DBS Bank will acquire the wealth management and retail banking business of ANZ in five markets for approximately SG$110 million. The portfolio of businesses being acquired is in Singapore, Hong Kong, China, Taiwan and Indonesia.
The acquisition will also add a large customer franchise to DBS in Indonesia and Taiwan, which are key markets for the bank. In Indonesia, DBS will gain about 410,000 customers, effectively increasing its base by six times. In Taiwan, DBS will add around 530,000 customers, expanding its base by 2.5 times.
A significant portion of these are credit card customers. With a larger scale in both markets, the bank will be able to fast-track the build-out of its digital strategy.
Tan Su Shan, group head of consumer banking and wealth management of DBS, said, “ The acquisition will further cement our leadership position. It also gives ANZ’s wealth customers access to more tailored solutions and a full suite of universal banking products supported by Asian insights, research and investment advice. At the same time, the transaction provides us with a significant consumer platform in Indonesia and Taiwan that will enable us to more quickly build out our digital agenda.”
David Hisco, ANZ’s group executive Asia, retail and wealth, added, “It was important for us to find a buyer that could take the business to the next level for customers in Asia. DBS is the best choice. This transaction represents a great opportunity for our customers and the majority of our staff in the region to fully benefit from a progressive and dynamic bank.”
DBS serves about 1.3 million customers, of which over 100,000 are affluent/ private wealth customers and 1.2 million are retail customers. Moreover, with the acquisition, DBS will add SG$ 23 billion in wealth AUM to its books, with high net worth clients accounting for SG$6 billion. This will take DBS’ high net worth and total wealth AUM to SG$115 billion and SG$182 billion respectively.