ING's Strategic Exit from Russia: A Step Towards Sustainability and Risk Mitigation
Generated by AI AgentWesley Park
Tuesday, Jan 28, 2025 1:49 am ET1min read
ING--
ING, a global financial institution with a strong European base, has announced its decision to sell its business in Russia to Global Development JSC, a Moscow-based financial investor. This strategic move, expected to close in the third quarter of 2025, is a significant step towards ING's commitment to sustainability, risk management, and maintaining a strong financial position.
Since February 2022, ING has taken proactive measures to reduce its exposure to Russia, including scaling down operations and separating the business from its networks and systems. The sale of its Russian business to Global Development JSC is a continuation of this strategy, aiming to minimize potential losses and reputational risks associated with operating in a politically and economically volatile environment.
The sale is expected to have a negative P&L impact of around €0.7 billion post tax, including an estimated book loss of around €0.4 billion. This book loss would have a negative impact of around 5 basis points on ING's Common Equity Tier 1 (CET1) ratio. Additionally, there is an estimated negative impact of around €0.3 billion from recycling the currency translation adjustment through P&L, which will not affect ING's CET1 ratio and resilient net profit.
After the transaction, ING will continue to further reduce its offshore exposure to Russian clients, which amounted to €1.0 billion as of 30 September 2024, of which €0.5 billion is under ECA or CPRI cover. By reducing its exposure to the Russian market, ING aims to mitigate potential risks and maintain a strong financial position.
ING's decision to sell its Russian business aligns with its long-term global strategy, focusing on empowering people to stay a step ahead in life and in business. By exiting the Russian market, ING can redirect resources and investments towards more promising markets and opportunities that align with its core purpose and values.
In conclusion, ING's strategic exit from Russia is driven by a commitment to sustainability, risk management, and maintaining a strong financial position. By selling its Russian business to Global Development JSC, ING takes a significant step towards mitigating potential risks and focusing on its core markets and businesses.
ING, a global financial institution with a strong European base, has announced its decision to sell its business in Russia to Global Development JSC, a Moscow-based financial investor. This strategic move, expected to close in the third quarter of 2025, is a significant step towards ING's commitment to sustainability, risk management, and maintaining a strong financial position.
Since February 2022, ING has taken proactive measures to reduce its exposure to Russia, including scaling down operations and separating the business from its networks and systems. The sale of its Russian business to Global Development JSC is a continuation of this strategy, aiming to minimize potential losses and reputational risks associated with operating in a politically and economically volatile environment.
The sale is expected to have a negative P&L impact of around €0.7 billion post tax, including an estimated book loss of around €0.4 billion. This book loss would have a negative impact of around 5 basis points on ING's Common Equity Tier 1 (CET1) ratio. Additionally, there is an estimated negative impact of around €0.3 billion from recycling the currency translation adjustment through P&L, which will not affect ING's CET1 ratio and resilient net profit.
After the transaction, ING will continue to further reduce its offshore exposure to Russian clients, which amounted to €1.0 billion as of 30 September 2024, of which €0.5 billion is under ECA or CPRI cover. By reducing its exposure to the Russian market, ING aims to mitigate potential risks and maintain a strong financial position.
ING's decision to sell its Russian business aligns with its long-term global strategy, focusing on empowering people to stay a step ahead in life and in business. By exiting the Russian market, ING can redirect resources and investments towards more promising markets and opportunities that align with its core purpose and values.
In conclusion, ING's strategic exit from Russia is driven by a commitment to sustainability, risk management, and maintaining a strong financial position. By selling its Russian business to Global Development JSC, ING takes a significant step towards mitigating potential risks and focusing on its core markets and businesses.
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