ING Commercial Banking Strong performance through the financial crisis

ING Benelux Conference

William Connelly CEO Commercial Banking

Paris – 27 May 2011 www.ing.com ING Bank is making good progress on Ambition 2013, supported by strong results from Commercial Banking

• ING Bank is a liability driven Bank with a European footprint • Bank is making good progress on Ambition 2013 • Bank core Tier 1 ratio increased to 10.0% as a result of strong capital generation • Commercial Banking performed well during the crisis and is well positioned for the future • One bank, one balance sheet

ING Benelux Conference - 27 May 2011 2 ING Bank has a European footprint and strong growth potential

ING Direct active in the ING Retail is #2 bank in United States and Canada Netherlands and #4 in Belgium, also active in Central Eastern Europe ING Retail active in China, India and Thailand

ING Commercial Banking has an international network in 40 countries With key positions in ING Direct active in Structured Finance and Austria, France, Germany, Financial Markets Spain, Italy and the UK ING Direct in Australia

ING Benelux Conference - 27 May 2011 3 ING Bank is a liability driven Bank

Large deposit base (31 Dec 2010, EUR bln) Funds Entrusted (31 Mar 2011)

HSBC 916 12% RBS 707 5% Santander 581 35% BNP Paribas 553 Deutsche Bank 534 ING Bank 519 Credit Agricole 501 Lloyds 457 48% Intesa Sanpaolo 427 Barclays 401 Unicredit 394 Retail Banking Benelux Societe Generale 337 Rabobank 299 Retail Banking Direct BBVA 276 Retail Banking CEE & Asia UBS 266 Commercial Banking Commerzbank 263 Credit Suisse 230 • ING’s deposit base is among Standard 229 KBC 198 the largest in Europe Nordea 176 • Almost 50% of total funds Dexia 127 entrusted is from ING Direct Erste Bank 117 Source: Latest available company financials and results presentation

ING Benelux Conference - 27 May 2011 4 Bank is making good progress on Ambition 2013

ING Benelux Conference - 27 May 2011 5 Bank is making good progress on Ambition 2013

Underlying income (EUR million) Underlying cost/income ratio (%) +9.6% +7.9% 6,000 80% Target 68.7% 4,000 CAGR 60% 56.0% 2,000 2010-13: 55.0% 5% Target: 50% 0 40% 2009 2010 1Q11 FY09 FY10 1Q11

Underlying risk costs in bps of RoE (YTD, %) average RWA 25% 20.3% 100 20% 17.6% 13.1% 13.7% Target*: 75 15% 13-15% 10% 50 Normalised: 5.0%4.3% 85 40-45 bps 5% 25 53 42 0% 0 FY09 FY10 1Q11 FY09 FY10 1Q11 Equity based on CT1 ratio of 7.5% IFRS-EU equity * Target assumes average equity based on core Tier 1 ratio of 7.5%.

ING Benelux Conference - 27 May 2011 6 ING Bank continued its strong growth momentum in 1Q11

Bank results (in EUR mln) Addition to loan loss Underlying result Gross result* + provisions = before tax

2,072 2,027 1,607 1,695 1,779 1,868 1,894 1,494 1,479 1,282

-332 -374 -415 -465 -497 1Q10 2Q10 3Q10 4Q10 1Q11 1Q10 2Q10 3Q10 4Q10 1Q11 1Q10 2Q10 3Q10 4Q10 1Q11

• Gross result increased 13.9% from 1Q10, driven by strong income growth at ING Direct and Commercial Banking • Risk costs continued to trend downward towards more normalised levels

* Gross result = underlying income - underlying expenses

ING Benelux Conference - 27 May 2011 7 Net interest margin remained healthy

Interest margin by quarter* (in bps) Interest result (in EUR bln)

147 933 955 950 933 928 142 141 144 136

3.5 130 3.4 3.4 127 126 3.3 3.3 118 123 1Q10 2Q10 3Q10 4Q10 1Q11 1Q10 2Q10 3Q10 4Q10 1Q11 ING Bank ING Direct Interest result B/S total (end of quarter)

Interest margin development (in bps) Interest result supported by higher margins and growth in client balances 147 -1 -2 • Interest result rose 4.1% compared with 144 1Q10 driven by growth in client balances and higher interest margins in most areas • Compared with 4Q10, margins for 4Q10 Retail Retail Direct 1Q11 mortgages and savings in the Benelux are Benelux & International somewhat under pressure * Interest margin is defined as the Bank’s total interest result divided by average total Bank assets

