Market update SNS REAAL / Friday, July 13, 2012
SNS REAAL repeats that in line with its strategic priorities it focuses on the run off of property finance loans and the strengthening of its capital position. In doing so, SNS REAAL is exploring various possibilities together with advisors. The sale of parts of its business activities is one of the options that is being explored. No decision has been made on any of the various possibilities.
ING Groep NV (ING) Monday said that intends to exercise its option for early repurchase of EUR 2 billion of the core Tier 1 securities at the next coupon reset date on 13 May 2011. The company also informed the Dutch State of its intention.
The repurchase of 200,000,000 core Tier 1 securities, for which the Dutch Central Bank has given its approval, has a nominal value of EUR 2 billion. The total payment will amount to EUR 3 billion and includes a 50% repurchase premium. ING noted that it will fund this repurchase from retained earnings.
Amsterdam-based ING was one of Europe's biggest casualties in the financial crisis and received a €10 billion rescue package from the Dutch government, of which half was repaid late 2009 from the proceeds of a rights issue. It still owes €5 billion, plus a €2.5 billion penalty that it has to pay in return for receiving government support.
ING flagged at the presentation of its full-year results last month that it planned to repay a "significant amount" of state aid this year. Chief Executive Jan Hommen said that the strong recovery of ING's banking business enabled it to speed up repayment plans.
A Dutch judge on Monday declared ailing bank DSB bankrupt after it failed to find a new buyer in the face of client withdrawals this month totalling 600 million euros (900 million dollars), a court statement said. As reported one week ago, DSB Bank was placed under Dutch Central Bank management, but on Sunday a last attempt to rescue the bank failed.
DSB Bank NV, run by the owner of the Dutch national soccer champion, was placed under the control of the central bank as the outflow of capital threatened the financial-services company’s existence.
DSB Bank’s solvency is under “great pressure,” the Amsterdam-based central bank said today, revising an Oct. 1 statement that the lender met requirements for solvency and liquidity. DSB’s problems weren’t caused by the credit crisis, Dutch Finance Minister Wouter Bos said at a press conference in Amsterdam, adding he has no concerns about other Dutch banks.