ING announced on 26 April that it has reached an agreement to transfer its local custody services business in seven countries in Central and Eastern Europe to Citi, one of the world’s largest providers of custody services.
The transfer of local custody services in Bulgaria, the Czech Republic, Hungary, Romania, Russia, Slovakia and Ukraine is in line with ING’s strategic objective of sharpening the focus of the bank and a result of the strategic review of ING Wholesale Banking’s business portfolio presented in November 2012.
Local custody is a scale business. This means that efficiency is strongly dependent on business volume including assets under custody and transaction quantity. In the current economic environment, ING, as a purely local custody player with geographical presence limited to Central and Eastern Europe, sees insufficient growth in these markets on a stand-alone basis. Consolidation is the way forward for the industry.
In view of the above, ING has analysed the long-term business potential of its Securities Services and decided to discontinue its local custody business in seven Central and Eastern European countries. ING intends to transfer these activities to Citi, one of the world’s largest providers of custody services.
We discontinue further acquisition of new custody clients and have already taken measures during the preparatory period to slow down the acquisition until the moment that we came to an agreement. Sales activity has been stopped with immediate effect. At the moment ING Wholesale Banking in Russia provides custody servicies according to the standarts for custody operations.
ING Bank will continue to offer a wide range of commercial banking products in the Central and Eastern Europe region. ING’s Wholesale Banking network in CEE spans 10 countries offering lending services, transaction services, corporate finance and financial markets products to its local and international clients.
ING will continue to offer custody services in Poland, where it is an integrated part of the full service banking offering. Today’s transaction does not impact ING’s retail banking operations or ING’s insurance and investment management businesses in the Central and Eastern European region.
Click here to view the official press release.
If you have custody related questions please contact Polina Bogdanova, Deputy Head of Securities Services