(Bloomberg) -- ING Groep NV, the biggest Dutchfinancial-services company, said first-quarter profit rose 43% amida boost from lending and commissions.

Underlying net profit rose to 1.19 billion euros ($1.4 billion)from 830 million euros a year earlier, Amsterdam-based ING said ina statement Thursday.

The company sold out of its U.S. insurance unit in March and cutits stake in NN Group NV to about 55% in February as part of itsrestructuring plan in return for a government bailout. ING isresuming dividends this year for the first time since 2008 afterrepaying the state rescue.

The “strong performance was achieved despite the challengingoperating environment, characterized by unprecedented low interestrates and the uneven economic recovery,” ING Chief ExecutiveOfficer Ralph Hamers said in the statement.

ING fell 2.2% to 13.43 euros at 9:08 a.m. in Amsterdam, paringthe year’s gain to 24% this year, compared with an 11% gain in theSTOXX Europe 600 Banks Price.

Lending Growth

ING reported net income of 1.8 billion euros in the firstquarter, up from a loss of 1.92 billion euros a year earlier, whenit booked losses on asset sales.

Net interest income, the revenue generated from the differencebetween what banks charge for loans and pay for funding, rose to3.2 billion euros from 3 billion euros a year earlier.

“ING’s strong lending growth was most positive,” said Cor Kluis,an analyst at Rabobank, who has a buy recommendation on the stock.“Net interest income is expected to rise further next quarter as itcuts rates on the savings yields.”

The company’s core capital ratio under the full application ofthe strictest Basel guidelines rose to 11.6% from 11.4% at the endof the year.

In Russia, where U.S. and European sanctions over the Ukraineconflict are weighing on the economy, ING trimmed lendingoutstanding to 6.9 billion euros from 7 billion euros at the end ofthe year.

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