,661 4Q 3Q 2Q 1Q 2,409 2,456 2,134 2,158 626 639 540 543 126 96 175 161 223 268 446 408 3,384 3,459 3,295 3,270 Operating expenses underlying Gross result Addition to the provision for loan losses 2,213 1,448 2,230 2,198 2,279 2,082 1,154 1,261 1,016 1,188 Underlying profit before tax 1,473 Gains/losses on divestments Profit from divested units Special items Total profit before tax 1,128 1,245 -15 -8 1,473 1,120 1,230 1,013 1,553 Interest result Commission income Investment income Other income Total income underlying Additional information 3 months 2006 -25 16 of 71 26 16 50 -4 966 1,192 47 347 14 P&L Wholesale Banking 2006 2005 1Q 707 336 93 385 1,521 Interest result Commission income Investment income Other income Total income underlying 4Q 3Q 2Q 1Q 755 836 636 696 327 327 243 249 114 87 159 142 169 113 369 357 1,365 1,363 1,407 1,444 Operating expenses underlying Gross result Addition to the provision for loan losses 820 701 -63 874 491 -11 816 547 -21 920 487 6 801 643 -82 Underlying profit before tax 764 502 568 -15 481 47 725 285 14 553 528 1,024 Gains/losses on divestments Profit from divested units Special items Total profit before tax Additional information 3 months 2006 -8 764 17 of 71 494 P&L Retail Banking 2006 2005 1Q 1,149 337 12 49 1,547 Interest result Commission income Investment income Other income Total income underlying 4Q 3Q 2Q 1Q 1,125 1,125 1,102 1,045 272 283 271 272 18 9 -4 8 41 91 39 37 1,456 1,508 1,408 1,362 Operating expenses underlying Gross result Addition to the provision for loan losses 963 584 18 925 1,001 531 507 25 6 976 432 18 927 435 41 Underlying profit before tax 566 506 501 414 Gains/losses on divestments Profit from divested units Special items Total profit before tax 394 62 566 506 501 414 456 Additional information 3 months 2006 18 of 71 P&L ING Direct 2006 2005 1Q 556 33 12 6 607 4Q 547 28 -10 10 575 3Q 516 30 11 3 560 2Q 432 24 24 17 497 1Q 452 22 11 2 487 Operating expenses underlying Gross result Addition to the provision for loan losses 424 183 20 379 196 12 350 210 31 344 153 26 323 164 37 Underlying profit before tax 163 184 179 127 127 Gains/losses on divestments Profit from divested units Special items Total profit before tax 163 184 179 127 127 Interest result Commission income Investment income Other income Total income underlying Additional information 3 months 2006 19 of 71 Insurance Europe, impact divestments and special items Profit before tax (PBT) 1Q 2006 4Q 2005 3Q 2005 2Q 2005 1Q 2005 477 561 465 490 516 Gains / losses from divestments • Freeler 10 • Unwinding Piraeus 34 PBT from divested units PBT excl. divestments Special items Underlying PBT Additional information 3 months 2006 443 443 20 of 71 561 561 465 465 490 490 506 506 Insurance Americas, impact divestments and special items 1Q 2006 4Q 2005 3Q 2005 2Q 2005 1Q 2005 484 414 588 476 463 Profit before tax (PBT) Gains / losses from divestments • ING Canada IPO 19 • ING Re 20 • Loss on sale of Life of Georgia -10 -1 PBT from divested units PBT excl. divestments Special items Underlying PBT Additional information 3 months 2006 484 484 21 of 71 424 424 569 569 -78 5 7 549 549 437 437 Insurance Asia/Pacific, impact divestments and special items 1Q 2006 4Q 2005 3Q 2005 2Q 2005 1Q 2005 171 139 114 55 170 1 2 1 113 113 53 53 169 169 Profit before tax (PBT) Gains / losses from divestments • Australia non-life 15 • Austbrokers 27 PBT from divested