Analysts: OCBC ratings unaffected by ING acquisition
OCBC's acquisition of ING's Asia private banking assets will not materially affect its strong capitalisation, according to Standard and Poor's. The goodwill generation is about US$538.4 million. The offered price is about 1.6x the net book value of ING assets as at the end of August 2009, with an estimated cash consideration of US$1.464 billion.
According to Standard and Poor's, the acquisition is a part of Oversea-Chinese Banking Corporation Limited's plan to diversify its revenue streams and strengthen its wealth management business in Asia. It expects OCBC to continue to manage its risks, while maintaining an adequate level of capitalisation when making future acquisitions.
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