Mega bank acquisition: Kotak buys ING in all-share deal
The move consolidates Kotak’s position as India’s fourth largest private bank.
MUMBAI: In the biggest M&A in the banking sector after the global financial crisis, Kotak Mahindra Bank has agreed to acquire ING Vysya Bank
in an all-share deal. The move consolidates Kotak's position as India's
fourth largest private bank. At current market prices, the value of the
merged entity will be Rs 1,04,734 crore— giving Kotak Bank a
trillion-rupee valuation within 12 years of incorporation.
Under the agreement, shareholders of the Bangalore-based bank will get 725 shares of Kotak Mahindra Bank for every 1,000 shares they hold. Although Kotak Mahindra Bank will continue to retain its number four ranking after ICICI Bank, HDFC Bank, and Axis Bank, it will nearly double its branch network and gain access to ING Group's much vaunted digital banking strategy which has been high successful in Europe and Australia. The exchange ratio indicates an implied price of Rs 790 for each ING Vysya share based on the average closing price of Kotak shares in one month before November 19, a 16% premium to a like measure of ING Vysya's market price.
The merger concludes more than a year of media speculation that a deal was in the offing. "We were in touch for a long time and serious talks happened more recently. But they were exploratory talks. A decisive board meeting happened only today," said Uday Kotak, VC and MD Kotak Mahindra Bank.
The merger is subject to regulatory approvals from RBI and other regulators. This will also be the first bank merger to be referred to the Competition Commission of India as per new norms. Among other things, RBI will also have to consider allowing ING Vysya to hold 6.5% in the merged entity as against the less than 5% allowed by RBI for non-promoters.
Describing the merger as a 'perfect match', Kotak said that ING Vysya had most of its branches in areas where the new private bank planned to open branches. ING Group, as part of its global strategy, was keen to exit from managing a bank in India. ING had already sold its stake in its life insurance venture to Exide and its mutual fund assets to Birla Sun Life Mutual Fund. Kotak Mahindra Bank in the meantime was under pressure to dilute its promoter shareholding, which at 40% was the highest among all its private peers. The merger will now bring the Kotak family's promoter holding in the merged entity down to 34%.
The last banking M&A was ICICI Bank's acquisition of Bank of Rajasthan four years ago. However, the deal was necessitated as the troubled BoR was under regulatory pressure.
Vaughn Richtor, ING's representative on the ING Vysya board, said, "There was no desperation to sell. Although our percentage shareholding comes down, it will now be in a much stronger entity. We are very happy with the management of the bank. It is the right strategic thing to do not only for shareholders but for all stakeholders."
Under the agreement, shareholders of the Bangalore-based bank will get 725 shares of Kotak Mahindra Bank for every 1,000 shares they hold. Although Kotak Mahindra Bank will continue to retain its number four ranking after ICICI Bank, HDFC Bank, and Axis Bank, it will nearly double its branch network and gain access to ING Group's much vaunted digital banking strategy which has been high successful in Europe and Australia. The exchange ratio indicates an implied price of Rs 790 for each ING Vysya share based on the average closing price of Kotak shares in one month before November 19, a 16% premium to a like measure of ING Vysya's market price.
The merger concludes more than a year of media speculation that a deal was in the offing. "We were in touch for a long time and serious talks happened more recently. But they were exploratory talks. A decisive board meeting happened only today," said Uday Kotak, VC and MD Kotak Mahindra Bank.
The merger is subject to regulatory approvals from RBI and other regulators. This will also be the first bank merger to be referred to the Competition Commission of India as per new norms. Among other things, RBI will also have to consider allowing ING Vysya to hold 6.5% in the merged entity as against the less than 5% allowed by RBI for non-promoters.
Describing the merger as a 'perfect match', Kotak said that ING Vysya had most of its branches in areas where the new private bank planned to open branches. ING Group, as part of its global strategy, was keen to exit from managing a bank in India. ING had already sold its stake in its life insurance venture to Exide and its mutual fund assets to Birla Sun Life Mutual Fund. Kotak Mahindra Bank in the meantime was under pressure to dilute its promoter shareholding, which at 40% was the highest among all its private peers. The merger will now bring the Kotak family's promoter holding in the merged entity down to 34%.
