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ING earnings surge
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February 14, 2000: 3:18 a.m. ET
Dutch bank admits gloomy prediction of 'millennium effect' was overstated
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LONDON (CNNfn) - ING Group unveiled an 84 percent surge in preliminary 1999 net income Monday, shooting past its predicted profit level after admitting its expectation of the "millennium effect" on business had been far too pessimistic.
Banking business was the driving force for profit growth ING, which ranks fifth by market value among European financial services companies. Operating earnings from banking gained 171 percent to 1.28 billion euros ($1.25 billion). The operating contribution from insurance rose 20 percent to 1.63 billion euros, helping overall operating profit to rise 54 percent to 3.23 billion euros.
During the year Amsterdam-based ING sold stakes in Scandinavian bank NIB and telecom operator Libertel, generating substantial capital gains and driving full-year net income up 84 percent to 4.92 billion euros. Operating profit per share rose 50 percent to 3.35 euros, while net profit per share gained 29 percent to 3.67 euros.
The firm admitted that its November prognosis for the final quarter was over-gloomy, because its three core activities - banking, insurance and asset management - suffered no business slowdown. At the time ING predicted operating profit would rise 40-45 percent for the year.
ING stock rose 2.6 percent to 51.98 euros in early Amsterdam trading Monday. The firm is due to publish full details of its 1999 financial year on March 16. 
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ING Groep
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