1 of 71 Additional information 3 months 2006 Results first quarter 2006 ING Group Note on...

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


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)


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)


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

ING Direct 61 - 70 of 71

Disclaimer 71 of 71

Contents (3)


Life 30%

Non-life 15%

Bank 55%Insurance

Europe 40%InsuranceAmericas 40%

InsuranceAsia/Pacific 20%

InsuranceEurope 43%

InsuranceAmericas 57%

Non-life (excl. Other)

Life (excl. Other)

WholesaleBanking 51%

RetailBanking 38%

ING Direct 11%

Banking (excl. Other)

Underlying profit before tax, 1Q 2006

Total


First quarter

Insurance Banking Total

%ch1Q2006

1Q2005

1Q2006

1Q2005

1Q2006

1Q2005

Profit before tax (PBT)

Impact divestments

PBT excl. divestments

Special items

1,254

49

1,205

0

1,022

37

985

0

1,473

1,473

0

1,553

361

1,192

0

2,727

49

2,678

0

2,575

398

2,177

0

6

23

Underlying PBT 1,205 985 1,473 1,192 2,678 2,177 23

Profit before tax and underlying profit before tax


First quarter

Insurance Banking Total

%ch1Q2006

1Q2005

1Q2006

1Q2005

1Q2006

1Q2005

Net profit

Impact divestments

Net profit excl.

