Dutch lender ING Group N.V. (ING) reported signing a definitive deal to sell its local custody services business in seven Central and Eastern European or CEE markets, currently representing 110 billion euros in assets under custody, to Citi. The transaction includes ING's local custody and securities services businesses in Bulgaria, the Czech Republic, Hungary, Romania, Russia, Slovakia and Ukraine. After implementation, the addition of Bulgaria would extend Citi's custody network coverage to more than 95 markets and its proprietary custody network would be expanded to 62 markets.
ING Bank would continue to offer a wide range of commercial banking products in the Central and Eastern Europe region, and this transaction would not impact ING's retail banking operations or ING's insurance and investment management businesses in the Central and Eastern European region. Also, it would not have a material impact on ING's results.
The transaction may close in the second quarter of 2013, while the full migration of the clients business is likely to be finalised in the first quarter of 2014. Today's transaction concerns a workforce of nearly 130 FTEs across the region and around 110 billion euros assets held under custody as of the first quarter of 2013.
For comments and feedback: editorial@rttnews.com