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NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2017
34. SUBSIDIARIES (continued)
34.5 ACQUISITION OF WEALTH AND INVESTMENT MANAGEMENT BUSINESS OF BARCLAYS BANK PLC
In April 2016, the Bank, through its wholly-owned subsidiary, Bank of Singapore Limited (“BOS”), entered into an agreement to acquire
the Wealth and Investment Management business of Barclays Bank PLC (“Barclays WIM”) in Singapore and Hong Kong.
In November 2016, the acquisition of Barclays WIM was completed and the assets and liabilities of Barclays WIM were novated to BOS.
On the same day, BOS received cash of USD2,084 million (S$2,971 million) on Barclays WIM’s estimate of net liabilities transferred and
received cash of USD18 million (S$26 million) in 2017 for the assets acquired (comprising loans and advances to non-bank customers)
of USD2,357 million (S$3,359 million) and liabilities assumed (comprising deposits of non-bank customers) of USD4,459 million
(S$6,356 million). Total consideration paid was USD224.9 million (S$320.6 million).
Upon finalisation, the Group recorded goodwill of USD167.8 million (S$234.4 million) and intangibles of USD59.0 million
(S$82.4 million).
Full details are set out in the financial statements for the year ended 31 December 2016.
34.6 DISPOSAL OF INTERESTS IN SUBSIDIARIES
In June 2017, the Group completed the sale of its entire 100% equity interests in Banking Computer Services Private Limited (“BCS”)
and BCS Information Systems Pte Ltd (“BCSIS”) to Network for Electronic Transfers (Singapore) Pte Ltd (“NETS”) for an aggregate cash
consideration of $38.0 million. The Bank has a 33.3% shareholding interest in NETS. Accordingly, BCS and BCSIS ceased to be subsidiaries
of the Group.
The value of the identifiable assets and liabilities of BCS and BCSIS as at 6 June 2017 and the cash flow effect of the disposal comprised
the following:
$ million 2017
Identifiable assets and liabilities
Placements with banks
Other assets
Property, plant and equipment
Total assets 16.2
40.6
14.2
71.0
Other liabilities
Carrying value of net assets (52.0)
19.0
Cash consideration received
Carrying value of net assets derecognised
Cumulative exchange differences in respect of the net assets of the subsidiaries reclassified from equity on disposal
Gain on disposal 38.0
(19.0)
(0.4)
18.6
34.7 CONSOLIDATED STRUCTURED ENTITIES
The Bank has established a USD10 billion Global Covered Bond Programme (“the Programme”). Under the Programme, the Bank
may from time to time issue covered bonds (“the Covered Bonds”). The payments of interest and principal under the Covered Bonds
are guaranteed by the Covered Bond Guarantor, Red Sail Pte. Ltd. (“the CBG”). The Covered Bonds issued under the Programme will
predominantly be backed by a portfolio of Singapore home loans transferred from the Bank to the CBG. Integral to the Programme
structure, the Bank provides funding and hedging facilities to the CBG.
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OCBC ANNUAL REPORT 2017