Bloomberg reports that the $220m transaction includes private-banking operations in Singapore and Hong Kong as well as 'selected parts' of the bank’s trust business, DBS said in a statement Monday. The price represents about 1.75% of Societe Generale Private Banking Asia’s $12.6bn of assets as of December 31st.
The purchase will accelerate DBS’s growth by increasing its high-net-worth assets under management by more than 20%, the bank said. Singapore is poised to surpass Tokyo as the Asian city with the most ultra-rich people within a decade, a report from Knight Frank LLP showed this month.
'DBS has now made it clear that this segment of the market is strategically critical for future growth', Sebastian Dovey, managing partner of Scorpio Partnership, a consultancy, wrote in an e-mail. 'It will need to recognize the investment it now must make to establish the combined entity as a credible regional force'.
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