DBS is maintaining its “buy” call on OCBC with $9.40 target price on its acquisition of the wealth and investment business of Barclays Bank in Singapore and Hong Kong.
In a Thursday note, DBS views the transaction as positive for OCBC as it will continue to raise the bank's wealth management income momentum.
“Since the acquisition of ING Private Bank Asia (renamed BoS), OCBC has successfully seen its wealth management income rise sequentially. This acquisition will further seal its wealth management business franchise. The acquisition is expected to be accretive to OCBC Bank's earnings per share and return on equity after the first year,” says the research house.
The acquisition will add US$18.3 billion ($24.8 billion) to OCBC's current assets under management (AUM) of US$55 billion (as at end-December 2015), an increase of 33% to US$73.3 billion. The acquisition also comes with an additional 1,800 customers.
DBS says the acquisition price is equivalent to 1.75% of price-to-assets under management (P/AUM), which is a similar multiple DBS paid for the wealth assets of Societe Generale (AUM acquired was
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In a Thursday note, DBS views the transaction as positive for OCBC as it will continue to raise the bank's wealth management income momentum.
“Since the acquisition of ING Private Bank Asia (renamed BoS), OCBC has successfully seen its wealth management income rise sequentially. This acquisition will further seal its wealth management business franchise. The acquisition is expected to be accretive to OCBC Bank's earnings per share and return on equity after the first year,” says the research house.
The acquisition will add US$18.3 billion ($24.8 billion) to OCBC's current assets under management (AUM) of US$55 billion (as at end-December 2015), an increase of 33% to US$73.3 billion. The acquisition also comes with an additional 1,800 customers.
DBS says the acquisition price is equivalent to 1.75% of price-to-assets under management (P/AUM), which is a similar multiple DBS paid for the wealth assets of Societe Generale (AUM acquired was
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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