1 of 71 Additional information 3 months 2006 www.ing.com 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 Additional information
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1 of 71 Additional information 3 months 2006 Results first quarter 2006 ING Group Note on accounting standards: As from 2005 figures based.
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1 of 71Additional information 3 months 2006
www.ing.com
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 4Figures 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
Additional information
2 of 71Additional information 3 months 2006
ING Group generalUnderlying profit before tax 5 of 71Profit before tax and underlying profit before tax 6 of 71Net profit and underlying net profit 7 of 71Insurance, pre tax impact of divestments and special items 8 of 71Banking, pre tax impact of divestments and special items 9 of 71Insurance, net profit impact of divestments and special items 10 of 71Banking, net profit impact of divestments and special items 11 of 71P&L Insurance 12 of 71P&L Insurance Europe 13 of 71P&L Insurance Americas 14 of 71P&L Insurance Asia/Pacific 15 of 71P&L Banking 16 of 71P&L Wholesale Banking 17 of 71P&L Retail Banking 18 of 71P&L ING Direct 19 of 71Insurance Europe, impact divestments and special items 20 of 71Insurance Americas, impact divestments and special items 21 of 71Insurance Asia/Pacific, impact divestments and special items 22 of 71Wholesale Banking, impact divestments and special items 23 of 71Retail Banking, impact divestment and special items 24 of 71Operating expenses 25 of 71Tax ratio 26 of 71
Contents (1)
3 of 71Additional information 3 months 2006
ING’s capital position 27 of 71 The composition of ING’s capital base 28 of 71Information on the capital base 29 of 71Financial leverage ING Group and ING Insurance 30 of 71Capital position ING Insurance 31 of 71Capital position ING Bank 32 of 71Capital position ING Bank 33 0f 71Capital position ING Bank vs Tier I ratio 34 of 71
ING Group insurance operations 35 of 71Underlying premium income (I) 36 of 71Underlying premium income (II) 37 of 71Underlying operating expenses 38 of 71Underlying profit before tax 39 of 71Developing markets 40 of 71Developing markets 41 of 71New business information, 3 months 2006 42 of 71New business information, 3 months 2005 43 of 71Non-life operations by class of business 44 of 71Underlying profit non-life insurance by class of business 45 of 71Ratios non-life 46 of 71ING Insurance investments by product type 47 of 71Fixed income securities by rating class 48 -51 of 71
Contents (2)
4 of 71Additional information 3 months 2006
ING Group banking operations 52 of 71Underlying Income banking operations 53 of 71Banking: underlying profit before tax 54 of 71Banking: development interest margin 55 of 71Underlying RAROC and economic capital 56 of 71Cost/income ratio (underlying) 57 of 71Risk costs ratio (in bps of average CRWA) 58 of 71Value at Risk trading and treasury positions 1Q 2006 59 of 71Loan portfolio ratios 60 of 71
• Other expenses - insurance operations - banking operations
• Total operating expenses - insurance operations - banking operations
2006 2005 %
6901,1921,882
498890
1,388
1,1882,0823,270
7381,2561,994
559957
1,516
1,2972,2133,510
756
1289
967
(3 months)
Underlying operating expenses
26 of 71Additional information 3 months 2006
2006 2005
Total
Insurance operations
Banking operations
GroupUnderlying
Insurance operations
Banking operations
Group
(3 months)
19.7
25.9
23.1
18.9
25.9
22.8
24.1
21.0
22.2
24.8
28.2
26.6
Tax ratio
27 of 71Additional information 3 months 2006
ING’s capital position
28 of 71Additional information 3 months 2006
Group Insurance Bank
Capital and reservesGroup hybrid capitalCore debt
Total capitalisation
Revaluation reserve fixed income securities etc.Revaluation reserve deducted from Tier-1Insurance hybrid capitalMinorities
Regulatory capital
Other qualifying capitalDAC/ViF adjustment (50%)Group leverage
Adjusted equity
36,3628,6363,836
48,834
-3,169
-3,836
41,829
20,8081,788
22,596
-1,367
2,2501,315
24,794
4,476
29,270
20,7696,552
27,322
-1,906-1,292
653
24,777
11,893
36,670
31 March 2006, in EUR million
The composition of ING’s capital base
29 of 71Additional information 3 months 2006
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).
