ING Group NV, the biggest Dutch financial services company, reported second-quarter net income that beat analysts' estimates after its banking division swung to a profit.
Net income rose to $1.43 billion, from $92 million a year earlier, Amsterdam-based ING said Wednesday. It plans by the end of this year to split its banking unit from the insurance business, which reported a loss during the quarter. The sale of the insurer, with a book value of $28 billion, is a condition for gaining European Commission approval of a government bailout for ING, which includes $13 billion of state aid.
The banking division reported pretax profit, excluding divestments and special items, of $2.1 billion, compared with a loss of $244 million a year earlier.
The result was helped by fewer debt writedowns. Earnings from consumer banking operations more than tripled, and loan-loss provisions declined to $611 million.
ING said it expects its loan-loss provisions to remain at the same level in coming quarters as in the first half.
ING Direct, the company's online banking unit, reported pretax profit of $534 million on higher interest income, lower impairments and smaller loan-loss provisions for its U.S. mortgage portfolio, by comparison with a loss of $230 million a year earlier.
