Edgar Filing: ING GROEP NV

6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 6-K

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934

For August 8, 2007

Commission File Number 1-14642

ING Groep N.V.

Amstelveenseweg 500
1081-KL Amsterdam
The Netherlands

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F þ Form 40-F o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T rule 101(b)(1):

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T rule 101(b)(7):

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes o No þ

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b).

THIS REPORT ON FORM 6-K SHALL BE DEEMED TO BE INCORPORATED BY REFERENCE IN THE REGISTRATION STATEMENT ON FORM F-3 (FILE NO. 333-130040) OF ING GROEP N.V. AND TO BE A PART THEREOF FROM THE DATE ON WHICH THIS REPORT IS FURNISHED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED.

This Report contains a copy of the following:

(1) The Press Release issued on August 8, 2007.

PRESS RELEASE

Amsterdam • 8 August 2007

ING posts record second-quarter results: underlying net profit up 36.7%

•

Underlying net profit up 36.7% to EUR 2,747 million on business and investment gains

	–		Profit includes a EUR 573 million net gain on the sale of part of ING’s stake in ABN Amro

	–		Underlying net profit increased 8.2% to a record EUR 2,174 million excluding that gain

	–		Strong volume growth in banking helps offset continued pressure from flat yield curves

	–		Expenses remain under control: up 4.2% including investments to support fast-growing businesses

	–		Net profit up 27.1% to EUR 2,559 million (EPS: EUR 1.18) after EUR 188 million for combining ING Bank and Postbank

	–		ING to pay interim dividend of EUR 0.66 per share, up 11.9% and equal to half of the total dividend paid over 2006

•

Commercial momentum remains strong across our businesses

	–		Single-premium sales up 22.8% from 1Q as ING capitalises on global shift to wealth accumulation products

	–		Total value of new business up 23.2% from 1Q on strong SPVA sales in Japan and U.S. individual life reserves

	–		ING Direct adds record EUR 7.0 billion in own-originated mortgages in the second quarter

	–		Retail Banking shows solid volume growth in current accounts and mortgages in the Benelux and Poland

•

ING continues to invest to accelerate the growth of its businesses

	–		Acquisitions of Oyak Bank in Turkey, Latin American pension business, Korean fund manager support growth

	–		ING to launch retail bank in Ukraine in 2008 as next step in eastward expansion strategy

	–		Single-premium variable annuity launched in Hungary in July as European roll-out continues

	–		Additional investments planned to boost growth at ING Direct in the second half of 2007

Chairman’s Statement

“ING posted strong results in the second quarter as the business continued to benefit from solid economic and market conditions. Results benefited from a gain on the sale of part of ING’s stake in ABN Amro, however this was a record quarter on an underlying basis without those proceeds,” said Michel Tilmant, Chairman of ING Group.

“At the banking business, volume growth in mortgages and current accounts continued to help offset pressure from flat yield curves and the interest margin stabilised in the second quarter from the first. Risk costs remained low, and there is no sign of a deterioration in the credit portfolio.”

“The life insurance businesses benefited from growth in assets under management and higher investment gains as stock markets rallied. ING is capitalising on a global shift from traditional life insurance to wealth accumulation products, reflected in a 22.8% increase in single-premium sales in the second quarter from the first. Strong sales of a new single-premium variable annuity product in Japan, as well as the execution of our strategy to address redundant regulatory reserves in the U.S. life business, resulted in a 23.2% improvement in the value of new life business in the second quarter from the first.”

“Operating expenses for the Group remained under control, with underlying expenses up 4.2% including additional expenses to grow the business.”

“ING is taking new initiatives to accelerate growth organically and through bolt-on acquisitions. The recent agreements to buy Oyak Bank in Turkey, the Latin American pension business of Santander, and Landmark Investment Management in South Korea will build scale and give ING access to attractive new markets. Preparations continue for the launch of ING Direct in Japan later this year. Additional investments of EUR 65 million are anticipated in the second half to accelerate the commercial growth of ING Direct. Next year we will launch a retail bank in Ukraine as we continue to expand ING’s retail distribution franchise eastward into the largest markets in the region. “

“Looking forward, ING’s proprietary investment portfolio is expected to produce substantial gains in the second half which we will partially reinvest to support further organic growth. Credit markets have very recently become more turbulent, however based on today’s market circumstances we expect no material impact on 2007 earnings. The commercial performance of the business remains robust and we are confident that ING’s risk profile and the diversification of our businesses will enable ING to continue to create value for shareholders while focusing on long-term growth.”

Contacts

Media Relations
+31 20 541 6522

Press Conference
8 August, 11:00 a.m. CET
ING House, Amsterdam
Webcast www.ing.com

Investor Relations
+31 20 541 5571

Analyst Conference Call
8 August, 9:00 a.m. CET
NL: +31 20 796 5332
UK: +442085152303
US: +1 303 262 2140
Presentation and audio webcast
at www.ing.com

Analyst Conference Call
8 August, 4 p.m. CET
NL: +31 20 796 5332
UK: +442085152303
US: +1 303262 2140

A video interview is available at www.ing.com


Contents
ING Group Key Figures			2
Insurance			6
Insurance Europe			8
Insurance Americas			10
Insurance Asia/Pacific			17
Banking			14
Wholesale Banking			16
Retail Banking			18
ING Direct			20
Asset Management			22
Capital Management			24
Appendices			25

ING GROUP

ING Group: Key Figures


In EUR million	2Q2007			2Q2006			Change			1Q2007			Change			1H2007			1H2006			Change

Underlying¹ profit before tax
Insurance Europe		694			704			-1.4	%		468			48.3	%		1,162			1,147			1.3	%
Insurance Americas		593			457			29.8	%		533			11.3	%		1,126			941			19.7	%
Insurance Asia/Pacific		153			157			-2.5	%		159			-3.8	%		312			313			-0.3	%
Corporate line Insurance		531			-2						-84						447			120

Underlying profit before tax from Insurance		1,971			1,316			49.8	%		1,076			83.2	%		3,048			2,521			20.9	%

Wholesale Banking		668			717			-6.8	%		737			-9.4	%		1,404			1,452			-3.3	%
Retail Banking		555			454			22.2	%		539			3.0	%		1,094			1,022			7.0	%
ING Direct		171			190			-10.0	%		165			3.6	%		336			345			-2.6	%
Corporate line Banking		-65			-25						-56						-122			-45

Underlying profit before tax from Banking		1,329			1,336			-0.5	%		1,384			-4.0	%		2,713			2,774			-2.2	%

Underlying profit before tax		3,300			2,652			24.4	%		2,460			34.1	%		5,760			5,295			8.8	%

Taxation		476			557			-14.5	%		502			-5.2	%		977			1,154			-15.3	%
Profit before minority interests		2,824			2,095			34.8	%		1,958			44.2	%		4,783			4,141			15.5	%
Minority interests		76			86			-11.6	%		65			16.9	%		142			175			-18.9	%

Underlying net profit		2,747			2,009			36.7	%		1,894			45.0	%		4,641			3,966			17.0	%

Net gains/losses on divestments					-9															21
Net profit from divested units					14															33
Special items after tax		-188															-188

Net profit (attributable to shareholders)		2,559			2,014			27.1	%		1,894			35.1	%		4,452			4,020			10.7	%

Earnings per share (in EUR)		1.18			0.93			26.9	%		0.88			34.1	%		2.06			1.86			10.8	%

KEY FIGURES
Net return on equity²		23.9	%		25.0	%					20.8	%					23.9	%		25.0	%
Assets under management (end of period)		636,700			546,200			16.6	%		619,400			2.8	%		636,700			546,200			16.6	%
Total staff (FTEs end of period)		119,097			119,409			-0.3	%		118,592			0.4	%		119,097			119,409			-0.3	%


¹		Underlying profit before tax and underlying net profit are non-GAAP measures for profit excluding divestments and special items as specified in Appendix 2

²		Year to date

Note: small differences are possible in the tables due to rounding

Earnings Analysis: Second Quarter

ING posted strong earnings in the second quarter as the company benefited from a healthy economic climate, including relatively low risk costs as well as strong equity markets, which drove growth in assets under management and realised gains at the insurance business. Underlying net profit increased 36.7% to EUR 2,747 million, boosted by a gain of EUR 573 million on the sale of part of ING’s stake in ABN Amro. Excluding that gain, underlying net profit increased 8.2% to a record EUR 2,174 million. Currencies had a negative impact of approximately EUR 32 million.

ING GROUP
Underlying net profit (EUR million)

Results from insurance increased, with underlying profit before tax up 49.8% to EUR 1,971 million including the ABN Amro gain, which was reported in the Corporate Line Insurance. The U.S., Latin America and Central Europe led results from life insurance higher, driven by a strong investment performance and growth in assets under management as equity markets rallied and real estate values increased. That more than offset a decline in non-life profit as claims ratios in Canada deteriorated and pricing pressure impacted results in the Netherlands.

Strong volume growth, particularly in mortgages and current accounts, continued to help offset pressure from the interest margin as yield curves remained flat. That environment is particularly challenging for ING Direct, where profit declined 10.0%, due in part to investments to support the commercial growth of the business, particularly in mortgages. Risk costs of the banking businesses remained low, but increased to EUR 25 million from a net release of EUR 15 million in the second quarter last year as releases of past provisions diminish.

Operating expenses rose 4.2%, including investments in growth activities and new initiatives such as preparations to start ING Direct in Japan and new greenfield operations in Russia, Romania and Bulgaria.

ING benefited from a low effective tax rate in the second quarter, mainly due to substantial tax-exempt capital gains on equities. The underlying effective tax rate declined from 21.0% to 14.4%, and is expected to be in the 15-20% range for the full year, significantly below a normalised level of 20-25%.

Net profit increased 27.1% to EUR 2,559 million after a charge of EUR 188 million (EUR 252 before tax) for combining Postbank and ING Bank in the Netherlands, which was booked as a special item. The second quarter last year included a loss of EUR 9 million on divestments and EUR 14 million in profit from divested units.

Insurance

Strong equity and real estate markets bolstered results at ING’s insurance businesses as fee income increased, driven by higher assets under management, and the company realised higher gains on equities. Underlying profit before tax from insurance rose 49.8% to EUR 1,971 million, including EUR 802 million in realised gains on equities, of which EUR 573 million was from the sale of part of ING’s stake in ABN Amro.

Life results increased 69.9% to EUR 1,626 million, including the bulk of the gain on ABN Amro shares. Earnings were also driven by growth in assets under management, particularly in the U.S., Latin America, Central & Rest of Europe and Australia. Non-life insurance results declined 3.9%, driven by lower results in Canada and Mexico as the businesses continued to experience more challenging underwriting conditions.

Gross premium income increased 1.5% excluding currency effects as growth in Belgium, South Korea and Central & Rest of Europe was largely offset by declines in U.S. fixed annuities, Japan and the Netherlands. Assets under management of the insurance businesses showed robust growth, up 2.2% in the second quarter and 13.6% from a year earlier. Operating expenses rose 3.5%, or 6.9% excluding currency effects, as ING continued to invest for growth in Central & Rest of Europe, the U.S. and Asia.

New sales were dominated by strong growth in single-premium products as ING capitalises on a global shift from traditional life insurance products to unit-linked wealth accumulation products. Total single-premium sales increased 16.8%, and were up 22.8% from the first quarter, driven by strong growth in Japan, Australia, Korea, Taiwan, Central Europe, and in U.S. variable annuities.

The value of new business improved strongly in the second quarter from the first, up 23.2% to EUR 207 million, driven by strong sales of single-premium variable annuities in Japan after a new product was introduced in April. The VNB also includes EUR 28 million from the establishment of two on-shore captives to address the redundant regulatory reserves in the U.S. individual life business, of which EUR 11 million was attributable to first-quarter production. Compared with the second quarter last year, the value of new business declined 9.6%, or EUR 22 million, of which EUR 10 million is attributable to negative currency effects and EUR 13 million is due to the change in the discount rate at the end of 2006.

Insurance Europe

Strong growth in Central & Rest of Europe continued to drive sales and new business growth at Insurance Europe in the second quarter. Underlying profit before tax at Insurance Europe declined slightly to EUR 694 million from a very strong second quarter of 2006. Higher investment results and growth in Central Europe and Belgium compensated for a swing in the revaluation of the provision for separate account guarantees in the Netherlands.

Profit in the second quarter last year included a EUR 135 million positive revaluation of the provision for guarantees on separate account pension contracts in the Netherlands, including a EUR 76 million catch-up from the first quarter of 2006. That compares with a EUR 19 million negative revaluation in the second quarter this year. Excluding this impact, underlying profit before tax for Insurance Europe increased 25.3% to EUR 713 million, and profit from life insurance in the Netherlands was up 35.1 % on higher investment gains.

Profit from Central & Rest of Europe increased 37.3%, driven by higher sales and growth in assets under management. Life results in Belgium were up 85.7% on strong investment performance and higher sales of investment products. Results from non-life insurance declined 16.1% due to pricing pressure in the Netherlands and Belgium, and an increase in the claims provision.

Total premium income grew 5.7% driven by higher life sales in Belgium and Central & Rest of Europe. Operating expenses were flat despite a 4.5% increase in Central & Rest of Europe. The Netherlands showed a modest increase of 1.1 %, while expenses in Belgium declined 18.9% as the business prepared for the sale of the broker and employee benefits business in the third quarter.

The value of new life business was unchanged at EUR 55 million as a 30.8% increase in Central & Rest of Europe was offset by a decline of 34.6% in the Netherlands.

Insurance Americas

Strong growth in assets under management and favourable investment results at the U.S. drove profit growth at Insurance Americas in the second quarter. Underlying profit before tax climbed 29.8% to EUR 593 million, and was up 37.3% excluding currency effects. A 74.2% jump in profit in the U.S., as well as a strong improvement in Latin America, more than offset a 36.6% decline in profit in Canada as claims increased.

Premium income declined 4.1% excluding currency effects, mainly

due to lower sales of fixed annuities in the U.S. Operating expenses increased 6.0% excluding currency effects as staff were added to support customer service and the expansion of distribution in U.S. Wealth Management and Asset Management businesses.

The value of new life business increased strongly to EUR 53 million from EUR 33 million in the first quarter. The figures include EUR 28 million from the establishment of two on-shore captives to address the redundant regulatory reserves in the U.S. individual life business, of which EUR 11 million relates to first-quarter production. Compared with the second quarter last year, the value of new business declined 18.5%, reflecting currency effects and the increase in the discount rate at year-end 2006, as well as lower annuity margins, and lower fixed annuity sales.

Insurance Asia/Pacific

Underlying profit before tax from Insurance Asia/Pacific declined slightly to EUR 153 million as higher results in Australia were offset by declines in Japan and South Korea. Results in Japan were negatively impacted by a EUR 32 million swing in results from the SPVA product, mainly due to volatility from unhedged positions related to an increase in implied market volatility, which overshadowed very positive developments in the underlying business. Excluding this volatility in Japan, underlying profit before tax from Insurance Asia/Pacific increased 19.3% to EUR 173 million. In South Korea, results declined following a one-time item in the second quarter last year. Profit from Australia & New Zealand increased 41.9% driven by higher investment income.

Total premium income rose 9.4% excluding currency effects, driven mainly by growth of 24.9% in South Korea and 9.2% in Taiwan. Compared with the first quarter, premium income was up 21.4% driven by strong sales of single-premium products across the region. Operating expenses increased 20.9% excluding currency effects, reflecting investments to support the growth of the business.

Sales of single-premium products dominated new production in the second quarter as ING capitalises on a shift across the region from traditional life to wealth accumulation products. Single-premium sales were up 67.8% compared with the second quarter last year while annual premiums were flat, taking total new sales (APE) up 20.6% for the region. The shift from traditional to unit-linked products was also reflected in a lower internal rate of return in most countries, however returns for the region remained strong at 15.6%. The value of new business was down 9.2% from the second quarter last year, reflecting unfavourable currency effects, slower sales and margins in the COLI business in Japan, as well as the lower IRR. Compared with the first quarter, the value of new life business rose 20.7%, driven by strong sales of the new SPVA product in Japan as well as a surge in sales of superannuation products in Australia following a special tax incentive.

Corporate Line Insurance

The Corporate Line Insurance posted a profit of EUR 531 million in the second quarter compared with a loss of EUR 2 million a year earlier. The increase was due to EUR 578 million higher realised capital gains on shares, including the sale of part of ING’s stake in ABN Amro. That was offset in part by a EUR 52 million decline in fair value changes of derivatives used to hedge corporate interest and equity exposures.

Banking

Strong commercial growth in current accounts and mortgages continued to help offset the impact of flat yield curves at ING’s banking businesses. Total underlying profit before tax declined slightly by 0.5% compared with strong results in the second quarter of 2006. The interest result increased 3.7%, despite a narrowing of the interest margin by 5 basis points from the second quarter last year, while the interest margin remained stable relative to the first quarter.

Volume growth was led by strong sales of mortgages at ING Direct, growth of current accounts and term deposits at Retail Banking, as well as the continued growth of ING Real Estate. Net risk costs swung to an addition to the provision for loan losses from a release of provisions in the second quarter last year, however risk costs remained low and there was no indication of a deterioration in the quality of the credit portfolio. Operating expenses rose 4.6%, including investments to support the growth of the business, notably at ING Real Estate and the retail banking activities in developing markets. Pricing discipline and capital efficiency led to a further improvement in returns with the underlying risk-adjusted return on capital (RAROC) after tax up to 24.8% from 22.0% in the first half of 2006.