BIS ratio 10.98% 11.34% 11.47% 10.46% 10.76% 10.55% 10.83% 10.86% 11.00%
year-end
ING GAAP IFRS
33 of 71Additional information 3 months 2006
Capital position ING Bank
0
5
10
15
20
25
30
35
40
2002 2003 2004 2005 2006
EUR bln
14.0 15.6 16.6 16.9 17.6 18.2
5.05.2
5.4 5.7 5.86.6
9.710.2
10.211.4 11.3
11.9
Shaded: ING GAAPSolid: IFRS
Other capital
Core capital funded by group hybrids
Core capital (excl. hybrids)
34 of 71Additional information 3 months 2006
Capital position ING Bank vs Tier-1 ratio
0
5
10
15
20
25
30
2002 2003 2004 2005 2006
EUR bln
0%
2%
4%
6%
8%
10%
Required regulatory capital (4% of RWAs)Tier-1 capital (ING GAAP)Tier-1 capital (IFRS)
Tier-1 ratio (ING GAAP)
Tier-1 ratio (IFRS)
35 of 71Additional information 3 months 2006
ING Group insurance operations
36 of 71Additional information 3 months 2006
Life % Non-life %
-92
-8
161314
20
3
The Netherlands BelgiumCentral Europe & Spain Insurance EuropeUnited StatesCanadaLatin America Insurance AmericasJapanKoreaTaiwanAustralia & NZRest of Asia Insurance Asia/Pacific
Total
(3 months 2006)
749106
14869
588359947
12
1,830
1,582334451
2,3675,066
1835,2491,481
727643
35190
3,076
10,695
44
247
21
3521-74919212510
14
Underlying premium income (I)
37 of 71Additional information 3 months 2006
Life % % excl. FX Insurance EuropeInsurance AmericasInsurance Asia/Pacific
Op. expenses % % excl. FX Insurance Europe- personnel expenses- other expenses
Insurance Americas
- personnel expenses
- other expenses
Insurance Asia/Pacific
- personnel expenses
- other expenses
(3 months 2006)
437280157
629345
284
238106132
-4-5-1
161615
321748
Underlying operating expenses
-4
3
24
39 of 71Additional information 3 months 2006
Life % Non-life %
2300
20
11-13
7
36
The Netherlands BelgiumCentral Europe & Spain Insurance EuropeUnited StatesCanadaLatin America Insurance AmericasJapanKoreaTaiwanAustralia & NZRest of Asia Insurance Asia/Pacific
Corporate lineTotal
(3 months 2006)
11911
2132
14727
174
2
91
399
2242166
311276
34310
3866
042
8154
31
806
-28-2816
-219
70137365
-9
-8
16
Underlying profit before tax
40 of 71Additional information 3 months 2006
63
61
76
200
76200
282
542
1,591
2,415
246
452
1,191
1,889
49
51
106
206
47147
2006 2005 % 2006 2005 % Europe
Latin America
Asia
Total
Asia excl. Taiwan Total excl. Taiwan
Underlying Premiums Underlying Profit before tax(3 months)
15
20
34
28
28
20
-28
-3
6336
Developing markets
41 of 71Additional information 3 months 2006
2006 2005 2006 2005
2310-217
200
40-2760
4059-15
-48
-1 206
147
PolandCzech RepublicSlovakiaHungaryRomaniaBulgariaRussiaMexicoBrazilChilePeruLatin America CorporateSouth KoreaTaiwanChinaHong KongIndiaMalaysiaThailandTotal Total excl. Taiwan (Due to rounding differences may be possible)
Underlying Premiums Underlying Profit before tax(3 months)