The last banking M&A was ICICI Bank's acquisition of Bank of Rajasthan four years ago. However, the deal was necessitated as the troubled BoR was under regulatory pressure.
Vaughn Richtor, ING's representative on the ING Vysya board, said, "There was no desperation to sell. Although our percentage shareholding comes down, it will now be in a much stronger entity. We are very happy with the management of the bank. It is the right strategic thing to do not only for shareholders but for all stakeholders."
Recent Messages (25)
Introduction
insurance
firms,
investment
banks,
and
institutional
investors.
The
structure
of
the
whole
financial
services
industry
is
being
transformed.
The
papers
in
this
volume
bring
together
leading
researchers
in
economics,
finance
and
law
and
high
level
practitioners
to
discuss
these
important
issues.
Presented
during
a
conference
on
mergers
of
financial
institutions
sponsored
by
the
NYU
Stern
School
of
Business
Salomon
Center,
in
cooperation
with
the
NYU
Law
School
Center
for
the
Study
of
Central
Banks,
these
papers
deal
with
such
important
topics
as:
-
Changing
Economies
of
Scale
and
Scope
in
Banking
and
Other
Financial
Markets
-
The
Efficiency
and
Value
Effects
of
Bank
Mergers
and
Acquisitions
-
The
Antitrust
Implications
of
Financial
Institution
Mergers
-
The
Effect
of
the
Regulatory
Changes
on
the
Structure
of
the
Banking
Industry
-
The
Effects
of
Bank
Mergers
on
Bank
Safety
and
Soundness
-
Implications
of
Recent
Developments
on
the
Global
Competitiveness
of
U.S.
Firms
-
The
Law
and
Economics
of
Hostile
Acquisitions
of
Financial
Institutions
Part
One
of
the
book
provides
a
general
and
theoretical
background
to
the
topic
of
bank
mergers
and
acquisitions.
Frederic
Mishkin,
in
his
paper
"Bank
Consolidation:
A
Central
Banker's
Perspective,"
looks
at
why
bank
consolidation
has
been
taking
place
in
the
United
States
and
what
the
structure
of
the
banking
industry
might
look
like
in
the
future.
Mishkin
points
to
a
fundamental
puzzle
that,
in
a
sense,
defines
the
theme
of
this
volume:
for
many
years
-
between
the
1930s
and
the
1980s-
the
number
of
commercial
banks
in
the
United
States
was
remarkably
stable,
fluctuating
between
13,000
and
less
than
15,000;
yet
since
1985
the
number
of
banks
has
dropped
precipitously.
Mishkin
observes
that
part
of
the
consolidation
movement
might
be
explained
by
poor
profitability,
but
not
all:
since
1992
banks
have
been
highly
profitable,
but
the
merger
trend
has
continued.
Mishkin
attributes
the
most
recent
phase
of
consolidation,
in
part,
to
the
effect
of
geographic
deregulation
which
has
enabled
banks
to
expand
their
activities
across
state
lines.
Writing
from
the
perspective
of
a
central
banker,
Mishkin
takes
a
generally
favorable
view
of
the
bank
merger
trend,
subject
the
caveat
that
regulators
would
properly
become
concerned
if
competitive
pressures
caused
banks
to
take
undue
risks
with
depositor
funds.
Roy
Smith
and
Ingo
Walter
analyze
the
topic
from
an
international
perspective.
They
present
empirical
evidence
regarding
mergers
and
acquisitions
in
the
global
financial
services
industry.
They
examine
the
deal-
flow
during
the
eleven
year
period
from
1985-1995,
and
generate
a
global
typology
of
intra-
and
inter-sectoral
merger
and
acquisition
transactions
among
and
between
banks,
insurance
companies
and
securities
firms.
