ING Group has completed the sale of its 83.7% stake in Deutsche Hypothekenbank AG, a publicly listed mortgage bank in Germany. In announcing the move, the Dutch outfit said that it was consistent with its current strategy to focus on core businesses.
The sale – to a group of banks and investors that comprised of BHF-Bank AG, MM Warburg & Co, Peter Dohle Schiffahrts-KG and Josef H Boquoi Familienstiftung – was originally announced on August 10, 2006.
For ING, the transaction is expected to result in a net loss of about E83 million, to be booked in the third quarter. However, the sale will reduce the risk-weighted assets at ING’s banking business by E9.8 billion and free up more than E600 million in tier-1 capital.
The sale has no impact on ING’s other banking activities in Germany, which include ING Bank Deutschland AG and ING-DiBa.