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<p><span style="color: #000080;"><a style="color: #000080;" href="http://dealstreetasia.com/tag/ocbc" target="_blank" rel="noopener noreferrer"><strong>OCBC Bank</strong></a></span> on Thursday announced that it has entered into an agreement to acquire <strong><a href="http://dealstreetasia.com/tag/national-australia-bank" target="_blank" rel="noopener noreferrer"><span style="color: #000080;">National Australia Bank’s (NAB</span>)</a></strong> private wealth business in Singapore and Hong Kong.</p></article>

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<p><span style="color: #000080;"><a style="color: #000080;" href="http://dealstreetasia.com/tag/ocbc" target="_blank" rel="noopener noreferrer"><strong>OCBC Bank</strong></a></span> on Thursday announced that it has entered into an agreement to acquire <strong><a href="http://dealstreetasia.com/tag/national-australia-bank" target="_blank" rel="noopener noreferrer"><span style="color: #000080;">National Australia Bank’s (NAB</span>)</a></strong> private wealth business in Singapore and Hong Kong.</p>
<p>As at end February 2017, the business comprised a mortgage portfolio amounting to about $1.7 billion (S$2.39 billion) and a deposit portfolio of about $3.05 billion (S$4.28 billion). The business serves 11,000 customers across the two markets.</p>
<p>The business will be earnings accretive to OCBC Bank within the first year of completion.</p>
<p>Neil Parekh, General Manager, Asia (ex-Greater China) at the National Australia Bank, comments: “We wanted a buyer that could meet our customers’ growing demand for a wide range of wealth management solutions in Asia. OCBC is uniquely qualified to do so. We will work closely with OCBC Bank during the transition to completion to ensure a smooth process for customers moving to a business with a comprehensive product offering and strong presence in Asia.”</p>
<p>According to a media release, the strategic rationale underlying the acquisition is that it grows OCBC Bank’s mortgage loans business and expands its customer base, gaining access to about 11,000 new customers; more than 7,000 in Singapore and about 4,000 in Hong Kong. The majority of the customers are Singapore and Hong Kong residents.</p>
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<p>The addition of $1.7 billion (S$2.39 billion) of mortgage loans will increase the overall size of OCBC Bank’s mortgage portfolio by about 4 per cent, based on its mortgage loans book of S$60 billion as at end March 2017.</p>
<p>In addition, the $3.05 billion in customer deposits being acquired are a mix of currencies that include the Australian Dollar, Hong Kong Dollar, Singapore Dollar and US Dollar. The deposits booked in Hong Kong will be transferred to OCBC Wing Hang, while those booked in Singapore will be transferred to OCBC Bank.</p>
<p>The mortgage portfolio that OCBC Bank is acquiring is well-supported by a broad pool of mainly residential properties with a weighted average loan-to- valuation ratio of below 60 per cent. It has had a strong track record with negligible delinquencies, reflecting its high credit quality and the affluent profile of the customers.</p>
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<p>More than half of the properties are located in Australia, the majority of which are in the major cities of Sydney, Melbourne and Brisbane. Properties in the UK, Hong Kong, New Zealand and Singapore make up the rest of the mortgage portfolio.</p>
<p>OCBC Bank will immediately derive interest income from the acquired mortgage loans upon completion.</p>
<p>Ching Wei Hong, COO of OCBC Bank, said, “This deal makes financial and strategic sense to us. A mortgage loans book of more than S$2 billion is not small. It would have taken us time and money to grow our mortgage loans organically by that amount. We are now getting an immediate boost to our mortgage loans book.</p>
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<p><strong>Also Read:</strong></p>
<p><span style="color: #ff0000;"><em><strong><a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/people-korea-geps-appoints-new-cio-indonesias-ocbc-nisp-to-start-prvt-banking-71181/">Asia Digest: Korea GEPS appoints new CIO; Indonesia OCBC NISP to start pvt banking</a></strong></em></span></p>
<p><span style="color: #ff0000;"><em><strong><a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/70078-credit-china-fintech-havenport-ocbc-nets-70078/">Singapore: Credit China Fintech picks Havenport stake; NETS buys OCBC arms</a></strong></em></span></p>
<p><span style="color: #ff0000;"><em><strong><a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/67997-67997/">Singapore: OCBC Wing Hang Bank sells stake in Hong Kong Life for S$425.8m</a></strong></em></span></p>
<p><span style="color: #ff0000;"><em><strong><a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/united-engineers-said-to-seek-bids-for-century-old-company-62052/">Singapore: PE, realty firms, real estate funds to bid for OCBC’s stake in United Engineers</a></strong></em></span></p>
<p><span style="color: #ff0000;"><em><strong><a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/sg-dealbook-65-59235/">SG Dealbook: OCBC targets startups with new account; UOB-IE partner to help SMEs internationalise</a></strong></em></span></p>
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OCBC Bank on Thursday announced that it has entered into an agreement to acquire National Australia Bank’s (NAB) private wealth business in Singapore and Hong Kong.

OCBC Bank to acquire NAB's private wealth business in Singapore

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OCBC Bank to acquire NAB's private wealth business in Singapore

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