Dutch ING completes sale of UK online banking business to Barcalys

Dutch financial services group ING Groep NV (AMS:INGA) said on Wednesday it had concluded the sale of its UK-based online banking business ING Direct UK to Barclays Plc (LON:BARC) for a non-specified sum.

The divestment aligns with ING’s ongoing business portfolio review, serving its strategy to sharpen banking focus and enhancing its capital position, the vendor said.

Under the terms of the deal, announced in October 2012, ING had transferred GBP11.6bn (USD17.5bn/EUR13.4bn) of the unit’s savings and deposits along with GBP5.5bn of mortgages to Barclays.

The seller noted that the ING Direct subsidiaries in Australia, Austria, France, Germany, Italy and Spain are not affected by the transaction and neither is the ING Commercial Banking business in the UK.

The group went on to say it had recorded a combined loss of EUR260m (USD339m) as a result of the disposal, which is less than the previously expected EUR320m thanks to favourable market circumstances. The sale will result in a capital release of some EUR280m in the first quarter of the year, which in turn would positively affect ING Bank’s core Tier 1 ratio.