DBS Bank has announced its intention to acquire the wealth management and retail banking businesses of ANZ in five markets, for around SGD $110M above book value.
DBS Bank will acquire the portfolio of businesses across Singapore, Hong Kong, China, Taiwan and Indonesia, which includes $17 billion in term deposits, $ 11 billion worth of loans, investment AUM of $6.5 billion and a total revenue value of $825 million for FY2016.
The Bank expects the transaction to create significant value for the bank, enable rapid scale-up of digital and tech strategy and create new financial values.
“The transaction provides us with a significant consumer platform in Indonesia and Taiwan that will enable us to more quickly build out our digital agenda,” said DBS group head of consumer banking & wealth management, Tan Su Shan.
“This acquisition will further cement our leadership position and customers access to more tailored solutions and a full suite of universal banking products supported by Asian insights, research and investment advice.”
DBS is set to increase its Indonesian customer base six fold, as well as adding a further 530,00 Taiwanese customers to its portfolio.
ANZ group executive, Asia research and wealth, David Hisco, said the ANZ and DBS’ aligned commitment to the Asian wealth management sector in Asia had seen DBS emerge as a choice seller.
“DBS is the best choice – its Singapore pedigree, strong Asian footprint, commitment to Asia and financial strength were key for us; this transaction represents a great opportunity,” he said.
“It was important for us to find a buyer that could take the business to the next level for customers.”
The transaction is expected to be integrated progressively from Q2 2017, with full completion across all markets by early 2018, subject to regulatory approval.