ING Bank posts 2014 underlying net profit of EUR 3,424 million; Dividends reinstated with EUR 0.12 per ordinary share

ING Bank full-year 2014 underlying net profit of EUR 3,424 million, up 8.5% from full-year 2013
-	Strong full-year 2014 results reflect higher interest results, strict expense control and lower risk costs
-	4Q14 underlying net result of EUR 548 million reflects redundancy provisions, annual Dutch bank tax and negative CVA/DVA
-	Full-year 2014 underlying return on IFRS-EU equity improved to 9.9%; year-end fully-loaded CET 1 ratio strengthened to 11.4%
ING Group full-year 2014 net result EUR 1,251 million (EUR 0.32 per share), including special items and Insurance results
-	4Q14 net result was EUR 1,176 million (EUR 0.30 per share) including results from discontinued operations of NN Group and Voya
-	Significant progress on restructuring in 2014: Dutch State fully repaid, NN Group stake reduced to 68%, Voya stake down to 19%
ING reinstates dividend payments on ordinary shares and will propose to pay EUR 0.12 per share at the AGM in May
-	Financial strength enables ING to propose to pay a cash dividend of EUR 470 million, or EUR 0.12 per ordinary share
-	ING intends to pay a minimum of 40% of ING Group's annual net profits to shareholders, through dividends, effective from 2015

CEO STATEMENT

"2014 was an important and successful year for ING," said Ralph Hamers, CEO of ING Group. "We launched our 'Think Forward' strategy, repaid the Dutch State ahead of schedule and moved closer to completing our restructuring plan. We are proud to have solidified our repositioning as a leading European bank and pleased to see that both NN Group and Voya are thriving as standalone companies. Today, I am delighted to announce the reinstatement of dividend payments on ordinary shares with a proposed cash dividend of EUR 0.12 per share."

"In 2014, ING Bank welcomed over one million new customers and established half a million primary banking relationships. I am grateful for the loyalty of our customers and for the dedication of our employees to deliver a differentiating experience to our customers every day. Following the launch of 'Think Forward', our Chief Innovation Officer and Chief Operations Officer have been working together to deliver innovations and service improvements to our customers as quickly as possible. We have already introduced a steady stream of improvements during 2014, the most recent being biometrics technology in Belgium, and are excited about other new projects that will debut this year."

"ING Bank posted a strong set of full-year 2014 results, despite some headwinds in the fourth quarter. Interest results were robust, risk costs approached normalised levels and our continued vigilance on costs was evident as we invested for the further digitalisation of our banking services in the Netherlands and extended our ongoing transformation programme within Commercial Banking. Our fourth-quarter result was dampened by redundancy provisions related to these actions, the annual Dutch bank tax and negative CVA/DVA impacts which lowered the underlying result before tax to EUR 783 million. Excluding those items, the underlying result before tax was a strong EUR 1,376 million. ING Bank's underlying net profit for the full-year 2014 was EUR 3,424 million, up 8.5% from 2013. The improvement was driven by higher interest results, disciplined expense control and lower risk costs, and despite negative CVA/DVA impacts. The full-year underlying return on IFRS-EU equity rose to 9.9% and ING Bank ended the year with a fully-loaded CET1 ratio of 11.4%."

"Our efforts to support our customers and the economy contributed to strong commercial growth during 2014. The Bank grew net lending by EUR 14.7 billion in 2014, driven by robust growth in our core lending businesses and despite further reductions in the runoff portfolios. Net lending assets in the core businesses grew by EUR 18.5 billion in 2014, or 3.8%, which is in line with our strategy. Total net inflow of funds entrusted amounted to EUR 16.8 billion, demonstrating the strength of our deposit-gathering capabilities."

"ING has started 2015 with a strong financial position and a clear focus on empowering our growing customer base through outstanding products and customer service. I am optimistic about the prospects for our bank and am confident that we are well positioned to build on our strategic momentum. We remain committed to reaching our Ambition 2017 targets and are pleased that we are able to begin returning capital to our shareholders. Our intention is to pay a minimum of 40% of ING Group's annual net profits to shareholders, through dividends, with effect from 2015. Furthermore, at the end of each financial year, the Board will recommend whether to return additional capital to shareholders dependent on financial, strategic and regulatory considerations."