ING Benelux Conference - 27 May 2011 8 Risk costs continued to trend downward towards more normalised levels

Additions to loan loss provisions* • Net addition to loan (bps average RWA) trending down loss provisions of EUR 332 mln or 42 122 114 bps of average RWA 107 100 in 1Q11 • For the coming 100 77 81 80 69 quarters, risk costs 90 63 78 82 as a percentage of 60 RWA are expected 55 51 44 to remain below the 42 average level of 2010 • Through the cycle -16 -17 -19 we expect risk costs -22 -22 -26 -33 -29 -28 of 40-45 bps of 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 average RWA under Basel II Gross additions Releases Net additions

* Not adjusted for divestments and special items

ING Benelux Conference - 27 May 2011 9 Retail Banking results increased sharply versus 1Q10, driven by higher income at ING Direct

Underlying result before tax (in EUR mln)

Retail Total Retail Netherlands ING Direct 944 1,008 977 867 806

359 356 377 377 406 412 363 372 304 269

1Q10 2Q10 3Q10 4Q10 1Q11 1Q10 2Q10 3Q10 4Q10 1Q11 1Q10 2Q10 3Q10 4Q10 1Q11

Retail Belgium Retail Central Europe Retail Asia 174 153 140 140 91 45 44 56 27 39 36 19 15 10 19

1Q10 2Q10 3Q10 4Q10 1Q11 1Q10 2Q10 3Q10 4Q10 1Q11 1Q10 2Q10 3Q10 4Q10 1Q11

ING Benelux Conference - 27 May 2011 10 Very strong performance Commercial Banking; Real Estate continued to be profitable

Underlying pre-tax profit Commercial Underlying pre-tax profit Real Estate Banking excl. Real Estate (EUR million) (EUR million)

80 70

383 376 223 55 264 -9 -25 479 371 390 307 304 -109 1Q10 2Q10 3Q10 4Q10 1Q11 1Q10 2Q10 3Q10 4Q10 1Q11 Financial Markets GL&PCM, SF, L&F and other* • Commercial Banking (excluding Real Estate) posted record results in 1Q11, driven by a strong performance in Structured Finance and Leasing, as well as higher customer activity in Financial Markets • ING Real Estate had another quarter with a positive underlying result, reflecting the further improvement of real estate markets

* General Lending & Payments and Cash Management (GL&PCM), Structured Finance (SF), Leasing & Factoring (L&F) and other

ING Benelux Conference - 27 May 2011 11 Strong capital generation

ING Benelux Conference - 27 May 2011 12 Bank core Tier 1 ratio increased to 10.0% as a result of strong capital generation

ING Bank Tier 1 ratio Core Tier 1 capital surplus generation* (in EUR bln) 12.2% 12.6% 10.9% 11.2% 11.6% 0.5 1.0 0.1 1.3 1.1 1.1 1.0 1.2 -0.1 -0.1 9.6% 10.0% 8.4% 8.6% 9.0% 1Q10 2Q10 3Q10 4Q10 1Q11 Change of required capital (RWA movement at constant FX) 31/03/10 30/06/10 30/09/10 31/12/10 31/03/11 Net profit before minority interest * Core Tier-1 capital generated is defined as net result before Core Tier 1 Tier 1 minority interest minus 7.5% * RWA growth at constant FX • Core Tier 1 ratio increased to 10.0%, • Bank generated EUR 1.0 bln of core from 8.4% at 31 March 2010 Tier 1 capital at constant FX in 1Q11 • Strong profit contribution was partly offset by a rise in RWA at constant FX

ING Benelux Conference - 27 May 2011 13 Second tranche of state aid has been repaid out of retained earnings from the Bank

Core Tier I securities from Dutch State (EUR bln)

10.0 0.4 0.6 2.0 5.0 5.0 10.0 1.0 7.0 1.5* 2.0 3.0 0.0 October Paid May Paid Paid in May Total paid in Intention to 2008 2009 December 2011 May 2011 pay by May 2009 2012 Core Tier I securities Premium & Coupon payments • On13 May 2011, ING repurchased EUR 2 bln of core Tier 1 securities from the Dutch State • The total payment was EUR 3 bln and included a 50% repurchase premium • The payment to the State reduced the Core Tier 1 ratio by approximately 95 basis points • Based on ING’s capital position on 31 March 2011 (core Tier I ratio of 10.0%), the repurchase resulted in a core Tier 1 ratio of 9.1% on a pro-forma basis • Provided that the strong capital generation continues, ultimately by May 2012, ING intends to repurchase the remaining EUR 3 bln core Tier 1 securities from own resources, on terms that are acceptable to all stakeholders * Indicative, based on 50% premium

