ING Tops Expectations; Goldman Approves

ING reports a large second-quarter increase in net profit, generating positive thoughts from Goldman Sachs analysts.
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(ING story updated with stock price change and Goldman Sachs view.)

AMSTERDAM (

TheStreet

) --

ING Group

(ING) - Get Report

posted a large second-quarter increase in net profit, despite concerns about economic recovery in the eurozone that dominated the markets during the quarter.

ING said second-quarter net income rose to €1.090 billion, or about $1.43 billion, from €71 million in the year-ago period. The figure was well ahead of the expectations of analysts polled by

Thomson Reuters

and

Bloomberg.

The bank's second-quarter underlying profit before tax was €1.613 billion compared with a loss of €186 million the previous year.

ING said margins on savings and lending remained healthy and volume growth picked up during the quarter.

The company's insurance segment saw a loss of €115 million before tax vs. €242 million the previous year, driven by a severe impact on the company's U.S. insurance operations amid a sharp decline in the equity markets.

"Overall the results demonstrate that the group continues to recover strongly from the financials crisis, with strong growth in group capitalization, sales andprofitability," Goldman Sachs analyst Johnny Vo wrote in an investor note.

Goldman Sachs analysts reiterated their conviction buy rating on the shares and three-month dynamic RoEV (Return on Embedded Value) price target of €10.50.

ING American Depositary Receipts are down 5% to $9.51 in afternoon trading, along with the overall trend of the broader markets.

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-- Reported by Andrea Tse in New York

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