Dutch financial services group ING Groep NV beat analysts' forecasts on August 10 with a 30 percent rise in quarterly net profit on strength in its insurance business in Asia and direct retail banking.
ING, one of the top five insurers in Europe, made a second-quarter net profit of 2 billion euros ($2.6 billion), up from 1.55 billion a year earlier. Analysts had expected a profit of 1.74 billion euros, according to the median of a Reuters poll of 11 analysts.
ING's banking profit rose 32 percent to 1.36 billion euros, and insurance profit was 1.32 billion euros, up 52 percent.
"Very solid results, of which, at first glance, the quality is sound," Ton Gietman, analyst at Petercam, wrote in a note, adding he maintained his "buy" rating on the stock and expected to raise his estimates.
ING also announced the sale of an 83.7 percent stake in Deutsche Hypothekenbank, a German mortgage bank, and said it would book an 80 million euro 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 euros, and free up more than 600 million euros, improving its capital ratio.
ING trades at 10 times projected 2006 earnings, the same as Dutch insurer Aegon NV. ING shares are down from a peak of 33.83 euros in May but up 9 percent so far this year.
ING said it would pay an interim dividend of 0.59 euro per share, up from 0.54 euro a year earlier.
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