units PBT excl. divestments Special items Underlying PBT Additional information 3 months 2006 156 156 22 of 71 112 112 Wholesale Banking, impact divestments and special items 1Q 2006 4Q 2005 3Q 2005 2Q 2005 1Q 2005 764 494 553 528 1,024 Profit before tax (PBT) Gains / losses from divestments • Sale Asian Cash Equities • Sale CenE Bankiers • Sale BHF-Bank -15 • Sale Baring Asset Management 255 30 • Sale shares ING Bank Slaski 47 • Restructuring NMB-Heller PBT from divested units -8 PBT excl. divestments Special items Underlying PBT Additional information 3 months 2006 764 764 23 of 71 502 502 14 568 568 481 481 725 725 Retail Banking, impact divestments and special items 1Q 2006 4Q 2005 3Q 2005 2Q 2005 1Q 2005 566 506 501 414 456 Profit before tax (PBT) Gains / losses from divestments • Sale shares ING Bank Slaski 62 PBT from divested units PBT excl. divestments Special items Underlying PBT Additional information 3 months 2006 566 566 24 of 71 506 506 501 501 414 414 394 394 Underlying operating expenses (3 months) • Personnel expenses - insurance operations - banking operations • Other expenses - insurance operations - banking operations • Total operating expenses - insurance operations - banking operations Additional information 3 months 2006 25 of 71 2006 2005 % 738 1,256 1,994 690 1,19 2 1,88 2 7 5 6 559 957 1,516 1,297 2,213 3,510 498 890 1,38 8 1,18 8 2,08 2 3,27 12 8 9 9 6 7 Tax ratio (3 months) 2006 2005 Total Insurance operations Banking operations Group 19.7 25.9 23.1 24.1 21.0 22.2 Underlying Insurance operations Banking operations Group 18.9 25.9 22.8 24.8 28.2 26.6 Additional information 3 months 2006 26 of 71 ING’s capital position Additional information 3 months 2006 27 of 71 The composition of ING’s capital base Group 31 March 2006, in EUR million Insurance Bank Capital and reserves Group hybrid capital Core debt 36,362 8,636 3,836 20,808 1,788 20,769 6,552 Total capitalisation 48,834 22,596 27,322 Revaluation reserve fixed income securities etc. Revaluation reserve deducted from Tier-1 Insurance hybrid capital Minorities -3,169 -1,367 -1,906 -1,292 Regulatory capital Other qualifying capital DAC/ViF adjustment (50%) Group leverage -3,836 Adjusted equity 41,829 Additional information 3 months 2006 2,250 1,315 653 24,794 24,777 11,893 4,476 28 of 71 29,270 36,670 Information on the capital base • Capital and reserves: represents equity on an accounting basis (B/S item). • Group hybrid capital: all Tier-1 instruments issued by the Group (e.g. perpetual debt securities, preference shares). All Group hybrid Tier-1 instruments other than preference shares are injected as hybrid capital in Insurance or Bank. • Group core debt: investments minus equity (incl. hybrids) of the Group holding company. This net debt position is injected as equity in Insurance and Bank and is the numerator of the Group D/E-ratio (= core debt / (adjusted equity + core debt). Group core debt is excluded from Group’s adjusted equity as it is already part of Insurance and Bank capital and reserves. Adjusted equity is the basis of ING leverage (D/E) ratios. • To calculate regulatory capital ING deducts the revaluation reserve fixed income securities, cash flow hedges and goodwill (prudential filter). The Dutch banking regulator requires this deduction to be made from Tier-1 capital. ING applies this prudent method to Bank, Insurance and Group. Secondly, to calculate the