OCBC to buy NAB wealth business in S'pore, HK
SINGAPORE: Singapore’s Overseas-Chinese Banking Corp (OCBC) said yesterday it would acquire National Australia Bank’s (NAB) private wealth business in Singapore and Hong Kong, increasing its mortgage portfolio by around four per cent.
The lender didn’t disclose the size of the deal, only saying the amount would be around the book value of the business at the time of completion. The deal would add 11,000 customers and US$1.7 billion (RM7.39 billion) worth of business to OCBC’s mortgage portfolio.
Singapore banks have been expanding their wealth management operations in recent years as they struggle with their exposure to the stressed oil and gas services sector.
“NAB’s broader strategy is to focus on Australia and New Zealand — it doesn’t surprise me they’re selling off in Singapore and Hong Kong,” said Morningstar analyst David Ellis.
NAB last year announced a management shake-up and a renewed focus on local businesses.
It spun off its United Kingdom operations and withdrew from businesses in the United States. It also sold 80 per cent of its life insurance unit to Japan’s Nippon Life for A$2.4 billion (RM7.68 billion) last October. Reuters