ING Benelux Conference - 27 May 2011 14 ING Commercial Banking

ING Benelux Conference - 27 May 2011 15 ING Commercial Banking performed well during the crisis and is well positioned for the future

ING Commercial Banking excluding Real Estate: • Performed well during the crisis • Good risk management • Strict cost discipline • RWA and lending asset growth will be managed prudently • Continues to focus on areas of strength and is well positioned for the future • Leading position in the Benelux and CEE • Leading position in specialised finance activities such as Structured Finance • Leading positions in FM in Benelux and Emerging Markets • Is vital for the success of the One Bank strategy

ING Benelux Conference - 27 May 2011 16 Commercial Banking performed well during the crisis

ING Benelux Conference - 27 May 2011 17 Commercial Banking continued to perform well during the crisis

Underlying income* (EUR mln) Underlying income* 2010

4% 4,957 4,949 9% 35% Financial Markets 3,566 3,660 Structured Finance GLP & PCM 23% Leasing & Factoring Other

2007 2008 2009 2010 29%

Underlying result before tax* (EUR mln) ROE*,** (%)

2,379 2,107 25.3% 18.8% 1,395 15.3% 910 6.0%

2007 2008 2009 2010 2008 2009 2010 1Q11

* Commercial Banking excluding Real Estate ** Return on Equity = Underlying after-tax return divided by equity based on average 7.5% core Tier 1 ratio (annualised)

ING Benelux Conference - 27 May 2011 18 Financial Markets remained profitable during the crisis despite decrease in Value at Risk

Underlying result before tax (EUR mln) Income by product (EUR mln)

1,289 356 384 919 92 128 1,567 1,316 300 355 891 936

2007 2008 2009 2010 2007 2008 2009 2010 Clients & Products Other FM*

Value at Risk (average) • Even in difficult periods (2007, 2008), FM remained profitable • Clients & Products accounts for approximately 52.7 80% of FM income 39.4 33.6 • ING CB had already a relatively low Value at 22.3 18.9 Risk (VaR) and the VaR has been further reduced since the beginning of 2009 • ING has wound-down the proprietary trading book in the US, driven by the new regulatory 2007 2008 2009 2010 1Q11 environment * Other FM income includes ALCO, Strategic Trading and Other income

ING Benelux Conference - 27 May 2011 19 Risk costs remained under control, benefiting from a well diversified portfolio

Risk costs* Risk costs by product* (EUR mln)

971 135 289 516 395 48 19 190 100 64 545 164 33 25 277 30 133 -143 -183 2 2007 2008 2009 2010 1Q11 2007 2008 2009 2010 Risk costs (EUR mln) Risk costs (% RWA**) Structured Finance GL &PCM Leasing & Factoring Lending portfolio by industry* (31 Dec 10)

Natural Resources Lending portfolio by region* (31 Dec 10) 3% Transportation & Logistics 3% 4% 3% 31% Utilities 5% Food, Beverages & Personal Care 12% NL General Industries 27% Belgium & Luxembourg 6% 9% Telecom, Media & Technology CEE 7% Services Cont. West Europe 7% Builders & Contractors 14% 15% 8% Retail 8% Asia 9% Chemicals, Health & Pharmaceuticals Americas Automotive 19% 10% Other UK * Commercial Banking excluding ING Real Estate ** Risk costs in bps of average RWA based on Basel II as of 2008 (in prior years RWA was still Based on Basel I)

ING Benelux Conference - 27 May 2011 20 Lending businesses benefited from higher margins

Structured Finance volumes (EUR bln) General Lending volumes (EUR bln) and net interest result (EUR bln) and net interest result (EUR bln)

1.1 0.9 0.7 0.5 0.6 0.6

50 45 43 46 35 35 2008 2009 2010 2008 2009 2010

Leasing & Factoring volumes (EUR bln) • Structured Finance and General and net interest result (EUR bln) Lending have benefited from repricing of the loan portfolio • Decline in lending volumes General 0.20.2 0.2 Lending partly offset by higher 17 16 17 lending volumes Structured Finance 2008 2009 2010

ING Benelux Conference - 27 May 2011 21 Higher income and strict cost discipline resulted in an operating efficiency which is among the best in the industry

Cost / Income ratio*,** Cost/Income ratio by product* (2010)