divestments

Special items

929

30

899

0

730

35

695

0

1,077

0

1,077

0

1,211

371

840

0

2,006

30

1,976

0

1,941

406

1,535

0

3

29

Underlying net profit 899 695 1,077 840 1,976 1,535 29

Net profit and underlying net profit


Insurance1Q

20064Q

20053Q

20052Q

20051Q

2005

Profit before tax

Australian non-life

Sale ING Re

Sale Life of Georgia

Gain ING Canada IPO

Sale Freeler

Sale Austbrokers

Unwinding Piraeus

Absence result divestments

1,254

15

34

1,039

-10

27

1,123

20

-1

1

794

-78

7

1,022

19

10

8

Underlying profit before tax 1,205 1,022 1,103 865 985

Insurance, pre tax impact of divestments and special items


Banking1Q

20064Q

20053Q

20052Q

20051Q

2005

Profit before tax

Sale Baring Asset Management

Sale 12.8% shares ING Bank Slaski

Restructuring NMB-Heller


1,473 1,120

-8

1,230

-15

1,013

47

1,553

255

92

14

Underlying profit before tax 1,473 1,128 1,245 966 1,192

Banking, pre tax impact of divestments and special items


Insurance1Q

20064Q

20053Q

20052Q

20051Q

2005

Net profit

Australian non-life

Sale ING Re

Sale Life of Georgia

Gain ING Canada IPO

Sale Freeler

Sale Austbrokers

Unwinding Piraeus


Tax releases

929

11

19

861

-7

25

1

130

977

13

1

170

700

-39

5

100

730

19

10

6

Underlying net profit 899 712 793 634 695

Insurance, net profit impact of divestments and special items


Banking1Q

20064Q

20053Q

20052Q

20051Q

2005

Net profit

Sale Baring Asset Management

Sale 12.8% shares ING Bank Slaski

Restructuring NMB-Heller


Tax releases / tax assets

1,077 979

-6

148

901

-15

851

47

35

1,211

269

92

10

Underlying net profit 1,077 837 916 769 840

Banking, net profit impact of divestments and special items


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

Gains/losses on divestments

Profit from divested units

Special items

Total profit before tax

2006 2005

1Q

12,525

2,517

606

15,648

12,805

341

1,297

14,443

1,205

806

399

49

1,254

3Q

11,440

2,629

573

14,642

11,899

319

1,321

13,539

1,103

802

301

19

1

1,123

2Q

11,443

2,583

159

14,185

11,797

266

1,258

-1

13,320

865

514

351

-78

7

794

1Q

11,130

2,176

609

13,915

11,469

269

1,188

4

12,930

985

692

293

29

8

1,022

4Q

11,694

2,528

354

14,576

11,894

246

1,407

7

13,554

1,022

758

264

17

1,039

P&L Insurance


Premium income






Operating expenses

Other impairments




-Non-life insurance



Special items


2006 20051Q

3,236

1,091

243

4,570

3,549

141

437

4,127

443

311

132

34

477

3Q

2,478

1,209

112

3,799

2,728

134

473

-1

3,334

465

374

91

465

2Q

2,421

1,218

112

3,751

2,678

118

466

3,262

490

395

95

490

1Q

3,152

1,047

283

4,482

3,401

118

454

3

3,976

506

396

110

10

516

4Q

2,651

1,087

253

3,991

2,837

111

477

5

3,430

561

431

130

561

P&L Insurance Europe


Premium income






Operating expenses

Investment losses




-Non-life insurance



Special items


1Q

6,196

1,092

331

7,619

6,380

126

629

7,135

484

310

174

484

3Q

5,997

1,147

506

7,650

6,347

131

603

7,081

569

376

193

19

588

2Q

5,656

1,208

-2

6,862

5,770

-24

567

6,313

549

313

236

-78

5

476

1Q

5,165

988

274

6,427

5,373

73

544

5,990

437

274

163

19

7

463

4Q

5,875

1,052

127

7,054

6,046

-83

666

1

6,630

424

287

137

-10

414

2006 2005

P&L Insurance Americas


Premium income






Operating expenses

Investment losses




-Non-life insurance



Special items


1Q

3,088

251

-35

3,304

2,907

3

238

3,148

156

154

2

15

171

3Q

2,960

255

-65

3,150

2,803

2

232

3,037

113

112

1

1

114

2Q

3,357

205

48

3,610

3,346

2

209

3,557

53

51

2

2

55

1Q

2,810

193

45

3,048

2,697

2

180

2,879

169

168

1

1

170

4Q

3,159

258

-68

3,349

2,992

2

243

3,237

112

110

2

27

139

2006 2005

P&L Insurance Asia/Pacific


Interest result

Commission income

Investment income

Other income


Operating expenses underlying

Gross result

Addition to the provision for

loan losses




Special items


1Q

2,395

705

114

447

3,661

2,213

1,448

-25

1,473

1,473

3Q

2,456

639

96

268

3,459

2,198

1,261

16

1,245

-15

1,230

2Q

2,134

540

175

446

3,295

2,279

1,016

50

966

47

1,013

1Q

2,158

543

161

408

3,270

2,082

1,188

-4

1,192

347

14

1,553

4Q

2,409

626

126

223

3,384

2,230

1,154

26

1,128

-8

1,120

2006 2005

P&L Banking


1Q

707

336

93

385

1,521

820

701

-63

764

764

3Q

836

327

87

113

1,363

816

547

-21

568

-15

553

2Q

636

243

159

369

1,407

920

487

6

481

47

528

1Q

696

249

142

357

1,444

801

643

-82

725

285

14

1,024

4Q

755

327

114

169

1,365

874

491

-11

502

-8

494

2006 2005

P&L Wholesale Banking

Interest result

Commission income

Investment income

Other income



Gross result


loan losses




Special items



1Q

1,149

337

12

49

1,547

963

584

18

566

566

3Q

1,125

283

9

91

1,508

1,001

507

6

501

501

2Q

1,102

271

-4

39

1,408

976

432

18

414

414

1Q

1,045

272

8

37

1,362

927

435

41

394

62

456

4Q

1,125

272

18

41

1,456

925

531

25

506

506

2006 2005

P&L Retail Banking

Interest result

Commission income

Investment income

Other income



Gross result


loan losses




Special items



1Q

556

33

12

6

607

424

183

20

163

163

3Q

516

