DBS

DBS: On the SocGen Asian private bank acquisition (SGBPA), Deutsche guides a potential win-win situation for both banks. Deal size is immaterial (0.7% of DBS FY13 book), does not look expensive based on previous private banking transactions in Asia (figure below). The deal will bring total high net worth AUM by 23% and total wealth AUM by 15%. DBS too thinks this is a good deal given the right size and minimal overlap as SGPBA focuses on ultra-high net worth clients with a north Asia focus. Also, DBS’s current AUM return is more than 90bp, and it intends to improve SGPBA’s AUM (~60bp) through execution, better infrastructure and a better distribution network. DBS hopes for a double-digit AUM growth in the next few years.