Bank’s Tier-1 capital, the revaluation reserve containing the Bank’s participations (e.g. Kookmin, Bank of Beijing), its real estate for own use and its investment portfolio is deducted (added back as tier-2). • To calculate Insurance adjusted equity, 50% of the present value of future profits generated by policies in force (Value in Force) is added, while part of the DAC (deferred acquisition costs) is deducted. The bank’s “adjusted equity” represents total BIS capital. • ING internally manages and allocates on the basis of economic capital (EC). Additional information 3 months 2006 29 of 71 Financial leverage ING Group and Insurance in EUR million and in % ING Insurance ING Group Core debt Adjusted equity D/E ratio* Core debt Adjusted equity D/E ratio* 31/12/02 5,721 19,408 22.8% 5,681 22,812 19.9% 31/12/03 4,892 19,818 19.8% 4,441 26,366 14.4% 31/12/04 3,633 22,467 13.9% 3,441 31,258 9.9% 01/01/05 3,633 21,856 14.3% 3,465 28,232 10.9% 31/03/05 4,092 23,029 15.1% 3,152 31,971 9.0% 30/06/05 3,925 23,560 14.3% 3,609 33,400 9.8% 30/09/05 4,197 25,380 14.2% 3,855 35,196 9.9% 31/12/05 4,170 27,065 13.4% 3,969 38,142 9.4% 31/03/06 4,272 29,270 12.7% 3,836 41,829 8.4% * D/E ratio = core debt / (adjusted equity + core debt) Additional information 3 months 2006 30 of 71 Capital position ING Insurance in EUR million and in % Total regulatory capital base Buffer for shares & real estate 100% EU solvency Internal solvency surplus Internal capital coverage External capital coverage a b c a-b-c a/(b+c) a/c 31/12/2002 14,717 4,652 8,718 1,347 110% 169% 31/12/2003 15,844 3,846 8,779 3,219 125% 180% 31/12/2004 18,272 4,273 8,697 5,302 141% 210% 01/01/2005 17,419 4,273 8,697 4,497 135% 201% 31/03/2005 18,658 4,530 8,981 5,147 138% 208% 30/06/2005 19,132 4,674 8,375 6,083 147% 228% 30/09/2005 20,879 5,042 8,501 7,336 154% 246% 31/12/2005 22,562 5,304 8,851 8,407 159% 255% 31/03/2006 24,794 6,024 8,960 9,810 165% 277% Additional information 3 months 2006 31 of 71 Capital position ING Bank in EUR million and in % ING GAAP Core Tier-1 Hybrid Tier-1 Tier-1 capital Other capital BIS capital year-end 2002 2003 14,000 14,435 4,080 4,639 18,080 19,074 9,071 9,408 27,151 28,482 IFRS 2004 16,114 5,025 21,139 10,294 31,433 Jan. 1st 2005 13,959 5,025 18,984 9,677 28,661 1Q 2005 15,570 5,166 20,736 10,181 30,917 2Q 2005 16,633 5,367 22,000 10,241 32,241 3Q 2005 16,922 5,699 22,621 4Q 2005 17,643 5,764 23,407 1Q 2006 18,224 6,552 24,777 11,383 34,004 11,318 34,725 11,893 36,670 RWAs 247,287 251,266 274,138 274,138 287,398 305,543 313,905 319,653 333,365 Tier-1 ratio BIS ratio 7.31% 10.98% 7.21% 7.20% 7.21% 7.32% 7.43% 10.76% 10.55% 10.83% 10.86% 11.00% Additional information 3 months 2006 7.59% 7.71% 6.92% 11.34% 11.47% 10.46% 32 of 71 Capital position ING Bank 40 EUR bln 35 11.9 30 10.2 25 10.2 11.4 11.3 9.7 20 5.2 5.4 5.7 5.8 16.6 16.9 17.6 6.6 5.0 15 10 14.0 15.6 18.2 5 0 2002 2003 2004 Other capital Core capital funded by group hybrids Core capital (excl. hybrids) Additional information 3 months 2006 33 of 71 2005 Shaded: ING GAAP Solid: IFRS 2006 Capital position ING Bank vs Tier-1 ratio 30 EUR bln 10% 25 8% 20 6% 15 4% 10 2% 5 0% 0 2002 2003 2004 Required regulatory capital (4% of RWAs) Tier-1 capital (ING GAAP) Tier-1 capital (IFRS) Additional information 3 months 2006 34 of 71 2005 Tier-1 ratio (ING GAAP) Tier-1 ratio (IFRS) 2006 ING Group insurance operations Additional information 