Jakarta. DBS Bank has agreed to acquire the wealth management and retail banking business of the Australia and New Zealand Banking Group, or ANZ, in Singapore, Hong Kong, China, Taiwan and Indonesia to strengthen its position as one of the biggest wealth managers in Asia.
"This transaction becomes an important milestone for DBS Indonesia to significantly contribute to our franchise development," Bank DBS Indonesia president director Paulus Sutisna said in a statement on Monday (31/10).
Singapore-based DBS will gain about 410,000 customers in Indonesia, one of its key markets. This represents a six-fold increase.
"A bigger customer base allows us to accelerate and improve our agenda in developing digital banking and create a whole new customer's experience," he said.
The businesses acquired in five major Asian markets serving 1.3 million customers – which consist of 100,000 private wealth customers and 1.2 million retail customers – represent total deposits of S$17 billion ($12 billion), loans of S$11 billion, investment assets under management of S$6.5 billion and total revenue of S$825 million for the full year 2016.
"This acquisition will further cement our leadership position," Tan Su Shan, DBS group head of consumer banking and wealth management, said in a separate statement.
With the acquisition, DBS will add S$23 billion in wealth assets under management with high-net-worth clients accounting for S$6 billion. This will increase the lender's high-net-worth assets under management to S$115 billion and total wealth assets under management to S$182 billion.
However, DBS's capital position, earnings or net asset value per share will remain unchanged this year.
According to the statement, DBS expects the transaction to be completed "progressively" from the second quarter of 2017 onwards with the full completion targeted for early 2018.