Wholesale Banking

Wholesale Banking continued to benefit from strong growth at ING Real Estate, as well as volume growth in Payments & Cash Management (PCM) and Leasing, which helped offset margin compression. Underlying profit before tax of Wholesale Banking declined 6.8% to EUR 668 million, reflecting a smaller net release from the provision for loan losses. The release narrowed to EUR 14 million in the second quarter from EUR 74 million in the second quarter last year as releases of old provisions begin to diminish.

The profit development was obscured by the asymmetrical tax treatment embedded in the equity derivative trading activities and their related cash equity hedges. Corrected for that impact, total income for Wholesale Banking increased 9.9%, the gross result rose 15.2% and underlying profit before tax was up 5.2%.

Operating expenses declined 1.7% from the first quarter but increased 5.7% compared with the second quarter last year, driven by increases to support growth at ING Real Estate and investments in PCM to prepare for the Single European Payment Area (SEPA). Returns continued to improve with the underlying RAROC after tax at 25.9%, up from 22.4% in the first half last year.

Retail Banking

Retail Banking posted solid earnings growth in the second quarter, despite the challenging interest rate environment, as continued volume growth more than offset margin pressure. Underlying profit before tax rose 22.2% from the second quarter last year, when profit was impacted by a litigation provision and

a catch-up of risk costs. The gross result, before risk costs, was up 14.4%. Growth was driven by an 11.4% increase in the Netherlands, where substantial volume growth was achieved in all product groups. Profit in Belgium declined 2.8% as growth in investment products and savings was offset by a lower interest margin following client rate increases in mid-2006. Poland posted a profit of EUR 34 million, up from EUR 13 million a year earlier, supported by strong volume growth in all products, particularly savings, current accounts and mutual funds.

Total underlying income increased 6.7%, outpacing a 2.7% increase in operating expenses, and risk costs declined. Continued pricing discipline helped Retail Banking sustain high returns, with a total risk-adjusted return on capital after tax of 42.8%, up from 34.2% in the first half of 2006.

ING Direct

ING Direct results remained solid in the second quarter while it continued to make substantial investments to build the business by rolling out new products. Underlying profit before tax was EUR 171 million, up 3.6% from the first quarter, and down 10.0% from the second quarter last year.

The challenging interest rate environment continued with flat or inverted yield curves in most currency zones, and interest rates continued to rise. The interest margin declined to 0.75% from 0.90% in the second quarter of 2006 but was down just 1 basis point from the first quarter.

Total client retail balances, including funds entrusted, off-balance sheet funds, residential mortgages and consumer loans, increased to EUR 302.0 billion, up from EUR 290.5 billion at the end of March. A record EUR 7.0 billion in own-originated mortgages was added in the second quarter excluding currency effects, taking the total mortgage portfolio to EUR 82.8 billion at the end of June.

Income increased 0.7% to EUR 571 million, as a lower interest result was more than offset by further growth of off-balance sheet funds, as well as higher realised gains on bonds. Operating expenses rose 4.0% and the addition to the provision for loan losses increased, however there was no sign of a deterioration in the loan portfolio. Returns improved, with the after-tax risk-adjusted return on capital at 16.7%, up from 11.7% in the first half of 2006, partly due to lower tax charges.

Corporate Line Banking

The Corporate Line Banking recorded a loss of EUR 65 million before tax compared with a loss of EUR 25 million a year earlier. The decline was mainly due to higher un-allocated expenses, such as Formula 1 sponsorship and certain Basel II expenses, as well as negative fair value changes of derivatives mainly used to hedge solvency and liquidity positions.

Assets under Management

Assets under management increased by EUR 17.3 billion, or 2.8%, in the second quarter to reach EUR 636.7 billion at the end of June. Growth was driven mainly by a solid net inflow of EUR 10.4 billion. Higher equity markets and interest rates had a combined positive impact of EUR 10.0 billion. Exchange rates had a negative impact of EUR 2.7 billion, mainly due to the weaker U.S. dollar. Divestments and acquisitions had a net negative impact of EUR 0.4 billion.

Capital Management

ING’s capital ratios all remained well within target in the second quarter. The debt/equity ratio increased to 9.32% from 8.49%, reflecting ING’s dividend payout in April and the impact of the share buyback. The leverage ratio for Insurance improved from 15.52% to 11.03% due to a reduction in core debt as dividends were upstreamed from the insurance subsidiaries. The E.U. capital coverage ratio of ING Insurance increased further to 297% from 277%. The Tier-1 ratio of the Bank declined to 7.55% from 7.66% at the end of March, mainly as a result of growth in risk-weighted assets of EUR 23 billion, driven by all three banking business lines.

Share Buyback

In June ING started its EUR 5.0 billion share buyback programme, which is expected to run until June 2008. In the second quarter 13.4% of the programme was executed as 20,431,500 shares were bought back at an average price of EUR 32.85. The impact was partially offset by the exercise of 6,857,042 warrants B, leading to the issue of 13,714,084 shares at a price of EUR 24.96. There remain 10,184,711 warrants B outstanding which are expected to be exercised during the second half of 2007.

Dividend

ING will pay an interim cash dividend of EUR 0.66 per ordinary share, equal to half of the total dividend paid over the book-year 2006 (EUR 1.32), and up 11.9% from an interim dividend of EUR 0.59 per share last year. ING’s shares will be quoted ex-interim dividend from 9 August and the dividend will be made payable on 16 August for NYSE Euronext.

Risk Management

Credit markets have recently become more turbulent amid concerns about U.S. subprime mortgages, collateralised debt obligations (CDOs) and leveraged finance. To date this market disruption has had a limited impact on ING. Overall, ING considers its subprime and CDO/CLO exposure to be of limited size and of relatively high quality. ING does not originate subprime mortgages in the U.S. The Group’s total exposure of EUR 3.2 billion to subprime is through asset-backed securities which represent just 0.25% of total assets. Of these assets, 93% are rated AAA or AA. As of 31 July 2007, the negative revaluation on these assets was just EUR 58 million, despite the significant market downturn. ING’s total exposure to CDO and CLOs is EUR 0.9 billion, or 0.07% of assets, with a negative revaluation of EUR 35 million as of 31 July 2007. These negative revaluations are reflected through equity and no net impairments have been necessary through the P&L. With respect to leveraged finance, “final takes” are reduced through syndication and are subject to rigorous credit analysis. Today, the underwriting pipeline is EUR 2.3 billion and comprises 14 transactions. The hold book is EUR 5.3 billion spread over 210 deals.

INSURANCE

Insurance: Profit & Loss Account


In EUR million	2Q2007			2Q2006			Change			1Q2007			Change			1H2007			1H2006			Change

Gross premium income		11,573			12,052			-4.0	%		11,634			-0.5	%		23,207			24,577			-5.6	%
Commission income		478			397			20.4	%		465			2.8	%		943			813			16.0	%
Direct investment income		2,796			2,648			5.6	%		2,517			11.1	%		5,313			5,031			5.6	%
Realised gains & fair value changes		688			244			182.0	%		205			235.6	%		893			568			57.2	%

Total investment & other income		3,484			2,892			20.5	%		2,722			28.0	%		6,207			5,599			10.9	%

Total underlying income		15,536			15,341			1.3	%		14,821			4.8	%		30,357			30,989			-2.0	%

Underwriting expenditure		11,843			12,353			-4.1	%		12,051			-1.7	%		23,894			25,158			-5.0	%
Operating expenses		1,376			1,329			3.5	%		1,370			0.4	%		2,746			2,626			4.6	%
Other interest expenses		346			345			0.3	%		323			7.1	%		669			686			-2.5	%
Other impairments					-2						1						1			-2

Total underlying expenditure		13,565			14,025			-3.3	%		13,745			-1.3	%		27,309			28,468			-4.1	%

Underlying profit before tax		1,971			1,316			49.8	%		1,076			83.2	%		3,048			2,521			20.9	%

Taxation		274			222			23.4	%		189			45.0	%		462			450			2.7	%
Profit before minority interests		1,698			1,094			55.2	%		888			91.2	%		2,585			2,071			24.8	%
Minority interests		50			75			-33.3	%		39			28.2	%		90			153			-41.2	%

Underlying net profit		1,648			1,019			61.7	%		848			94.3	%		2,496			1,918			30.1	%

NEW BUSINESS
Single-premium sales		7,756			6,643			16.8	%		6,316			22.8	%		14,072			13,107			7.4	%
Annual-premium sales		914			899			1.7	%		1,053			-13.2	%		1,967			2,023			-2.8	%
Total new sales (APE)		1,689			1,562			8.1	%		1,684			0.3	%		3,373			3,334			1.2	%
Value of new life business		207			229			-9.6	%		168			23.2	%		375			477			-21.4	%
Internal rate of return¹		12.8	%		13.9	%					12.2	%					12.8	%		13.9	%

KEY FIGURES
Net return on equity¹		23.3	%		20.8	%					16.3	%					23.3	%		20.8	%
Assets under management (end of period)		468,100			411,800			13.7	%		457,800			2.2	%		468,100			411,800			13.7	%
Staff (FTEs end of period)		54,330			54,083			0.5	%		53,825			0.9	%		54,330			54,083			0.5	%


¹		Year to date

Earnings Analysis: Second Quarter

Strong equity and real estate markets helped bolster growth at ING’s insurance businesses as assets under management increased, driving fee income higher, and the company realised higher gains on equities. Underlying profit before tax from insurance increased 49.8% to EUR 1,971 million, including EUR 802 million in equity capital gains. Of that figure, EUR 573 million related to the sale of part of ING’s stake in ABN Amro, of which EUR 519 million was booked in life insurance and EUR 54 million in non-life. ING’s proprietary investment portfolio is expected to produce substantial gains in the second half of this year, potentially including around EUR 1.5 billion on our holdings in ABN Amro and Numico, both of which are currently subject to takeover offers.

INSURANCE TOTAL
Underlying profit before tax (EUR million)

Total underlying net profit from insurance increased 61.7% with an underlying effective tax rate of just 13.9%, reflecting high tax-exempt gains on equities.

Profit before tax from life insurance increased 69.9% to EUR 1,626 million, including the gain on ABN Amro shares. Earnings growth was also driven by higher assets under management, which pushed fee income up. Results in the U.S., Latin America, Central & Rest of Europe and Australia led the increase.

Non-life insurance results declined 3.9% to EUR 345 million, driven by lower results in Canada and Mexico as the businesses continued to experience more challenging underwriting conditions. That was offset in part by the gain on ABN Amro shares.

Gross premium income declined 4.0% but was up 1.5% excluding currency effects. Growth in Belgium, Korea and Central & Rest of Europe was largely offset by declines in U.S., Japan and the Netherlands.

Commission income increased 20.4% reflecting growth in assets under management, most notably in Asia/Pacific, the U.S. and Central Europe. Investment and other income increased 20.5%, driven by the realised gains on equities, as well as EUR 68 million higher dividend income and EUR 50 million higher revaluations of private equity investments. That was partially offset by a EUR 246 million decline in fair value changes on derivatives, the majority of which hedge policy guarantees in the U.S., Japan and Taiwan.

Operating expenses rose 3.5% to EUR 1,376 million, and increased 6.9% excluding currency effects as ING continued to invest for growth in Central & Rest of Europe and Asia.

Life Insurance: Key Figures


In EUR million	2Q2007			2Q2006			Change

Gross premium income		9,979			10,453			-4.5	%
Operating expenses		1,006			960			4.8	%

Underlying profit before tax		1,626			957			69.9	%

Expenses/premiums life insurance		14.0	%		12.6	%
Expenses/AUM investment products		0.73	%		0.77	%

Single-premium sales		7,756			6,643			16.8	%
Annual-premium sales		914			899			1 .7	%
Total new sales (APE)		1,689			1,562			8.1	%
Value of new business		207			229			-9.6	%
Internal rate of return (YTD)		12.8	%		13.9	%

Life Insurance

Underlying profit before tax from life insurance rose 69.9% to EUR 1,626 million, including EUR 519 million from the gain on the sale of ABN Amro shares.

Gross life premium income declined 4.5% to EUR 9,979 million, but increased 1.2% excluding currency effects. Strong increases in Central & Rest of Europe, Belgium, South Korea and Rest of Asia were offset by declines in the U.S., Japan and the Netherlands.

Operating expenses rose 4.8%, or 8.8% excluding currencies, reflecting investments to support the growth of the business, particularly in developing markets. Expenses as a percentage of assets under management improved year-to-date to 0.73% as growth in assets under management outpaced expense growth, especially in Asia/Pacific and Central & Rest of Europe. Expenses as percentage of gross premiums deteriorated in the first half to 14.0%, mainly following lower premiums.

New Business Production

New sales were dominated by strong growth in single-premium products as ING capitalises on a global shift from traditional life insurance products to unit-linked wealth accumulation products. Total single-premium sales increased 16.8%, and were up 22.8% from the first quarter, driven by strong growth in Japan, Australia, South Korea, Taiwan, Central Europe, and in U.S. variable annuities.

Total new life sales, measured in annual premium equivalent (APE), increased 8.1%, while annual premium sales were up 1.7%. Margins, measured by the internal rate of return (IRR), declined to 12.8% from 13.9%, due in part to the lower average margins on unit-linked products, but returns remained above ING’s hurdle.

Compared with the second quarter last year, the value of new business declined 9.6%, or EUR 22 million, of which EUR 10 million is attributable to negative currency effects and EUR 13 million is due to the change in the discount rate at the end of 2006.

Non-Life Insurance: Key Figures


In EUR million	2Q2007			2Q2006			Change

Gross premium income		1,594			1,599			-0.3	%
Operating expenses		370			369			0.3	%

Underlying profit before tax		345			359			-3.9	%

Claims ratio		66.1	%		59.3	%
Expense ratio		29.8	%		29.5	%

Combined ratio		95.9	%		88.8	%

Non-Life Insurance

Underlying profit before tax from non-life insurance declined 3.9% to EUR 345 million, driven by higher claims in Fire and Motor in Canada as well as higher claims and reserve strengthening in Motor in Mexico. This was partly compensated by a higher result from the run-off of old reinsurance business and EUR 54 million from the gain on ABN Amro shares, which are both reported in the Corporate Line.

The combined ratio increased 7.1 % points to 95.9%, driven by a deterioration of the claims ratio, which increased from 59.3% to 66.1%. Non-life premiums were almost flat but rose 3.4% excluding currency effects as growth in Canada and Mexico were partially offset by a decline in the Netherlands.

Operating expenses were nearly flat, but increased 1.9% excluding currency effects, driven by increases in Mexico and the Netherlands with a modest increase in Canada.

INSURANCE EUROPE

Insurance Europe: Profit & Loss Account


In EUR million	2Q2007			2Q2006			Change			1Q2007			Change			1H2007			1H2006			Change

Gross premium income		2,587			2,447			5.7	%		3,449			-25.0	%		6,036			5,683			6.2	%
Commission income		125			75			66.7	%		121			3.3	%		246			171			43.9	%
Direct investment income		1,239			1,162			6.6	%		1,075			15.3	%		2,314			2,159			7.2	%
Realised gains & fair value changes		256			202			26.7	%		196			30.6	%		451			443			1.8	%

Total investment & other income		1,495			1,364			9.6	%		1,270			17.7	%		2,765			2,602			6.3	%

Total underlying income		4,207			3,886			8.3	%		4,840			-13.1	%		9,048			8,456			7.0	%

Underwriting expenditure		2,918			2,581			13.1	%		3,696			-21.0	%		6,614			6,130			7.9	%
Operating expenses		463			463			0.0	%		475			-2.5	%		938			900			4.2	%
Other interest expenses		133			138			-3.6	%		200			-33.5	%		333			279			19.4	%
Other impairments											1						1

Total underlying expenditure		3,513			3,182			10.4	%		4,372			-19.6	%		7,885			7,309			7.9	%

Underlying profit before tax		694			704			-1.4	%		468			48.3	%		1,162			1,147			1.3	%

- of which Life		579			567			2.1	%		357			62.2	%		936			878			6.6	%
- of which Non-Life		115			137			-16.1	%		111			3.6	%		227			269			-15.6	%

NEW BUSINESS
Single-premium sales		781			690			13.2	%		975			-19.9	%		1,756			1,489			17.9	%
Annual-premium sales		132			120			10.0	%		133			-0.8	%		265			244			8.6	%
Total new sales (APE)		210			189			11.1	%		231			-9.1	%		441			393			12.1	%
Value of new life business		55			55						53			3.8	%		108			108
Internal rate of return (YTD)		14.3	%		14.5	%					14.3	%					14.3	%		14.5	%

KEY FIGURES
Assets under management (end of period)		163,100			144,600			12.8	%		163,600			-0.3	%		163,100			144,600			12.8	%
Staff (FTEs end of period)		14,997			15,549			-3.6	%		14,853			1.0	%		14,997			15,549			-3.6	%

Key Performance Indicators

•		New life sales in Central Europe climb 25.0%

•		Solid earnings growth compensates for gain in 2Q06

•		SPVA product launched in Hungary in July

Strong growth in Central & Rest of Europe continued to drive sales and new business value growth at Insurance Europe in the second quarter. New sales (APE) from ING’s life and pensions businesses in Central Europe rose 25.0%, and margins increased further, driving the value of new business up 30.8% to EUR 34 million. New initiatives to accelerate growth in the region continued. In July, ING started sales at its new life insurance greenfield in Russia and it launched its first campaign for third-pillar pensions in Romania after obtaining a license earlier this year. The company is also ready to capitalise on the opportunity when reform of Romania’s second-pillar pension system takes place later this year. A four-month sales window for the second-pillar plan is now expected to open mid-September, after a short delay, and ING has more than 30,000 distributors in place, including a specially recruited flex-force of temporary agents. Sales of ING’s new single-premium variable annuity product in Spain are encouraging and confirm the potential for the product. The first SPVA product was introduced in Hungary in July as the European roll-out of variable annuities continues.

