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Indosuez in talks for CIC’s private banking ops in Asia Pacific
Posted on Friday, 16 June 2017 10:45
The global wealth management arm of Crédit Agricole is in exclusive discussions to acquire the private banking operations of Crédit Industriel et Commercial (CIC) in Singapore and Hong Kong.
Indosuez is using the purchase to accelerate growth in key markets, as part of its parent’s strategic plan, while reinforcing an existing footprint and position, and of course increasing its commercial offering.
The wealth management business is ranked 11th in the world based on tier 1 capital, according to the statement, and has 2,800 employees in 14 countries, including Hong Kong, Singapore and New Caledonia.
Owner Crédit Agricole has been simplifying its overall structure, rolling out digital-focused customer services, bolstering development dynamics in core business lines, and improving operating efficiency through cost cuts.
Meanwhile, CIC stressed it remains committed to Asia and will focus on further development and growth of its core corporate banking, structured finance and institutional businesses in the region.
Financial details of the potential sale and purchase have not been disclosed and while a deal is expected to be finalised by the end of the year, it is subject to approvals.
This is just the latest consolidation in Asia-Pacific’s wealth management industry over the last few years, as shown by Zephyr, the M&A database published by Bureau van Dijk.
Just last month Oversea-Chinese Banking Corporation announced plans to purchase National Australia Bank’s operations in Singapore and Hong Kong.
This came on the heels of ABN Amro completing the sale of its activities in these two hubs, and those in Dubai, to LGT Group.
Other companies that have given up trying to establish a wealth management foothold in Asia in recent years also include Barclays Bank, Société Générale and Australia and New Zealand Banking, among others.
© Zephus Ltd