PREVIEW-ING asset sales plan eyed as profit returns

* Q2 results Aug. 12, 0500 GMT

* Analysts expect first quarterly profit in a year

* Focus on asset sale program progress

By Ben Berkowitz

AMSTERDAM, Aug 10 (Reuters) - ING Groep NV (ING.AS) is expected to post its first profit in a year when it reports second-quarter results on Wednesday but analysts will be looking ahead to the schedule for the Dutch bancassurer's crucial asset sale program.

Analysts polled by Reuters on average expect a profit of 275 million euros after nearly 5 billion euros in losses the previous three quarters. Loan losses are expected to have declined only very slightly to 776 million euros. [ID:nL557318]

SNS Securities, in a recent note, said ING's markets look to have generally performed well in the second quarter, though not enough to have returned its insurance business to profitability.

"All in all, we expect a modest profit, fuelled by cost reductions and driven by the banking activities," analyst Maarten Altena said in a note late last month.

The insurance business which makes up the lion's share of revenue at ING has been a drag on results of late because of heavy losses.

But just last week three large European insurers beat first-half forecasts. [ID:nL6133874]

The market's attention is also turning to ING's plan to raise up to 8 billion euros through asset sales.

That "Back to Basics" program, announced in April, has moved relatively slowly so far. But sources close to the project have told Reuters in recent days the bank is looking at offers for its private banking operations in Asia and Switzerland, with a deal expected to be agreed in September. [ID:nL7427736]

RBS said in late July the speculated price of 1 billion euros for the European and Asian private banking activities was "much too high," though it noted that "from a strategic and capital relief point of view a deal might make sense."

In an Aug. 10 note, RBS followed up with a forecast for further asset sales, suggesting ING could raise 1 billion euros just by selling its stake in Bank of Beijing. (Reporting by Ben Berkowitz)