3 months 2006 35 of 71 Underlying premium income (I) (3 months 2006) The Netherlands Belgium Central Europe & Spain Insurance Europe United States Canada Latin America Insurance Americas Japan Korea Taiwan Australia & NZ Rest of Asia Insurance Asia/Pacific Total Additional information 3 months 2006 Life % Non-life % 1,582 334 451 2,367 5,066 4 4 24 7 21 749 106 14 869 -9 2 588 359 947 16 13 14 12 20 1,830 3 183 5,249 1,481 727 643 35 190 3,076 35 21 -7 49 19 21 25 10 10,695 14 36 of 71 -8 Underlying premium income (II) (3 months 2006) Insurance Europe Insurance Americas Insurance Asia/Pacific Insurance Europe Insurance Americas Insurance Asia/Pacific Additional information 3 months 2006 Life % 2,367 5,249 3,076 10,695 7 21 10 14 Non- Life % 869 947 12 1,830 37 of 71 -8 14 20 3 % excl. FX 7 9 6 8 % excl. FX -8 -2 4 -5 Underlying operating expenses (3 months 2006) Op. expenses % % excl. FX Insurance Europe - personnel expenses - other expenses 437 280 157 -4 -5 -1 -4 Insurance Americas - personnel expenses - other expenses 629 345 284 16 16 15 3 Insurance Asia/Pacific - personnel expenses - other expenses 238 106 132 32 17 48 24 Additional information 3 months 2006 38 of 71 Underlying profit before tax (3 months 2006) Life % Non-life % The Netherlands Belgium Central Europe & Spain Insurance Europe United States Canada Latin America Insurance Americas Japan Korea Taiwan Australia & NZ Rest of Asia Insurance Asia/Pacific 224 21 66 311 276 -28 -28 16 -21 9 119 11 2 132 23 0 0 20 147 27 174 11 -13 7 Corporate line Total 31 806 Additional information 3 months 2006 34 310 38 66 0 42 8 154 39 of 71 70 13 73 65 -9 -8 2 16 91 399 36 Developing markets (3 months) Underlying Premiums Underlying Profit before tax 2006 2005 % 2006 2005 Europe 282 246 15 63 49 28 Latin America 542 452 20 61 51 20 Asia 1,591 1,191 34 76 106 -28 Total 2,415 1,889 28 200 206 -3 76 200 47 147 63 36 Asia excl. Taiwan Total excl. Taiwan Additional information 3 months 2006 40 of 71 % Developing markets Underlying Premiums (3 months) Poland Czech Republic Slovakia Hungary Romania Bulgaria Russia Mexico Brazil Chile Peru Latin America Corporate South Korea Taiwan China Hong Kong India Malaysia Thailand Total 2006 2005 2006 2005 62 76 17 97 30 0 0 352 0 190 0 0 727 642 14 64 38 92 14 2,415 58 69 15 79 25 0 0 307 0 145 0 0 489 541 10 56 14 74 9 1,889 33 10 1 18 3 -1 0 42 0 15 6 -1 66 0 1 8 -8 10 -1 200 23 10 -2 17 2 0 0 40 -2 7 6 0 40 59 -1 5 -4 8 -1 206 200 147 Total excl. Taiwan (Due to rounding differences may be possible) Additional information 3 months 2006 Underlying Profit before tax 41 of 71 New business information, 3 months 2006 Annual premium Single premium APE VNB NBM (*) IRR Netherlands 40 455 85 25 29.4% 14.3% Belgium & Luxembourg 12 207 33 2 6.1% 9.9% Central Europe & Spain 72 137 86 26 30.2% 15.9% Insurance Europe 124 799 204 53 26.0% 14.4% US 509 4,120 921 60 6.5% 11.6% 61 80 69 11 15.9% 12.8% 570 4,200 990 71 7.2% 11.6% Australia & NZ 11 289 40 5 12.5% 13.3% Japan 94 1,086 203 32 15.8% 13.4% Korea 217 53 222 54 24.3% 42.4% Taiwan 68 21 70 30 42.9% 15.5% Rest of Asia 40 16 42 3 7.1% 10.3% 430 1,465 577 124 21.5% 17.1% Total New Business Margin (Defined as (VNB /APE) 1,124 3. * 100%.) 