Barclays Bank has acquired ING Direct UK following its decision to exit the UK retail banking sector.
Barclays will acquire ING Direct UK’s £10.9bn deposit book and £5.6bn mortgage book.
The mortgage book, which had an LTV ratio of 50 per cent as of 31 August, is being bought at a 3 per cent discount.
ING has refused to reveal the total price of the deal, but says it will result in a £259m loss for ING.
In August, ING announced it was leaving the UK’s retail banking sector following a review of its strategic options.
Approximately 750 ING Direct UK employees and 1.5m customers will transfer to Barclays after the deal is completed, which is expected to be in the second quarter of 2013.
Barclays UK retail and business chief executive Ashok Vaswani says: “We will be delighted to welcome ING Direct UK customers to Barclays. We intend to maintain the high standard of service and honour the existing terms and conditions they have experienced with ING Direct UK. The acquisition is a good fit with Barclays’ existing UK retail banking business.”
ING chief executive Jan Hommen says: “ING Direct UK operated in a very competitive market over the years and I am proud of the excellent customer experience our UK team has built, as proven by the customer satisfaction scores. In Barclays, we have found a company that will continue to provide the excellent service our approximately 1.5 million ING Direct customers in the UK have grown accustomed to.”