ING Sells Asian Private Banking Business to Singapore’s OCBC Bank

Copyright 2009 A.M. Best Company, Inc.All Rights Reserved BestWire

October 15, 2009 Thursday 09:36 AM EST

313 words

ING Sells Asian Private Banking Business to Singapore's OCBC Bank

Rebecca Ng

SINGAPORE

Dutch financial services group ING Group N.V. [85144] said it will sell its Asian Private Banking business to Singapore-based Oversea-Chinese Banking Corp. Ltd. for cash consideration of $1US.46 billion by the end of this year, subject to regulatory approvals.

The transaction will generate an estimated net profit for ING of about 300 million euros ($446US.6 million) and is expected to free up around 370 million euros of capital, said the group.

ING said it remains active in Asia with retail banking, insurance, wholesale banking, investment management and real estate businesses.

Jan Hommen, chief executive of ING, said in a statement that the transaction "reflects the momentum and the strength" of the group's strategic transformation. Through its back to basics program, he said "ING will simplify its organization and will reduce its geographic and business scope, focusing on its positions in markets with the strongest franchises."

After the transaction, the CEO said the group has "completed the divestment program of its private banking business." Hommen added, "ING Private Banking in the Benelux and Central and Eastern Europe remain integral parts of ING."

According to OCBC Bank, the acquisition not only triples its private banking business, but also creates synergies including the ability for ING Asia Private Bank Ltd. and its affiliated entities to source transactional and other services from OCBC Group, such as brokerage, life insurance and treasury.

ING's Asian private banking has around 11 billion euros of assets under management. Its Asia franchise offers private banking services in 11 markets, including Hong Kong, the Philippines and Singapore.

ING also recently announced it will sell its private banking business in Switzerland to Swiss banking group Julius Baer (BestWire, Oct. 7, 2009).

(By Rebecca Ng, Hong Kong news editor: [email protected])

October 16, 2009