6,464 1,771 248 14.0% 14.0% Latin America Insurance Americas 1. Annual Premium Equivalent = 100% of Annual plus 10% of Single Insurance Asia/Pacific 2. Value of New Business (*) NBM = New Business Margin (defined as (VNB/APE)*100 Additional information 3 months 2006 42 of 71 New business information, 3 months 2005 Annual premium Single premium APE VNB NBM (*) IRR Netherlands 40 390 79 21 26.6% 12.9% Belgium & Luxembourg 13 289 42 7 16.7% 16.8% Central Europe & Spain 81 64 87 18 20.6% 12.1% Insurance Europe 134 743 208 46 22.1% 12.9% US 366 3,178 684 41 6.0% 10.7% 37 59 43 2 4.7% 8.8% 403 3,237 727 43 5.9% 10.5% Australia & NZ 15 234 38 5 13.0% 18.1% Japan 91 1,281 219 36 16.4% 12.6% Korea 123 54 128 30 23.4% 33.0% Taiwan 51 55 57 27 47.8% 16.1% Rest of Asia 28 13 29 1 3.4% 7.3% 308 1,637 472 99 21.0% 15.2% Total New Business Margin (Defined as (VNB /APE) 845 3. * 100%.) 5,617 1,407 188 13.4% 12.6% Latin America Insurance Americas 1. Annual Premium Equivalent = 100% of Annual plus 10% of Single Insurance Asia/Pacific 2. Value of New Business (*) NBM = New Business Margin (defined as (VNB/APE)*100 Additional information 3 months 2006 43 of 71 Non-life operations by class of business Underlying premium income (3 months) Fire Marine & Aviation Motor Health Income/Accident Miscellaneous Indirect business Total Additional information 3 months 2006 Underlying profit before tax 2006 2005 2006 2005 385 25 614 189 411 192 14 1,830 342 31 548 157 489 200 12 1,779 56 6 155 2 77 67 36 399 60 2 119 10 54 46 2 293 44 of 71 Underlying profit non-life insurance by class of business (3 months 2006) Fire The Netherlands 16 Belgium M.& A. Motor Health 2 Misc. Indirect Total 20 -1 73 8 5 1 3 -1 3 Central Eur./Spain 1 43 1 113 Latin America -14 3 16 Asia 2 2 1 Other 8 Total 56 155 45 of 71 -10 147 20 27 1 -2 6 119 11 2 North America Additional information 3 months 2006 Acc. 2 77 2 50 35 91 67 36 399 Ratios non-life Claims ratio Expense ratio Combined ratio (3 months) 2006 2005 2006 2005 2006 2005 The Netherlands 54% 61% 20% 17% 74% 78% Belgium 66% 68% 26% 26% 92% 94% Central Europe/Spain 53% 50% 36% 36% 89% 86% 82% USA 24% 106% Canada 60% 59% 38% 37% 98% 96% Latin America 72% 67% 28% 29% 100% 96% Asia 49% 54% 38% 36% 87% 90% Total 59% 63% 28% 25% 87% 88% Additional information 3 months 2006 46 of 71 ING Insurance investments by product type 31 March 2006 Europe Americas Asia/Pacific Total 44,093 64,180 17,692 125,965 4,560 325 25 4,910 17,795 9,216 653 27,664 Policy loans 127 2,039 1,406 3,572 Other 947 712 1,126 2,785 67,522 76,472 20,902 164,896 3,420 342 91 3,853 Equities 10,744 2,301 1,997 15,042 Total 81,686 79,115 22,990 183,791 Fixed income: Debentures Private loans Mortgages Total fixed income Real estate Note: table includes general account portfolios only Additional information 3 months 2006 47 of 71 Fixed income securities by rating class Total ING Insurance 31 March 2006 • AAA • AA •A • BBB • BB • Rest Table does not include unrated securities, policy loans and “other” fixed income investments Note: table includes general account portfolios only Additional information 3 months 2006 48 of 71 28% 31% 23% 14% 2% 1% Fixed income securities by rating class Insurance Europe 31 March 2006 • AAA • AA •A • BBB • BB • Rest Table does not include unrated securities, policy loans and “other” fixed income investments Note: table includes general account portfolios only Additional information 3 months 2006 49 of 71 24% 52% 15% 6% 3% -% Fixed income securities by rating class Insurance Americas 31 March 2006 • AAA • AA •A • BBB • BB • Rest Table does not include unrated