Banks

RBS share drop accelerates on stress test flop

Stressed. Shares in Royal Bank of Scotland have accelerated their losses this morning, falling over 4.5 per cent after the state-backed lender came in bottom of the heap in the Bank of England’s latest stress tests. RBS failed the toughest ever stress tests carried out by the BoE, with results this morning showing the lender’s […]

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Currencies

Renminbi strengthens further despite gains by dollar

The renminbi on track for a fourth day of firming against the dollar on Wednesday after China’s central bank once again pushed the currency’s trading band (marginally) stronger. The onshore exchange rate (CNY) for the reniminbi was 0.28 per cent stronger at Rmb6.8855 in afternoon trade, bringing it 0.53 per cent firmer since it last […]

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Financial

Sales in Rocket Internet’s portfolio companies rise 30%

Revenues at Rocket Internet rose strongly at its portfolio companies in the first nine months of the year as the German tech group said it was making strides on the “path towards profitability”. Sales at its main companies increased 30.6 per cent to €1.58bn while losses narrowed. Rocket said the adjusted margin for earnings before […]

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Property

Spanish construction rebuilds after market collapse

Property developer Olivier Crambade founded Therus Invest in Madrid in 2004 to build offices and retail space. For five years business went quite well, and Therus developed and sold more than €300m of properties. Then Spain’s economy imploded, taking property with it, and Mr Crambade spent six years tending to Dhamma Energy, a solar energy […]

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Currencies

Nomura rounds up markets’ biggest misses in 2016

Forecasting markets a year in advance is never easy, but with “year-ahead investment themes” season well underway, Nomura has provided a handy reminder of quite how difficult it is, with an overview of markets’ biggest hits and misses (OK, mostly misses) from the start of 2016. The biggest miss among analysts, according to Nomura’s Sam […]

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Categorized | Banks

Barclays raises less than expected from Asia wealth unit sale


Posted on November 28, 2016

Barclays has raised almost a third less than expected from the $225m sale of its wealth and investment management business in Singapore and Hong Kong to Singapore’s Oversea-Chinese Banking Corp (OCBC).

When the deal was announced in April, Barclays had indicated it could fetch $320m from selling the business, which had $18.3bn of assets under management at the end of last year and was initially valued at about $500m.

However, when its Asian wealth management clients were given the choice of whether to join OCBC, some of them decided to either stay at Barclays or to join another bank, reducing the overall price of the deal, which was fixed at 1.75 per cent of assets under management.

Jes Staley, Barclays chief executive, said: “This is another example of the great progress we have made this year in Barclays non-core, as we aim to reduce risk weighted assets to £23bn in 2017 and reintegrate the remainder of the unit back into the group.”

The bank said it remained committed to Asia, where it still has offices in Singapore, Hong Kong, China, India and Japan after cutting jobs and pulling out of several smaller markets in the region.

Barclays said the deal would reduce its risk-weighted assets by about £800m. It follows the sale of the bank’s US wealth management business and of several retail banking and credit card operations in Spain, Portugal and Italy.

Last month, the British bank called time on 150 years in Egypt by selling operations in the north African country in a $500m deal and it is in the process of selling down its 50 per cent stake in its larger South African-listed operation.

Singapore-based banks have been busy acquiring several of the Asian wealth management businesses that have been sold in recent years by foreign banks that decided to sell up having struggled to achieve sufficient scale.

ANZ Banking Group said earlier this year it was selling its wealth management and retail business in Singapore, Hong Kong and three other Asian markets to DBS, the Singapore-based bank that also bought Société Générale’s Asian private bank in 2014.

But some big western banks, such as UBS, Credit Suisse, HSBC and Standard Chartered, are still seeking to expand in Asian private banking and wealth management, betting on continued rapid growth in the number of millionaires and billionaires in the region.

DBS last year became the fifth largest private bank in the Asia-Pacific region, after UBS, Citi, Credit Suisse and HSBC, according to a ranking of assets under management for rich clients published by Private Banker International. It is the first time a Singapore bank has broken into the top five in Asian wealth management.