Underlying net profit rose to €1,202 million ($1,569 million) from €212 million in Q2 2009 and €1,018 million in Q1 2010 at Dutch banking group ING.

First half underlying net profit increased to €2,220 million from a loss of  €23 million in the same quarter of 2009

The bank reported that “income continues to increase, supported by volume growth at healthy margins and lower negative market impacts.”

ING Group CEO Jan Hommen said: "Sovereign risk concerns, combined with fear of a 'double dip' scenario, had a significant impact on interbank markets in the euro area as well as on equity markets worldwide. The sharp decline in equity markets in the quarter severely impacted the results of our US insurance operations. However, the bank continued to benefit from its strong liquidity and funding profile, with lending growth funded entirely by customer deposits, and refinancing of long-term funding already completed for the year.

"The measures taken over the past six quarters to strengthen our balance sheet have reduced vulnerability to market shocks.

"Following the significant cost cuts achieved last year, we have shifted our focus to achieving operational excellence to secure a sustainable cost advantage in both the bank and the insurer. We continue to work towards the operational separation of our banking and insurance operations, with the aim to have the businesses operating on an arm's-length, stand-alone basis by the end of this year."