DBS seen as frontrunner for Barclays' HK, Singapore wealth units
Singapore's DBS Group Holdings is seen leading the race to buy British bank Barclays' Hong Kong and Singapore private wealth units, valued at as much as $300 million, sources with knowledge of the situation said today.
The other bidder left in the race is rival Singaporean lender Oversea-Chinese Banking Corp, the sources added. However, they cautioned that no final deal has been agreed and there could be last minute changes. "This is a race between DBS and OCBC," said one of the sources. Singapore's banks have been expanding in wealth management, picking up assets sold by some Western banks as they retreat to focus on their own markets.
A win for DBS would help strengthen its lead in wealth management among Singapore's three listed banks, while a victory for OCBC would enable it to overtake DBS. The sale is part of a restructuring by Barclays' new chief executive, Jes Staley, and comes as several European banks rethink their Asian strategy due to pressure at home to cut costs.
DBS, OCBC and Barclays declined to comment. Buyers of Barclays' Singapore and Hong Kong subsidiaries would gain access to $20 billion worth of private client assets, sources have said previously.