BAS completes buyout of Barclays’ wealth unit
(28 November 2016 – Singapore) The Bank of Singapore (BAS) has announced its acquisition of Barclays' wealth business in Singapore and Hong Kong.
Bank of Singapore announced that it has completed the acquisition of the wealth and investment management (WIM) business of Barclays PLC in Singapore and Hong Kong (Barclays WIM Singapore and Hong Kong).
The agreement was signed earlier in April. At that time, Barclays WIM Singapore and Hong Kong had assets under management (AUM) of around US$17.5 billion (A$23.6 billion). US$13 billion in AUM has been successfully transferred to Bank of Singapore, resulting in a purchase price – which was set at 1.75 percent of the AUM transferred upon completion – of US$227.5 million.
The additional AUM brings Bank of Singapore’s total assets under management to more than US$75 billion.
In addition to the acquisition, BAS has bolstered its wealth team by more than 60 hires.
Bank of Singapore’s Chief Executive Officer Bahren Shaari said: “I am pleased with the numbers coming from Barclays WIM Singapore and Hong Kong.
“The Barclays WIM Singapore and Hong Kong team have shared with us that their clients were more than convinced about the capabilities and competencies of Bank of Singapore. One key driver was the fact that we have organically grown the AUM from US$22 billion in 2010 to US$62 billion this year.”
“We now have one of the largest teams of close to 400 experienced bankers to serve ultra-high net worth individuals and high net worth individuals in our core markets, offering them our comprehensive range of investment ideas and solutions backed by strong research capabilities,” said Shaari.
Two former senior Barclays employees have been appointed as members of the Bank of Singapore management committee.
Singapore-based Vikram Malhotra and Hong Kong-based Andrew Sum come on board as Global Market Heads.
Speaking of his appointment, Vikram Malhotra said: “Speaking on behalf of my colleagues, we are delighted to join the big Bank of Singapore family. Throughout the past eight months, we have been collaborating to understand the work culture and corporate values, policies and processes. In the course of integration, we have come to appreciate Bank of Singapore’s sound business model and a product platform that enables us to offer a more comprehensive range of services to clients, as well as its strong culture of people development. The strong values of integrity and hard work really resonate with me and my team. We are excited about working as a team to grow Asia’s
Global Private Bank.”
Sum added: “Through this 8-month long integration exercise, Bank of Singapore has proven my initial perception of the bank to be right – a forward thinking organisation that provides innovative and relevant wealth solutions, and a strong emphasis on employee development. Hence, it is not a surprise that Bank of Singapore is seen as a strong and reliable brand, with the right values, amongst high net worth individuals and private bankers in the Greater China region.”
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