UOB to sell asset management arm to Allianz Global Investors for S$555 million, sharpen wealth advisory focus
The sale, which includes excess cash, is expected to generate a pre-tax gain of about S$330 million for the bank
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[SINGAPORE] UOB is exiting the fund manufacturing business, selling its asset management arm to Allianz Global Investors (AllianzGI) for S$555 million as it moves towards an open-architecture wealth model focused on advisory and product distribution.
Excluding one-off transaction costs, the sale is set to generate a pre-tax gain of about S$330 million and raise Common Equity Tier 1 capital ratio by around 14 basis points, the bank said on Wednesday (Aug 5).
This shift comes as UOB lags behind the other two Singapore lenders in growing its wealth management business, said analysts.
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