(16 October 2009 – Singapore) Oversea-Chinese Banking Corporation Limited (OCBC), announced that it has reached an agreement with ING Group to acquire its Asian private banking business for S$2.0 billion (A$1.55 billion).The consideration takes into account the estimated surplus capital of US$550 million of ING Asian Private Bank (IAPB).
The acquisition will more than triple OCBC’s private banking assets to A$24.8 billion and will position the bank to take advantage of the region’s burgeoning wealth management sector.
The purchase is also in line with the bank’s goal to become a leading private Asia bank.
The bank considers itself to be well placed to capture the opportunities provided by the rapid growth of Asia’s wealth management industry and Singapore’s unique position as a major private banking hub, attracting wealth from both within and outside Asia.
In terms of valuation multiples, OCBC Bank is paying 1.6 times ING Asia Private Bank’s net asset value at 31 August 2009, 17 times its normalised 2008 earnings, 3.4 percent goodwill over assets under management (AUM) and, adjusted for estimated surplus capital, 5.8 percent of AUM. The purchase will be funded by OCBC Bank’s existing resources.