DBS to buy ANZ's Asian wealth assets for $80m

It may also bid for a Dutch bank.

DBS Group plans to buy Australia and New Zealand Banking Group's wealth and retail businesses in five Asian markets - part of a big private banking push for the Singapore lender and the first significant retreat from Asia for ANZ.

The businesses in Singapore, Hong Kong, China, Taiwan and Indonesia, will be sold for around S$110 million ($80 million), in a deal that underscores how smaller players are being squeezed out of private banking due to lack of scale.

DBS and local rival Oversea-Chinese Banking Corp have been aggressively bidding for the Western private banking assets for sale in Asia.

DBS is also weighing a bid for ABN AMRO's Asian private bank, sources have told Reuters.

The news comes as Singapore's biggest lender posted a slight increase in third-quarter net profit, in line with expectations, although bad debt provisions rose sharply due to its exposure to the troubled oil and gas sector.

ANZ said it would take a loss of A$265 million on the sale, including write-downs and added the sale was expected to increase its Tier 1 capital ratio by 15 to 20 basis points. The losses are set to be booked in the first half of the current financial year.

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