ING Direct UK sold to Barclays
ING has sold its ING Direct UK business to Barclays, as the Dutch group exits the UK retail banking market.
ING announced in early August this year that it was seeking to dispose of its Direct businesses in the UK and Canada. The UK business serves some 1.5m customers with savings and mortgage products, although the business said in July that it would be entering the UK’s business banking market by offering savings accounts to SMEs.
Barclays will take over a business with some £10.9bn in deposits and a mortgage book of £5.6bn in outstanding balances. No nominal figure has been published for the value of the deal, but Barclays said in a statement that the mortgage book is being acquired “at an approximate 3% discount”, and that the “deposit book is being acquired at par”.
Barlays added that the transaction would provide an immediate return on equity, and that its Core Tier 1 capital ratio would not be “material”.