Société Générale (SG) has completed the sale of its private banking activities in Singapore and Hong Kong to DBS for a cash consideration of $220m for the sale of the franchise which the French bank expects to have a positive impact on the Group Basel 3 Common Equity Tier One ratio.
Société Générale Private Banking (SGBP) and DBS Private Bank have also entered into collaboration agreements. These will enable Société Générale clients to access DBS's private banking offering in Asia while DBS's clients may benefit from Société Générale Private Banking's offering in Europe as well as have access to a range of market solutions designed by Société Générale Corporate and Investment Banking including its range of cross-asset structured solutions.
DBS Bank said there will be no immediate changes to the current 350-strong team at Société Générale's private banking business. The majority of employees from SGPB Asia, including management and relationship managers, will be moving over to DBS, said both firms in a statement. Olivier Gougeon, formerly regional chief executive officer of SGPB Asia, will be joining DBS Private Bank as head of transformation, integration and ultra-high-net-worth segment.
"By having access to DBS's universal banking platform including retail, corporate and investment banking, we are confident that clients will stand to benefit from an expanded suite of products and services," said Gougeon. "We also have a proven track record in structured products, derivatives and wealth planning which will go a long way in serving the more sophisticated needs of all clients."
DBS expansion
With the successful acquisition of SGPB Asia's business, DBS's high-net-worth assets under management and assets under management for all wealth customers are now SGD88bn ($68.7bn) and SGD129bn ($100.8bn), respectively.
"Today, we are already among the top ten private banks in Asia and the SGPB Asia acquisition further signifies our coming of age," said Tan Su Shan, group head of consumer banking and wealth management at DBS. "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."
DBS Bank has been an active player in the retail structured products market in both the Hong Kong and Singapore markets since 2001, and has issued more than 1,000 structures in the APAC region, of which 118 are still live products. DBS has launched 43 live structured products in Singapore and four structures in Hong Kong.
SG focus
The transaction will also allow Société Générale Private Banking to accelerate its development in its core markets and strengthen the services offered to its clients in Europe, Latin America, the Middle East and Africa.
"[The sale] ensures that our respective private banking clients benefit fully from the very best of the two banks in Europe and in Asia," said Jean-François Mazaud, head of Société Générale Private Banking. "It allows us to concentrate our efforts on strengthening our existing platforms in Western Europe and increasing synergies within Société Générale group."
According to Mazaud, Société Générale will pursue its development in Asia, in particular in Corporate & Investment Banking (CIB), where it has successfully focused on its strengths including natural resources financing, cross-asset solutions and equity derivatives, in order to position itself as a key player for its financial institution and corporate clients.