Back to banking for ING
(28 October 2009 – Global) Dutch bank ING has made the move to separate its banking and insurance as part of its back to basics review.
ING announced that the split will be achieved over the next four years by a divestment of all insurance operations (including investment management).
The global bank will explore all options, including initial public offerings, sales or combinations thereof in order to undertake the divestment.
The move is part of a plan to pay back the two instances of government support that has been provided to the bank during the financial crisis, as well as getting ‘back to basics’.
The bank said that while the banking and insurance combination provided advantages of scale, capital efficiency and earnings stability through a diversified portfolio of businesses, the financial crisis has diminished these benefits.
Now, the widespread demand for greater simplicity, reliability and transparency has made a split the optimal course of action, the bank said.
ING noted that it remains committed to the ING Direct franchise, as a strong contributor to its growth going forward.
ING is also planning a EUR7.5 billion (A$12.2 billion) rights issue to help finance the repayment of Government bailouts.
The news comes after ING recently sold its stake in ING Australia to joint venture partner ANZ, a move that now reflects the strategic direction globally.
The global bank will explore all options, including initial public offerings, sales or combinations thereof in order to undertake the divestment.
The move is part of a plan to pay back the two instances of government support that has been provided to the bank during the financial crisis, as well as getting ‘back to basics’.
The bank said that while the banking and insurance combination provided advantages of scale, capital efficiency and earnings stability through a diversified portfolio of businesses, the financial crisis has diminished these benefits.
Now, the widespread demand for greater simplicity, reliability and transparency has made a split the optimal course of action, the bank said.
ING noted that it remains committed to the ING Direct franchise, as a strong contributor to its growth going forward.
ING is also planning a EUR7.5 billion (A$12.2 billion) rights issue to help finance the repayment of Government bailouts.
The news comes after ING recently sold its stake in ING Australia to joint venture partner ANZ, a move that now reflects the strategic direction globally.
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