Wednesday, June 22, 2011

Bank of Singapore eyes China private bank launch end-Q3

SINGAPORE: Bank of Singapore, the private banking arm of Singapore's second-biggest lender OCBC , plans to start a private banking operation in China by the end of third quarter to serve a region that has one of the world's fastest growing number of millionaires.

The operation, which will be within OCBC China, is aimed at offering wealth products and services largely to entrepreneurs who are looking at investment opportunities to boost their wealth, CEO Renato de Guzman told a news conference at the official opening of the bank's new premises.

"With the renminbi appreciation and with exports slowing down, there is a shift for the high net worths to look into other ways to generate more income, grow their wealth," de Guzman said.

"Before it used to be very focused on 'My factory, I just keep growing my factory because of big margins from exports'", he said.

Bank of Singapore was formed in January last year after Oversea-Chinese Banking Corp completed its acquisition of ING's Asian private bank for $1.4 billion and merged it with its own private bank.

De Guzman, who used to head ING's Asian private bank, said client assets under management including loans grew by 20 percent to $32 billion at the end of 2010 from a year ago, and have risen to $36.3 by the end of May at an annualised pace of 30 percent.

Currently the bank has a staff of 780 people including 230 relationship manager, he said.

The private bank has no plans to build an onshore business in India and South Asian clients will continue to be served by a team of 100 bankers in Singapore, Hong Kong, Dubai and London.

A recent Boston Consulting Group report showed that wealth in India and China will increase at a compounded annual growth rate of 18 percent and 14 percent respectively, from end-2010 through 2015, faster than the 5.9 percent growth in global wealth. ' Reuters

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