INSURANCE EUROPE
Underlying profit before tax (EUR million)

In Belgium, ING reached an agreement to sell its broker and employee benefits business, allowing it to focus on distribution through the retail bank. The operational split of the businesses has been completed, and the sale is expected to be finalised in the third quarter, resulting in a gain of about EUR 425 million.

In July, interest groups representing policyholders started a legal proceeding against Nationale-Nederlanden with respect to the level and transparency of costs and risks for certain universal life insurance products. While it is not feasible to predict or determine the ultimate outcome, management does not believe that it will have a material adverse effect on the Group’s financial position or results of operations.

Earnings Analysis: Second Quarter

Underlying profit before tax at Insurance Europe remained stable compared with the strong second quarter of 2006 as higher investment results and growth in Central Europe and Belgium largely compensated for a swing in the revaluation of the provision for separate account guarantees in the Netherlands.

Insurance Europe: Life Key Figures


	Total						Netherlands						Belgium						Central & Rest of Europe
In EUR million	2Q2007			2Q2006			2Q2007			2Q2006			2Q2007			2Q2006			2Q2007			2Q2006

Gross premium income		2,190			2,035			1,212			1,304			418			284			560			447
Operating expenses		313			313			231			230			14			19			68			64

Underlying profit before tax		579			567			451			483			39			21			89			63

Expenses/premiums life insurance		21.9	%		20.4	%		28.7	%		25.7	%		11.8	%		14.1	%		14.2	%		12.8	%
Expenses/AUM investment products		0.72	%		0.82	%		0.83	%		0.91	%		0.18	%		0.22	%		0.65	%		0.82	%

Single-premium sales		781			690			242			358			313			165			226			167
Annual-premium sales		132			120			40			41			10			11			82			68
Total new sales (APE)		210			189			64			78			41			27			105			84
Value of new business		55			55			17			26			4			3			34			26
Internal rate of return (YTD)		14.3	%		14.5	%		11.6	%		14.1	%		11.8	%		10.2	%		17.9	%		16.3	%

Underlying profit before tax for the region declined slightly to EUR 694 million from EUR 704 million in the second quarter last year, when profit included a EUR 135 million positive revaluation of the provision for guarantees on separate account pension contracts, including a EUR 76 million catch-up from the first quarter. That compares with a negative impact of EUR 19 million on the revaluation of the provision in the second quarter of 2007. Excluding that impact, underlying profit before tax increased 25.3% to EUR 713 million.

Total premium income grew 5.7% driven by life sales in Belgium and Central & Rest of Europe. Commission income rose 66.7% fuelled by growth in assets under management. Investment income was up 9.6%, driven by growth of assets under management and higher returns on public and private equity.

Operating expenses were flat despite a 4.5% increase in Central & Rest of Europe, including start-up costs in Bulgaria, Romania and Russia. The Netherlands showed a modest increase of 1.1 %, while Belgium declined 18.9% as the company prepared for the sale of the broker and employee benefits business.

Life Insurance

Underlying profit before tax from life insurance rose 2.1% to EUR 579 million. Higher sales and growth in assets under management drove profit from Central & Rest of Europe up 41.3%. Results in Belgium increased 85.7%, driven by strong investment performance and sales of investment products as well as lower expenses. In the Netherlands profit from life insurance declined 6.6% from the second quarter of 2006, however excluding the revaluation of the separate account provision, life profit in the Netherlands increased 35.1 %.

Life premium income increased 7.6%, led by a 47.2% increase in Belgium and 25.3% in Central & Rest of Europe. Life premiums in the Netherlands were down 7.1 %, mainly due to lower immediate annuity sales.

New Business Production

The value of new business for Insurance Europe was unchanged at EUR 55 million. Central & Rest of Europe showed strong growth, with sales up 25.0% and the value of new business up 30.8%. That was largely offset by a decline in the Netherlands, notably in the individual traditional life business, which declined to EUR 4 million from EUR 12 million as a result of lower sales and compressed margins. Returns for the region remained solid at 14.3% as higher returns in Central Europe and Belgium largely compensated for margin pressure in the Netherlands.

Insurance Europe: Non-Life Key Figures


	Total						Netherlands						Belgium						Central & Rest of Europe
In EUR million	2Q2007			2Q2006			2Q2007			2Q2006			2Q2007			2Q2006			2Q2007			2Q2006

Gross premium income		397			413			307			322			79			78			11			13
Operating expenses		150			150			132			129			16			18			2			3

Underlying profit before tax		115			137			107			120			6			15			3			4

Claims ratio		58.0	%		55.1	%		55.5	%		53.2	%		72.8	%		65.6	%		43.2	%		48.9	%
Expense ratio		31.0	%		28.8	%		31.0	%		28.6	%		30.1	%		29.5	%		45.1	%		36.7	%

Combined ratio		89.0	%		83.9	%		86.5	%		81.8	%		102.9	%		95.1	%		88.3	%		85.6	%

Non-Life Insurance

Pricing pressure and strengthening of claims provisions led to a 16.1% decline in underlying profit before tax from non-life insurance. The claims provision for disability insurance in Belgium was strengthened by EUR 5 million in the second quarter, while the same period last year included a release of EUR 6 million from accident provisions in the Netherlands. On balance

the claims ratio deteriorated 2.9% points to 58.0% and the combined ratio increased to 89.0%. Non-life premiums were down 3.9%, mainly due to a 4.7% decline in the Netherlands following rate reductions in motor and group income insurance. Operating expenses were almost flat as an increase in the Netherlands was largely offset by a decline in Belgium.

INSURANCE AMERICAS

Insaurance americas: Profit & Loss Account


In EUR million	2Q2007			2Q2006			Change			1Q2007			Change			1H2007			1H2006			Change

Gross premium income		5,646			6,273			-10.0	%		5,430			4.0	%		11,076			12,469			-11.2	%
Commission income		257			245			4.9	%		253			1.6	%		510			494			3.2	%
Direct investment income		1,242			1,198			3.7	%		1,218			2.0	%		2,460			2,278			8.0	%
Realised gains & fair value changes		33			-90						-27						5			4			25.0	%

Total investment & other income		1,275			1,110			14.9	%		1,190			7.1	%		2,465			2,284			7.9	%

Total underlying income		7,177			7,628			-5.9	%		6,873			4.4	%		14,051			15,247			-7.8	%

Underwriting expenditure		5,832			6,430			-9.3	%		5,658			3.1	%		11,490			12,810			-10.3	%
Operating expenses		633			633			0.0	%		608			4.1	%		1,241			1,262			-1.7	%
Other interest expenses		120			109			10.1	%		74			62.2	%		194			235			-17.4	%
Other impairments					-1															-1

Total underlying expenditure		6,585			7,171			-8.2	%		6,340			3.9	%		12,925			14,306			-9.7	%

Underlying profit before tax		593			457			29.8	%		533			11.3	%		1,126			941			19.7	%

- of which Life		472			240			96.7	%		410			15.1	%		882			550			60.4	%
- of which Non-Life		120			217			-44.7	%		123			-2.4	%		244			391			-37.6	%

NEW BUSINESS
Single-premium sales		4,279			4,346			-1 .5	%		3,682			16.2	%		7,961			8,546			-6.8	%
Annual-premium sales		395			395			0.0	%		518			-23.7	%		913			965			-5.4	%
Total new sales (APE)		823			829			-0.7	%		886			-7.1	%		1,709			1,819			-6.0	%
Value of new life business		53			65			-18.5	%		33			60.6	%		86			137			-37.2	%
Internal rate of return (YTD)		10.3	%		11.5	%					9.5	%					10.3	%		11.5	%

KEY FIGURES
Assets under management (end of period)		209,200			193,800			7.9	%		204,000			2.5	%		209,200			193,800			7.9	%
Staff (FTEs end of period)		27,591			28,924			-4.6	%		27,818			-0.8	%		27,591			28,924			-4.6	%

Key Performance Indicators

•		Underlying profit up 37.3% excluding currency effects

•		U.S. variable annuity sales up 20.7% from 1Q07

•		Two life captives in place, adding EUR 28 million to VNB

Insurance Americas delivered another solid quarter as strong earnings growth in the U.S. and Latin America more than offset the impact of the turn in the underwriting cycle in Canada.

In the U.S., sales of variable annuities were up modestly from a year ago but increased 20.7% from the first quarter as product enhancements and expanded distribution began to take hold. Retirement services sales declined from a very strong second quarter of 2006, which included two large contract acquisitions. Sales of mutual funds increased following a renewed focus on international funds that leverage ING’s global expertise.

INSURANCE AMERICAS
Underlying profit before tax (EUR million)

ING completed two captive insurance structures in the second quarter to address redundant regulatory reserve requirements at U.S. individual life. That added EUR 28 million to the reported value of new business in the second quarter, of which EUR 11 million is attributable to first-quarter production.

In Latin America, life premium income increased 17.8% excluding currency effects. ING reached an agreement in July to buy the pension businesses of Santander in Chile, Mexico, Uruguay and Colombia. The purchase will make ING the second-largest pension provider in Latin America, and give it a sustainable, scaled platform in these fast-growing markets.

Earnings Analysis: Second Quarter

Strong growth in assets under management and favorable investment results at the U.S. business drove profit growth at Insurance Americas in the second quarter. Underlying profit before tax climbed 29.8% to EUR 593 million, and was up 37.3% excluding currency effects. A 74.2% jump in profit in the U.S., as well as a strong improvement in Latin America, more than offset a 36.6% decline in profit in Canada as claim costs increased.

Premium income declined 10.0%, or 4.1% excluding currency effects, mainly as a result of lower fixed annuity sales in the U.S. following a reduction of commissions on some products.

Operating expenses increased 6.0% excluding currency effects as staff were added to support customer service and the expansion of distribution in U.S. Wealth and Asset Management.

Insurance Americas: Life Key Figures


	Total						United States						Latin America
In EUR million	2Q2007			2Q2006			2Q2007			2Q2006			2Q2007			2Q2006

Gross premium income		4,460			5,102			4,281			4,943			179			159
Operating expenses		419			422			375			375			44			47

Underlying profit before tax		472			240			399			229			73			9

Expenses/premiums life insurance		14.3	%		14.1	%		14.1	%		13.3	%		16.4	%		21.0	%
Expenses/AUM investment products		0.73	%		0.74	%		0.73	%		0.75	%		0.75	%		0.68	%

Single-premium sales		4,279			4,346			4,220			4,313			59			33
Annual-premium sales		395			395			322			316			73			79
Total new sales (APE)		823			829			744			747			79			82
Value of new business		53			65			47			56			6			9
Internal rate of return (YTD)		10.3	%		11.5	%		10.2	%		11.5	%		11.5	%		12.7	%

Life Insurance

Life underlying profit before tax soared 96.7% and more than doubled excluding currency effects. Profit in the U.S. was up 85.3% excluding currency effects, driven by higher fee income as assets under management increased 15.0% to EUR 178 billion. Results were also boosted by higher investment income as well as EUR 33 million in DAC and reserve unlocking as a result of favorable equity market returns, an increase of EUR 46 million over second quarter 2006. Life profit in Latin America increased seven-fold to EUR 73 million on strong results in the pension businesses in Peru and Chile as well as an improvement from the life business in Chile, and higher investment gains in Mexico.

Life premium income declined 12.6%, or 6.6% excluding the impact of currencies, reflecting lower sales of fixed annuities in the U.S. Premium income in Latin America climbed 12.6%, or 17.8% excluding currencies, supported by strong growth in the annuity business in Chile and group life in Mexico.

New Business Production

The value of new life business increased to EUR 53 million from EUR 33 million in the first quarter, including EUR 28 million from the establishment of two on-shore captives to address the redundant regulatory reserves in the U.S. individual life business, of which EUR 11 million is attributable to first-quarter production. Compared with the second quarter last year, the value of new business declined 18.5%, reflecting currency effects and the increase in the discount rate at year-end 2006, as well as lower annuity returns, and lower fixed annuity sales.

U.S. retirement services accumulation sales declined 8.9% from a very strong second quarter in 2006 which included two large contract acquisitions. Excluding those cases, retirement services sales increased 18.3% on a U.S.-basis supported by increased sales personnel. Sales of variable annuities rose 20.7% from the first quarter as the addition of new wholesalers and a product enhancement began to have an impact on sales, while fixed annuity sales declined 53.4%. Individual life experienced a strong rebound with sales up EUR 12 million or 27.1% on a threefold increase in term life sales. The value of new life business in Latin America declined on continued competitive pressure in the Mexican pension business. The internal rate of return for the region declined 120 basis points to 10.3% due to competitive pressure on pricing. Returns for U.S. retirement services and variable annuities remained strong.

Insurance Americas: Non-Life Key Figures


	Total						Canada						Latin America
In EUR million	2Q2007			2Q2006			2Q2007			2Q2006			2Q2007			2Q2006

Gross premium income		1,186			1,172			814			839			372			333
Operating expenses		214			211			143			145			71			66

Underlying profit before tax		120			217			130			205			-10			13

Claims ratio		69.2	%		61.1	%		63.5	%		55.9	%		81.6	%		72.9	%
Expense ratio		29.0	%		29.9	%		28.5	%		30.6	%		29.9	%		28.3	%

Combined ratio		98.2	%		91.0	%		92.0	%		86.5	%		111.5	%		101.2	%

Non-Life Insurance

Less favorable underwriting experience pushed non-life results down 44.7%, or 42.4% excluding currency effects. Profit in Canada fell 33.1% excluding currencies as increased severity in property lines drove a 760 basis point net deterioration in its claims ratio to 63.5%. In Latin America the non-life business generated a loss of EUR 10 million due to higher claim costs and reserve strengthening in the Mexican motor business as well as higher claims in Chilean health, more than offsetting favourable results in Brazil. Excluding currencies, premium income rose 6.6%, driven by growth in the number of policies in Canada while pricing remained reasonably firm. Operating expenses increased 5.0% excluding currencies, mainly in Latin America, while costs in Canada were up 2.2%.

INSURANCE ASIA/PACIFIC

Insurance Asia/Pacific: Profit & Loss Account


In EUR million	2Q2007			2Q2006			Change			1Q2007			Change			1H2007			1H2006			Change

Gross premium income		3,335			3,323			0.4	%		2,748			21.4	%		6,084			6,411			-5.1	%
Commission income		93			77			20.8	%		90			3.3	%		183			146			25.3	%
Direct investment income		329			259			27.0	%		362			-9.1	%		692			477			45.1	%
Realised gains & fair value changes		-224			25						-98						-322			-46

Total investment & other income		105			284			-63.0	%		264			-60.2	%		369			431			-14.4	%

Total underlying income		3,534			3,684			-4.1	%		3,103			13.9	%		6,637			6,988			-5.0	%

Underwriting expenditure		3,096			3,305			-6.3	%		2,671			15.9	%		5,767			6,212			-7.2	%
Operating expenses		254			220			15.5	%		259			-1.9	%		513			458			12.0	%
Other interest expenses		30			2						14			114.3	%		45			5
Other impairments

Total underlying expenditure		3,381			3,527			-4.1	%		2,944			14.8	%		6,324			6,675			-5.3	%

Underlying profit before tax		153			157			-2.5	%		159			-3.8	%		312			313			-0.3	%

-of which Life		152			156			-2.6	%		158			-3.8	%		311			310			0.3	%
-of which Non-Life		1			1						1						1			3			-66.7	%

NEW BUSINESS
Single-premium sales		2,696			1,607			67.8	%		1,659			62.5	%		4,355			3,072			41.8	%
Annual-premium sales		387			384			0.8	%		402			-3.7	%		789			814			-3.1	%
Total new sales (APE)		656			544			20.6	%		567			15.7	%		1,223			1,121			9.1	%
Value of new life business		99			109			-9.2	%		82			20.7	%		181			233			-22.3	%
Internal rate of return (YTD)		15.6	%		17.5	%					15.2	%					15.6	%		17.5	%

KEY FIGURES
Assets under management (end of period)		95,800			73,400			30.5	%		90,200			6.2	%		95,800			73,400			30.5	%
Staff (FTEs end of period)		11,669			9,550			22.2	%		11,090			5.2	%		11,669			9,550			22.2	%

Key Performance Indicators

•		Single-premium sales up 62.5% from first quarter

•		Strong sales in Japan following launch of new SPVA

•		AUM reaches EUR 95.8 bln with EUR 4.5 bln net inflow

Sales at Insurance Asia/Pacific showed strong growth in the second quarter as ING capitalised on a shift across the region from traditional life to unit-linked wealth accumulation products. That is reflected in a 62.5% increase in single-premium sales in the second quarter from the first, driven by higher sales in all countries as the company continues its strategy to step up product innovation and expand its bank distribution for wealth accumulation products in the region.

