Sources: ING interested in taking over Banca Popolare di Sondrio

Representatives of ING Groe NV, the largest banking group in the Netherlands, have met in recent weeks with those of Italy's Banca Popolare di Sondrio, amid plans to expand its presence in Europe through takeovers, sources quoted by Reuters said. They said the talks were at a preliminary stage and may not result in an offer from ING.

Representatives of ING and Sondrio declined to comment, Agerpres notes.

An ING offer would rival BPER Banca's 4.3 billion euro proposal for Sondrio in February, the latest in a wave of mergers and acquisitions (M&A) activity in the Italian banking sector. The largest shareholder of BPER and Sondrio is Unipol, Italy's second-largest insurance company, which owns almost 20% of each lender.

Unipol Chairman Carlo Cimbri confirmed on Friday that a foreign bank was considering a potential bid for Sondrio. He alluded to ING, saying that the bank interested in Sondrio had the color of a journalist's tie, which was orange. Sondrio already aims to distribute 1.5 billion euros to shareholders between 2025 and 2027, a level higher than in the past three years.

In February, ING announced that it was looking for opportunities to acquire rival banks in major European countries, including Italy, Spain and Germany. At the time, ING CEO Steven van Rijswijk was quoted by Reuters as saying that the bank was looking to grow its size and was open to significant deals in Europe.

Steven van Rijswijk said: "We want to expand into larger markets, including Italy, Spain and Germany. Mergers and acquisitions are an option everywhere, as long as they meet our criteria."

Although van Rijswijk did not name any specific target, he did not rule out the possibility that ING would be interested in Commerzbank, one of Germany's largest banks with a strong presence in the SME sector, a segment that ING wants to develop.

• ING diversifies its portfolio towards private banking

ING, known for its low-cost digital banking model, is diversifying its activities and seeking to consolidate its position in segments such as private banking for high-income clients, in markets where it already has a solid presence, notes news.ro.

"The bank is diversifying its activity and seeking to attract new customer segments, developing business lines such as private banking in markets where ING is already active," van Rijswijk explained.

ING currently derives most of its revenue from the Netherlands and Belgium, followed by Germany, while operations in Italy and Spain remain relatively modest.

Loans and mortgages in the Netherlands and Belgium account for about 55% of the bank's euro545 billion retail loan portfolio.

The European banking industry is in a new phase of consolidation, supported by record profits and rising stock markets.

Dutch Finance Minister Eelco Heinen recently acknowledged this trend, expressing hope that Dutch banks will play an active role as acquirers, rather than becoming targets for foreign financial institutions.