DBS Bank, which in March this year said it had agreed to buy the Asian private banking business of Societe Generale, has completed this transaction, adding to a number of M&A deals in the sector.

DBS Bank, which in March this year said it had agreed to buy the Asian private banking business of Societe Generale, has completed this transaction, it announced today.

Following weeks of speculation earlier this year that a deal was in the works, Societe Generale agreed to sell its Asia private bank to DBS for $220 million cash sum to be received when the deal is complete, subject to an adjustment based on the net asset value and assets under management at completion.

The acquired business involves operations in Singapore and Hong Kong, as well as selected parts of SocGen’s trust business.

Following the transaction, DBS said its high net worth assets under management and assets under management for all wealth customers are now S$88 billion ($68.8 billion) and S$129 billion respectively.

The Asian and global wealth management markets have seen a flurry of M&A activity in recent years, both as a result of the re-ordering of financial institutions after the 2008 financial crisis, as well as driven by rising regulatory costs - which require economies of scale to absorb - and the fact that some firms have not succeeded in achieving critical mass in some markets. OCBC has bought the private banking business in Asia from Netherlands-headquartered ING, to create Bank of Singapore; Bank of America has sold its non-US wealth arm to Julius Baer; Morgan Stanley has sold part of its non-US business to Credit Suisse. Generali is selling its BSI private banking business – which has an important footprint in Asia. Royal Bank of Scotland is looking to offload its Coutts International business.

DBS Private Bank and Societe Generale Private Banking have also entered into collaboration agreements. Societe Generale clients will have access to DBS Private Bank's offerings in Asia while DBS clients may benefit from Societe Generale Private Banking's offerings in Europe as well as have access to a range of markets solutions designed by Societe Generale Corporate and Investment Banking.

The majority of employees from SGPB Asia, including management and relationship managers, will be moving over to DBS. Olivier Gougeon, formerly regional chief executive officer of SGPB Asia, will join DBS Private Bank as head of transformation, integration and the ultra-high net worth segment.

Tan Su Shan, group head of consumer banking and wealth management of DBS, said: “The growth of our wealth management business has been robust and sustainable, reflecting the confidence clients have in us. Today, we are already among the top ten private banks in Asia and the SGPB Asia acquisition further signifies our coming of age. With access to new clients and strong, experienced teams, this acquisition takes our business to the next level and will enable us to access products and capabilities beyond Asia. We are very excited about this deal and look forward to welcoming our new colleagues and clients to the expanded DBS family.”
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