Sales of single-premium variable annuities in Japan more than doubled from the first quarter following the introduction of a new product in April. In Australia, single-premium sales increased 56.1% from the first quarter following a special tax incentive for superannuation products.

INSURANCE ASIA/PACIFIC

Underlying profit before tax (EUR million)

Organic growth and the introduction of new funds led to a strong increase in assets under management to EUR 95.8 billion at the end of June including EUR 4.5 billion in net inflow. In July ING completed the purchase of Landmark Investment Management in South Korea, which will add some EUR 6.9 billion to assets under management from the third quarter. The purchase made ING one of the top-10 fund managers in Korea.

Meanwhile ING continued to expand its distribution in the region. Bank distribution is being expanded in most of our core markets, including two new agreements reached in July with the second and third-largest retail banks in South Korea. The tied-agent network was also expanded further, notably at ING Vysya Life in India, and ING Life Korea. At the end of the second quarter ING had 56,975 agents across the region, up 23.9% from year end 2006.

Higher interest rates in Taiwan helped strengthen ING’s reserve adequacy to a confidence level of 70% (EUR 946 million), up from 57% (EUR 337 million) at the end of March. The Taiwan swap rate increased by 42 basis points to 2.65% at the end of June. The reserve adequacy at a 50% confidence level for Insurance Asia/Pacific increased to EUR 3.8 billion as of 30 June 2007.

Insurance Asia/Pacific: Life Key Figures


	Total						Australia & NZ						Japan						South Korea						Taiwan						Rest of Asia
In EUR million	2Q2007			2Q2006			2Q2007			2Q2006			2Q2007			2Q2006			2Q2007			2Q2006			2Q2007			2Q2006			2Q2007			2Q2006

Gross premium income		3,329			3,312			53			47			1,264			1,435			927			776			854			861			231			193
Operating expenses		253			218			51			47			42			40			57			46			54			46			49			39

Underlying profit before tax		152			156			61			43			-1			25			68			79			0			0			24			9

Expenses/premiums		8.8	%		8.0	%		26.8	%		19.4	%		6.4	%		6.8	%		8.4	%		5.4	%		7.3	%		6.6	%		14.3	%		16.6	%
Expenses/AUM		0.73	%		0.80	%		0.54	%		0.59	%		0.56	%		0.48	%		4.17	%		14.17	%		5.83	%		6.57	%		0.52	%		0.99	%

Single-premium sales		2,696			1,607			1,330			339			1,140			1,119			112			90			89			40			25			19
Annual-premium sales		387			384			27			29			50			71			190			193			73			54			47			37
Total new sales (APE)		656			544			160			63			164			182			201			203			82			58			49			38
Value of new business		99			109			16			8			18			31			29			28			37			41			-1			1
Internal rate of return (YTD)		15.6	%		17.5	%		20.4	%		15.1	%		11.7	%		13.8	%		22.6	%		44.5	%		18.2	%		18.5	%		7.3	%		9.1	%

Earnings Analysis: Second Quarter

Underlying profit before tax from Insurance Asia/Pacific declined slightly to EUR 153 million as higher results in Australia were offset by declines in Japan and South Korea. Results in Japan were negatively impacted by EUR 32 million from SPVAs, mainly due to volatility from unhedged positions related to an increase in implied market volatility. Excluding that impact, profit for the region increased 19.3% to EUR 173 million, reflecting a negative impact from SPVAs of EUR 20 million in the second quarter this year and a positive impact of EUR 12 million a year earlier. Assets under management for SPVAs increased to EUR 12.0 billion, up 8.9% excluding currency effects. Premium income in Japan remained stable in the second quarter excluding currency effects, but increased 38.4% from the first quarter as SPVA sales doubled. COLI premiums declined 19.7% compared to the first quarter reflecting uncertainty about the tax treatment of increasing-term products, however clarity on the subject is anticipated from the National Tax Agency in the fourth quarter.

Profit from South Korea declined to EUR 68 million from EUR 79 million in the second quarter last year, when profit included EUR 7 million in one-time adjustments to reserves and deferred acquisition costs. Currency effects had a negative impact of EUR 3 million. Premium income rose 19.5%, driven by higher renewals of whole life and variable products, as well as increased sales of single-premium variable annuities. Profits from the growing block of business funded EUR 11 million in increased expenses to expand distribution to fuel future growth. ING Life Korea opened 24 new branches so far this year, bringing the total to 132.

In Australia & New Zealand profit before tax rose 41.9% to EUR 61 million including EUR 10 million higher investment income and a release of a provision related to claims of EUR 7 million. Premium increased 12.8% to EUR 53 million, driven by the continued success of the OneCare product.

Life results in the Rest of Asia increased strongly to EUR 24 million from EUR 8 million a year earlier, mainly due a recalculation of deferred acquisition costs in Malaysia (EUR 10 million).

Total premium income for the region increased 9.4% excluding currency effects, led by growth of 24.9% in South Korea and 9.2% in Taiwan.

Total operating expenses for Insurance Asia/Pacific increased 15.5%, or 20.3% excluding currency effects, reflecting the continued growth of the existing business as well as investments to support rapid expansion of the greenfield businesses.

New Business Production

Sales of single-premium products dominated new production in Asia/Pacific in the second quarter as ING benefits from a shift across the region from traditional life products to unit-linked wealth accumulation products. Single premiums increased 67.8% from the second quarter last year, driven by increases in all markets, particularly Australia, Taiwan and South Korea. Australia’s single-premiums rose almost four-fold, reflecting the inclusion of the Australian Trust business from January 2007 as well as a surge of sales in the second quarter following a special tax incentive on contributions made before the end of June. Total new sales (APE) for the region increased 20.6%, and annual premium sales were flat. Taiwan’s single-premium sales more than doubled, driven by strong demand for unit-linked products.

The change in sales mix was also reflected in the internal rate of return in most countries because margins on unit-linked products are lower. Nonetheless, the IRR remained attractive at 15.6%. The value of new business declined 9.2% from the second quarter last year, reflecting unfavourable currency effects, slower sales and lower margins on the COLI business in Japan, as well as the decline in the IRR.

Compared with the first quarter, the value of new business was up 20.7%, driven by strong sales of the new SPVA product in Japan as well as superannuation products in Australia. SPVA sales in Japan doubled from the first quarter, resulting in an increase of 125% in Japan’s total value of new business.

BANKING

Banking: Profit & Loss Account


In EUR million	2Q2007			2Q2006			Change			1Q2007			Change			1H2007			1H2006			Change

Interest result		2,295			2,213			3.7	%		2,184			5.1	%		4,480			4,564			-1.8	%
Commission income		741			649			14.2	%		744			-0.4	%		1,485			1,339			10.9	%
Investment income		265			149			77.9	%		320			-17.2	%		585			262			123.3	%
Other income		370			526			-29.7	%		508			-27.2	%		879			967			-9.1	%

Total underlying income		3,672			3,537			3.8	%		3,757			-2.3	%		7,429			7,132			4.2	%

Operating expenses		2,318			2,216			4.6	%		2,373			-2.3	%		4,691			4,393			6.8	%
Gross result		1,354			1,321			2.5	%		1,384			-2.2	%		2,737			2,739			-0.1	%
Addition to loan loss provision		25			-15												24			-35

Underlying profit before tax		1,329			1,336			-0.5	%		1,384			-4.0	%		2,713			2,774			-2.2	%

Taxation		202			335			-39.7	%		313			-35.5	%		515			704			-26.8	%
Profit before minority interests		1,127			1,001			12.6	%		1,071			5.2	%		2,198			2,070			6.2	%
Minority interests		27			11			145.5	%		26			3.8	%		53			22			140.9	%

Underlying net profit		1,099			990			11.0	%		1,045			5.2	%		2,145			2,048			4.7	%

KEY FIGURES
Net return on equity¹		19.2	%		22.0	%					20.7	%					19.2	%		22.0	%
Interest margin		0.95	%		1.00	%					0.95	%					0.95	%		1.06	%
Underlying cost/income ratio		63.1	%		62.7	%					63.2	%					63.2	%		61.6	%
Risk costs in bp of average CRWA		3			0						0						1			-2
Risk-weighted assets (end of period)		356,415			342,642			4.0	%		333,722			6.8	%		356,415			342,642			4.0	%
Underlying RAROC before tax¹		29.5	%		29.2	%					29.3	%					29.5	%		29.2	%
Underlying RAROC after tax¹		24.8	%		22.0	%					23.4	%					24.8	%		22.0	%
Economic capital (average over period)¹		14,486			15,335			-5.5	%		14,832			-2.3	%		14,486			15,335			-5.5	%
Staff (FTEs end of period)		64,769			65,326			-0.9	%		64,767			0.0	%		64,769			65,326			-0.9	%

¹ Year to date

Earnings Analysis: Second Quarter

Strong commercial growth in current accounts and mortgages continued to help offset the impact of flat yield curves at ING’s banking businesses. The interest result increased 3.7%, despite a narrowing of the interest margin by 5 basis points from the second quarter last year, and the interest margin stabilised in the second quarter from the first.

Total underlying profit before tax from the banking businesses declined slightly by 0.5% compared with strong results in the second quarter of 2006. Net risk costs swung to an addition to the provision for loan losses from a release of provisions in the second quarter last year, however risk costs remained low as ING continued to benefit from the benign credit environment. Operating expenses rose 4.6%, including investments to support the growth of the business, notably at ING Real Estate and the retail banking activities in developing markets.

BANKING TOTAL
Underlying profit before tax (EUR million)

Underlying net profit rose 11.0% due to an exceptionally low tax rate caused by high tax-exempted gains, the release of some tax liabilities, a lower corporate tax rate in the Netherlands and the impact of a tax asset in Germany.

Income

Total underlying income from banking rose 3.8% to EUR 3,672 million. Volume growth compensated for the impact of flat yield curves on the interest result, while higher income at ING Real Estate and higher realised gains on equities and bonds helped offset a decline in trading income at Wholesale Banking.

The interest result rose 3.7% driven by higher volumes in current accounts and mortgages, particularly at the Retail Banking activities. That more than offset the impact of a narrowing of the interest margin to 0.95% from 1.00% in the second quarter last year, mainly caused by a flattening of the yield curve, changes in the product mix and lower prepayment penalties on mortgages.

Strong volume growth was led by strong sales of mortgages at ING Direct and growth of current accounts and term deposits at Retail Banking. Total loans and advances to customers of the banking operations increased by EUR 29.9 billion in the second quarter to EUR 488.9 billion at the end of June, including a EUR 1.3 billion positive impact from currencies. Corporate

lending increased 3.8% or EUR 9.1 billion, of which EUR 8.3 billion was in the Netherlands. Personal lending was up 9.5%, or EUR 20.8 billion, driven by strong growth in mortgages and the transfer of mortgage portfolios of Nationale-Nederlanden from ING Insurance to ING Bank. Residential mortgages were up EUR 19.9 billion, of which EUR 9.4 billion was from the transfer of Nationale-Nederlanden and EUR 8.2 billion at ING Direct. Customer deposits and other funds on deposit of the banking operations increased by EUR 13.4 billion, or 2.6%, to EUR 532.7 billion at the end of June, mainly due to growth in current accounts and term deposits, mainly in the Benelux.

Banking: Loans and Advances to Customers


In EUR billion	30 June 07		31 March 07		Change

Public authorities		11.1		11.7		-5.1	%
Other corporate		240.5		231.0		4.1	%

Total corporate		251.7		242.6		3.8	%

Mortgages		213.7		193.8		10.3	%
Other personal		26.0		25.0		4.0	%

Total personal		239.7		218.9		9.5	%

Provisions for bank lending		-2.5		-2.5

Total bank lending		488.9		459.0		6.5	%

Commission income increased 14.2% to EUR 741 million, driven by growth in assets under management at ING Real Estate and Private Banking as well as an increase in securities brokerage, particularly in Retail Banking. Investment income increased to EUR 265 million from EUR 149 million, due to higher realised gains on equities and bonds as well as higher rental income and fair-value changes on real estate. Other income declined 29.7% to EUR 370 million, due to lower net trading income and negative valuation results on non-trading derivatives for which hedge accounting is not applied.

Expenses

Operating expenses remained under control in the second quarter and ING continued to invest to support the growth of its businesses. Total underlying operating expenses were up 4.6% to EUR 2,318 million, including investments to support the growth of the business, notably at ING Real Estate and the retail banking activities in developing markets, as well as EUR 37 million in additional compliance costs and EUR 9 million for redundancy and outsourcing at Ops&IT.

All three outsourcing agreements signed in the fourth quarter of 2006 have now been implemented, resulting in a transfer of 1,370 ING employees to the suppliers, of which 710 in the second quarter. Out of EUR 120 million in expected costs for the total project, an amount of EUR 105 million has been booked since 2005. The IT outsourcing and streamlining projects announced in 2005 are expected to generate cost savings which will gradually increase to approximately EUR 230 million in 2008, of which an annualised EUR 190 million has been achieved so far.

The underlying cost/income ratio of the banking operations was 63.1%, up from 62.7% in the second quarter of 2006, but slightly improved from 63.2% in the first quarter this year. The number of staff declined to 64,769 from 65,326 at the end of June 2006 as growth at ING Direct and ING Real Estate was offset by the impact of divestments and the outsourcing initiatives.

The banking businesses continued to benefit from a benign credit environment, though net risk costs began to increase as releases of past provisions diminish. ING added EUR 25 million to loan loss provisions in the second quarter compared with a net release of EUR 15 million in the same period last year. Wholesale Banking reported a smaller net release of EUR 14 million, compared with EUR 74 million in the second quarter of 2006, while Retail Banking and ING Direct added EUR 26 million and EUR 13 million to provisions respectively. On balance, the addition to the provision for loan losses amounted to 3 basis points of average credit-risk-weighted assets in the second quarter, well below the normalised level of 25-30 basis points. There is still no sign of deterioration in the quality of the credit portfolio, and risk costs are expected to remain below these historical norms for 2007, although a gradual return to normalised levels is expected over the coming years.

RAROC

Continued pricing discipline and an emphasis on capital efficiency led to a further improvement in returns at ING’s banking businesses. The underlying risk-adjusted return on capital (RAROC) after tax increased to 24.8% from 22.0% in the first half of 2006. Economic capital was reduced to EUR 14.5 billion from EUR 15.3 billion, due to improvements in the RAROC methodology.

ING has been improving its methodology for calculating economic capital to reflect the latest insights into risk measurement, implementation of Basel II guidelines and use of Basel ll-compliant model outputs. The overall impact on RAROC is limited, however there are shifts between areas due to the reflection of industry and country concentration and the inclusion of maturity effects for credit risk, plus changes in market risk diversification approach and operational risk. In the RAROC calculations, the actual credit-risk provisioning is replaced by expected losses reflecting average credit losses over the entire economic cycle.

WHOLESALE BANKING

Wholesale Banking: Profit & Loss Account


In EUR million	2Q2007			2Q2006			Change			1Q2007			Change			1H2007			1H2006			Change

Interest result		642			599			7.2	%		593			8.3	%		1,235			1,274			-3.1	%
Commission income		361			327			10.4	%		351			2.9	%		712			652			9.2	%
Investment income		230			135			70.4	%		247			-6.9	%		477			227			110.1	%
Other income		290			404			-28.2	%		389			-25.5	%		679			786			-13.6	%

Total underlying income		1,522			1,465			3.9	%		1,580			-3.7	%		3,102			2,939			5.5	%

Operating expenses		869			822			5.7	%		884			-1.7	%		1,753			1,619			8.3	%
Gross result		653			643			1.6	%		696			-6.2	%		1,349			1,320			2.2	%
Addition to loan loss provision		-14			-74						-41						-55			-132

Underlying profit before tax		668			717			-6.8	%		737			-9.4	%		1,404			1,452			-3.3	%

KEY FIGURES
Underlying cost/income ratio		57.1	%		56.1	%					56.0	%					56.5	%		55.1	%
Risk costs in bp of average CRWA		-4			-16						-10						-7			-16
Risk-weighted assets (end of period)		176,856			170,809			3.5	%		163,138			8.4	%		176,856			170,809			3.5	%
Underlying RAROC before tax¹		27.5	%		27.6	%					27.7	%					27.5	%		27.6	%
Underlying RAROC after tax¹		25.9	%		22.4	%					24.6	%					25.9	%		22.4	%
Economic capital (average over period)¹		7,684			7,989			-3.8	%		7,734			-0.6	%		7,684			7,989			-3.8	%
Staff (FTEs end of period)		19,835			20,405			-2.8	%		19,899			-0.3	%		19,835			20,405			-2.8	%

¹ Year to date

Key Performance Indicators

•		Returns increase further with RAROC of 25.9%

•		Volume growth helps offset margin compression

•		ING Real Estate portfolio reaches EUR 100.6 billion

Wholesale Banking continued to benefit from strong growth at ING Real Estate, as well as volume growth in Payments & Cash Management (PCM) and Leasing, which helped offset margin compression. ING Real Estate continued to show solid growth in assets, driven by continued demand for real estate funds among institutional investors. The total portfolio increased by EUR 6.2 billion in the second quarter, surpassing the EUR 100 billion mark. Margin pressure in General Lending continued, especially in the mid-corporate segment, while margins in the corporate client segment showed signs of bottoming out. Leasing & Factoring showed solid volume growth, particularly in Romania and Poland, which helped compensate for margin pressure.

