DBS Bank Taiwan (星展台灣) on Thursday said that it is aiming to complete the integration of Citibank Taiwan Ltd’s (花旗台灣) consumer banking operation with its own by August next year after the Financial Supervisory Commission (FSC) approved the approximately NT$93.6 billion (US$3.05 billion) deal.
DBS Bank Taiwan in January announced the plan to purchase Citibank Taiwan’s consumer banking business for its net assets plus a premium of NT$19.8 billion in cash, but the Singaporean bank did not disclose the full payment at the time.
The NT$93.6 billion deal is the biggest acquisition ever in Taiwan, FSC data showed.
Photo: CNA
DBS Bank Taiwan’s assets would rise from NT$477.4 billion to NT$852.7 billion after the acquisition, with its ranking rising to 18th among all banks in Taiwan, up from 26th, the data showed.
“The whole payment is tentatively set at NT$93.6 billion, but is to be finalized on the acquisition date, or Aug. 22 next year. Overall, the bargaining space would not be greater than NT$22 billion,” Banking Bureau Deputy Director-General Roger Lin (林志吉) told a news conference in New Taipei City.
The acquisition would help DBS Bank Taiwan enlarge its operations, create economic efficiencies, and provide innovative and comprehensive services and products, DBS Bank Taiwan general manger Lim Him-chuan (林鑫川) said in a statement.
The acquisition is expected to improve DBS Bank Taiwan’s market share and competitiveness in the nation’s credit card market, if the bank succeeds in retaining Citibank customers, the FSC said.
The number of Citibank Taiwan credit cards in circulation totaled 2.79 million at the end of last month, while spending totaled NT$21.2 billion, ranking sixth among all banks, commission data showed.
The number of DBS Bank Taiwan credit cards in circulation was 650,000 at the end of last month, while spending totaled NT$4.1 billion, ranking 17th, the data showed.
Combined credit card spending of the two banks stood at NT$25.3 billion last month, ranking sixth among all banks, the data showed.
Meanwhile, DBS Bank Taiwan, which has concentrated on digital banking by launching new mobile platforms and removing automated teller machines (ATMs), plans to remove all 66 Citibank Taiwan ATMs after completing the acquisition, Lin said.
Since DBS Bank Taiwan promised to offer more rewards for its account holders who transfer money or withdraw cash at ATMs of other banks, the FSC thinks that the bank’s removal of the 66 ATMs would not affect account holders’ rights, it said.
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