ING Bank Strategy Update

Think Forward

• Strategy to create differentiating customer experience, focusing on primary relationships, enabled by streamlined organisation, operational excellence and enhanced performance culture
• Aim to grow lending by 4% annually, diversifying the asset mix, supported by initiatives in SME and Consumer Lending and in Industry Lending

Update of financial Ambition 2017: expansion of interest margin to 150-155 bps, maintaining cost-income target of 50-53% combined with declining risk costs leading to RoE of 10-13%

 After full repayment of Dutch State, ING intends to resume dividend payments over the financial year 2015; target pay-out ratio >40%

'Think Forward' is the theme of the strategy update today for ING Bank. Ralph Hamers, CEO of ING Group and other executives will address the analyst and investment community at an Investor Day in Amsterdam, The Netherlands. Over the past weekend the strategy update was already presented to and discussed with a gathering of senior managers and a number of key employees.

"During the past several years we have vigorously restructured ING Group to make our company stronger, simpler and more sustainable," said Ralph Hamers. "Now that we are in the end stage of the restructuring, with our divestment programme and repayment of the Dutch State almost complete, we are proud to be in a position to look ahead to the future of ING Bank - to Think Forward."

"The banking landscape is changing rapidly. Customer expectations are constantly changing, with clients becoming increasingly more mobile and willing to spread their business across multiple institutions. At the same time, technology is transforming the way in which we interact with our customers. Partly because of new regulation, all banks have been forced to re-think their business models and to assess where they can compete effectively and serve their customers best. In this new landscape, we need to be agile towards change, to ensure that our franchise remains sustainable and competitive."

"ING Bank has a unique starting position with a mix of mature and growth businesses, allowing us to benefit strongly from a European Banking Union. Approximately 32 million clients trust us with their banking needs. This number is growing rapidly, reflecting our strong customer satisfaction rankings. Our 'direct first' model enables us to attract and retain a growing and attractive base of self-directed customers. Our international Commercial Banking network and our leading specialised lending franchises support our customers in more than 40 countries. In all of these businesses, our purpose is to empower people to stay a step ahead in life and in business. Customers can count on us to make banking clear and easy, to be there for them anytime, anywhere, to empower them to make smart decisions and to continuously improve our service."