The Dutch financial services group, ING, which has been selling private banking assets in Asia and Europe, said today that it had reported an underlying net result for earnings of €778 million ($1.17 billion), more than doubling its €229 million figure for the previous quarter and reversing the net loss of €568 million a year ago.

The firm said cost cuts have shrunk operating expenses by 9.3 per cent or €330 million, from the third quarter last year.

ING has announced or completed the divestment of a number of businesses this year as it looks to bolster its capital and to comply with European Union rules governing state aid, as the firm has received substantial injections of public funds.

Among its disposals planned or already carried out are a Swiss private banking business, Asian private banking, US advisory networks and the sale of its 70 per cent stake in ING Canada. It has also sold or is selling insurance businesses in New Zealand and Australia.

ING said its core Tier 1 capital ratio under the Basel II system – a key barometer of financial strength – rose to 7.6 per cent from 7.3 per cent at the end of the second quarter of this year.