Barclays Bank announces that it has agreed to acquire the deposits, mortgages and business assets of ING Direct UK. The acquisition follows the announcement by ING Direct N.V. on 2 August 2012 of a review of its strategic options for the ING Direct UK business, and its subsequent decision to exit the UK retail banking market.

Under the terms of the transaction, Barclays will acquire a deposit book with balances of £10.9bn and a mortgage book with outstanding balances of £5.6bn (as at 31 August 2012). The mortgage book had a loan to value ratio of 50 per cent as at 31 August 2012 and is being acquired at an approximate three per cent discount. The deposit book is being acquired at par. The transaction is expected to be accretive to return on equity immediately and the impact on Core Tier 1 capital is not material.

On completion, approximately 750 ING Direct UK employees and 1.5 million customers will transfer to Barclays. Barclays intends to integrate the ING Direct UK business into its UK Retail and Business Banking division. Until integration, Barclays will continue to utilise ING Direct UK’s operations and platforms to service existing customers. Customers are expected to continue to enjoy at least equivalent terms and conditions to those which they currently enjoy with ING Direct UK.

Completion is subject, amongst other things, to regulatory approval and is expected to occur early in Q2 2013.

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