65% 61% 48.8% 46.6% 46.0%

44% 25.7% 41% 38%

2007 2008 2009 2010 1Q11 L&F GL&PCM FM SF

Cost / Income ratio CIB activities*** (2010) • Headcount has been reduced since 2008 82% 79% 69% • Limited and targeted new hires to re- 61% 60% 54% balance capabilities – centrally 44% reviewed and signed off 27% • Selective investments in Financial markets and PCM to improve capabilities UBS CS DB Bar SG BNPP ING San * ING Commercial Banking excluding Real Estate ** First quarter C/I ratio supported by traditionally strong FM results *** CIB activities refers to Investment Banking (UBS, CS), Corporate & Investment Banking (DB, Barclays, SocGen, BNPP), Commercial Banking (ING) and Global Wholesale Banking (Santander)

ING Benelux Conference - 27 May 2011 22 Commercial Banking RWA and lending asset growth will continue to be managed prudently

RWA (EUR bln) RoE* 2010 by product (%)

155.9 29% 24% 140.0 14% 11% 127.3 124.5 -18%

FM SF L&F GL & Other 2008 2009 2010 1Q11 PCM

RWA per product (EUR bln) • Risk-weighted assets and lending assets declined significantly in 2008- 57 2010, particularly in General Lending. 50 45 43 41 4141 4140 • Going forward, Commercial Banking 323131 will continue to allocate capital to core 11 9 markets such as the Benelux and CEE 8 8 4 4 5 5 and high return global businesses such FM SF GL&PCM L&F Other as Structured Finance and Financial 2008 2009 2010 1Q11 Markets * Return on Equity = Underlying after-tax return divided by equity based on average 7.5% core Tier 1 ratio (annualised)

ING Benelux Conference - 27 May 2011 23 Commercial Banking continues to focus on areas of strength

ING Benelux Conference - 27 May 2011 24 ING CB will continue to focus on coherent, strong businesses and is well positioned for the future

Income Commercial Banking Going forward, we will: (excl. ING Real Estate) of EUR 4,949 mln in 2010 Focus on growing key markets and product positions • Maintain leadership positions in core markets 12% • Benelux & CEE 27% • Maintain leadership in core products 13% • Top 10 player in Structured Finance globally 10% • Increase focus on cross selling 12% • Focus on FM and Transaction Services

12% 14% • Invest in FM Emerging markets capacity • Focus on CEE & Asia NL • Increase focus on financial institutions as clients Belgium/Luxembourg CEE • Continue to optimise our cost structure Cont. Western Europe Asia Americas UK

ING Benelux Conference - 27 May 2011 25 Clearly defined focus: leading position for Commercial Banking in the Benelux

Income Commercial Banking No.1 Commercial Bank in the (excl. RE) 2010 Benelux:

UK • Best investment Bank in NL 2011 12% NL (Global Finance magazine) – second 27% year running Americas • No. 1 bookrunner for syndicated loans 13% in the Benelux by volume • No 2 Mandated Lead Arranger (MLA) for syndicated loans in the Benelux by Asia volume 10% • No 1 M&A advisor in Benelux by value Belgium/ Cont. • No 5 bookrunner in Benelux corporate C&EE Luxembourg Western bonds by volume 14% 12% Europe • Excellence in core products such as 12% FM and Structured Finance Benelux home markets account for • Ample growth opportunities by rising 39% of income and 38% of RWA share of wallet and cross-sell

ING Benelux Conference - 27 May 2011 26 Clearly defined focus: leading position for Commercial Banking in CEE

Income Commercial Banking Top 5 Commercial Bank in CEE: (excl. RE) 2010 • No.1 Mandated Lead Arranger (MLA) UK for syndicated loans in CEE by volume NL 12% 27% • No 2 bookrunner for syndicated loans in Russia by volume Americas 13% • No. 1 ECM bookrunner in Poland by volume, no 2 by volume • Best SF deal in CEE, best syndicated Asia loan in CEE (EMEA magazine) 10% Belgium/ • Excellence in core products such as Luxembourg FM, Structured Finance Cont. 12% Western • Ample growth opportunities by Europe increasing share of wallet and cross- CEE sell 12% 14%

ING Benelux Conference - 27 May 2011 27 Clearly defined focus: leading provider of specialised lending products globally

Income Structured Finance of EUR Top 10 player in Structured EUR 1,440 mln in 2010 Finance globally:

2% • No. 10 global Structured Finance bank 8% for 2010, ranking number 10 for the 32% year in the category “mandated lead 19% arranger (MLA) by number of deals”. • ING has a significant presence in Structured Finance markets with teams covering Natural Resources, Power, Infrastructure, TMT (Telecom & Media 39% & Technology), Structured Acquisition Finance, and Trade & Commodity Finance Energy, Transport & Infrastucture • Example of leading position: project Specialised Financing finance for offshore oil and gas units International Trade & Export Finance Trade Finance Services Other

