DBS to acquire Citi’s consumer banking business in Taiwan

[1]Scope of acquisition[2]Strategic rationale

Scales up DBS Taiwan in a market that is attractive for its wealth and technology sectors.

Combines DBS Taiwan’s strengths with that of an incredibly attractive and high-returns franchise. Citi Consumer Taiwan is widely considered to be the best foreign consumer bank in Taiwan, generating annual net profit of SGD 250 million on average, or a return on equity above 20%, in the two years before Covid-19. DBS will be acquiring a high-quality customer base, along with a top-class management team and productive workforce.

Accelerates DBS Taiwan’s growth by at least 10 years, making it Taiwan’s largest foreign bank by assets. The combined entity will have the largest credit cards balance, investment AUM, loan book and deposit base amongst foreign banks in Taiwan. This will provide synergies from economies of scale, including reduction of global and regional overheads. Citi Consumer Taiwan’s strong low-cost deposit base will also support the expansion of DBS Taiwan’s institutional and SME banking business.

Creates substantial shareholder value – the acquisition is expected to be accretive to earnings and return on equity immediately after completion.

Capital impactIntegration track record^[1] Based on exchange rate of NTD 20.75 to SGD 1 and will be adjusted according to the performance of Citi Consumer Taiwan at completion.
^[2] Comprises gross loans of SGD 11.3 billion (NTD 235.3 billion) and investment assets under management (AUM) of SGD 9.0 billion (NTD 186.6 billion)[END]About DBSWorld’s Best BankGlobal Bank of the YearBest Bank in the WorldWorld’s Best Digital BankMost Innovative in Digital BankingSafest Bank in Asiawww.dbs.com