securities, policy loans and “other” fixed income investments Note: table includes general account portfolios only Additional information 3 months 2006 50 of 71 37% 9% 26% 23% 3% 2% Fixed income securities by rating class Insurance Asia/Pacific 31 March 2006 • AAA • AA •A • BBB • BB Table does not include unrated securities, policy loans and “other” fixed income investments Note: table includes general account portfolios only Additional information 3 months 2006 51 of 71 12% 38% 37% 9% 4% ING Group banking operations Additional information 3 months 2006 52 of 71 Underlying income banking operations (3 months) 2006 2005 % Netherlands Belgium Rest of the world Other Subtotal ING Real Estate Total Wholesale Banking 496 336 453 23 1,308 213 1,521 497 415 378 -10 1,280 164 1,444 0 -19 20 Netherlands Belgium Poland Other Total Retail Banking 999 414 60 74 1,547 902 359 49 52 1,362 11 15 22 42 14 607 487 25 -14 3,661 -23 3,270 12 Total ING Direct Other Total Additional information 3 months 2006 53 of 71 2 30 5 Banking, underlying profit before tax 2006 2005 % Netherlands Belgium Rest of the world Other Subtotal ING Real Estate Total Wholesale Banking 259 142 257 -10 648 116 764 260 225 175 -34 626 99 725 0 -37 47 Netherlands Belgium Poland Other Total Retail Banking 398 149 12 7 566 290 87 5 12 394 37 71 140 -42 44 163 127 28 -20 1,473 -54 1,192 24 (3 months) Total ING Direct Other Total Additional information 3 months 2006 54 of 71 4 17 5 Banking: development interest margin (annualised, in %) Total Netherlands Outside the Netherlands 1Q 2006 1.12 1.20 0.79 4Q 2005 3Q 2005 2Q 2005 1Q 2005 1.15 1.22 1.11 1.19 1.26 1.29 1.33 1.28 0.83 0.92 0.74 0.89 4Q 2004(*) 3Q 2004 2Q 2004 1Q 2004 1.21 1.17 1.22 1.27 1.35 1.23 1.38 1.45 0.89 0.91 0.89 0.91 * estimated interest margins 2004 based on full IFRS Additional information 3 months 2006 55 of 71 Underlying RAROC and economic capital (3 months) Netherlands Belgium Rest of the world Other Subtotal ING Real Estate Total Wholesale Banking Netherlands Belgium Poland Other Total Retail Banking Total ING Direct Other Total Additional information 3 months 2006 Pre-tax RAROC in % 2006 2005 Economic capital in EUR bln 2006 2005 27.3 25.9 29.5 -25.6 26.6 39.7 28.3 30.1 29.2 17.4 -71.6 23.1 42.8 25.1 2.8 1.7 2.5 0.2 7.1 1.1 8.2 2.6 2.3 2.6 0.2 7.6 0.8 8.5 71.6 79.0 13.0 4.5 55.6 64.5 57.8 6.4 4.1 50.8 2.1 0.7 0.1 0.9 3.8 1.9 0.5 0.1 0.5 3.0 18.1 22.8 3.3 2.6 27.6 0.1 15.4 0.1 14.2 31.0 56 of 71 Cost/income ratio (underlying) 3m 2006 3m 2005 51.0 59.5 51.9 55.1 46.5 53.9 50.9 53.7 61.4 57.2 42.1 55.5 Netherlands Belgium Poland Other retail Total Retail Banking 59.0 63.8 85.0 79.7 62.2 63.4 76.3 87.8 73.1 68.1 Total ING Direct 69.9 66.3 Total Banking 60.4 63.7 (in %) Netherlands Belgium Rest of the world Subtotal ING Real Estate Total Wholesale Banking Additional information 3 months 2006 57 of 71 Risk costs ratio (in bps of average CRWA) (in %) Netherlands Belgium Rest of the world Other Subtotal ING Real Estate Total Wholesale Banking Netherlands Belgium Poland Other Total Retail Banking Total ING Direct Total Banking Additional information 3 months 2006 58 of 71 3m 2006 3m 2005 -12 -7 -33 0 -19 -3 -16 -13 -35 -29 0 -24 -7 -22 7 2 -188 49 7 25 -6 50 19 21 10 27 -3 -1 Value at Risk trading and treasury positions 1Q 2006 40 35 30 25 20 15 10 5 36.0 26.5 31.4 0 1Q Maximum 2Q 3Q Minimum 4Q Average As of April 1, 2005 Financial