Scotiabank to buy ING Bank of Canada

By Melissa Shin  and  Wire services | August 29, 2012 | Last updated on December 5, 2023
2 min read

Scotiabank says it has reached an agreement to buy ING Bank of Canada from Netherlands-based parent ING Group for $3.13 billion in cash.

The deal adds $30 billion in retail deposits to Scotiabank’s balance sheet.

“We intend to preserve ING Direct as a standalone business and brand,” Rick Waugh, president and CEO of Scotiabank said during a conference call.

The deal, subject to regulatory approval, is expected to close by December. Scotia will keep all 1,110 Canadian employees of ING as part of the acquisition.

“We expect no change,” says Peter Aceto, president and CEO of ING Direct. “Scotiabank brings stable Canadian ownership to ING Direct, which will be an advantage for not only our customers but our employees.”

ING Group has agreed to allow Scotiabank to use its branding under licence, and future branding will continue to be distinct from Scotiabank. The brand transition is expected to take between 14 and 18 months.

Read: Canadians unhappy with banks

Scotia has forecast compound annual deposit growth of 4% to 5%, despite CAGR of 10% over the last five years. That takes into account embedded attrition.

“We also believe we can enhance ING’s profitability in the long-term to include some high-yielding lending assets,” Scotiabank adds. It also indicates it’s considering issuing credit cards.

Further, Scotia is announcing a public offering of 29 million common shares at $52 per share to fund the acquisition.

The Canadian ING business was established in 1997, attracting customers with its promise of no-fee banking. They could not only manage their accounts online, but also take out mortgages and invest in mutual funds. It is Canada’s eighth-largest bank and has 1.8 million customers.

In a release earlier this month, analysts said despite ING’s parent company’s recent bailout problems, deposits from customers at the Canadian arm were remarkably constant. One said long-term deposits are very valuable given new liquidity rules will be rolled in over the next two or three years.

Credit Suisse analyst Gabriel Dechaine guessed either Scotiabank or National Bank would scoop up ING.

Read: ING sells Canadian insurance assets and AGF buys ING’s mutual funds

“Both have relatively weaker deposit franchises in Canada and could take advantage of ING Direct’s established deposit gathering capabilities,” Dechaine said in a written statement, adding “Both banks have strongly embraced third-party distribution channels, relative to peers.”

ING Groep NV has been struggling to keep its balance sheet healthy amid bad loans and declining margins.

In February, ING sold ING Direct in the U.S. to Capital One for 489 million euros (US$600 million).

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Melissa Shin

Melissa is the editorial director of and leads Newcom Media Inc.’s group of financial publications. She has been with the team since 2011 and been recognized by PMAC and CFA Society Toronto for her reporting. Reach her at You may also call or text 416-847-8038 to provide a confidential tip.

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