Structured Finance continued to experience strong demand in most product areas in the second quarter. The short-term outlook for Leveraged Finance has turned somewhat less favourable in the third quarter due to disruption in the institutional lending market, however ING had already tightened its underwriting policies earlier this year in anticipation of a potential downturn in that market. Final takes are reduced through syndication and are subject to rigorous credit analysis. Today, the underwriting pipeline is EUR 2.3 billion and comprises 14 transactions. The hold book is EUR 5.3 billion spread over 210 deals. Holdings in mezzanine and payment-in-kind tranches are negligible, as are the exposures to so-called covenant-light transactions.

WHOLESALE BANKING
Underlying profit before tax (EUR million)

Earnings Analysis: Second Quarter

Underlying profit before tax of Wholesale Banking declined 6.8% to EUR 668 million, reflecting a smaller net release from the provision for loan losses. The release narrowed to EUR 14 million in the second quarter from EUR 74 million in the second quarter last year as releases of old provisions begin to diminish. That had a negative impact on profit growth, particularly in General Lending.

Profit before tax at ING Real Estate rose 50.4% to EUR 194 million, driven by growth of the portfolio to EUR 100.6 billion. Leasing & Factoring profit rose 20.8% to EUR 64 million, driven by continued volume growth. Structured Finance profit was up 5.7% to EUR 129 million, while results from General Lending and Payments & Cash Management declined 48.0% to EUR 105 million, reflecting lower releases of loan loss provisions. Profit from the Other Wholesale Banking products jumped to EUR 75 million from EUR 43 million, supported by capital gains.

Wholesale Banking: Breakdown by product line


	GL&PCM						Structured Fin.						Lease & factoring						Financial Markets						Real Estate						Other
In EUR million	2Q07			2Q06			2Q07			2Q06			2Q07			2Q06			2Q07			2Q06			2Q07			2Q06			2Q07			2Q06

Total underlying income		377			427			199			187			143			128			282			332			314			233			207			158
Underlying operating expenses		275			286			91			73			72			68			180			164			121			109			130			122
Gross result		102			141			108			114			72			60			103			168			193			124			77			36
Addition to loan loss provision		-3			-61			-21			-8			8			7			0			0			-1			-5			2			-7

Underlying profit before tax		105			202			129			122			64			53			102			168			194			129			75			43

Underlying cost/income ratio		73.0	%		67.0	%		45.8	%		39.0	%		50.0	%		53.1	%		63.7	%		49.4	%		38.5	%		46.8	%		62.9	%		77.2	%
Risk costs in bp of average CRWA		-2			-29			-31			-10			18			20			1			-0			-1			-8			50			-118
Risk-weighted assets (in EUR bln)		65.4			75.8			29.4			30.1			18.6			15.5			27.4			20.6			34.6			25.9			1.5			3.0
Underlying RAROC before tax¹		10.9	%		10.5	%		46.1	%		46.2	%		30.5	%		32.5	%		26.1	%		36.0	%		52.0	%		42.1	%		9.7	%		12.8	%
Economic capital (avg over period)¹		2,364			2,777			865			910			597			564			2,291			2,205			1,237			1,102			330			431

¹ Year to date

Income

Underlying income from Wholesale Banking rose 3.9% to EUR 1,522 million, and increased 9.9% when corrected for the tax asymmetry. Growth was driven by ING Real Estate, Leasing & Factoring and Structured Finance as well as higher capital gains. Income in General Lending & PCM declined 11.7% due to margin pressure and a reclassification of the SME portfolio in Poland to Retail Banking. Financial Markets income was up 9.0% when corrected for the tax asymmetry.

The total interest result of Wholesale Banking rose 7.2%, in spite of continued margin pressure, driven by higher interest income from Financial Markets. Other income declined 28.2%, due in part to difficult trading conditions especially in April. Investment income rose 70.4% driven by higher results from ING Real Estate’s investment portfolio as well as capital gains. Commission income increased 10.4% supported by strong growth of assets under management at ING Real Estate Investment Management.

Expenses

Underlying operating expenses declined 1.7% from the first quarter but were up 5.7% from the second quarter last year. Of that EUR 47 million increase, EUR 12 million was due to growth at ING Real Estate, EUR 20 million from higher compliance-related costs, and the remainder was driven by investments in Structured Finance, Financial Markets and Leasing as well as in Payments & Cash Management to prepare for the Single European Payment Area (SEPA). The cost/income ratio increased to 57.1% from 56.1% in the second quarter last year, but improved from 58.6% in full-year 2006.

Wholesale Banking continued to book net releases from provisions for loan losses as recoveries continued, however releases narrowed to EUR 14 million from EUR 74 million in the second quarter last year and EUR 41 million in the first quarter of 2007. The net release was an annualised 4 basis points of average credit-risk-weighted assets compared with a release of 16 basis points in the second quarter last year.

RAROC

Returns continued to improve with the underlying RAROC after tax at 25.9%, up from 22.4% in the first half last year, driven by a lower effective tax rate and strong results at ING Real Estate. Economic capital declined 3.8% to EUR 7,684 million, mainly due to the refinements in methodology from 2007.

Focus: ING Real Estate


In EUR million	2Q2007		2Q2006		Change

Underlying profit before tax		194		129		50.4	%
- of which Investment Management		45		32		40.6	%
- of which Investment Portfolio		69		37		86.5	%
- of which Finance		57		57		0.0	%
- of which Development		22		3		633.3	%

Real Estate portfolio (in EUR bln)¹		100.6		94.4		6.6	%
- of which Investment Management¹		72.4		69.2		4.6	%
- of which Finance¹		25.9		23.1		12.1	%
- of which Development¹		2.3		2.1		9.5	%

¹ 30 June 2007 compared with 31 March 2007.

ING Real Estate continued to benefit from strong demand for property funds among institutional investors and growth of the portfolio, which reached EUR 100.6 billion at the end of June. Underlying profit before tax rose 50.4% to EUR 194 million, driven by a 40.6% increase in profit from the Investment Management business. Profit from the Investment Portfolio almost doubled due to fair value changes on real estate in Australia, Asia and the U.S.

Real Estate Finance earnings remained stable at EUR 57 million as margin pressure was successfully offset by strong growth of the portfolio in the Netherlands as well as abroad. The international diversification of the lending portfolio of Real Estate Finance continued, with 44% of the portfolio now coming from outside the Netherlands. Profit before tax from Development increased to EUR 22 million from EUR 3 million due to higher sales of completed projects. The pretax RAROC of ING Real Estate increased further to 52.0% from 42.1% as higher returns more than offset a EUR 135 million increase in economic capital.

RETAIL BANKING

Retail Banking: Profit & Loss Account


In EUR million	2Q2007			2Q2006			Change			1Q2007			Change			1H2007			1H2006			Change

Interest result		1,175			1,163			1.0	%		1,145			2.6	%		2,320			2,323			-0.1	%
Commission income		349			303			15.2	%		372			-6.2	%		721			649			11.1	%
Investment income		3			1			200.0	%		34			-91.2	%		38			13			192.3	%
Other income		77			36			113.9	%		75			2.7	%		152			85			78.8	%

Total underlying income		1,604			1,503			6.7	%		1,627			-1.4	%		3,231			3,070			5.2	%

Operating expenses		1,023			996			2.7	%		1,060			-3.5	%		2,083			1,973			5.6	%
Gross result		580			507			14.4	%		567			2.3	%		1,147			1,097			4.6	%
Addition to loan loss provision		26			53			-50.9	%		28			-7.1	%		54			75			-28.0	%

Underlying profit before tax		555			454			22.2	%		539			3.0	%		1,094			1,022			7.0	%

KEY FIGURES
Underlying cost/income ratio		63.8	%		66.3	%					65.1	%					64.5	%		64.3	%
Risk costs in bp of average CRWA		10			22						11						10			15
Risk-weighted assets (end of period)		110,436			98,176			12.5	%		103,367			6.8	%		110,436			98,176			12.5	%
Underlying RAROC before tax¹		54.9	%		47.7	%					51.1	%					54.9	%		47.7	%
Underlying RAROC after tax¹		42.8	%		34.2	%					40.5	%					42.8	%		34.2	%
Economic capital (average over period)¹		3,700			4,045			-8.5	%		3,897			-5.1	%		3,700			4,045			-8.5	%
Staff (FTEs end of period)		36,858			37,329			-1.3	%		37,045			-0.5	%		36,858			37,329			-1.3	%

¹ Year to date

Key Performance Indicators

•		Income up 6.7% despite interest rate environment

•		Cost/income ratio improves to 63.8% from 66.3%

•		Returns remain high with after-tax RAROC of 42.8%

Volume growth in current accounts and mortgages continued to help offset the impact of flat yield curves at ING’s Retail Banking activities. Spreads in the Netherlands remained relatively stable despite the challenging interest rate environment and strong competition. In Belgium, margins came under pressure due to increased client rates and a shift from savings to term deposits.

Growth was driven by ING’s retail banking activities in the fast-growing markets of Poland, Romania, India and the private banking activities in Asia. In Poland, ING Bank Slaski showed robust growth in the second quarter, with mortgage volumes up 17% and current accounts up 7% as the company expands its branch network to increase its client base. About 80 new branches are expected to open this year, and 45,000 new retail customers were added in the first half.

RETAIL BANKING
Underlying profit before tax (EUR million)

ING is continuing its strategy to expand its retail banking franchise eastward into the largest fast-growing markets in the region. The roll-out of its retail bank in Romania is progressing, with 9 new outlets opened in the second quarter, bringing the total to 123. In June ING reached an agreement to buy Oyak Bank in Turkey, gaining a solid platform from which to expand in that attractive and fast-growing market. Next year ING will start a retail bank in Ukraine following the successful pilot of the business model in Romania.

Progress is continuing on the project to combine ING Bank and Postbank in the Netherlands. The management structure of the new bank has been determined pending Works Council approval. The project organisation is in place with more than 35 dedicated teams up and running. Of the EUR 890 million in pretax investments expected over five years, EUR 252 million was taken in the second quarter and about EUR 50 million is expected in the second half of 2007. These expenses are excluded from the underlying results.

Earnings Analysis: Second Quarter

Retail Banking posted solid earnings growth despite the challenging interest rate environment, as volume growth helped offset pressure from flat yield curves. Underlying profit before tax rose 22.2% from the second quarter last year, when results were impacted by a litigation provision and a catch-up of risk costs. Underlying income increased 6.7%, outpacing a 2.7% increase in operating expenses. Adjusted for the transfer of a mortgage portfolio from ING’s insurance business to banking in the Netherlands, total income increased 6.2% and profit rose 20.7%.

Profit in the Netherlands rose 11.4%, or 9.4% correcting for the transfer of the mortgage portfolio, driven by volume growth in all product groups. Mortgages increased by EUR 1.5 billion excluding the transfer from insurance. Total average retail

Retail Banking: Geographical Breakdown


	Total						Netherlands						Belgium						Poland						Rest of World
In EUR million	2Q2007			2Q2006			2Q2007			2Q2006			2Q2007			2Q2006			2Q2007			2Q2006			2Q2007			2Q2006

Total underlying income		1,604			1,503			1,028			970			375			388			97			62			104			83
Operating expenses		1,023			996			596			576			271			266			69			49			88			105
Gross result		580			507			431			394			105			122			28			13			16			-22
Addition to loan loss provision		26			53			30			33			-1			13			-6			0			4			7

Underlying profit before tax		555			454			402			361			106			109			34			13			13			-29

Underlying cost/income ratio		63.8	%		66.3	%		58.0	%		59.4	%		72.1	%		68.6	%		71.2	%		79.0	%		84.2	%		126.5	%
Risk costs in bp of average CRWA		10			22			15			19			-3			28			-197			3			19			34
Risk-weighted assets (in EUR bln)		110.4			98.2			79.5			71.5			21.2			19.1			1.4			0.7			8.3			6.9
Underlying RAROC before tax¹		54.9	%		47.7	%		74.1	%		69.8	%		66.5	%		67.4	%		83.1	%		20.0	%		6.9	%		-4.4	%
Economic capital (avg over period)¹		3,700			4,045			2,009			2,105			567			719			116			131			1,008			1,090

¹ Year to date

balances rose 8% while spreads remained stable. That boosted income by 6.0%, while expenses rose 3.5% and risk costs declined.

In Belgium profit declined 2.8% as growth of 13% in retail balances was offset by a lower interest margin after client rates on savings were increased in mid-2006 and customers shifted from savings to term deposits where margins are lower. Client rates on savings were increased again by 25 basis points in July.

Profit in Poland jumped to EUR 34 million from EUR 13 million driven by strong volume growth in all products particularly savings, current accounts and mutual funds. In the Rest of World, the retail banking activities turned to a profit from a loss in the second quarter last year, due to higher results from Private Banking, notably in Asia, while the second quarter of 2006 included a litigation provision.

Income

Total underlying income rose 6.7% to EUR 1,604 million reflecting the growth of business volumes. The interest result increased slightly by 1.0% as volume growth in almost all products offset the impact of lower interest margins and a flat yield curve, as well as lower income from prepayment penalties on mortgages. Commission income rose 15.2%, mainly due to higher management fees, securities broking commissions and payment fees.

Expenses

Total underlying operating expenses rose 2.7% inflated by allocation refinements while the second quarter in 2006 was burdened by a litigation provision. Expenses in the Benelux increased just 2.9%. Outside the Benelux expenses were up 16.4%, driven by investments to grow the businesses in Poland, India, Romania and the Private Banking activities in Asia. The cost/income ratio improved to 63.8% from 66.3% in the second quarter of 2006.

The addition to the provision for loan losses declined to EUR 26 million from EUR 53 million in the second quarter of 2006, when risk costs included an extra EUR 28 million due to a revision of parameters for provisions on non-performing loans in the Netherlands and Belgium. The addition equalled an annualised 10 basis points of average credit-risk-weighted assets down from 22 basis points.

RAROC

Continued pricing discipline helped sustain high returns, with a total risk-adjusted return on capital after tax of 42.8%, up from 34.2% in the first half of 2006. The pretax RAROCs in the Netherlands and Belgium remained strong, while Poland improved significantly to 83.1 % from 20.0% on higher returns and a positive impact from refinements to the economic capital models. Total economic capital for Retail Banking declined 8.5% to EUR 3.7 billion, despite the substantial growth of the business, due in part by the new economic capital methodology.

Focus: Private Banking


In EUR million	2Q2007			2Q2006			Change

Total underlying income		177			160			10.6	%
Operating expenses		109			101			7.9	%
Gross result		68			59			15.3	%
Addition to loan loss provision		1			0

Underlying profit before tax		67			59			13.6	%

- of which Netherlands		14			18			-22.2	%
- of which Belgium¹		31			31			0.0	%
- of which Rest of World		22			10			120.0	%

Cost/income ratio		61.4	%		63.1	%
Assets under Admin. (EUR bln)²		66.1			63.3			4.4	%

¹ Including Luxembourg & Switzerland

² 30 June compared with 31 March 2007

Private Banking posted a 13.6% increase in underlying profit before tax to EUR 67 million, which is included in the results of the Netherlands, Belgium and Other Retail Banking. The increase was driven by strong growth in assets under management, particularly in Asia. Total assets under administration for Private Banking clients increased by EUR 2.8 billion in the second quarter to EUR 66.1 billion, supported by a net inflow of EUR 1.3 billion and favourable equity markets. The cost/income ratio improved to 61.4% from 63.1 % in the same quarter last year.

ING DIRECT

ING Direct: Profit & Loss Account


In EUR million	2Q2007			2Q2006			Change			1Q2007			Change			1H2007			1H2006			Change

Interest result		483			529			-8.7	%		480			0.6	%		963			1,062			-9.3	%
Commission income		23			19			21.1	%		27			-14.8	%		49			39			25.6	%
Investment income		36			14			157.1	%		38			-5.3	%		74			26			184.6	%
Other income		30			5			500.0	%		16			87.5	%		45			8			462.5	%

Total underlying income		571			567			0.7	%		561			1.8	%		1,131			1,135			-0.4	%

Operating expenses		386			371			4.0	%		383			0.8	%		769			768			0.1	%
Gross result		185			196			-5.6	%		178			3.9	%		362			367			-1.4	%
Addition to loan loss provision		13			6			116.7	%		12			8.3	%		26			22			18.2	%

Underlying profit before tax		171			190			-10.0	%		165			3.6	%		336			345			-2.6	%

KEY FIGURES
Interest margin		0.75	%		0.90	%					0.76	%					0.76	%		0.92	%
Cost/income ratio		67.6	%		65.4	%					68.4	%					68.0	%		67.7	%
Risk costs in bp of average CRWA		7			4						7						7			6
Risk-weighted assets (end of period)		75,201			82,419			-8.8	%		72,082			4.3	%		75,201			82,419			-8.8	%
Underlying RAROC before tax¹		21.5	%		20.0	%					20.5	%					21.5	%		20.0	%
Underlying RAROC after tax¹		16.7	%		11.7	%					14.4	%					16.7	%		11.7	%
Economic capital (average over period)¹		2,837			3,106			-8.7	%		2,919			-2.8	%		2,837			3,106			-8.7	%
Staff (FTEs end of period)		8,076			7,592			6.4	%		7,823			3.2	%		8,076			7,592			6.4	%


¹		Year to date

Key Performance Indicators

•		Record mortgage production of EUR 7.0 billion excl. FX

•		Client retail balances surpass EUR 300 billion mark

•		Further investments in growth expected in second half

ING Direct results remained solid in the second quarter while it continued to make substantial investments to build the business by rolling out new products. Further investments of EUR 65 million are expected in the second half to accelerate commercial growth going forward as the company strives to become the world’s most preferred consumer bank.

