OCBC Bank said on Thursday that it has agreed to buy National Australia Bank's (NAB) private wealth business in Singapore and Hong Kong , a move which will give the Singapore bank immediate access to about 11,000 new affluent customers and add US$3.05 billion in customer deposits.
The purchase price is the book value, or net asset value, of the business at the time of completion of the transaction, which is expected to be before the end of the year, subject to regulatory approval. Based on the quarter ended March 31, 2017, the entire NAB's book value per share is A$17.98.
The Business Times understands that the purchase price of the NAB assets won't involve any premium to their book value. OCBC has said the business will be earnings accretive to the bank within the first year of completion.
As at end February 2017, NAB's business comprised a mortgage portfolio amounting to about US$1.7 billion (S$2.39 billion) worth of mainly residential mortgage loans, and a deposit portfolio made up of about US$3.05 billion (S$4.28 billion) worth of deposits of a mix of currencies.
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