30

11

3

560

350

210

31

179

179

2Q

432

24

24

17

497

344

153

26

127

127

1Q

452

22

11

2

487

323

164

37

127

127

4Q

547

28

-10

10

575

379

196

12

184

184

2006 2005

P&L ING Direct

Interest result

Commission income

Investment income

Other income



Gross result


loan losses




Special items



1Q2006

4Q2005

3Q2005

2Q2005

1Q2005


Gains / losses from divestments

• Freeler

• Unwinding Piraeus

477

34

561 465 490 516

10

PBT from divested units


Special items

Underlying PBT

443

-

443

561

-

561

465

-

465

490

-

490

506

-

506

Insurance Europe, impact divestments and special items


1Q2006

4Q2005

3Q2005

2Q2005

1Q2005



• ING Canada IPO

• ING Re

• Loss on sale of Life of Georgia

484 414

-10

588

20

-1

476

-78

463

19

PBT from divested units 5 7


Special items

Underlying PBT

484

-

484

424

-

424

569

-

569

549

-

549

437

-

437

Insurance Americas, impact divestments and special items


1Q 2006

4Q2005

3Q2005

2Q2005

1Q2005



• Australia non-life

• Austbrokers

171

15

139

27

114 55 170

PBT from divested units 1 2 1


Special items

Underlying PBT

156

-

156

112

-

112

113

-

113

53

-

53

169

-

169

Insurance Asia/Pacific, impact divestments and special items


1Q2006

4Q2005

3Q2005

2Q2005

1Q2005



• Sale Asian Cash Equities

• Sale CenE Bankiers

• Sale BHF-Bank

• Sale Baring Asset Management

• Sale shares ING Bank Slaski

• Restructuring NMB-Heller

764 494 553

-15

528

47

1,024

255

30

PBT from divested units -8 14


Special items

Underlying PBT

764

-

764

502

-

502

568

-

568

481

-

481

725

-

725

Wholesale Banking, impact divestments and special items


1Q2006

4Q2005

3Q2005

2Q2005

1Q2005



• Sale shares ING Bank Slaski

566 506 501 414 456

62

PBT from divested units


Special items

Underlying PBT

566

-

566

506

-

506

501

-

501

414

-

414

394

-

394

Retail Banking, impact divestments and special items


• Personnel expenses - insurance operations - banking operations

• 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


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


ING’s capital position


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


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).


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)

Financial leverage ING Group and Insurance

in EUR million and in %


Total regulatory

capital base

Buffer for shares & real

estate100% 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%


Capital position ING Insurance


Capital position ING Bank


Jan. 1st 1Q 2Q 3Q 4Q 1Q

2002 2003 2004 2005 2005 2005 2005 2005 2006

Core Tier-1 14,000 14,435 16,114 13,959 15,570 16,633 16,922 17,643 18,224

Hybrid Tier-1 4,080 4,639 5,025 5,025 5,166 5,367 5,699 5,764 6,552

Tier-1 capital 18,080 19,074 21,139 18,984 20,736 22,000 22,621 23,407 24,777

Other capital 9,071 9,408 10,294 9,677 10,181 10,241 11,383 11,318 11,893BIS capital 27,151 28,482 31,433 28,661 30,917 32,241 34,004 34,725 36,670

RWAs 247,287 251,266 274,138 274,138 287,398 305,543 313,905 319,653 333,365

Tier-1 ratio 7.31% 7.59% 7.71% 6.92% 7.21% 7.20% 7.21% 7.32% 7.43%

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


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)


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)


ING Group insurance operations


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)


Life % % excl. FX Insurance EuropeInsurance AmericasInsurance Asia/Pacific

(3 months 2006)

2,3675,249

3,07610,695

7211014

Insurance EuropeInsurance AmericasInsurance Asia/Pacific

869947 12

1,830

-81420

3

Non- Life % % excl. FX

7968

-8-24

-5

Underlying premium income (II)


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


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



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


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


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


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


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


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


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


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


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


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


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


Fixed income securities by rating class


Insurance Europe 31 March 2006

• AAA 24%

• AA 52%

• A 15%

• BBB 6%

• BB 3%

• Rest -%






• AAA 37%

• AA 9%

• A 26%

• BBB 23%

• BB 3%

• Rest 2%

Insurance Americas 31 March 2006






Insurance Asia/Pacific 31 March 2006

• AAA 12%

• AA 38%

• A 37%

• BBB 9%

• BB 4%






ING Group banking operations


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


Netherlands BelgiumRest of the worldOtherSubtotalING Real Estate Total Wholesale BankingTotal Wholesale Banking



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


(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


(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


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)


Netherlands BelgiumRest of the worldOtherSubtotalING Real Estate Total Wholesale BankingTotal Wholesale Banking



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)


