Why is ing direct for sale

This document does not constitute an offer to sell, or a solicitation of an offer to buy, any securities. Mollerus ing. Download press release. The transaction is expected to have a substantial positive impact on ING Bank's core Tier 1 ratio of 99 basis points at closing, based on the core Tier 1 ratio of However, as announced earlier, ING is also preparing to exit from its US retirement, insurance and investment management businesses as part of the agreement with the European Commission to completely separate its Banking and Insurance operations and divest the latter.

One Europe-led IPO with solid cashflow combined with strong growth positions in developing markets, and one separate US-focused IPO with a leading franchise in retirement services. Owned by Dutch financial services giant ING Groep, the Canadian operation was launched in , just as the Internet was gaining ground, as a branchless bank that offered products such as savings accounts promising high interest and low fees.

ING Direct has about 1. The proposed deal, subject to regulatory approvals and various closing conditions, is expected to close by December. The transaction is garnering a lot of attention because it would be one of the largest acquisitions in Canadian banking in decades.

Critics say that concentration is the main reason that bank fees are high in Canada and why the big players enjoy a level of profitability that their international peers can only dream about.

Experts have been speculating about the sale of the Canadian subsidiary for several months, predicting possible bids from several of the big banks including Toronto-Dominion Bank, National Bank of Canada as well as Scotia.

The deal comes as players are pushing hard to grab more customers in the coveted domestic market as a way to make up for shrinking profits and declining interest in home loans, one of the most profitable bank businesses. It may not be easy. ING Direct started off in the s with all cylinders firing — Canadians liked the convenience of internet banking and they appreciated the high interest they were getting on deposits.

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