Dutch financial group ING shrugged off losses at its Barings unit to post a 42 per cent jump in nine-month net profit and reiterate its forecast that 1998 earnings per share would rise 15 per cent.

ING's net profit climbed to 4.864 billion guilders (£1.74 billion) from a revised 3.427 billion the previous year, as a strong showing by the group's insurance arm offset a dismal performance by banking operations, particularly Barings.

The figures were at the top end of analysts' expectations and ING shares hit a high of 118 guilders before closing at 116.30 guilders, up 3.19 per cent, as investors homed in on the bottom-line figure.

The bank stood by the full-year forecast it issued with a profit downgrade on October 1st. "Earnings per share over the whole year will grow by around 15 per cent," it said.

Over the nine months, group pre-tax banking results fell by almost 10 per cent to 2.1 billion guilders, hammered by a 330 million guilder banking loss in the third quarter.

ING blamed the red ink on British merchant bank, Barings.

Barings' poor showing came as no surprise to investors. In October, ING said it was slashing 1,200 jobs at the unit and top names, including chairman Mr Marinus Minderhoud, have since left.