Singapore-based DBS Bank said on Tuesday that it expects the purchase of part of Australia and New Zealand Banking Group (ANZ) assets in Taiwan to be completed in the third quarter of 2017 at the latest.
Jerry Chen (陳承亮), head of DBS Taiwan, said that the bank is scheduled to file an application with the Financial Supervisory Commission (FSC) in December to seek approval for the deal and hopes the transaction will be completed in the third quarter of next year.
Last week, DBS announced it would acquire ANZ’s retail banking and wealth management businesses in Taiwan, Singapore, Hong Kong, China and Indonesia for about 110 million Singapore dollars (US$79.14 million).
While ANZ decided to dispose of its retail banking and wealth management assets in Taiwan, the banking group said that its corporate banking remains operational in the country and it has no plans to withdraw from the Taiwan market.
However, ANZ said it would cut its branches in Taiwan to single digits from the current 11.
Chen said that the acquisition of ANZ’s retail banking and wealth management assets in Taiwan is expected to bring about 530,000 new credit card customers to DBS Taiwan, about 2.5 times its existing number of credit clients, which will help the company expand into the credit card market in Taiwan.
Chen said the deal is expected to create synergies in two to three years after the transaction is completed.
Piyush Gupta, Chief Executive Officer and Director of DBS Group, said that the acquisition showed the group’s determination to further penetrate the Taiwan market.
In addition to the acquisition of ANZ assets, Gupta said DBS will also speed up its development of a digital financial platform in Taiwan, a move that is expected to increase convenience for clients, allowing them to conduct businesses with the bank any time anywhere.
Chen said that Taiwan has become a priority market for DBS to develop and its business is growing steadily.
According to DBS Taiwan, the compound annual growth rate (CAGR) of DBS deposits and lending hit 22 percent and 17 percent respectively, from 2009 to 2015.
Source: Focus Taiwan News Channel