(RTTNews) - amendment: removes $ from the second paragraph

Dutch financial firm ING Groep NV (ING: News ) reported Wednesday it turned in a profit for the third quarter compared to prior year's loss, reflecting strong banking segment performance, less severe negative market impacts, and cost savings initiatives amid stabilizing financial market conditions. ING also said it has made significant progress on its various strategic priorities, including the separation of Banking and Insurance operations and share issue, which were announced last month. ING said that its cost-containment initiatives are on track.

Third-quarter net income was 499 million euros or 0.25 euros per share, compared to net loss of 478 million euros or 0.22 euros per share last year.

The latest quarter results included losses from divestments and special items totaling 278 million euros, comprising losses from special items of 106 million euros, net losses on divestments of 168 million euros, and net loss from divested units of 4 million euros. Meanwhile, prior year results included net gains on divestments of 178 million euros, partly offset by losses from special items of 74 million euros, and net loss from divested units of 13 million euros.

On an underlying basis, third-quarter net income was 778 million euros, compared to underlying net loss of 568 million euros in the same period last year. Underlying profit before tax was 861 million euros, compared to underlying loss before tax of 712 million euros in the year ago quarter.

ING in late October had noted that it expects net result after divestment and special items to be 500 million euros or 0.24 euros per share, and underlying net result of approximately 750 million euros for the third quarter.
According to ING, its "third-quarter results showed an improvement, supported by cost savings and a strong commercial performance of the Banking business. Market impacts, however, remained substantial, including impairments on debt securities and real estate revaluations."

Financial markets that continued to stabilize resulted in lower negative market-related impacts in the third quarter than in the previous quarters of 2009, the group noted.

Third quarter results included pre-tax market impacts of 882 million euros loss, including impairments on debt securities and real estate revaluations and impairments. Excluding market impacts and risk costs, third-quarter results were 2.4 billion euros, primarily attributable to the Banking division.

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