Singapore-based DBS Group has agreed to acquire Royal Bank of Scotland Group's (RBS) retail and commercial banking businesses in China.
Under the agreement, RBS will transfer close to 25,000 retail and commercial banking clients in Shanghai, Beijing and Shenzhen to DBS China.
RBS’ customers in the three cities will now have an option to transfer their existing accounts and deposits to DBS China.
They will also have access to DBS’ Asian network, which includes 113 branches and 154 ATMS in the Greater China region, as well as its 80 branches and 1,000 ATMS in Singapore.
No amount was disclosed for the transaction, which is expected to be completed within six months.
DBS China CEO Melvin Teo said this landmark agreement enables DBS China to rapidly expand its retail banking customer base, grow its deposit base and correspondingly, accelerate plans to grow its loan portfolio, in a market that is of critical importance to DBS.
"We look forward to welcoming RBS’ retail and commercial customers and employees to DBS China and will work closely with RBS to ensure a smooth and seamless transition process," Teo said.
Currently, DBS China operates out of 16 outlets across Shanghai, Beijing, Tianjin, Suzhou, Shenzhen, Guangzhou, Dongguan and Nanning, with a new Hangzhou branch expected to be opened by year end.