Markets treasury and Financial Markets investment portfolios are included in the overall ING VaR limitstructure. This resulted in a significant increase of VaR figures compared to previous quarter. Additional information 3 months 2006 59 of 71 Loan portfolio ratios 31 March 2006 (in EUR bn) 31 December 2005 Total provisions 3.1 3.3 Provisioned loans 6.6 6.8 470.1 450.5 Provisioned loans/total loans in % 1.4 1.5 Total provisions/provisioned loans in % 47 49 Provisions / total loans (in bp) 66 73 Total loans (incl. amounts due from banks) Additional information 3 months 2006 60 of 71 ING Direct Additional information 3 months 2006 61 of 71 ING Direct highlights 1Q 2006 • • • • • • • • 1.1m new customers in 1Q 2006, reaching 15.8m Strong growth in Funds Entrusted: EUR 6.7bn (+ 3.6%), includes negative impact by currency exchange rates (EUR - 2.1bn), reaching EUR 194.7bn Strong growth in Off-balance Funds Entrusted, mainly mutual funds and brokerage: EUR 2.4bn reaching EUR 13.2bn Strong growth Residential Mortgages: EUR 3.3bn (+ 6.2%), includes negative impact of currency exchange rate (EUR 1.0 bn) reaching EUR 56.3bn Profit contribution (pre-tax): EUR 163m up 28% compared to 1Q 2005 Operational expense to assets at 44 bps Marketing expense 1Q 2006: € 149m Efficiency ratio (C/I): 69.9% Additional information 3 months 2006 62 of 71 ING Direct’s growth Clients & Funds Entrusted (€ bln) Residential Mortgages (€ bln)* 15.8 mln clients 60 € 195 bln Funds Entrusted € 13 bln off Balance Funds 250 200 18 50 16 14 40 12 150 208 8 199 100 10 151 4 55 2 7 1999 2000 0 0 2002 2003 2004 2005 Mar-06 Total Client Retail Funds Entrusted Number of clients Additional information 3 months 2006 56 2005 Mar-06 32 10 20 2 24 2001 53 20 6 103 50 30 0 2003 2004 * Includes Bought Pools, excludes commercial mortgages 63 of 71 ING Direct, quarterly pretax profit* 200 180 160 140 120 100 80 60 40 125 114 118 127 127 2Q 3Q 2004 4Q 1Q 2Q 179 184 3Q 4Q 163 78 20 0 1Q 2005 € 435 mln € 617 mln * Including ING Card Additional information 3 months 2006 64 of 71 1Q 2006 ING Direct, operational costs • Low, flexible cost base is an important competitive advantage • ING Direct’s operational cost base to assets (excluding marketing) is much lower and more flexible than traditional branch banks 300 250 250 Average Branch Bank: ± 250 bps 200 bps 150 142 123 96 100 59 49 44 2003 2004 50 40 44 0 1999 • 2000 2001 2002 2005 Mar-06 Branch Marketing costs of over € 400 mln p.a. (€ 435m in 2005) can be adjusted quickly Additional information 3 months 2006 65 of 71 ING Direct, commercial results per country Clients March 2006 numbers Canada (May 1997) Spain (May 1999) Australia (Aug 1999) France (May 2000) USA (Sept 2000) Italy (April 2001) Germany (Aug 2001)* UK (May 2003) Total Production FX-effect Funds Entrusted 2006 New clients (*1000) Total clients (*1000) 2006 New funds (€ bln) Total funds entrusted (€ bln) 2006 New Mortgages (€ bln) Total Mortgages (€ bln) 52 93 42 55 404 68 309 36 1,059 1,059 - 1,361 1,342 1,282 556 3,786 700 5,699 1,039 15,765 - 0.0 0.9 0.4 0.7 5.0 0.1 1.6 -2.0 6.7 8.8 -2.1 12.6 13.7 10.8 11.5 39.0 13.4 60.0 33.7 194.7 - 0.5 0.3 0.1 0.0 -0.1 0.2 2.3 0.0 3.3 4.3 -1.0 8.0 3.9 12.6 0.0 10.8 1.0 20.0 0.0 56.3 - *Includes Austria **Includes Bought Pools Additional information 3 months 2006 Retail Mortgages** 66 of 71 ING Direct, funds entrusted growth March 2006 numbers Canada (May 