Chillin' out till it needs to be funded
Dutch bank ING Group ING.AS has hired JPMorgan JPM.N to advise on the sale of INGs private banking business in Europe and Asia, which could fetch more than $1 billion, sources told Reuters on Thursday.The sale is part of INGs move to raise cash after being hit badly by the global credit crisis, which forced it into a loss in 2008 and led to the Dutch government injecting 10 billion euros into the bank.”The deal could be over a billion dollar,” said a source with direct knowledge of the deal, adding JPMorgan is advising the firm. “But its a bit early in the process.”ING declined to comment and JPMorgan was not available to comment.The Dutch bank has been working on a program to reduce risks, raise up to 8 billion euros from asset sales and exit from 10 of 48 countries where it operates.”I think it is a good sign that will give an extra buffer to ING. Secondly, in private banking, ING will never become a world leader. Strategically it makes sense to sell,” Rabo Securities analyst Cor Kluis said.Kluis said he did not expect ING to sell its Dutch private banking business, which administered 20 billion euros in assets out of the total 62 billion euros the Dutch bank had under management at the end of 2008.
Meanwhile, RBS has completed sale of the RBS Asia Pac units including ABN AMRO to StanChart and Goldman Sachs & BofA have earlier sold one third of their stakes in ICBC and China Construction Bank