Barclays goes Dutch with ING Direct UK purchase

Banking giant Barclays is to acquire the deposits, mortgages and business assets of ING Direct UK from Dutch finance house ING.

Banking giant Barclays is to acquire the deposits, mortgages and business assets of ING Direct UK from Dutch finance house ING.

Barclays will acquire a deposit book with balances of £10.9bn and a mortgage book with outstanding balances of £5.6bn, as at 31st August 2012.

The mortgage book had a loan to value ratio of 50% at the end of August and is being acquired at a discount of around 3%. The deposit book is being acquired at face value.

Barclays said the transaction is expected to boost return on equity immediately while the impact on Core Tier 1 capital - a key measure of balance sheet strength - is not material.

Barclays intends to integrate the ING Direct UK business into its UK Retail and Business Banking division, but in the meantime Barclays will continue to use ING Direct UK's operations and platforms to service existing customers. ING Direct UK customers who transfer to Barclays are expected to continue to enjoy at least equivalent terms and conditions to those which they currently enjoy.

Completion is expected to occur early in the second quarter of 2013.

The sale follows the announcement by ING on August 2nd that it was reviewing the strategic options for the business.

JH

Recommended

The top funds to invest in
Funds

The top funds to invest in

As market volatility and recessionary fears continue, here are the most popular funds, stocks and trusts investors are putting their money into accord…
2 Feb 2023
The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves takes a look at the companies with the highest dividend yields in the UK’s blue-chip index
23 Jan 2023
The top ten dividend stocks in the FTSE 250
Share tips

The top ten dividend stocks in the FTSE 250

The average FTSE 250 dividend yield is around 4%, but many stocks yield much more. Rupert Hargreaves picks the best FTSE 250 stocks for income investo…
17 Jan 2023
Investing trends to watch out for in 2023: what analysts say
Investment strategy

Investing trends to watch out for in 2023: what analysts say

What are sensible strategies for high inflationary times? We ask analysts to find out.
22 Dec 2022

Most Popular

Best savings accounts – February 2023
Savings

Best savings accounts – February 2023

Interest rates on cash savings are making a comeback. We look at the best savings accounts on the market now
3 Feb 2023
The best one-year fixed savings accounts - February 2023
Savings

The best one-year fixed savings accounts - February 2023

Earn almost 5% on one-year fixed savings accounts.
3 Feb 2023
After slumping 42% last year, what's next for Scottish Mortgage?
Investment trusts

After slumping 42% last year, what's next for Scottish Mortgage?

After a spectacular couple of decades, the Scottish Mortgage Investment Trust fell by 42% last year. We take a look at the trust's performance and dis…
3 Feb 2023