Bancherul - BANCI / ENGLISH / ING posts full year underlying net loss of EUR 171 million

4Q underlying net loss of EUR 3,101 million driven by market volatility and declining asset prices

Banking underlying net loss of EUR 1,065 million in 4Q; full-year remained profitable at EUR 722 million

Insurance 4Q underlying net loss of EUR 2,036 million from investment losses and DAC unlocking

Divestments and special items totalled EUR -611 million, bringing the quarterly net loss to EUR -3,711 million

Net loss per share of EUR 1.82, compared to a net profit per share of EUR 1.18 in the fourth quarter of 2007

Commercial performance solid during 2008, despite headwinds in the fourth quarter

Full-year 2008 net production of client balances of EUR 93 billion, excluding the impact of currencies

Client savings and deposits contributed EUR 21 billion to the net production, excluding currency effects

VNB down 8.1% for the full-year 2008, as lower results in the second half of 2008 offset solid first half results

Measures being taken to strengthen capital in challenging markets
EUR 10 billion of core tier-1 securities issued to Dutch State in 4Q

Bank year-end tier-1 ratio of 9.3%, core tier-1 ratio of 7.3%

Group debt/equity ratio of 13.8% and Insurance debt/equity ratio of 8.5% at year-end

Sale of ING Life Taiwan releases EUR 5.7 billion in economic capital

Sale of stake in ING Canada to reduce pro-forma 4Q Insurance debt/equity ratio by more than 4% points

Illiquid Assets Back-up Facility to reduce pro-forma 4Q RWAs by EUR 13 billion, raise 4Q tier-1 ratio to 9.7%

Chairman's Statement:

"The financial crisis has had an unprecedented impact on our industry and the magnitude of the crisis has left few companies untouched. For ING, 2008 was marked by a sharp deterioration in financial results and the necessity to reinforce our capital base with the support of the Dutch State," said Jan Hommen, Chairman of the Supervisory Board and CEO-designate. "ING had started the year focused on growth, and we were overtaken by the pace and severity of the downturn in the fourth quarter that eroded our earnings and our equity."

"We have subsequently taken measures to strengthen the company. We sought and received an Illiquid Assets Back-up Facility from the Dutch State on 80% of our portfolio of Alt-A mortgage-backed securities. The sale of the Taiwan life business substantially reduced our economic capital requirements, and the sale of the Canadian non-life business will further reduce leverage in the insurance business. As we enter what may be another tumultuous year our key capital ratios are within the new market norms, but we will remain vigilant in managing our capital and risks in the current environment."

"Our top priorities this year are to further reduce asset exposures and rationalise the cost base. We aim to shrink the balance sheet of ING Bank by 10% compared with the end of September, while continuing to lend to key customers in our home markets. And we are reallocating investments towards less risky assets. We are cutting our expenses this year by EUR 1 billion to align our cost base to the current operating environment."

"The crisis has damaged confidence in the financial industry. Our customers have continued to trust ING with their savings, and in this environment we realise that we must work to earn and retain that trust every day. Now more than ever it is necessary to go back to basics and do everything we can to strengthen our company and our commitment to our customers during these challenging times."

"Over the coming months, we will conduct a review of our portfolio of businesses to accelerate ING's transformation in light of the changes shaping our industry. Our basic strategy, based on retail savings and investments, is a solid foundation for the future, but we must reduce the complexity of the Group by focusing on fewer businesses and markets. We intend to emerge with a coherent portfolio of strong businesses with leading market positions. In order to truly drive operational excellence, we must simplify governance, reinforce accountability, and make the organisation more responsive to our customers' needs."