3310
118
3-10
420
156
-166
018
-810
-1 200
200
6276179730
00
3520
19000
727642
14643892
14
2,415
5869157925
00
3070
14500
489541
10561474
9
1,889
Developing markets
42 of 71Additional information 3 months 2006
1. Annual Premium Equivalent = 100% of Annual plus 10% of Single
2. Value of New Business
3. New Business Margin (Defined as (VNB /APE) * 100%.)
Annual premium
Single premium
APE VNB NBM (*) IRR
Netherlands
Belgium & Luxembourg
Central Europe & Spain
Insurance Europe
US
Latin America
Insurance Americas
Australia & NZ
Japan
Korea
Taiwan
Rest of Asia
Insurance Asia/Pacific
Total
40
12
72
124
509
61
570
11
94
217
68
40
430
1,124
455
207
137
799
4,120
80
4,200
289
1,086
53
21
16
1,465
6,464
85
33
86
204
921
69
990
40
203
222
70
42
577
1,771
25
2
26
53
60
11
71
5
32
54
30
3
124
248
29.4%
6.1%
30.2%
26.0%
6.5%
15.9%
7.2%
12.5%
15.8%
24.3%
42.9%
7.1%
21.5%
14.0%
14.3%
9.9%
15.9%
14.4%
11.6%
12.8%
11.6%
13.3%
13.4%
42.4%
15.5%
10.3%
17.1%
14.0%
(*) NBM = New Business Margin (defined as (VNB/APE)*100
New business information, 3 months 2006
43 of 71Additional information 3 months 2006
1. Annual Premium Equivalent = 100% of Annual plus 10% of Single
2. Value of New Business
3. New Business Margin (Defined as (VNB /APE) * 100%.)
Annual premium
Single premium
APE VNB NBM (*) IRR
Netherlands
Belgium & Luxembourg
Central Europe & Spain
Insurance Europe
US
Latin America
Insurance Americas
Australia & NZ
Japan
Korea
Taiwan
Rest of Asia
Insurance Asia/Pacific
Total
40
13
81
134
366
37
403
15
91
123
51
28
308
845
390
289
64
743
3,178
59
3,237
234
1,281
54
55
13
1,637
5,617
79
42
87
208
684
43
727
38
219
128
57
29
472
1,407
21
7
18
46
41
2
43
5
36
30
27
1
99
188
26.6%
16.7%
20.6%
22.1%
6.0%
4.7%
5.9%
13.0%
16.4%
23.4%
47.8%
3.4%
21.0%
13.4%
12.9%
16.8%
12.1%
12.9%
10.7%
8.8%
10.5%
18.1%
12.6%
33.0%
16.1%
7.3%
15.2%
12.6%
(*) NBM = New Business Margin (defined as (VNB/APE)*100
New business information, 3 months 2005
44 of 71Additional information 3 months 2006
Fire
Marine & Aviation
Motor
Health
Income/Accident
Miscellaneous
Indirect business
Total
60
2
119
10
54
46
2
293
56
6
155
2
77
67
36
399
342
31
548
157
489
200
12
1,779
385
25
614
189
411
192
14
1,830
(3 months)
2006 2005 2006 2005
Underlying premium income Underlying profit before tax
Non-life operations by class of business
45 of 71Additional information 3 months 2006
Fire M.& A. Motor Health Acc. Misc. Indirect Total (3 months 2006)
The Netherlands
Belgium
Central Eur./Spain
North America
Latin America
Asia
Other
Total
1
35
36
20
5
2
113
16
1
-2
155
16
3
43
-14
8
56
2
1
3
6
-1
1
2
2
73
3
1
77
119
11
2
147
27
2
91
399
8
-1
-10
20
50
67
Underlying profit non-life insurance by class of business
46 of 71Additional information 3 months 2006
2006 2005 2006 2005 2006 2005
(3 months) The Netherlands
Belgium
Central Europe/Spain
USA
Canada
Latin America
Asia
Total
78%
94%
86%
106%
96%
96%
90%
88%
74%
92%
89%
98%
100%
87%
87%
54%
66%
53%
60%
72%
49%
59%
61%
68%
50%
82%
59%
67%
54%
63%
17%
26%
36%
24%
37%
29%
36%
25%
20%
26%
36%
38%
28%
38%
28%
Claims ratio Expense ratio Combined ratio
Ratios non-life
47 of 71Additional information 3 months 2006
Fixed income:
Debentures
Private loans
Mortgages
Policy loans
