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RHB to expand in Singapore, makes DMG & Partners Securities wholly-owned unit
RHB Banking Group intends to expand in Singapore and will make the Republic its hub for regional treasury and for originating regional business.
In a move to reinforce the Malaysian bank's presence in Singapore, the group said on Friday that it has acquired the remaining interest in DMG & Partners Securities from Deutsche Asia Pacific Holdings Pte Ltd.
The company has been rebranded RHB Securities Singapore Pte Ltd with immediate effect.
RHB signed a conditional share purchase agreement with Deutsche Asia Pacific late last year to acquire the latter's 49 per cent equity interest in DMG. This follows the merger between RHB Investment Bank and OSK Investment Bank in 2013, during which the 51 per cent stake held by OSK in DMG was transferred to RHB.
Mike Chan, RHB Investment Bank managing director said the completion of the acquisition will further enhance the group's presence in Singapore.
"Singapore is a key growth driver....will be the next biggest hub outside Malaysia," he said.
A main reason is that it is "easy to hire talent," he said.
RHB wants "to scale up Singapore aggressively," he said. The bank wants to turn Singapore into a treasury hub for regional fixed income, equities, FX as well as sales and trading, as well as a hub for originating regional business, he said.
The group has budgeted for the investment bank to grow by 200 people across the region.
The investment bank has 4,400 staff, of which 400 are in Singapore.
Last year DMG accounted for six per cent of the trading volumes for equities on the Singapore Exchange.
In 2014, the investment bank posted record profit before tax of RM345 million, with Singapore contributing about 15 per cent.
RHB is the fourth largest financial services group in Malaysia.