Singapore-based OCBC Bank has agreed to buy private wealth operations of National Australia Bank (NAB) in Singapore and Hong Kong.

The deal will add a mortgage portfolio of around $1.7bn and deposits of about $3.05bn to OCBC’s books and offer OCBC access to about 11,000 customers across the two markets. OCBC said that the addition of mortgage loans will boost the size of its mortgage portfolio by about 4%.

The value of the deal will be determined depending on the book value of the acquired businesses at the time of the deal completion.

The deal is expected to be wrapped up in the end of 2017, subject to regulatory approval. Both the companies said that the transaction will not have a material impact on them.

OCBC Bank COO Ching Wei Hong said: “This deal makes financial and strategic sense to us. A mortgage loans book of more than S$2 billion is not small. It would have taken us time and money to grow our mortgage loans organically by that amount. We are now getting an immediate boost to our mortgage loans book.

“The mortgage portfolio to be transferred to us is a high quality and well-supported one. And the customers are in the affluent segment that we have been building. We are therefore pleased to acquire this base of customers that we can extend additional banking services to.”

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NAB executive general manager for international branches Peter Coad stated that the deal simplifies the bank’s operations in Asia and allows it to focus on business, corporate and institutional customers.

NAB general manager for Asia (ex-Greater China) Neil Parekh added: “We wanted a buyer that could meet our customers’ growing demand for a wide range of wealth management solutions in Asia. OCBC is uniquely qualified to do so.”

OCBC has been strengthening its wealth operations in the recent times. In 2016, the bank bought Barclays Bank’s wealth and investment management operations in Singapore and Hong Kong.