The new payment accounts in the U.S. and Spain continued to gain popularity while supporting the cross-sell of other products, and preparations are underway to introduce payment accounts in four new countries next year. Mortgage production reached a new record in the second quarter, with EUR 7.0 billion excluding currency effects, and additional investments in mortgage growth is expected to bring the portfolio to 50% of funds entrusted, from 42% today, by 2009. That enhances the long-term profitability of the business because own-originated mortgages provide a higher spread than investments in asset-backed securities. Regulatory approval for the launch of ING Direct Japan is pending and the company is expected to launch later this year.

ING DIRECT
Underlying profit before tax (EUR million)

The challenging interest rate environment continued with flat or inverted yield curves in most currency zones, and interest rates continued to rise. Additional central bank rate increases have taken place since the end of the second quarter in Canada and the U.K.

Earnings Analysis: Second Quarter

ING Direct sustained strong earnings in the second quarter, despite the challenging interest rate environment. Underlying profit before tax was EUR 171 million, up 3.6% from the first quarter, and down 10.0% from the second quarter last year.

Income

Total underlying income increased 0.7% to EUR 571 million, as a lower interest result was more than offset by further growth of off-balance sheet funds as well as higher realised gains on bonds. The interest margin declined to 0.75% from 0.90% in the second quarter of 2006 but was down just 1 basis point from the first quarter.

Expenses

Total operating expenses rose 4.0% and the operational cost base increased 10.4%, mainly due to investments in new products and EUR 5 million from the build-up of the Japan operation. The operational cost base (excluding marketing expenses) was 0.35% of total client retail balances in the second quarter compared with 0.36% in the same quarter last year, while the cost/income ratio increased to 67.6% from 65.4%. The number of full-time staff rose to 8,076 from 7,592 a year earlier.

TOTAL RETAIL BALANCES
(EUR bln, end of period)

The addition to the provision for loan losses rose to EUR 13 million from EUR 6 million in the second quarter of 2006, which included a release of risk costs in the U.S. There was no sign of a deterioration in the quality of the loan portfolio.

RAROC

The after-tax risk-adjusted return on capital of ING Direct improved to 16.7% from 11.7% in the first half of 2006, partly due to lower tax charges. The pretax RAROC improved to 21.5% from 20.0%, supported by an 8.7% decline in average economic capital to EUR 2.8 billion, due to improvements in RAROC methodology.

Client Retail Balances

Total client retail balances, including funds entrusted, off-balance sheet funds, residential mortgages and consumer loans, increased to EUR 302.0 billion, up from EUR 290.5 billion at the end of March. ING Direct added 494,000 new customers in the second quarter, bringing the total to 18.7 million.

A record EUR 8.2 billion in own-originated mortgages was added in the second quarter, or EUR 7.0 billion excluding currency effects, taking the total mortgage portfolio to EUR 82.8 billion at the end of June.

Total off-balance sheet funds, which are mainly mutual funds and brokerage accounts, rose by EUR 1.1 billion in the second quarter to EUR 17.2 billion. Excluding currency effects, total funds entrusted increased by EUR 1.0 billion to EUR 199.2 billion as net outflows in the U.K. and Australia were offset by growth in most other countries.

ING Direct: Geographical Breakdown


	Underlying profit before tax				Number of Clients				Funds Entrusted				Residential Mortgages
	(in EUR million)				(x 1.000)				(in EUR billion)				(in EUR billion)
	2Q2007		2Q2006		30 June 07		31 March 07		30 June 07		31 March 07		30 June 07		31 March 07

Canada		6		18		1,563		1,529		13.7		12.5		11.7		9.9
Spain		17		16		1,536		1,501		13.1		13.0		5.7		5.3
Australia		26		22		1,477		1,456		11.1		11.3		17.7		16.2
France		14		11		679		663		13.2		13.1		0.0		0.0
United States		8		33		5,203		4,949		40.3		39.1		15.6		13.8
Italy		12		9		862		829		14.4		14.5		2.4		2.0
Germany		100		78		5,907		5,834		59.2		58.1		28.1		26.6
Austria		-1		-5		355		349		3.9		3.9		0.0		0.0
United Kingdom		-6		8		1,130		1,108		30.2		31.5		1.6		0.9
Japan		-5

Total		171		190		18,712		18,218		199.2		197.0		82.8		74.6

Geographical Breakdown

Higher results were posted in all euro-zone countries as well as Australia. Underlying profit before tax in Germany rose to EUR 100 million from EUR 78 million, driven by growth in mortgages and off-balance sheet funds.

In Australia profit rose EUR 4 million, although funds entrusted decreased by AUD 1.0 billion as temporary tax incentives diverted savings into superannuation pension products.

Profit in the U.S. declined to EUR 8 million from EUR 33 million due entirely to investments to expand the geographical footprint and grow the mortgage portfolio. Strong growth continued with 254,000 new customers added in the second quarter, while funds entrusted rose by USD 2.4 billion and residential mortgages by USD 2.8 billion.

Profit before tax from Canada declined to EUR 6 million as a result of increasing client rates and lower capital gains. Growth continued in both funds entrusted and residential mortgages.

The U.K. reported a loss of EUR 6 million compared with a profit of EUR 8 million in the second quarter of 2006 due to margin pressure and investments in mortgage growth. Outflows of funds entrusted slowed in the second quarter from the first, totalling GBP 1.1 billion, and customer numbers continued to increase. Client rates on savings were raised by 25 basis points in June 2007 in response to market rate increases. A further increase by the Bank of England in July was not followed. Residential mortgages, which were introduced in October 2006, continued to show solid growth and the portfolio passed the GBP 1 billion mark at the end of June 2007.

ASSETS UNDER MANAGEMENT

Asset under Management distributed per Business Line


	Total				AUM by Business Line, 30 June 2007
	30 June		31 March		Insurance		Insurance		Insurance		Wholesale		Retail		ING
In EUR billion	2007		2007		Europe		Americas		Asia/Pacfic		Banking		Banking		Direct

Third-party AUM
- for Insurance policyholders		135.2		129.3		34.9		71.0		29.3		0.0		0.0		0.0
- for institutional clients		141.4		128.2		39.9		25.5		13.7		59.9		2.3		0.0
- for retail clients		107.9		103.3		11.0		37.6		25.4		0.1		25.6		8.2
- for private banking clients		66.1		63.3		0.0		0.0		0.0		0.0		66.1		0.0

Total third-party AUM		450.6		424.0		85.9		134.2		68.4		60.0		94.0		8.2

Proprietary assets		186.1		195.3		77.2		75.0		27.5		6.4		0.0		0.0

Total assets under management		636.7		619.4		163.1		209.2		95.9		66.4		94.0		8.2

Net inflow (in quarter)		10.4		14.0		1.0		0.6		4.5		2.4		1.8		0.1

•		AUM up EUR 17.3 billion to EUR 636.7 billion

•		Third-party AUM up 6.3% to EUR 450.6 billion

•		Net inflow reaches EUR 10.4 billion in 2Q

Assets under Management

Assets under management increased by EUR 17.3 billion, or 2.8% in the second quarter of 2007 to reach EUR 636.7 billion at the end of June. Growth was driven mainly by a solid net inflow of EUR 10.4 billion. Higher equity markets and interest rates had a combined positive impact of EUR 10.0 billion. Exchange rates had a negative impact of EUR 2.7 billion, mainly due to the weaker U.S. dollar. Divestments and acquisitions had a net negative impact of EUR 0.4 billion.

Inflow

The net inflow of EUR 10.4 billion was led by Insurance Asia/Pacific, which accounted for EUR 4.5 billion, driven by substantial sales in Japan, China and Australia. At Wholesale Banking the net inflow of EUR 2.4 billion was supported by ongoing demand for property investment funds at ING Real Estate. ING Private Banking contributed EUR 1.3 billion to the net inflow, reported under Retail Banking.

Assets under Management by Manager

The asset management business units manage EUR 546.3 billion of assets, of which EUR 186.1 billion is proprietary assets of ING

ASSETS UNDER MANAGEMENT
(EUR bln, end of period)

MOVEMENT IN AUM
(EUR bln)

Assets under Management by Manager


	Total				Third-party Assets				Proprietary Assets
In EUR billion	30 June 2007		31 March 2007		30 June 2007		31 March 2007		30 June 2007		31 March 2007

ING Investment Management Europe		161.8		156.6		102.0		95.9		59.8		60.7
ING Investment Management Americas		150.7		148.1		77.0		73.9		73.7		74.2
ING Investment Management Asia/Pacific		78.0		73.4		51.3		47.3		26.7		26.0

ING Investment Management		390.5		378.1		230.4		217.2		160.1		160.9

ING Real Estate		74.7		71.3		61.5		59.2		13.2		12.1
ING Private Banking		56.5		54.7		56.5		54.7		0.0		0.0
Other		24.7		33.3		11.8		10.9		12.8		22.4

Assets managed internally		546.3		537.3		360.3		342.0		186.1		195.3

Funds managed externally		90.4		82.0		90.4		82.0		0.0		0.0

Total assets under management		636.7		619.4		450.6		424.0		186.1		195.3

Group and EUR 360.3 billion is third-party assets. In addition, ING’s business lines have distributed EUR 90.4 billion of funds managed by external fund managers, illustrating the strength of ING’s distribution channels.

ING Investment Management

ING Investment Management oversees both third-party assets and proprietary assets of ING Group. Total assets managed by ING IM amounted to EUR 390.5 billion. The total third-party assets at ING IM increased 6.1% in the second quarter to EUR 230.4 billion driven by a solid net inflow of EUR 4.0 billion.

ING IM 3RD-PARTY AUM
(EUR bln end of period)

AtlNGIM Europe, third-party assets under management increased by EUR 6.1 billion to EUR 102.0 billion. The acquisition of AZL was completed, expanding ING’s pension fund management activities, including board advisory and actuarial services as well as pension administration and fiduciary management. Money market products attracted inflows of EUR 1.1 billion from third-party clients, especially in Belgium. The Emerging Market Debt strategy, which is distributed globally, generated EUR 0.8 billion net inflows in the second quarter. The new internet-based defined contribution platform “Mijn Pensioen” successfully sourced EUR 0.2 billion from a Dutch pension fund. During the second quarter a Multi-Asset team was set up to build on investment opportunities across asset classes. The recently launched Target Return Bond product surpassed the EUR 0.5 billion milestone.

ING IM Americas achieved a EUR 3.1 billion increase in third-party assets under management to EUR 77.0 billion. Strong sales of Structured Assets and Alternative products totalled EUR 1.1 billion including Senior Bank Loan, Closed End Fund and Collateralized Loan Obligations (CLOs). The U.S. Senior Bank Loan portfolio launched in the Luxembourg Sicav offshore range continued to generate exceptional net inflows in Europe and contributed EUR 0.5 billion during the quarter and EUR 1.2 billion year to date.

At ING IM Asia/Pacific third-party assets increased substantially by EUR 4.0 billion to EUR 51.3 billion. The China Merchant Core Value Fund contributed a net inflow of EUR 1.1 billion and the CMF Growth Fund mandate had a net inflow of EUR 0.3 billion. In Japan assets grew as a result of sales of SPVA products at ING Life.

At the end of the second quarter 2007 ING IM delivered a sound performance with 83% of mutual funds assets outperforming their benchmark and 66% outperforming their peer median on a 3-year basis.

ING Real Estate

Assets under management at ING Real Estate increased 4.8% to EUR 74.7 billion driven by continued growth of the investment management business. The total portfolio, including the finance business, surpassed EUR 100 billion, growing 7.7% to EUR 100.6 billion.

The investment management business continued to grow steadily with assets under management increasing to EUR 72.4 billion, up 4.6% from the first quarter. This growth was driven by ongoing inflow into existing funds, as well as successful capital raising for new funds with value-added and opportunistic investment strategies and new acquisitions.

The Development portfolio increased to EUR 2.3 billion, up 9.5% compared to the first quarter as new project acquisitions pick up.

ING REAL ESTATE PORTFOLIO
(EUR bln end of period)

ING Private Banking

ING Private Banking administers EUR 66.1 billion of assets for its clients of which EUR 5.5 billion was invested in investment funds from ING and EUR 4.8 billion in externally managed funds. Total administered assets increased by EUR 2.8 billion in the second quarter driven by a net inflow of EUR 1.3 billion and favourable equity markets which added EUR 1.5 billion. Net inflow was mainly raised in Asia (EUR 0.8 billion) and Belgium (EUR 0.5 billion). At the end of the second quarter the assets were geographically spread as follows; the Netherlands (EUR 18.5 billion), Belgium (EUR 15.2 billion), Asia (EUR 12.2 billion), Switzerland (EUR 11.7 billion) and Luxembourg (EUR 8.3 billion).

CAPITAL MANAGEMENT

Capital Base: ING Group


In EUR million	30 June 07			31 March 07

Shareholders’ equity (in parent)		38,166			40,117
+ Group hybrid capital		8,245			7,555
+ Group leverage (core debt)		4,788			4,162

Total capitalisation (Bank + Insurance)		51,199			51,834

- Revaluation reserves fixed income & other		-183			2,822
- Group leverage (core debt) (d)		4,788			4,162

Adjusted equity (e)		46,594			44,851

Debt/equity ratio (d/(d+e))		9.32	%		8.49	%

•		All capital ratios remain well within target levels

•		Successful execution of funding strategy in 2Q

•		Impact of share buyback partially offset by warrants

ING’s Capital Base

Shareholders’ equity decreased from EUR 40.1 billion to EUR 38.2 billion in the second quarter, primarily due to a decline in unrealised revaluations of debt securities and the cash dividend pay-out to ING shareholders in April. That was partially offset by the net profit of EUR 2.6 billion in the second quarter and an increase in unrealised revaluations from shares. The decrease of the revaluation on debt securities was caused by movements of interest rates. However, that does not affect the capital ratios, as it is reversed out of adjusted equity in accordance with the prudential filter applied by the Dutch central bank.

Capital Market Transactions

ING conducted a number of capital markets transactions in the second quarter as the company continues to optimise the capital structure and reduce the cost of capital. ING Group issued EUR 1.75 billion in 10-year senior bonds in the euro institutional market in May and USD 1.0 billion in hybrid Tier-1 capital in the U.S. retail market in June. It was the first time since September 2005 that ING targeted the U.S. retail market, and the transaction size was increased to USD 1.045 billion after the greenshoe option was exercised in July. ING Bank issued USD 2 billion floating-rate lower Tier-2 capital in the Eurodollar market in June.

In June ING started its EUR 5.0 billion share buyback programme, which is expected to run until June 2008. In the second quarter 13.4% of the programme was executed as 20,431,500 shares were bought back at an average price of EUR 32.85. The impact was partially offset by the exercise of 6,857,042 warrants B, leading to the issue of 13,714,084 shares at a price of EUR 24.96. A total of 10,184,711 warrants B remain outstanding which are expected to be exercised during the second half because the warrants expire on 5 January 2008.

Capital Ratios: ING Insurance


In EUR million	30 June 07			31 March 07

Adjusted equity (e)		30,731			29,362
Core debt (d)		3,809			5,395

Debt/equity ratio (d/(d+e))		11.03	%		15.52	%

Available regulatory capital (a)		27,351			26,007
E.U. required regulatory capital (b)		9,203			9,379

Capital coverage ratio (a/b)		297	%		277	%

Buffer for equities & real estate (c)		7,092			7,718

Internal capital coverage ratio (a/b+c)		168	%		152	%

ADJUSTED EQUITY
(EUR bln end of period)

As part of ING’s periodic rebalancing of the delta hedge portfolio for employee options, ING Group sold 3,960,000 (depositary receipts for) ordinary shares from the portfolio. The shares were sold on the open market between 22 and 24 May at an average price of EUR 33.12 per share.

Capital Ratios

The leverage position of ING Group remained well within target as the Group’s debt/equity ratio increased from 8.49% to 9.32% (limit: < 10%). The increase was largely due to the dividend pay-out and the share buyback which influenced both the adjusted equity as well as the core debt. The leverage ratio for Insurance improved from 15.52% to 11.03% due to a reduction in core debt as dividends were upstreamed from the insurance subsidiaries, including an additional dividend from Life Insurance Netherlands, of which EUR 0.6 billion was upstreamed to ING Group. The E.U. capital coverage ratio of ING Insurance increased further to 297% from 277%. The Tier-1 ratio of the Bank declined from 7.66% to 7.55% mainly as result of growth in risk-weighted assets of EUR 23 billion, driven by all three banking business lines. Tier-1 capital increased as the net profit of EUR 0.9 billion was only partly offset by a EUR 0.5 billion dividend payment to ING Group.