The
authors
identify
financial
services
as
one
of
the
most
active
industries
involved
The
financial
services
industry
in
the
United
States
and
around
the
world
is
undergoing
a
radical
transformation.
Rapidly
evolving
technological
changes,
coupled
with
the
enactment
of
the
Riegle-Neal
Interstate
Banking
and
Branching
Efficiency
Act
of
1994,
have
revolutionized
American
banking
and
triggered
a
wave
of
mergers
and
consolidations
of
a
scope
not
seen
since
the
Great
Depression.
Hostile
acquisitions,
once
nearly
unheard
of
in
the
U.S.
banking
industry,
are
no
longer
uncommon;
the
Wells
Fargo
acquisition
of
First
Interstate
is
only
one
of
the
more
visible
of
a
series
of
hostile
or
semi-
hostile
bids.
Financial
Institution
mergers
are
rapidly
becoming
a
global
phenomenon.
Japan
witnessed
the
mega-merger
of
the
Bank
of
Tokyo
and
Mitsubishi
Bank,
and
over
the
next
few
years,
there
will
undoubtedly
be
a
number
of
important
mergers
of
distressed
financial
institutions
in
that
country.
North
American
banking
markets
have
been
liberalized
under
NAFT
A
and
subsequent
Mexican
legislation.
In
Europe,
it
is
only
a
matter
of
time
before
major
banks
conduct
full
scale
operations
throughout
the
European
Union.
These
mergers
are
also
instigated
by
the
globalization
of
the
financial
services
industry.
As
the
playing
arena
is
now
the
world
financial
market
rather
than
the
more
narrowly
defined
and
historically
protected
national
markets,
financial
institutions
must
achieve
a
critical
size
in
order
to
compete.
Mergers
of
nationally
important
institutions
help
them
compete
effectively
with
large
foreign
competitors,
whose
penetration
into
the
domestic
markets
is
facilitated
by
new
technologies
and
relaxed
regulations.
Technological
innovations
and
developments
have
greatly
improved
the
operational
efficiency
of
the
financial
services
industry.
Electronic
home
banking,
improvements
in
communications
and
data
processing
technology,
and
the
enormous
opportunities
offered
by
the
Internet,
generate
economies
of
scale
and
scope
in
relevant
financial
markets.
This
improves
the
production
function
in
the
industry
and
increases
the
span
of
control
and
scope
of
operation
in
these
organizations.
While
these
changes
have
been
most
pronounced
in
the
commercial
banking
industry,
they
also
have
a
profound
impact
on
other
financial
institutions
-
C.I.P.
Catalogue
record
for
this
book
is
available
from
the
Library
of
Congress.
ISBN
978-1-4419-5187-8
ISBN
978-1-4757-2799-9
(eBook)
DOI
10.1007/978-1-4757-2799-9
Printed
on
acid~free
paper
AII
Rights
Reserved
©
1998
Springer Science Business
Media
Dordrecht
Originally
published
by
Kluwer
Academic
Publishers,
Boston
in
1998
Softcover
reprint
of
the
hardcover
1
st
edition
1998
No
part
of
the
material
protected
by
this
copyrights
notice
may
be
reproduces
or
utlized
in
any
form
or
by
any
means,
electronic
or
mechanical,
includ
ing
photocopying,
record
ing
or
by
any
information
storage
and
retrieval
system,
without
written
permission
from
the
copyright
owner.
MERGERS
&
ACQUISITIONS
Edit
ed
by
Y
AKOV
AMIHUD
and
GEOFFREY
MILLER
SPRINGER-SCIENCE BUSINESS
MEDIA,
B.V.
Nothing personal. No insult intended. Kotakji are not getting nowhere. That is my verdict.
...and I am Sid Harth
Kotak Mahindra group, established in 1985 by Uday Kotak, is one of India’s leading financial services conglomerates. In February 2003, Kotak Mahindra Finance Ltd. (KMFL), the Group’s flagship company, received a banking license from the Reserve Bank of India (RBI). With this, KMFL became the first non-banking finance company in India to be converted into a bank – Kotak Mahindra Bank Limited (KMBL).
