Asia: OCBC buys NAB’s retail and wealth business

The Overseas-Chinese Banking Corporation (OCBC) has announced its agreement to buy National Australia Bank’s (NAB) retail and wealth business in Singapore and Hong Kong, which predominantly consists of retail businesses for mass affluent clients.

In a move mirroring Australia and New Zealand Banking Group (ANZ), who recently sold its retail division to DBS Bank, Australian banks are retreating from the retail business space in Asia. One of the reasons for the retreat of the Australian banks could be because non-domestic players spend notably more to augment their product and services beyond a boutique bank.

One of the reasons for the retreat of the Australian banks could be because non-domestic players spend notably more to augment their product and services beyond a boutique bank.

At the end of February 2017, the business to be acquired comprised of a US$1.7 billion (S$2.39 billion) mortgage portfolio, a US$3.05 billion (S$4.28 billion) deposit portfolio, along with approximately 11,000 customers across the two countries. The move is expected to be finalised before the end of 2017.

According to RFi Group data for Singapore Priority and Retail Banking Council (16H2), 52% of the market uses OCBC Bank, and 26% of affluent customers use OCBC Premier. This acquisition will likely increase OCBC’s share in the above markets.

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