ING Benelux Conference - 27 May 2011 28 One balance sheet

ING Benelux Conference - 27 May 2011 29 Basel III is a catalyst to manage the balance sheet more efficiently

Total assets (EUR bln) Total liabilities (EUR bln)

100% 100%

= 0% 0% FY10 Directional FY10 Directional Mortgages Other loans Client deposits Debt securities Financial assets at FV Investments Financial liabilities at FV Interbank Cash and other Other

Directional balance sheet • Investment portfolio will be shifted more to government bonds to meet liquidity requirements • Balance sheet integration started: taking own assets to match ING Direct deposits • Loan portfolio will grow, but impetus to put less emphasis on mortgages due to low RoA

ING Benelux Conference - 27 May 2011 30 Loan book will be managed to optimise ROE under competing Basel III requirements

Asset class DGA Risk-weighting RoE RoA

Mortgages Consumer finance SME loans Mid-corporate loans Corporate loans Structured finance Real estate finance Investments- non-government Investments- government Trading assets

Basel III brings multiple constraints but the advantage is that a bank like ING has multiple products to allow the right mix that optimises ROE • Mortgages provide attractive RoE, but RoA can be constraint if leverage ratio begins to bind • SME, MidCorp and Corporate Loans are preferred due to deposit gathering potential for cross-sell • Structured Finance provides an attractive RoA but limited deposit gathering ability

ING Benelux Conference - 27 May 2011 31 Multiple waves of balance sheet integration

ING Bank’s 1st wave: 4th wave: funding internal 2nd wave: 3rd wave: domestic position securitisations mortgages CB assets banks

• Funding gap in • Units with • Transfer • Transfer • In selected the Netherlands excess funding own-originated selected ING Direct can be reduced invest in mortgages Commercial countries, through more internally directly to Banking assets merge ING efficient ringfenced and funding-rich to funding rich and CB Balance Sheet packaged units units activities management mortgages into one • ING Belgium legal entity and ING Direct are funding rich

• By better matching the own originated assets with liabilities, ING can limit the investment portfolio • Balance sheet integration progressing in close cooperation with local regulators • Internal transactions delivered EUR 6 bln balance sheet integration until the end of 2010 • Pipeline of internal transactions expected to deliver approximately EUR 20 bln integration in 2011

ING Benelux Conference - 27 May 2011 32 Wrap up

ING Benelux Conference - 27 May 2011 33 Wrap up

• ING Bank is a liability driven Bank with a European footprint • Bank is making good progress on Ambition 2013 • Bank core Tier 1 ratio increased to 10.0% as a result of strong capital generation • Commercial Banking performed well during the crisis and is well positioned for the future • One bank, one balance sheet

ING Benelux Conference - 27 May 2011 34 Disclaimer

ING Group’s Annual Accounts are prepared in accordance with International Financial Reporting Standards as adopted by the European Union (‘IFRS-EU’). In preparing the financial information in this document, the same accounting principles are applied as in the 1Q2011 Interim Accounts. All figures in this document are unaudited. Small differences are possible in the tables due to rounding. Certain of the statements contained herein are not historical facts, including, without limitation, certain statements made of future expectations and other forward-looking statements that are based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Actual results, performance or events may differ materially from those in such statements due to, without limitation: (1) changes in general economic conditions, in particular economic conditions in ING’s core markets, (2) changes in performance of financial markets, including developing markets, (3) the implementation of ING’s restructuring plan to separate banking and insurance operations, (4) changes in the availability of, and costs associated with, sources of liquidity such as interbank funding, as well as conditions in the credit markets generally, including changes in borrower and counterparty creditworthiness, (5) the frequency and severity of insured loss events, (6) changes affecting mortality and morbidity levels and trends, (7) changes affecting persistency levels, (8) changes affecting interest rate levels, (9) changes affecting currency exchange rates, (10) changes in general competitive factors, (11) changes in laws and regulations, (12) changes in the policies of governments and/or regulatory authorities, (13) conclusions with regard to purchase accounting assumptions and methodologies, (14) changes in ownership that could affect the future availability to us of net operating loss, net capital and built-in loss carry forwards, and (15) ING’s ability to achieve projected operational synergies. ING assumes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information or for any other reason. www.ing.com

ING Benelux Conference - 27 May 2011 35