In a study by Brand Finance Banking 500, published in February 2014 by the Banker magazine (from The Financial Times Stable), KMBL was ranked 245th among the world’s top 500 banks with brand valuation of around half a billion dollars ($481 million) and brand rating of AA .[2] [3] KMBL is also ranked among the top 5 Best Ranked Companies for Corporate Governance in IR Global Ranking.[4]
From Wikipedia, the free encyclopedia
Kotak Mahindra Bank Kotak Mahindra Group logo.svg
Type Public company
Traded as BSE: 500247
NSE: KOTAKBANK
Industry Financial service
Founded 1985 (as Kotak Mahindra Finance Ltd)
Headquarters Mumbai, Republic of India
Key people
Uday Kotak (Founder & Executive Vice Chairman)
C. Jayaram (Joint MD)
Dipak Gupta (Joint MD)
Shankar Acharya (Chairman)
Products Deposit accounts, Loans, Investment services, Business banking solutions, Treasury and Fixed income products etc.
Revenue IncreaseINR109.63 billion (US$1.8 billion)(2011)[1]
Net income IncreaseINR15.69 billion (US$250 million)(2011)
Website
Kotak Mahindra Bank is the fourth largest Indian private sector bank by market capitalization, headquartered in Mumbai, Maharashtra. The Bank’s registered office (headquarter) is located at 27BKC, Bandra Kurla Complex, Bandra East, Mumbai, Maharashtra, India.
In February 2003, Kotak Mahindra Finance Ltd, the group's flagship company was given the licence to carry on banking business by the Reserve Bank of India (RBI). Kotak Mahindra Finance Ltd. is the first company in the Indian banking history to convert to a bank.
As on June 30, 2014, Kotak Mahindra Bank has over 600 branches and over 1,100 ATMs spread across 354 locations in the country.
On the other hand, Bangalore-based ING Vysya has a large branch network in southern India and a strong presence in small and midsize business segments.
“It is a win-win deal,” said Manish Ostwal, head of research with Mumbai-based brokerage K.R, Choksey Shares & Securities Ltd.
“Kotak has the ability to pull up the operating margins with strong retail focus while ING Vysya has a strong asset book of small and medium enterprises,” Mr. Ostwal said.
The combined entity will better compete with big players such as Axis Bank Ltd. , India’s third largest nonstate bank by assets, he said.
ING Vysya’s chief executive officer designate Uday Sareen will be part of the top management and one of the bank’s directors will join the Kotak board.
India has had only a few bank mergers. In 2010, ICICI Bank Ltd. acquired Bank of Rajasthan. Before that, HDFC Bank Ltd. acquired Centurion Bank of Punjab in 2008.
Shares of both banks rallied on the Bombay Stock Exchange to touch 52-week highs on report
...and I am Sid Harth
ING Australia was purchased by ANZ in 2009, and rebranded as "OnePath" in 2010.[42] ING Direct Australia remains part of the ING group.
In December 2011, it was reported that ING Australia had been defrauded of US$45 million by an employee.[43] She was convicted and sentenced to 15 years jail.[44]
ING Investment Management
ING Investment Management is the principal asset manager of the Group and a leading global asset manager. Against the background of the Group realizing its global ambitions, ING Investment Management has also expanded across borders. Today, it is active in 33 countries, including some of the world’s fastest-growing economies, such as China, India, Brazil and many Eastern European nations. ING Investment Management operates along regional lines with centers of expertise in Europe, the Americas and Asia-Pacific.
ING Investment Management provides a comprehensive range of investment solutions and services to clients and partners. It manages assets for institutional clients, fund distributors and ING labels, with approximately €326 billion in AUM. Over 3,200 professionals manage client funds globally.[45]
ING Commercial Banking, London office
ING Commercial Banking provides banking and financial services to corporations and other institutions. The primary geographic focus of the commercial banking business is the Netherlands, Belgium, Poland and Romania, where it offers a full range of products, from cash management to corporate finance. Elsewhere, it takes a more selective approach to clients and products.
