Dutch financial services group ING beat analysts' forecasts today with a 30 per cent rise in quarterly net profit on strength in its insurance business in Asia and direct retail banking.
Insurer ING made a second-quarter net profit of €2 billion, up from €1.55 billion a year earlier.
ING shares were down 1.1 per cent at €32.07 this morning, in line with a weaker DJ Stoxx European Insurance index.
ING also announced the sale of an 83.7 per cent stake in Deutsche Hypothekenbank, a German mortgage bank, and said it would book an €80 million loss on the transaction in the second half.
ING said the sale of the stake, which it bought in 1999 as part of the purchase of BHF-Bank, would reduce its risk-weighted assets by €9.8 billion and free up more than €600 million, improving its capital ratio.
The insurer has managed to squeeze profits out of its insurance businesses, despite falling prices, a weak dollar and high costs, in part because of a global footprint that includes significant operations in Asia.
ING Direct, the bank's direct Internet banking service, showed robust growth, with pretax profit rising 54 per cent.