atans1

Lose-lose for OCBC and Barclays

In Banks on 29/11/2016 at 3:49 pm

FT reports that Barclays has raised almost a third less than expected from the US$225m sale of its wealth and investment management business in Singapore and Hong Kong to OCBC.

 When the deal was announced in April this yr, Barclays had indicated it could fetch US$320m from selling the business, which had US$18.3bn of assets under management at the end of last year. It had tot the unit was worth US500m.

When the unit’s clients were given the choice of whether to join OCBC, some of them decided to either stay at Barclays or to leave for another bank. This reduced the price OCBC paid, which was fixed at 1.75% of assets under management.

While OCBC paid a lot less (one third less), it can’t be happy that so many clients don’t believe the BS about Bank of s’pore, it’s private bank.

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  1. Well BOS is still aiming to spend more to buy additional pte banking assets (liabilities?). Both DBS & BOS are reportedly looking at ABN Amro’s planned sale of it’s pte banking biz. UOB has been super conservative (comatose?) and focused on organic growth instead.

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