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


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


ING Direct


• 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%

ING Direct highlights 1Q 2006


2 724

55

208

199

151103

0

50

100

150

200

250

1999 2000 2001 2002 2003 2004 2005 Mar-06

0

2

4

6

8

10

12

14

16

18

Clients & Funds Entrusted (€ bln)

Total Client RetailFunds EntrustedNumber of clients

Residential Mortgages (€ bln)*

€ 195 blnFunds Entrusted

€ 13 bln offBalance Funds

20

32

53 56

0

10

20

30

40

50

60

2003 2004 2005 Mar-06

* Includes Bought Pools, excludes commercial mortgages

15.8 mln clients

ING Direct’s growth


* Including ING Card

ING Direct, quarterly pretax profit*

78

125 114 118 127 127

179 184163

0

20

40

60

80

100

120

140

160

180

200

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q

435 617

2004 2005 2006

€ € mlnmln


142123

96

59 49 44 40 44

250

0

50

100

150

200

250

300

1999 2000 2001 2002 2003 2004 2005 Mar-06 Branch

bps

• 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

• Marketing costs of over € 400 mln p.a. (€ 435m in 2005) can be adjusted quickly

Average Branch Bank: ± 250 bps

ING Direct, operational costs


March 2006 numbers

2006 New clients (*1000)

Total clients (*1000)

2006 New funds(€ bln)

Total funds entrusted

(€ bln)

2006 New Mortgages

(€ bln)

Total Mortgages

(€ bln)

Canada (May 1997) 52 1,361 0.0 12.6 0.5 8.0Spain (May 1999) 93 1,342 0.9 13.7 0.3 3.9Australia (Aug 1999) 42 1,282 0.4 10.8 0.1 12.6France (May 2000) 55 556 0.7 11.5 0.0 0.0USA (Sept 2000) 404 3,786 5.0 39.0 -0.1 10.8Italy (April 2001) 68 700 0.1 13.4 0.2 1.0Germany (Aug 2001)* 309 5,699 1.6 60.0 2.3 20.0UK (May 2003) 36 1,039 -2.0 33.7 0.0 0.0Total 1,059 15,765 6.7 194.7 3.3 56.3Production 1,059 - 8.8 - 4.3 -FX-effect - - -2.1 - -1.0 -*Includes Austria

**Includes Bought Pools

Clients Funds Entrusted Retail Mortgages**

ING Direct, commercial results per country


March 2006 numbers

2006 New funds(€ bln)

Total funds entrusted

(€ bln)

2006 New funds

(local bln)

Total funds entrusted (local bln)

Canada (May 1997) 0.0 12.6 0.4 17.7Spain (May 1999) 0.9 13.7 0.9 13.7Australia (Aug 1999) 0.4 10.8 1.5 18.3France (May 2000) 0.7 11.5 0.7 11.5USA (Sept 2000) 5.0 39.0 7.1 47.2Italy (April 2001) 0.1 13.4 0.1 13.4Germany (Aug 2001)* 1.6 60.0 1.6 60.0UK (May 2003) -2.0 33.7 -1.1 23.5Total in EURO 6.7 194.7 8.8 **Production** 8.8 -FX-effect -2.1 -*Includes Austria

**Production calculated at EOP FX-rates

Funds Entrusted in euro's

Funds Entrusted in local currency

ING Direct, funds entrusted growth


March 2006 numbers

2006 New Mortgages

(€ bln)

Total Mortgages

(€ bln)

2006 New Mortgages(local bln)

Total Mortgages (local bln)

Canada (May 1997) 0.5 8.0 0.9 11.2Spain (May 1999) 0.3 3.9 0.3 3.9Australia (Aug 1999) 0.1 12.6 1.2 21.3France (May 2000) 0.0 0.0 0.0 0.0USA (Sept 2000) -0.1 10.8 0.2 13.1Italy (April 2001) 0.2 1.0 0.2 1.0Germany (Aug 2001)* 2.3 20.0 2.3 20.0UK (May 2003) 0.0 0.0 0.0 0.0Total in EURO 3.3 56.3 4.3 **Production** 4.3 -FX-effect -1.0 -*Includes Austria

**Production calculated at EOP FX-rates

Retail Mortgages in euro's

Retail Mortgages in local currency

ING Direct, retail mortgage growth


Mortgage Loan to value (LTV)

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


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


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.

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