Other
Total fixed income
Real estate
Equities
Total
Europe Americas Asia/Pacific Total
44,093
4,560
17,795
127
947
67,522
3,420
10,744
81,686
64,180
325
9,216
2,039
712
76,472
342
2,301
79,115
17,692
25
653
1,406
1,126
20,902
91
1,997
22,990
125,965
4,910
27,664
3,572
2,785
164,896
3,853
15,042
183,791
Note: table includes general account portfolios only
31 March 2006
ING Insurance investments by product type
48 of 71Additional information 3 months 2006
Total ING Insurance 31 March 2006
• AAA 28%
• AA 31%
• A 23%
• BBB 14%
• BB 2%
• Rest 1%
Table does not include unrated securities, policy loans and
“other” fixed income investments
Note: table includes general account portfolios only
Fixed income securities by rating class
49 of 71Additional information 3 months 2006
Insurance Europe 31 March 2006
• AAA 24%
• AA 52%
• A 15%
• BBB 6%
• BB 3%
• Rest -%
Table does not include unrated securities, policy loans and
“other” fixed income investments
Note: table includes general account portfolios only
Fixed income securities by rating class
50 of 71Additional information 3 months 2006
• AAA 37%
• AA 9%
• A 26%
• BBB 23%
• BB 3%
• Rest 2%
Insurance Americas 31 March 2006
Table does not include unrated securities, policy loans and
“other” fixed income investments
Note: table includes general account portfolios only
Fixed income securities by rating class
51 of 71Additional information 3 months 2006
Insurance Asia/Pacific 31 March 2006
• AAA 12%
• AA 38%
• A 37%
• BBB 9%
• BB 4%
Table does not include unrated securities, policy loans and
“other” fixed income investments
Note: table includes general account portfolios only
Fixed income securities by rating class
52 of 71Additional information 3 months 2006
ING Group banking operations
53 of 71Additional information 3 months 2006
Netherlands BelgiumRest of the worldOtherSubtotalING Real EstateTotal Wholesale BankingTotal Wholesale Banking
NetherlandsBelgiumPolandOther Total Retail BankingTotal Retail Banking
Total ING DirectTotal ING Direct
OtherTotal
497415378-10
1,280164
1,444
9023594952
1,362
487
-233,270
0-1920
230
5
1115224214
25
12
496 33645323
1,308213
1,521
9994146074
1,547
607
-143,661
(3 months) 2006 2005 %
Underlying income banking operations
54 of 71Additional information 3 months 2006
Netherlands BelgiumRest of the worldOtherSubtotalING Real Estate Total Wholesale BankingTotal Wholesale Banking
NetherlandsBelgiumPolandOther Total Retail BankingTotal Retail Banking
Total ING DirectTotal ING Direct
OtherTotal
260225175-3462699
725
29087
512
394
127
-541,192
0-3747
417
5
3771
140-4244
28
24
259 142257-10648116764
39814912
7566
163
-201,473
(3 months) 2006 2005 %
Banking, underlying profit before tax
55 of 71Additional information 3 months 2006
(annualised, in %) Total Netherlands Outside the Netherlands
1Q 2006
4Q 20053Q 20052Q 20051Q 2005
4Q 2004(*)3Q 20042Q 20041Q 2004
1.12
1.151.221.111.19
1.211.171.221.27
1.20
1.261.291.331.28
1.351.231.381.45
0.79
0.830.920.740.89
0.890.910.890.91
* estimated interest margins 2004 based on full IFRS
Banking: development interest margin
56 of 71Additional information 3 months 2006
