DBS

DBS: More details of the deal with RBS. DBS to take over 25k retail and SME customers in China, comprising US$900m and RBS’s 600 employees. Deal to double DBS China’s existing 25k customer base and boost deposits from RMB40b by approx 15% to RMB46b…

As a result, DBS will reduce its loan-to-deposit ratio, from 79%, to within regulatory limits of 75%. DBS China currently contributes 4% to DBS’s rev and has a mkt share of 5.1%, increasing to 5.7% after the deal 70-80% of accounts expected to be successfully transferred and the deal to be done in 6 mths. No financial consideration in this deal, essentially free for DBS due to RBS wanting to exit the sector.