Dutch banking group ABN Amro Holding NV reported a 35 percent increase in third-quarter earnings Monday, outpacing market expectations, and said the hard-fought acquisition of an Italian bank laid the groundwork for further growth.

The Amsterdam-based bank reported a profit of 1.2 billion euros ($1.46 billion), compared with 892 million euros in the same quarter last year. Operating income was up nearly 10 percent, while operating expenses were held to a 2.4 percent increase, the bank said.

The results were lifted by the sale of the private banking unit Nachenius, Tjeenk & Co. to BNP Paribas SA and Brazilian insurance operations Real Seguros, and exceeded analysts' profit predictions of 781 million euros ($948 million), Dow Jones Newswires reported.

Excluding the sale of the two units in the first half of 2005, Chief Executive Rijkman Groenink said he expected the group's net profit for the second half of the year to at least match first half profits of 1.9 billion euros ($2.31 billion).

Groenink said the strong performance in the first nine months was underpinned by organic growth in consumer and customer revenues in North America, Brazil and Asia as well as in its home market.

The addition of a controlling stake in Italy's Banca Antonveneta "will enhance our solid platform for sustainable profitable growth," Groenink said.

The Bank of Italy approved the acquisition two weeks ago, ending a drawn-out battle in which the governor of the central bank, Antonio Fazio, was accused of discriminating against the Dutch bank when he sided with an Italian competitor.

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