ING Group N.V. (ING) reported the completion of the sale of ING Direct UK to Barclays (BCS, BARC.L), and said it has transferred 11.6 billion pounds, or 13.4 billion euros at current exchange rates, of ING Direct UK's savings and deposits and 5.5 billion pounds, or 6.4 billion euros of mortgages to Barclays.
As already announced, part of the UK investment portfolio has matured or has been liquidated to facilitate the transaction. The impact of these two transactions was booked in the third and the fourth quarter results of 2012.
The combined loss for the transfer of the business and the investment portfolio is about 260 million euros, lower than the expected loss of 320 million euros at announcement, as favourable market circumstances have resulted in a lower loss on the investment portfolio, the company added.
The transaction would result in a 280 million euros capital release in the first quarter of 2013, due to a reduction in Risk Weighted Assets, which may result in a positive impact on ING Bank's core Tier 1 ratio of 12 basis points based on ING Bank's core Tier 1 ratio of 11.9% at December 31, 2012.
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