Credit Ratings

Standard & Poor’s maintains a stable outlook on the ratings of ING Group (AA-), ING Insurance (AA-) and ING Bank (AA). Moody’s also maintains a stable outlook for ING Group (Aa2), ING Insurance (Aa3) and ING Bank (Aa1). Fitch affirmed all of ING’s ratings in July.

Capital Ratios: ING Bank


In EUR million	30 June 07			31 March 07

Core Tier-1		20,506			19,862
Hybrid Tier-1		6,397			5,688

Total Tier-1 capital		26,903			25,551

Other capital		12,390			11,146

BIS Capital		39,294			36,696

Risk-weighted assets		356,414			333,722
Tier-1 ratio		7.55	%		7.66	%

BIS ratio		11.02	%		11.00	%

APPENDIX 1: KEY FIGURES

ING Group: Key Figures


	Year to Date						Annual Figures
In EUR million	1H2007			1H2006			FY2006			FY2005			FY2004			FY2003¹			FY2002¹

Income
Insurance operations		30,357			31,040			59,642			57,403			55,602			53,223			59,729
Banking operations		7,429			7,264			14,195			13,848			12,678			11,680			11,201

Total income²		37,676			38,207			73,621			71,120			68,159			64,736			70,913

Operating expenses Insurance operations		2,746			2,626			5,275			5,195			4,746			4,897			5,203
Banking operations		4,944			4,474			9,087			8,844			8,795			8,184			8,298

Total operating expenses		7,690			7,100			14,362			14,039			13,541			13,081			13,501

Impairments/addition to loan loss provision		25			-32			114			99			475			1,288			2,099

Insurance profit before tax		3,048			2,570			4,935			3,978			4,322			3,506			4,453
Banking profit before tax		2,460			2,820			5,005			4,916			3,418			2,371			1,468

Total profit before tax		5,508			5,390			9,940			8,894			7,740			5,877			5,921

Taxation		913			1,190			1,907			1,379			1,709			1,490			1,089
Third-party interest		142			180			341			305			276			344			332

Net profit		4,452			4,020			7,692			7,210			5,755			4,043			4,500

FIGURES PER ORDINARY SHARE (EUR)
Net profit		2.06			1.86			3.57			3.32			2.71			2.00			2.32
Distributable net profit		2.06			1.86			3.57			3.32			2.71			2.00			2.20
Dividend		0.66			0.59			1.32			1.18			1.07			0.97			0.97
Shareholders’ equity (in parent)		17.72			15.40			17.78			16.96			12.95			10.08			9.14

BALANCE SHEET (IN EUR BILLION)
Total assets		1,319			1,221			1,227			1,159			964			779			716
Capital & Reserves		38			33			38			37			28			21			18

Capital Ratios (%)
ING Group debt/equity ratio		9.3	%		10.0	%		9.0	%		9.4	%		12.6	%
Insurance capital coverage ratio		297	%		257	%		274	%		255	%		204	%		180	%		169	%
Insurance debt/equity ratio		11.0	%		12.0	%		14.2	%		13.4	%		14.4	%
Bank Tier-1 ratio		7.55	%		7.32	%		7.63	%		7.32	%		6.92	%		7.59	%		7.31	%

Market capitalisation (in EUR billion)		73			68			74			65			49			39			32

Ordinary shares outstanding (million)		2,225			2,205			2,205			2,205			2,205			2,115			1,993
Preference shares outstanding (million)		63			87			63			87			87			87			87
Warrants B in issue until 5 January 2008 (million)		10			17			17			17			17			17			17

KEY PERFORMANCE INDICATORS
- Net return on equity (ROE)		23.9	%		25.0	%		23.5	%		26.6	%		25.4	%		21.5	%		17.4	%
- Net profit growth		11	%		15	%		7	%		25	%		n/a			-10	%		-2	%

Insurance
- Value of new life business		375			477			807			805			632			440			519
- Internal rate of return (life)		12.8	%		13.9	%		13.3	%		13.2	%		12.1	%		10.9	%		11.5	%
- Combined ratio (non-life)		96	%		89	%		91	%		95	%		94	%		98	%		102	%

Banking
- Cost/income ratio (total)		66.6	%		61.6	%		64.0	%		63.9	%		69.4	%		70.1	%		74.1	%
- RAROC after tax (total)		23.5	%		21.8	%		19.7	%		22.6	%		14.5	%

Assets under management (in EUR billion)		637			546			600			547			492			463			449

Staff (FTEs end of period)		119,097			119,409			119,801			116,614			112,195			114,335			116,200


¹		Figures according to Dutch GAAP

²		Including inter-company eliminations

APPENDIX 2: KEY FIGURES PER QUARTER

ING Group: Key Figures per Quarter


In EUR million	2Q2007		1Q2007		4Q2006		3Q2006		2Q2006		1Q2006

Underlying profit before tax
Insurance Europe		694		468		641		540		704		443
Insurance Americas		593		533		539		512		457		484
Insurance Asia/Pacific		153		159		140		168		157		156
Corporate line Insurance		531		-84		20		-195		-2		122

Underlying profit before tax from Insurance		1,971		1,076		1,340		1,025		1,316		1,205

Wholesale Banking		668		737		546		527		717		735
Retail Banking		555		539		444		469		454		568
ING Direct		171		165		172		177		190		155
Corporate line Banking		-65		-56		-14		-43		-25		-20

Underlying profit before tax from Banking		1,329		1,384		1,148		1,130		1,336		1,438

Underlying profit before tax		3,300		2,460		2,488		2,155		2,652		2,643

Taxation		476		502		284		426		557		597
Underlying profit before minority interests		2,824		1,959		2,204		1,729		2,095		2,046
Minority interests		76		65		85		76		86		89

Underlying net profit		2,747		1,894		2,119		1,653		2,009		1,957

Net gains/losses on divestments						-23		-83		-9		30
Net profit from divested units						5		1		14		19
Special items after tax		-188

Net profit attributable to shareholders		2,559		1,894		2,101		1,571		2,014		2,006

Earnings per share (in EUR)		1.18		0.88		0.98		0.73		0.93		0.93

Divestments & Special items after tax per Quarter

In EUR million

2Q2007

1Q2007

4Q2006

3Q2006

2Q2006

1Q2006

Underlying net profit

2,747

1,894

2,119

1,653

2,009

1,957

Net gains/losses on divestments:

- sale Degussa Bank

-23

- gain on unwinding Piraeus

- Australia non-life

-sale of William deBroe

-9

- sale Deutsche Hypothekenbank

-83

Total gains/losses on divestments

-23

-83

-9

Profit after tax from divested units

Net special items:

- Provision for combining ING Bank and Postbank

-188

Total special items

-188

Net profit (attributable to shareholders)

2,559

1,894

2,101

1,571

2,014

2,006

APPENDIX 3: CONSOLIDATED PROFIT & LOSS ACCOUNT

ING Group: Consolidated Profit & Loss Account on Underlying Basis


			ING Group¹					Insurance				Banking
In EUR million	2Q2007		2Q2006		Change			2Q2007		2Q2006		2Q2007		2Q2006
Gross premium income		11,573		12,052		-4.0	%		11,573		12,052
Interest result banking operations		2,303		2,173		6.0	%						2,295		2,213
Commission income		1,219		1,046		16.5	%		478		397		741		649
Total investment & other income		4,063		3,558		14.2	%		3,484		2,892		635		675

Total underlying income		19,158		18,829		1.7	%		15,536		15,341		3,672		3,537

Underwriting expenditure		11,843		12,353		-4.1	%		11,843		12,353
Operating expenses		3,694		3,545		4.2	%		1,376		1,329		2,318		2,216
Other interest expenses		298		296		0.7	%		346		345
Addition to loan loss provisions/ impairments		25		-17							-2		25		-15

Total underlying expenditure		15,860		16,177		-2.0	%		13,565		14,025		2,343		2,201

Underlying profit before tax		3,300		2,652		24.4	%		1,971		1,316		1,329		1,336

Taxation		476		557		-14.5	%		274		222		202		335
Underlying profit before minority interests		2,824		2,095		34.8	%		1,698		1,094		1,127		1,001
Minority interests		76		86		-11.6	%		50		75		27		11

Underlying net profit		2,747		2,009		36.7	%		1,648		1,019		1,099		990

Net gains/losses on divestments				-9											-9
Net profit from divested units				14											14
Special items after tax		-188											-188

Net profit (attributable to shareholders)		2,559		2,014		27.1	%		1,648		1,019		911		995


¹		Including inter-company eliminations

Divestments & Special Items after tax


	ING Group							Insurance				Banking
In EUR million	2Q2007		2Q2006		Change			2Q2007		2Q2006		2Q2007		2Q2006

Underlying net profit		2,747		2,009		36.7	%		1,648		1,019		1,099		990

Gains/losses on divestments:
- sale Williams de Broe				-9											-9

Total gains/losses on divestments				-9											-9

Profit after tax from divested units				14											14

Special items:
- Provision for combining ING Bank and Postbank		-188											-188

Special items		-188											-188

Total net profit		2,559		2,014		27.1	%		1,648		1,019		911		995

ING Group: Total Consolidated Profit & Loss Account


	ING Group¹							Insurance				Banking
In EUR million	2Q2007		2Q2006		Change			2Q2007		2Q2006		2Q2007		2Q2006

Gross premium income		11,573		12,052		-4.0	%		11,573		12,052
Interest result banking operations		2,304		2,195		5.0	%						2,296		2,235
Commission income		1,219		1,055		15.5	%		478		397		741		658
Total investment & other income		4,063		3,595		13.0	%		3,485		2,894		635		710

Total income		19,160		18,897		1.4	%		15,536		15,343		3,672		3,603

Underwriting expenditure		11,843		12,355		-4.1	%		11,843		12,355
Operating expenses		3,947		3,590		9.9	%		1,376		1,329		2,571		2,261
Other interest expenses		298		296		0.7	%		346		345
Addition to loan loss provisions / impairments		24		-7							-2		24		-5

Total expenditure		16,112		16,234		-0.8	%		13,565		14,027		2,595		2,256

Total profit before tax		3,048		2,663		14.5	%		1,971		1,316		1,076		1,347

Taxation		411		561		-26.7	%		274		222		138		339
Profit before minority interests		2,637		2,102		25.5	%		1,698		1,094		938		1,008
Minority interests		77		88		-12.5	%		50		75		27		13

Net profit (attributable to shareholders)		2,559		2,014		27.1	%		1,648		1,019		911		995


¹		Including inter-company eliminations

Divestments & Special Items before tax

ING Group

Insurance

Banking

In EUR million

2Q2007

2Q2006

Change

2Q2007

2Q2006

2Q2007

2Q2006

Underlying profit before tax

3,300

2,652

24.4

1,971

1,316

1,329

1,336

Gains/losses on divestments:

- sale Williams de Broe

-9

Total gains/losses on divestments

-9

Profit before tax from divested units

Special items:

- Provision for combining ING Bank, Postbank

-252

Special items

-252

Total profit before tax

3,048

2,663

14.5

1,971

1,316

1,076

1,347

APPENDIX 4: CONSOLIDATED BALANCE SHEET

ING Group: Consolidated Balance Sheet


	ING Group				ING Insurance				ING Bank				Holding/Eliminations
	30 June		31 March		30 June		31 March		30 June		31 March		30 June		31 March
In EUR million	2007		2007		2007		2007		2007		2007		2007		2007

ASSETS
Cash and balances with central banks		12,718		17,333		3,323		3,130		9,892		14,541		-497		-338
Amounts due from banks		56,675		55,693						56,675		55,693
Financial assets at fair value through P&L		354,101		343,786		123,331		119,342		231,161		224,908		-391		-464
Investments		304,611		302,487		140,327		140,633		163,952		161,545		332		309
Loans and advances to customers		516,860		495,535		31,244		38,001		488,889		458,974		-3,273		-1,440
Reinsurance contracts		6,399		6,481		6,399		6,481
Investment in associates		5,438		5,299		4,292		4,081		1,351		1,243		-205		-25
Investment property		5,003		5,014		1,265		1,390		3,738		3,623				1
Property and equipment		6,225		5,863		1,101		816		5,124		5,047
Intangible assets		3,505		3,378		3,212		3,097		386		375		-93		-94
Deferred acquisition costs		10,675		10,306		10,675		10,306
Other Assets		37,222		31,030		13,424		10,677		23,836		20,414		-38		-61

Total Assets		1,319,432		1,282,205		338,593		337,954		985,004		946,363		-4,165		-2,112

EQUITY AND LIABILITIES
Share capital & share premium		9,228		8,885		4,548		4,548		7,048		7,048		-2,368		-2,711
Revaluation reserve equities		6,597		6,643		5,922		5,870		448		549		227		224
Revaluation reserve fixed income		-517		2,531		-277		1,632		-240		899
Other revaluation reserves		676		506		280		117		395		389		1
Currency translation reserve		-559		-664		-389		-421		86		15		-256		-258
Other reserves		22,741		22,216		12,488		11,368		12,705		12,310		-2,452		-1,462

Shareholders’ equity (in parent)		38,166		40,117		22,572		23,114		20,442		21,210		-4,849		-4,207

Minority interests		2,110		1,938		914		879		1,404		1,086		-208		-27

Total equity		40,276		42,055		23,486		23,993		21,846		22,296		-5,057		-4,234

Liabilities
Preference shares		215		215										215		215
Subordinated loans		6,673		5,976		3,910		4,008		19,144		17,642		-16,381		-15,674
Debt securities in issue		85,983		82,277		4,944		4,985		74,028		72,048		7,011		5,244
Other borrowed funds		26,541		28,926		10,509		15,712						16,032		13,214
Insurance and investment contracts		277,764		272,217		277,764		272,217
Amounts due to banks		136,718		124,285						136,718		124,285
Customer deposits and other funds on deposits		526,941		518,796						532,666		519,315		-5,725		-519
Financial liabilities at fair value through P&L		176,342		167,697		1,194		970		175,353		166,986		-205		-259
Other liabilities		41,980		39,761		16,786		16,069		25,249		23,791		-55		-99

Total liabilities		1,279,157		1,240,150		315,107		313,961		963,158		924,067		892		2,122

Total equity and liabilities		1,319,432		1,282,205		338,593		337,954		985,004		946,363		-4,165		-2,112

Changes in Shareholders’ Equity


	ING Group				ING Insurance				ING Bank				Holding/Eliminations
In EUR million	2Q2007		1Q2007		2Q2007		1Q2007		2Q2007		1Q2007		2Q2007		1Q2007

Shareholder equity beginning of period		40,117		38,266		23,114		21,917		21,210		21,298		-4,207		-4,949
Net profit for period		2,559		1,894		1,687		857		899		1,034		-27		3
Unrealised revaluations of equity securities		866		989		819		966		42		27		5		-4
Unrealised revaluations of debt securities		-3,548		-347		-2,681		-266		-867		-81
Deferred interest crediting to life policyholders		1,027		232		1,027		232
Realised gains equity securities released to P&L		-849		-327		-767		-216		-82		-111
Realised gains debt securities released to P&L		-2		-65		49		-8		-51		-57
Change in cash flow hedge reserve		-525		-353		-304		-177		-221		-176
Other revaluations		94		-30		148		8		-54		-38
Changes re-own shares		-482		-64										-482		-64
Exchange rate differences		128		-59		56		-178		70		119		2
Exercise of warrants and options		343		7										343		7
Cash dividend		-1,585				-600				-500		-800		-485		800
Employee stock option & share plans		18		27		12		14		8		16		-2		-3
Other		5		-53		12		-35		-12		-21		5		3

Total changes		-1,951		1,851		-542		1,197		-768		-88		-641		742

Shareholder equity end of period		38,166		40,117		22,572		23,114		20,442		21,210		-4,848		-4,207

ING’s Capital Base and Key Ratios


	ING Group						ING Insurance						ING Bank
In EUR million	30 June 07			31 March 07			30 June 07			31 March 07			30 June 07			31 March 07

Shareholders’ equity (in parent)		38,166			40,117			22,572			23,114			20,442			21,210
Group hybrid capital		8,245			7,555			1,634			1,652			6,397			5,688
Core debt		4,788			4,162

Total capitalisation		51,199			51,834			24,206			24,766			26,840			26,898

Adjustments to equity:
- Revaluation reserves fixed income etc.		-183			2,822			19			1,889			-110			1,027
- Revaluation reserves excluded from Tier-1														1,154			1,296
+ Insurance hybrid capital								2,250			2,250
+ Minorities								914			879			1,376			1,245
- Deductions Tier-1 (as of 2007)														267			269

Available regulatory capital								27,351			26,007			26,903			25,551

+ Other qualifying capital														12,390			11,146
+ DAC/ViF adjustment (50%)								3,381			3,356
- Group leverage/core debt		4,788			4,162

Adjusted equity (e)		46,594			44,851			30,731			29,362			39,294			36,696

KEY RATIOS
Core debt (d)		4,788			4,162			3,809			5,395
Debt/Equity ratio (d/(d+e))		9.32	%		8.49	%		11.03	%		15.52	%
Capital coverage ratio								297	%		277	%
Risk weighted assets														356,414			333,722
Tier-1 ratio Bank														7.55	%		7.66	%
BIS ratio Bank														11.02	%		11.00	%