(3 months) Netherlands BelgiumRest of the worldOtherSubtotalING Real Estate Total Wholesale BankingTotal Wholesale Banking NetherlandsBelgiumPolandOther Total Retail BankingTotal Retail Banking Total ING DirectTotal ING Direct
OtherTotal
Pre-tax RAROC in % Economic capital in EUR bln 2006 2005 2006 2005
27.325.929.5
-25.626.639.728.3
71.679.013.0
4.555.6
18.1
31.0
30.129.217.4
-71.623.142.825.1
64.557.8
6.44.1
50.8
22.8
27.6
2.81.72.50.27.11.18.2
2.10.70.10.93.8
3.3
0.115.4
2.62.32.60.27.60.88.5
1.90.50.10.53.0
2.6
0.114.2
Underlying RAROC and economic capital
57 of 71Additional information 3 months 2006
Netherlands BelgiumRest of the worldSubtotalING Real Estate Total Wholesale BankingTotal Wholesale Banking NetherlandsBelgiumPolandOther retail Total Retail BankingTotal Retail Banking Total ING DirectTotal ING Direct
Total Banking
3m 2006 3m 2005
(in %)51.059.551.955.146.553.9
59.063.885.079.762.2
69.9
60.4
50.953.761.457.242.155.5
63.476.387.873.168.1
66.3
63.7
Cost/income ratio (underlying)
58 of 71Additional information 3 months 2006
Netherlands BelgiumRest of the worldOtherSubtotalING Real Estate Total Wholesale BankingTotal Wholesale Banking
NetherlandsBelgiumPolandOther Total Retail BankingTotal Retail Banking
Total ING DirectTotal ING Direct
Total Banking
3m 2006 3m 2005 (in %)
-12-7
-330
-19-3
-16
72
-18849
7
10
-3
-13-35-29
0-24-7
-22
25-6501921
27
-1
Risk costs ratio (in bps of average CRWA)
59 of 71Additional information 3 months 2006
0
5
10
15
20
25
30
35
40
1Q 2Q 3Q 4Q
Maximum Minimum Average
36.0 26.5 31.4
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.
Value at Risk trading and treasury positions 1Q 2006
60 of 71Additional information 3 months 2006
Total provisions
Provisioned loans
Total loans (incl. amounts due from banks)
Provisioned loans/total loans in %
Total provisions/provisioned loans in %
Provisions / total loans (in bp)
31 March 31 December 2006 2005
(in EUR bn)
3.3
6.8
450.5
1.5
49
73
3.1
6.6
470.1
1.4
47
66
Loan portfolio ratios
61 of 71Additional information 3 months 2006
ING Direct
62 of 71Additional information 3 months 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
The growth is not coming from relaxed underwriting
standards
Country Max LTVCurrent
average LTV
Canada 95%* 80%
Spain 80% 60%
Australia 90%** 75%
USA 95%*** 70%
Italy 80% 60%
Germany 100% 83%
* Loans above 75% are insured** Loans above 80% are insured*** Loans above 85% are insured
Mortgage Interest rate risk
Manageable risk + matched funding taking prepayments into consideration
Prudent reserving level
CountryMain
Mortgage typePrepayment
exposure
Canada Fixed > 90% Limited**
Spain Variable 100% Negligible
Australia Variable 100% Negligible
USA Hybrid* 100% Up to 100%
Italy Variable > 95 % Negligible
Germany Fixed > 90% Limited**
* Adjustable Rate Mortgage (ARM) 3,5,7 year fixed interest period** With penalties
ING Direct, credit and market risk under control
70 of 71Additional information 3 months 2006
8%4%
1%
9%
35%4%
14%
23%
1%
1%
Government
Provincials
Municipals
RMBS-GOV
RMBS
CMBS
ABS
Financials
Covered Bonds
Corporates
Investment portfolio, end of March 2006
ING Direct -- Asset Class
• Portfolio Rating: AA Average
71 of 71Additional information 3 months 2006
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.