ING Commercial Banking was strengthened in 1995, when ING took over Barings Bank. This acquisition increased the brand recognition of ING around the world and strengthened its Commercial Banking presence in the emerging markets. Following the acquisition and up until 2004, ING's investment banking division was called ING Barings, at which point it severed its ties with the Barings name and combined with ING's other commercial banking operations. However, the top floor of ING's London office is still home to the Baring Art Collection,[34] and the Baring Foundation,[35] a charitable foundation.
Commercial Banking is divided into a number of sub-divisions, including Structured Finance, Financial Markets, Transaction Services and Corporate Finance.
ING Direct Australia was established in 1999 and is headquartered in Sydney, offering banking online and via telephone. Its products in Australia include Transaction accounts, Savings accounts, Business accounts, Term deposits and Home loans.
The company's operations are regulated by the Australian Prudential Regulation Authority and the Australian Securities and Investments Commission, Federal Government regulators. ING Direct is a division of ING Bank (Australia).
In October 2008, ING Direct suffered a US$749 million outflow of deposit funds. There had been some confusion as to whether or not the Australian Government's guarantee over funds on deposit applied to deposits up to US$1 million with ING DIRECT Australia.[citation needed]
ING Direct began operations in the UK in May 2003 and had over one million customers by 2009. Operations were based in Reading, where the company head office was situated as well as an office based in Cardiff. The bank marketed itself as offering good customer service and high interest rates, which were usually higher than its high street competitors, but not always top of comparison tables.[30] The bank has picked up awards for its customer services and mortgage product in 2008 and 2009.[31]
On 8 October 2008, ING purchased the savings accounts of the collapsed Icelandic bank, Kaupthing Singer & Friedlander, the UK Treasury used the Banking (Special Provisions) Act 2008 to transfer the Kaupthing Edge deposit business to ING Direct.[32] Through this, ING Direct took over responsibility for £2.5 billion of deposits of 160,000 UK customers with the Icelandic bank Kaupthing Edge. Some customers were dissatisfied[33] after ING lowered the exceptional high rate the collapsed Kaupthing was previously paying.
ING Direct products in the UK included Savings Accounts, Cash ISAs, Mortgages and Home insurance.
ING announced a plan to exit the UK in August 2012, as it sought to raise funds to repay a bailout from the Dutch government. On 9 October 2012 Barclays announced that it had agreed to buy ING Direct UK, taking on its £10.9bn deposits and £5.6bn mortgage book. ING said it would incur a €320m (£260m; $415m) after-tax loss on the sale, which would involve the transfer of 750 ING Direct staff and 1.5 million customers.[9]
Former ING Insurance at night in Minneapolis, Minnesota in the United States
ING launched a Unites States version of ING Direct savings bank in 2000, with headquarters in Wilmington, Delaware. ING Direct was a member of the Federal Deposit Insurance Corporation (FDIC).
In September 2007, ING Direct acquired 104,000 customers and FDIC insured assets from the failed virtual bank NetBank.[26] Two months later, ING Direct acquired online stock broker Sharebuilder.[27]
In June 2011, Capital One purchased ING Direct USA from ING for US$9 billion (€6.3 billion). The sale was completed on June 16, 2011 with the CEO of ING Group at that time Jan Hommen saying the sale "marks a further important step in the restructuring of ING Group. Yet at the same time we are saying goodbye to a very successful business and a dedicated team...".[28]
On November 7, 2012, Capital One announced that ING Direct's U.S. operations would be re-branded as Capital One 360 and this was completed in February 2013.[29]
See also: Tangerine (bank)
ING's history in Canada dates to 1997 when it founded ING Direct Canada, the first ING Direct operation in the world.[21] As of July 2011, ING Direct Canada had over 1.7 million clients, employed over 900 people and had over US$37.6 billion in assets. ING Direct Canada operated five 'Save Your Money Cafés' (branches) in the major cities of Toronto, Montréal, Calgary and Vancouver.