APPENDIX 5: CONSOLIDATED CASH FLOW STATEMENT

ING Group: Consolidated Cash Flow Statement


	ING Group¹				ING Insurance				ING Bank				Holding/Eliminations
In EUR million	2Q2007		2Q2006		2Q2007		2Q2006		2Q2007		2Q2006		2Q2007		2Q2006

Net cash flow from operating activities		8.512		9.657		10.436		3.759		1.357		6.824		-3.281		-926

Investments and advances
- group companies		-217				-217		-20		-55		-587		55		607
- associates		-284		-120		-233		-21		-51		-99
- available-for-sale investments		-69.721		-71.445		-43.664		-41.297		-26.057		-30.148
- held-to-maturity investments
- investment properties		-102		-150		-61		-40		-41		-110
- property and equipment		-357		-115		-274		-41		-83		-74
- assets subject to operating leases		-362		-295						-362		-295
- investments for the risk of policyholders		-13.091		-11.771		-13.091		-11.771
- other investments		-30		-36		-3		-6		-27		-30

Disposals and redemptions
- group companies		69				124								-55
- associates		148		136		123		64		25		72
- available-for-sale investments		62.226		64.291		40.675		40.435		21.551		23.856
- held-to-maturity investments		73		40						73		40
- investment properties		-40		26		4		20		-44		6
- property and equipment		75		5		58		-3		17		8
- assets subject to operating leases		100		104						100		104
- investments for the risk of policyholders		11.710		10.291		11.710		10.291
- other investments				4		3		3		-3		1

Net cash flow from investing activities		-9.803		-9.035		-4.846		-2.386		-4.957		-7.256		0		607

Proceeds from issuance of subordinated loans		719								1.996		929		-1.277		-929
Repayments of subordinated loans										-351		-197		351		197
Proceeds from borrowed funds and debt securities		75.080		61.024		11.012		24.133		63.180		42.477		888		-5.586
Repayment from borrowed funds and debt securities		-75.245		-57.428		-15.994		-24.699		-63.006		-39.864		3.755		7.135
Issuance of ordinary shares		343		1										343		1
Payments to acquire treasury shares		-618		-234		-2								-616		-234
Sale of treasury shares		155		58		1		3						154		55
Dividends paid/received		-1.592		-1.396		-607		-650		-500		-400		-485		-346

Net cash flow from financing activities		-1.158		2.025		-5.590		-1.213		1.319		2.945		3.113		293

Net cash flow		-2.449		2.647		-1		160		-2.281		2.513		-168		-26

Cash and equivalents at beginning of period		-1.832		-2.217		3.130		3.705		-4.625		-5.619		-337		-303
Effect of exchange-rate on cash and equivalents		66		-285		194		-263		-135		-35		7		13

Cash and equivalents at end of period		-4.215		145		3.323		3.602		-7.041		-3.141		-498		-316

- of which Treasury bills and other eligible bills		6.898		7.432						6.898		7.432
- of which Amounts due to/from banks		-23.831		-22.869						-23.831		-22.869
- of which Cash and balances with central banks		12.718		15.582		3.323		3.602		9.892		12.296		-497		-316


¹		Including inter-company eliminations

APPENDIX 6: ADDITIONAL INFORMATION

P&L Life Insurance


In EUR million	2Q2007		2Q2006		Change			1Q2007		Change			1H2007		1H2006		Change

Gross premium income		9,979		10,453		-4.5	%		9,882		1.0	%		19,861		21,148		-6.1	%
Commission income		444		362		22.7	%		423		5.0	%		868		741		17.1	%
Direct investment income		2,618		2,444		7.1	%		2,313		13.2	%		4,929		4,650		6.0	%
Realised gains & fair value changes		548		199		175.4	%		152		260.5	%		701		415		68.9	%

Total investment & other income		3,167		2,643		19.8	%		2,465		28.5	%		5,630		5,065		11.2	%

Total underlying income		13,590		13,458		1.0	%		12,771		6.4	%		26,359		26,954		-2.2	%

Reinsurance and retrocession premiums		475		485		-2.1	%		505		-5.9	%		980		1,025		-4.4	%
Net benefits life insurance for risk company		6,565		5,656		16.1	%		6,470		1.5	%		13,035		11,685		11.6	%
Changes in life provisions for risk company		3,059		4,635		-34.0	%		3,139		-2.5	%		6,198		9,012		-31.2	%
Profit sharing and rebates		99		51		94.1	%		43		130.2	%		141		136		3.7	%
Change in deferred acquisition costs		-289		-340		15.0	%		-244		-18.4	%		-533		-696		23.4	%
Other underwriting expenditure		704		721		-2.4	%		667		5.5	%		1,371		1,461		-6.2	%

Underwriting expenditure		10,613		11,208		-5.3	%		10,580		0.3	%		21,192		22,623		-6.3	%
Operating expenses		1,007		960		4.9	%		1,021		-1.4	%		2,026		1,904		6.4	%
Other interest expenses		345		334		3.3	%		322		7.1	%		667		665		0.3	%
Other impairments				-1					1					1		-1

Total underlying expenditure		11,964		12,501		-4.3	%		11,923		0.3	%		23,885		25,191		-5.2	%

Underlying profit before tax		1,626		957		69.9	%		847		92.0	%		2,474		1,763		40.3	%

Taxation		219		129		69.8	%		146		50.0	%		366		273		34.1	%
Minority interests		11		31		-64.5	%		15		-26.7	%		26		73		-64.4	%
Underlying net profit life insurance		1,396		797		75.2	%		686		103.5	%		2,082		1,417		46.9	%

P&L Non-Life Insurance


In EUR million	2Q2007		2Q2006		Change			1Q2007		Change			1H2007		1H2006		Change

Gross premium income		1,594		1,599		-0.3	%		1,752		-9.0	%		3,347		3,429		-2.4	%
Commission income		34		36		-5.6	%		42		-19.0	%		75		73		2.7	%
Direct investment income		180		208		-13.5	%		211		-14.7	%		391		386		1.3	%
Realised gains & fair value changes		140		45		211.1	%		53		164.2	%		193		152		27.0	%

Total investment & other income		320		253		26.5	%		263		21.7	%		584		538		8.6	%

Total underlying income		1,948		1,888		3.2	%		2,057		-5.3	%		4,006		4,040		-0.8	%

Reinsurance and retrocession premiums		82		82					99		-17.2	%		182		176		3.4	%
Changes in provisions for unearned premiums		53		41		29.3	%		252		-79.0	%		304		285		6.7	%
Net claims non-life		948		827		14.6	%		912		3.9	%		1,861		1,691		10.1	%
Changes in claims provision		-29		-36		19.4	%		48					19		-112

Total claims incurred		920		791		16.3	%		960		-4.2	%		1,880		1,579		19.1	%
Profit sharing and rebates		13		8		62.5	%							13		16		-18.8	%
Change in deferred acquisition costs		-18		-15		-20.0	%		-23		21.7	%		-40		-33		-21.2	%
Other underwriting expenditure		179		243		-26.3	%		184		-2.7	%		363		517		-29.8	%

Underwriting expenditure		1,231		1,150		7.0	%		1,471		-16.3	%		2,702		2,540		6.4	%
Operating expenses		370		369		0.3	%		351		5.4	%		721		722		-0.1	%
Other interest expenses		3		11		-72.7	%		6		-50.0	%		9		21		-57.1	%
Other impairments				-1												-1

Total underlying expenditure		1,603		1,529		4.8	%		1,828		-12.3	%		3,432		3,282		4.6	%

Underlying profit before tax		345		359		-3.9	%		229		50.7	%		574		758		-24.3	%

Taxation		54		94		-42.6	%		42		28.6	%		97		178		-45.5	%
Minority interests		39		44		-11.4	%		25		56.0	%		64		80		-20.0	%

Underlying net profit non-life insurance		252		221		14.0	%		162		55.6	%		413		500		-17.4	%

Insurance Investment & Other Income


In EUR million	2Q2007		2Q2006		Change			1Q2007		Change			1H2007		1H2006		Change

Income from debt securities and loans		1,776		2,050		-13.4	%		1,707		4.0	%		3,483		4,005		-13.0	%
Dividend income		318		250		27.2	%		102		211.8	%		420		322		30.4	%
Rental income		18		47		-61.7	%		20		-10.0	%		37		95		-61.1	%
Other		685		301		127.6	%		688		-0.4	%		1,373		609		125.5	%

Direct investment income		2,796		2,648		5.6	%		2,517		11.1	%		5,313		5,031		5.6	%

Realised gains/losses & impairments on debt securities¹		-76		-94		19.1	%		11					-64		-89		28.1	%
Realised gains/losses & impairments on equity securities		802		182		340.7	%		237		238.4	%		1,040		370		181.1	%
Realised gains/losses & fair value changes private equity		97		47		106.4	%		49		98.0	%		146		116		25.9	%
Change in fair value real estate investments		94		92		2.2	%		115		-18.3	%		209		196		6.6	%
Changes in fair value non-trading derivatives²		-229		17					-208		-10.1	%		-437		-25

Realised gains/losses & fair value changes on investments		688		244		182.0	%		205		235.6	%		894		568		57.4	%

Total underlying investment & other income		3,484		2,892		20.5	%		2,722		28.0	%		6,207		5,599		10.9	%


¹		Approximately 50% of this amount is transferred to the provision for deferred profit sharing (shadow accounting). Realised gains also include recoveries of previous impairments

²		Largely offset in underwriting expenditure

Banking Commission: Investment & Other Income


In EUR million	2Q2007		2Q2006		Change			1Q2007		Change			1H2007		1H2006		Change

Funds transfer		143		138		3.6	%		150		-4.7	%		292		293		-0.3	%
Securities business		193		162		19.1	%		190		1.6	%		383		372		3.0	%
Insurance broking		45		41		9.8	%		52		-13.5	%		97		83		16.9	%
Management fees		233		181		28.7	%		190		22.6	%		422		356		18.5	%
Brokerage and advisory fees		39		50		-22.0	%		70		-44.3	%		109		102		6.9	%
Other		89		77		15.6	%		93		-4.3	%		182		133		36.8	%

Total underlying commission income		741		649		14.2	%		744		-0.4	%		1,485		1,339		10.9	%

Rental income		55		27		103.7	%		66		-16.7	%		121		54		124.1	%
Other investment income		40		66		-39.4	%		40		0.0	%		80		84		-4.8	%

Direct income from investments		95		93		2.2	%		106		-10.4	%		202		138		46.4	%

Realised gains/losses on bonds		59		17		247.1	%		74		-20.3	%		133		59		125.4	%
Realised gains/losses on equities		85		26		226.9	%		114		-25.4	%		199		44		352.3	%
Change in fair value real estate		26		13		100.0	%		26		0.0	%		52		21		147.6	%

Realised gains/losses & fair value changes		170		56		203.6	%		213		-20.2	%		384		124		209.7	%

Total underlying investment income		265		149		77.9	%		320		-17.2	%		585		262		123.3	%

Valuation results non-trading derivatives		-69		9		-866.7	%		-22					-91		60		-251.7	%
Net trading income		150		405		-63.0	%		349		-57.0	%		499		652		-23.5	%
Other		290		112		158.9	%		181		60.2	%		471		255		84.7	%

Total underlying other income		370		526		-29.7	%		508		-27.2	%		879		967		-9.1	%

Recurring Operating Expenses


In EUR million	2Q2007		2Q2006		Change			1Q2007		Change			1H2007		1H2006		Change

Underlying operating expenses Insurance		1,376		1,329		3.5	%		1,370		0.4	%		2,746		2,626		4.6	%
Underlying operating expenses Banking		2,318		2,216		4.6	%		2,373		-2.3	%		4,691		4,393		6.8	%

Underlying operating expenses ING Group		3,694		3,545		4.2	%		3,743		-1.3	%		7,437		7,019		6.0	%

OPS/IT transformation Reorganisations, NN, OPS&IT		6		6					10					16		6
Compliance costs		37		27					42					79		34
Reclassification of payment expenses				-15												-15
Other		8		49					17					25		36

Total non-recurring items		51		67					69					120		61

FX impact		-2		45					2					-2		144

Recurring expenses Insurance		1,374		1,264		8.7	%		1,350		1.8	%		2,724		2,469		10.3	%
Recurring expenses Banking		2,272		2,168		4.8	%		2,323		-2.2	%		4,595		4,344		5.8	%

Recurring operating expenses ING Group		3,646		3,432		6.2	%		3,673		-0.7	%		7,319		6,813		7.4	%

Expenses Central Europe		74		68					72					146		132
Expenses Americas (Wealth Management)		194		179					181					375		354
Expenses Asia/Pacific		255		211					256					511		410
Expenses Corporate line Insurance		13							13					26
Expenses ING Real Estate		121		109					118					239		208
Expenses Wholesale (Leasing and Factoring)		72		68					74					146		135
Expenses ING Direct		386		367					383					769		756
Expenses Retail (outside Benelux)		146		124					140					286		248
Expenses Corporate line Banking		13							13					26

Total expenses at growth businesses		1,274		1,126		13.1	%		1,250		1.9	%		2,524		2,243		12.5	%

Insurance Europe		383		372		3.0	%		388		-1.3	%		771		735		4.9	%
Insurance Americas		441		420		5.0	%		425		3.8	%		866		811		6.8	%
Corporate line Insurance		14		14					15		-6.7	%		29		27		7.4	%
Wholesale Banking		663		635		4.4	%		678		-2.2	%		1,341		1,251		7.2	%
Retail Banking		844		838		0.7	%		884		-4.5	%		1,728		1,680		2.9	%
Corporate line Banking		27		27					33		-18.2	%		60		66		-9.1	%

Recurring expenses ING Group excluding growth businesses		2,372		2,306		2.9	%		2,423		-2.1	%		4,795		4,570		4.9	%

APPENDIX 7: LIFE NEW BUSINESS PRODUCTION

Life Insurance Value of New business Statistics: Second Quarter


	New Production 2Q2007											New Production 2Q2006
	Value of		Present					Investment		Acquisition		Value		Present					Investment		Acquisition
	New		Value of		VNB/PV			in New		Expense		of New		Value of		VNB/PV			in New		Expense
In EUR million	Business		Premiums		Premiums			Business		Overruns		Business		Premiums		Premiums			Business		Overruns

Netherlands		17		575		3.0	%		31		0		26		682		3.8	%		35		-1
Belgium (& Luxembourg)		4		422		0.9	%		10		1		3		252		1.2	%		10		1
Rest of Europe		34		787		4.3	%		41		2		26		680		3.8	%		31		-2

Insurance Europe		55		1,784		3.1	%		82		3		55		1,614		3.4	%		76		-2

US		47		5,255		0.9	%		217		5		56		4,930		1.1	%		256		16
Latin America		6		145		4.1	%		25		4		9		137		6.6	%		32		4

Insurance Americas		53		5,400		1.0	%		242		9		65		5,067		1.3	%		288		20

Australia & NZ		16		1,976		0.8	%		22		0		8		463		1.7	%		16		0
Japan		18		1,355		1.3	%		50		2		31		1,497		2.1	%		59		4
South Korea		29		918		3.2	%		21		4		28		926		3.0	%		6		3
Taiwan		37		615		6.0	%		28		-2		41		288		14.2	%		20		-5
Rest of Asia		-1		211		-0.5	%		22		9		1		182		0.6	%		17		6

Insurance Asia/Pacific		99		5,075		2.0	%		143		13		109		3,356		3.2	%		118		8

Total		207		12,259		1.7	%		467		25		229		10,037		2.3	%		482		26

Life New Business Production from Developing Markets: Second Quarter


	New Production 2Q2007											New Production 2Q2006
	Annual		Single		New sales								Annual		Single		New sales
In EUR million	Premium		Premium		(APE)		VNB		IRR¹			Premium		Premium		(APE)		VNB		IRR¹

Insurance Europe		58		100		68		27		20.1	%		49		117		61		17		16.7	%
Insurance Americas		73		59		79		6		11.5	%		78		33		81		9		12.7	%
Insurance Asia/Pacific		310		226		333		65		16.8	%		283		149		298		71		22.1	%

Total		441		385		480		98		16.6	%		410		299		440		97		18.7	%


¹		Year to date

The ING Group Condensed consolidated interim accounts for the period ended 30 June 2007 (in accordance with IAS 34 “Interim Financial reporting” and including the review report from Ernst & Young) are included in the ING Group Statistical Supplement, which is available on www.ing.com.

In preparing the financial information in this press release, the same accounting principles are applied as in the 2Q 2007 interim accounts. All figures in this press release are unaudited. Small differences are possible in the tables due to rounding.

Certain of the statements contained in this release 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 developing 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, and (x) changes in the policies of governments and/or regulatory authorities. ING assumes no obligation to update any forward-looking information contained in this document.

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SIGNATURE

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


		ING Groep N.V.
		(Registrant)

		By:		/s/ H. van Barneveld

				H. van Barneveld
				General Manager Corporate Control & Finance

		By:		/s/ W.A. Brouwer

				W.A. Brouwer
				Assistant General Counsel

Dated: August 8, 2007

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