ING Group has announced that it has completed the sale of its 83.7% stake in Deutsche Hypothekenbank AG, a publicly listed mortgage bank in Germany, as part of ING's strategy to focus on its core business.
The sale - to a group of banks and investors comprised of BHF-Bank AG, M.M. Warburg & CO, Peter Döhle Schiffahrts-KG and Josef H. Boquoi Familienstiftung - was originally announced on 10 August 2006.
For ING, the transaction is expected to result in a net loss of about €83 million, to be booked in the third quarter. The sale will reduce the risk-weighted assets at ING's banking business by €9.8 billion and free up more than €600 million in Tier-1 capital, or the equivalent of about 17 basis points on the Tier-1 ratio of ING Bank NV.
The sale has no impact on ING's other banking activities in Germany, which include ING Bank Deutschland AG and ING-DiBa.