ING to sell Swiss pvt banking biz for 344mn euros

Dutch financial services major ING Group today said it will sell its Swiss private banking business to Switzerland-based Julius Baer for 344 million euros.

Both companies have reached an agreement for the all cash deal worth 344 million euros, ING said in a statement.

Subject to regulatory approvals, the deal is expected to close in the first quarter of 2010. The transaction would generate an estimated net profit of 150 million euros.

"The divestment of our private banking activities in Switzerland illustrates once more that we are making good progress in executing our 'Back to Basics' programme," ING Group CEO Jan Hommen said.

The Dutch group's Swiss private banking business has around 10 billion euros worth assets under its management.

"This sale and the recently announced divestment of our life insurance and wealth management joint venture in Australia and New Zealand show ING's commitment to focus on fewer franchises and the reduction of the complexity of the group," Hommen added.

Julius Baer is a leading Switzerland-based private banking group.

ING said it was also in discussions about the future of its private banking activities in Asia.

"Any further announcements on this matter will only be made when appropriate," the statement added.