1997) Spain (May 1999) Australia (Aug 1999) France (May 2000) USA (Sept 2000) Italy (April 2001) Germany (Aug 2001)* UK (May 2003) Total in EURO Production** FX-effect Funds Entrusted in euro's Funds Entrusted in local currency 2006 New funds (€ bln) Total funds entrusted (€ bln) 2006 New funds (local bln) Total funds entrusted (local bln) 0.0 0.9 0.4 0.7 5.0 0.1 1.6 -2.0 6.7 8.8 -2.1 12.6 13.7 10.8 11.5 39.0 13.4 60.0 33.7 194.7 - 0.4 0.9 1.5 0.7 7.1 0.1 1.6 -1.1 8.8 ** 17.7 13.7 18.3 11.5 47.2 13.4 60.0 23.5 *Includes Austria **Production calculated at EOP FX-rates Additional information 3 months 2006 67 of 71 ING Direct, retail mortgage growth March 2006 numbers Canada (May 1997) Spain (May 1999) Australia (Aug 1999) France (May 2000) USA (Sept 2000) Italy (April 2001) Germany (Aug 2001)* UK (May 2003) Total in EURO Production** FX-effect Retail Mortgages in euro's Retail Mortgages in local currency 2006 New Mortgages (€ bln) Total Mortgages (€ bln) 2006 New Mortgages (local bln) Total Mortgages (local bln) 0.5 0.3 0.1 0.0 -0.1 0.2 2.3 0.0 3.3 4.3 -1.0 8.0 3.9 12.6 0.0 10.8 1.0 20.0 0.0 56.3 - 0.9 0.3 1.2 0.0 0.2 0.2 2.3 0.0 4.3 ** 11.2 3.9 21.3 0.0 13.1 1.0 20.0 0.0 *Includes Austria **Production calculated at EOP FX-rates Additional information 3 months 2006 68 of 71 ING Direct, credit and market risk under control Mortgage Loan to value (LTV) Mortgage Interest rate risk Main Mortgage type Prepayment exposure Fixed > 90% Limited** Spain Variable 100% Negligible 75% Australia Variable 100% Negligible 95%*** 70% USA Hybrid* 100% Up to 100% Italy 80% 60% Italy Variable > 95 % Negligible Germany 100% 83% Germany Fixed > 90% Limited** Max LTV Current average LTV Canada 95%* 80% Canada Spain 80% 60% Australia 90%** USA Country * Loans above 75% are insured ** Loans above 80% are insured *** Loans above 85% are insured * Adjustable Rate Mortgage (ARM) 3,5,7 year fixed interest period ** With penalties The growth is not coming from relaxed underwriting standards Additional information 3 months 2006 Country Manageable risk + matched funding taking prepayments into consideration Prudent reserving level 69 of 71 Investment portfolio, end of March 2006 ING Direct -- Asset Class 1% 8% Government 4% 23% Provincials 1% 9% Municipals RMBS-GOV RMBS CMBS ABS Financials 14% Covered Bonds Corporates 35% 4% 1% • Portfolio Rating: AA Average Additional information 3 months 2006 70 of 71 Certain of the statements contained herein are statements of future expectations and other forward-looking statements. These expectations are based on management's current views and assumptions and involve known and unknown risks and uncertainties. Actual results, performance or events may differ materially from those in such statements due to, among other things, (i) general economic conditions, in particular economic conditions in ING’s core markets, (ii) performance of financial markets, including emerging markets, (iii) the frequency and severity of insured loss events, (iv) mortality and morbidity levels and trends, (v) persistency levels, (vi) interest rate levels, (vii) currency exchange rates (viii) general competitive factors, (ix) changes in laws and regulations, (x) changes in the policies of governments and regulatory authorities. ING assumes no obligation to update any forward-looking information contained in this document. www.ing.com Additional information 3 months 2006 71 of 71
