ING Groep NV's sale has been completed by ING Direct UK to Barclays Bank. The cost of the transaction would be Eur280 million for the first quarter of 2013 and total loss would be Eur260 million compared to expected returns of Eur320 million.
Barclays would absorb GBP 10.9 billion or US$17.4 billion in deposits or GBP 5.6 billion of mortgage loans from ING. The deal would increase return on equity and the transaction loss for the whole transfer is pegged at Eur320 million or US$415.5 million after tax.
The deal would increase the funding capital of Barclays' before the application of the so called Vickers rules intended to protect British bank consumer lending practices for 2019. This is the first acquisition under Antony Jenkins as CEO of Barclays. He replaces Robert Diamond who resigned from the bank after regulators slapped fines amounting to GBP290 million for interest rate manipulation last year.
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