Thailand : ING reiterates: no sale of shares in TMB Bank
ING reiterates: no sale of shares in TMB Bank
BANGKOK, Oct 21 (TNA) -- After the Dutch-based ING Group received 10 billion euros to shore up its capital position, its subsidiary ING Life in Thailand, announced Tuesday that it would not sell its 30 per cent stakeholding in TMB Bank in this country, a senior executive said.
Deputy CEO Sompote Kiatkraiwal of ING Life in Thailand said the firm is now confident about its financial soundness after its parent company received financial support from the Netherlands government.
There should not be a business problem in Thailand and ING will continue to expand its businesses in this country next year, Mr. Sompote said.
ING announced earlier that it will issue 10 billion euros of core Tier-1 securities to the Dutch government. The transaction will bring ING Bank's core Tier-1 ratio to around 8 per cent, will strengthen its insurance balance sheet and will reduce the ING Group's debt/equity ratio to around 10 per cent.
The capital injection, in the form of nonvoting shares that ING called "core Tier-1 securities," will create "a strong buffer to navigate the current market and economic environment," ING said
The ING Group earned combined profits totalling 3 billion euros during the first two quarters of 2008, but suffered losses of about 500 million euros in the third quarter. Its Thai subsidiary did not suffer any losses in its life insurance reserves of about Bt9.5 billion.
The total insurance premiums of ING Life in Thailand are expected to rise 50 per cent next year from Bt4 billion in 2008, said Mr. Sompote. (TNA)
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