ING Q2 Profit Climbs 19%

(RTTNews) - Dutch financial services company ING Group NV (ING) Wednesday said profit for the second quarter increased over 19 percent from last year, driven primarily by ING Bank.

Net result climbed to 1.067 billion euros ($1.43 billion) from 895 million euros last year. Prior-year results have been restated.

The latest results included special items of 135 million euros, consisting mainly of the second payment of 101 million euros related to the nationalization of SNS and 16 million euros for restructuring programs in Retail Netherlands.

Underlying net result was 1.181 billion euros, while it totaled 901 million euros last year.

Total underlying income was 6.693 billion euros, compared with 6.286 billion euros last year.

Gross premium income declined to 1.977 billion euros from 2.015 billion euros, and Commission income was 748 million euros, as against 731 million euros last year.

Total investment and other income increased to 1.00 billion euros from 561 million euros last year.

Underlying result before tax for the group jumped 30.6 percent to 1.620 billion euros. For ING Bank, this climbed 11.4 percent to 1.278 billion euros, reflecting solid income generation and a further decline in risks costs.

ING Bank's interest margin was 1.46 percent, up four basis points from the second quarter of 2013.

On July 2, ING sold 77 million existing ordinary shares in the initial public offering of NN Group, an insurance and investment management company, at 20 euros per share, raising 2.2 billion euros in gross proceeds. ING's ownership in NN has now declined to 68.1 percent from from 100 percent.

NN Group's underlying result before tax was 337 million euros, compared with 101 million euros last year.

Citing the firm's priority to repay the Dutch State, ING said an interim dividend on common shares will not be paid in 2014.

The company's CEO Ralph Hamers said, "We are moving forward as a stronger, simpler and more sustainable company. I am confident that we are well placed to achieve the strategic priorities of ING Bank while continuing to serve our customers and the communities in which we operate to the best of our ability."

ING reportedly said today that it would consider early repayment of the State aid received in 2008, depending on the results of a European Central Bank review of the region's biggest banks.

The stock closed up 0.4 percent on Tuesday in Amsterdam at 9.66 euros.