Its products included savings accounts, tax-free savings accounts (TFSAs), mortgages, retirement savings plans (RSPs), guaranteed investments (GICs), mutual funds, business accounts and a no-fee daily checking accounts. They were known for using a referral program as part of their advertising, allowing members to refer friends whereby both the referrer and referee receive a cash bonus.[22]
On August 29, 2012, Scotiabank announced that it would acquire ING Direct Canada for $3.13 billion.[23] The sale was completed on November 15, 2012.[24] In November 2013, Scotiabank announced the rebranding of ING Direct Canada as Tangerine with the rebranding taking effect on April 8, 2014.[25]
ING Direct is the Group's brand for a branchless direct bank with operations in Australia, Austria, France, Germany, Italy, and Spain. It offers services over the web, phone, ATM or by mail. The service currently focuses on simple interest-bearing savings accounts for retail customers. ING Direct Italy is currently opening its own "bank shops" in the major towns, where customers can operate services on usual web channels, assisted or not by branch operators, and use advanced teller machines for cash and check transactions.
On June 12, 2012, the U.S. Department of the Treasury’s Office of Foreign Assets Control announced a $619 million settlement[14] with ING Bank N.V. to settle potential liability for conspiring to violate[15] the International Emergency Economic Powers Act (IEEPA) and the Trading with the Enemy Act (TWEA) and for violating New York state laws by illegally moving billions of dollars through the U.S. financial system on behalf of sanctioned Cuban and Iranian entities. ING Bank’s settlement with OFAC is simultaneous with settlements with the U.S. Attorney's Office for the District of Columbia, the Department of Justice's National Security Division, the Department of Justice's Asset Forfeiture and Money Laundering Section and the New York County District Attorney’s Office.
Under the settlement agreement, ING Bank is required to conduct a review of, and to submit a report to OFAC regarding, its policies and procedures and their implementation, taking an appropriate risk-focused sampling of U.S. dollar payments to ensure that its OFAC compliance program is functioning effectively to detect, correct, and report any OFAC-sanctioned transactions that might occur.
Latin American divestment
In July 2011, ING divested all its Latin American insurance operations to the Colombian insurance group GrupoSura for US$3.85 billion, excluding ING's 36 percent holding in Brazilian insurer Sul America which will be sold at a later date. Sul America officially started operating the ING Investment Management, Wealth Management, Retire Funds and Pension businesses in Latin America (Chile, Colombia, Mexico, Peru and Uruguay) on February 13, 2012. ING Commercial Bank will keep its operations in Mexico.
The actions are in line with EU demands to split the Group's banking and insurance operations as a condition of Dutch state aid (see below).[13]
NN Group headquarters in Amsterdam
Due to the separation of ING Group into ING Bank and ING Insurance, the new head office of ING Bank and ING Group is located in the Amsterdamse Poort building as of September 2012.[12] ING House is now the head office of NN Group and located in the business district of Zuidas in Amsterdam, Netherlands. It was designed by Roberto Meyer and Jeroen van Schooten and was officially inaugurated on September 16, 2002 by then-Prince Willem-Alexander of the Netherlands. The light-infused building features a 250-seat auditorium, foyer, restaurant, library and an extensive art collection.
In November 2003, ING Groep N.V. appointed Michel Tilmant, vice chairman of the executive board, as its new chairman and successor to Ewald Kist.[10]
ING has offices in:[11]
Argentina
Australia
Austria
Belgium
Brazil
Bulgaria
China
Czech Republic
France
Germany
Greece
Hong Kong
Hungary
India
Indonesia
Italy
Japan
Kazakhstan
Luxembourg
Malaysia
Mexico
Mongolia
Netherlands
Philippines
Poland
Portugal
Romania
Russia
Singapore
Slovakia
South Korea
Spain
Switzerland
Taiwan
Thailand
Turkey
Ukraine
United Arab Emirates
United Kingdom
United States
Vietnam
ING Group expanded its international business through a number of acquisitions through the 1990s including Belgium bank Banque Bruxelles Lambert (BBL) in 1998, US based insurance company Equitable of Iowa and the commercial bank Furman Selz. It also acquired Frankfurt based BHF-Bank in 1999, although disposed of this later. It increased its Latin American and Asia Pacific's insurance businesses with the acquisition of ReliaStar and Aetna's Financial Services unit. It also acquired the Polish Bank Śląski and Mexican insurance company Seguros Comercial América.
