The transaction is expected to generate an estimated net profit of E300 million and free up around E370 million of capital for ING
ING has reached an agreement to sell its Asian private banking business to Singapore-based Oversea-Chinese Banking Corporation (OCBC Bank) for a consideration of E1 billion in cash. Reportedly, ING’s Asian private banking has around E11 billion of assets under management. The Asia franchise offers private banking services in 11 markets, including Hong Kong, the Philippines and Singapore.
Jan Hommen, CEO of ING, said: “Today’s announcement reflects the momentum and the strength of our strategic transformation. Through the Back to Basics Programme, ING will simplify its organisation and will reduce its geographic and business scope, focusing on its positions in markets with the strongest franchises. After today’s transaction we have completed the divestment programme of our Private Banking business. ING Private Banking in the Benelux and Central Eastern Europe remain integral parts of ING.”
Eli Leenaars, CEO of retail banking, said: “With OCBC Bank we found a solid new owner for our Asian Private Banking Business. OCBC Bank is a professional player offering a wide range of specialist financial services. ING remains confident about Asia’s long-term financial and economic prospects and potential and we are committed to our other existing Asian banking positions.”
ING has said that it would remain active in Asia with insurance, wholesale banking, investment management and real estate. Completion of the transaction between ING and OCBC Bank is subject to a number of regulatory approvals and is expected to occur around year end.