Willem HanskampING Groep NVINGCOMMENTAug 31, 2009

With recently reported earnings showing income up 32% over the year, we reiterate ING as a TOP PICK.  It trades at 8x earnings, under book value and supports a ROE of 29%.  Its dividend is backed by a payout ratio under 35% of cash flow.  It added over 11 billion euros in new deposits and their customer base continue to grow.  We continue to recommend a stop at $12.50, with upside to $19.00 -- potential of 38%.  Yield 4.3%

We reiterate ING as a TOP PICK.  Their share buyback program has achieved almost 90% of its target.  It trades at 8x earnings, under book value and supports a ROE of 14% (good for a bank).  It pays a nice dividend, backed by a payout ratio under 35% of cash flow.  It has been prudently using some cash reserves to aggressively retire debt and buy back shares.  We continue to recommend a stop at $12.50, looking to achieve $19 -- upside potential of 35%.  Yield 5.3%

This Netherlands based global bank trades below book value and supports a 25% ROE.  Higher interest rates are helping its bottom line, which has allowed the company to initiate a share buyback program, while it has also retired debt aggressively.  It is paying a good yield, backed by a payout ratio under 50% of cash flow.  We recommend placing a stop-loss at $12.50, looking to achieve $18.00 -- upside potential of 20%.  Yield 4.0%