However it was the 1995 purchase of Barings Bank after its dramatic failure that saw of ING Groups investment banking business boosted significantly.
To expanding its retail banking business overseas, rather than create a branch network, it used the direct banking business model it had develop with NMB Postbank to launch an overseas direct banking businesses called ING Direct. The first of these was set up in Canada in 1997, this was soon followed in a number of other countries including the US, UK, Germany, France and Australia. The no frills high rate savings accounts that could only be accessed on-line were a successful venture and spawned a number of similar services from rival banks.
Since the ING Group was founded it has made several acquisitions:
ING Group structure.svg
Organization Year Core business
Parcom 1994 Asset Management
Wellington 1995 Insurance
Barings 1995 Banking
Equitable of Iowa 1997 Insurance
Furman Selz 1997 Banking
Bank Mendes Gans 1997 Banking
Gaurdian 1998 Insurance
Clarion 1998 Asset Management
Bank Brussel Lambert 1998 Banking
Canadian Group Underwriters 1999 Insurance
Aetna 2000 Insurance
ReliaStar 2000 Insurance
Seguros Comercial América 2001 Insurance
Bank Slaski 2001 Banking
DiBa 2002 Banking
Allianc of Canada 2004 Insurance
Rodamco Asia 2004 Asset Management
ING Group traces its roots to two major Insurance companies in the Netherlands and the banking services of the Dutch government.
Insurance
In 1845 the fire insurance company the Assurantie Maatschappij tegen Brandschade de Nederlanden van 1845 (Fire insurance company of the Netherlands established 1845) was founded and grew to be the first insurance company with branches outside the Netherlands, of which it had 139 the world over by 1900. It later changed its name to "De Nederlanden van 1845". Two decades later in 1863 the life insurance company Nationale Levensverzekerings Bank (National Life Insurance Bank) was founded in Rotterdam. These two insurance companies would make multiple acquisitions before merging to form the combined insurance company the Nationale-Nederlanden in 1963. The combined insurance company would expand significantly during the 1970s and 1980s.[6]
Banking
In 1881 the Dutch government created the Rijkspostspaarbank, a postal savings system to encourage workers to start saving. Four decades later they added the Postcheque and Girodienst services allowing working families to make payments via post offices. Separately in 1927 the Dutch government initiated a reorganisation of Dutch banks which resulted in the creation of the Nederlandsche Middenstands Bank (NMB). NMB's focus was retail banking in the Netherlands and abroad.
In 1986 the post office banking services were privatised as Postbank N.V. and three years later it would merge with NMB bank to form NMB Postbank Groep.
Merger of banking and insurance
In 1991 the banking business of NMB Postbank Groep and the insurance business of Nationale-Nederlanden were merged to create ING Group, after changes in regulation that allowed banks and insurance businesses to work together.
1
Total Assets
($Billions)
Leverage
Ratio
5
(Percent)
Total Assets
($Billions)
Leverage
Ratio
6
(Percent)
U.S. G-SIBs
Bank of America
157
1,288
12.16
4.90
2,126
5.73
3,092
3.87
231
82
34
0.64
1.37
Bank of New York Mellon
17
115
14.80
...
361
3.94
378
3.75
36
23
0
0.94
2.74
Citigroup
144
1,084
13.24
4.90
1,884
6.05
2,680
4.19
196
33
55
0.76
1.40
Goldman Sachs
71
457
15.55
...
