Ing Lifts Profits But Keeps Lid On Barings

But ING warned that earnings growth would slow in the second half of the year and it frustrated analysts by providing scant details on Barings, the British merchant bank ING bought last year after it collapsed under the weight of losses incurred by rogue futures trader Nick Leeson.

ING said net profit in the six months to June 30 was 1.51 billion guilders ($907 million), up from 1.18 million a year earlier.

Although the result was in line with expectations, the group's shares dipped as investors realised profits from the strong rise in the price since mid-July.

The interim dividend rose to 0.83 guilders per share.

Pre-tax insurance profits climbed 16.8 per cent to 1.16 billion guilders in the first half while first-half pre-tax banking profit jumped 39.2 per cent.

ING said life premium income showed moderate growth as a fall in premium income in North America offset the distinct increase in the Netherlands, Japan and Australia.

It said the acquisition of Wellington Insurance Company in Canada and growth in Australia were the main contributors to the growth in non-life income.

Banking earnings were boosted by sharply higher commission and securities trading income as a result of favourable market conditions.