Bank of Singapore, the private banking arm of OCBC Bank, expects its assets under management (AuM) to rise from the current level of US$50 billion and touch US$80 billion mark in next three years.
Bank of Singapore, which acquired Asian private banking business of Dutch financial group ING in 2010, aims to boost the number of client-serving roles in Asia to target fast-growing Asian billionaires, Bank of Singapore chief executive Renato de Guzman told South China Morning Post.
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However, de Guzman said he did not expect any major acquisition after the 2010 deal with ING to boost the bank’s global presence.
Instead of any further major acquisition, the bank would be keen on hiring to expand its own team of so-called "relationship managers", De Guzman, who was also the CEO ING Asia Private Bank formerly, added.
"There is a consolidation story about private banking business in Asia. You can see IT [information technology], infrastructure, talent and regulatory costs are all going up. If your asset base is not big enough and your business is not growing, it’s better for you to get out.
"Private banking business is all about scale," De Guzman quipped.
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By GlobalDataHe also opined that rising costs have prompted the private banking industry to embark on a wave of consolidation in Asia.
"I understand some international banks including Societe Generale and Bank of America Merrill Lynch were forced to reduce or sell their private banking businesses mainly because of cost reasons," the publication further quoted him as saying.