939
7.35
1,547
4.44
78
4
5
1.00
1.16
JPMorgan Chase
164
1,410
11.63
4.70
2,439
5.81
3,715
3.78
209
59
12
1.01
1.58
Morgan Stanley
57
403
14.07
4.20
803
5.85
1,549
3.00
63
10
7
0.78
1.08
State Street
14
82
16.63
...
227
5.37
233
5.24
20
8
0
1.49
2.60
Wells Fargo
133
1,097
12.12
...
1,441
8.25
1,499
7.92
162
48
0
1.47
2.17
Average U.S. G-SIBs
756
5,938
12.73
...
10,219
6.26
14,693
4.30
996
267
113
0.97
1.49
Foreign G-SIBs
Banco Santander (Spain)
82
684
12.00
...
1,599
2.94
106
35
26
0.74
2.14
Bank of China Limited (China)
136
1,469
9.28
...
2,136
6.44
143
2
3
0.83
0.86
Barclays (UK)
80
595
13.46
2.30
2,354
2.73
83
12
7
0.70
0.93
BBVA (Spain)
49
433
11.34
...
786
5.13
60
9
12
0.82
1.27
BNP Paribas (France)
100
736
13.60
3.40
2,433
3.58
113
17
10
0.66
0.90
BPCE Group (France)
61
511
11.84
3.00
1,518
3.60
68
7
7
...
...
Crédit Agricole Group (France)
79
664
11.91
3.50
2,541
3.11
99
20
...
...
...
Deutsche Bank (Germany)
71
411
17.26
3.00
2,497
1.93
75
19
9
0.57
0.91
HSBC (UK)
150
1,105
13.59
4.10
2,645
5.62
182
29
7
1.10
1.39
ING Bank (Netherlands)
52
363
14.28
...
1,085
3.86
46
2
2
...
...
Nordea bank (Sweden)
31
277
11.29
...
813
3.95
36
4
0
1.24
1.41
Royal Bank of Scotland (UK)
89
670
13.25
3.10
1,868
3.92
99
22
5
0.44
0.59
Société Générale (France)
52
410
12.70
3.00
1,639
4.25
70
0
...
0.45
0.45
Standard Chartered (UK)
42
324
12.97
4.60
650
5.60
43
6
1
1.17
1.38
UBS (Switzerland)
42
258
16.24
...
1,199
2.91
50
7
9
1.29
1.87
UniCredit (Italy)
64
537
11.93
...
1,163
3.86
85
20
22
0.34
0.70
Average Foreign IFRS
1,180
9,445
12.49
...
26,927
3.86
1,359
212
120
0.74
0.93
Other Foreign G-SIBs
Credit Suisse (Switzerland; CHF, U.S. GAAP)
49
308
15.87
...
958
3.39
47
8
7
...
...
Mitsubishi UFJ FG (Japan; JPY, Local GAAP)
119
912
13.02
...
2,292
5.49
139
11
3
0.76
0.86
Mizuho FG (Japan; JPY, Local GAAP)
68
599
11.43
...
1,727
4.08
78
5
3
0.90
1.05
Sumitomo Mitsui FG (Japan; JPY, Local GAAP)
74
639
11.53
...
1,424
5.46
89
8
3
0.94
1.14
Average All Foreign G-SIBs
1,490
11,902
12.52
...
33,329
4.04
1,712
244
136
0.79
0.99
Average U.S. BHC by Size Group
9
U.S. G-SIBs
756
5,938
12.73
10,219
6.26
14,693
4.30
996
267
113
0.97
1.49
Ten Largest Non-G-SIBs
179
1,525
11.74
1,891
8.40
1,899
8.37
230
71
7
1.07
1.64
Ten Largest Less Than $50 Billion
10
26
205
12.67
295
7.47
295
7.47
34
10
3
1.25
1.99
Ten Largest Less Than $1 Billion
10
1
7
12.71
10
8.27
10
8.27
1
0
0
...
...
Source: Bankscope (Data updated as of September 9, 2013), Bloomberg LP, Federal Reserve Y-9C Reports, International Monetary Fund, and 10-Q reports
Copyright © 2012 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights
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