DBS And TD Waterhouse Agree To Form A Regional Online Financial Services Powerhouse
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50-50 joint venture to provide self-directed investors a full range of world-class investment services
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Customers Will Benefit From Multi-Channel, Multi-Market, And Multi-Product Financial Services And Investing
HONG KONG AND SINGAPORE, JUNE 20, 2001 - DBS Group Holdings Ltd (DBS), the largest banking group in Southeast Asia, and TD Waterhouse Group, Inc., the global online financial services company, today agreed in principle to enter into a 50-50 joint venture, creating a regional online financial services powerhouse. Commencement of the joint venture business is targeted for sometime in fourth-quarter 2001, subject to various ancillary agreements and regulatory approvals.
This new joint venture will provide self-directed investors access to a broad range of global investment services through the Internet, call centers, kiosks, and other distribution channels. The joint venture will combine TD Waterhouse's leading-edge technology and successful track record in online brokerage with DBS's strong regional franchise and distribution network. The new company will provide customers with investment services through a multi-market, multi-product and multi-channel platform. DBS and TD Waterhouse will transfer their current Asian online trading accounts, as well as existing technology and systems, to the joint venture.
Initially the joint venture will serve customers in Hong Kong and Singapore with plans to expand into other Asian markets, with Hong Kong as the hub for North Asia and Singapore for Southeast Asia.
DBS Group's Vice Chairman & Chief Executive Officer Philippe Paillart said that the new joint venture will be an important milestone in DBS's strategy to build an Asian securities powerhouse as it adds a world-class, self-directed online retail component to DBS's established retail advisory and institutional businesses.
"Over the last twelve months we have been in a building phase, with the acquisition of a majority stake in Vickers Ballas, which is part of our efforts to boost our retail advisory business; as well as enhancing backroom processing and settlement capabilities through a joint venture with SGX," said Paillart. "Providing self-directed retail customers with a full range of investment options is the next step of our overall strategy. This joint venture allows us to leverage on TD Waterhouse's expertise in providing these financial services online and enables DBS to provide its customers with more financial products, from more countries, through more channels, in the shortest amount of time."
With the creation of this joint venture and the accompanying expansion into Singapore, TD Waterhouse will extend its global reach further in Asia. Since its initial public offering in 1999, TD Waterhouse has been increasing the range of products and services offered in Hong Kong, significantly expanding its platform in Australia, and launching operations through joint ventures in Japan and India.
Steve McDonald, Chief Executive Officer of TD Waterhouse, said: "One of TD Waterhouse's key strategies is expanding our global reach. Bringing our services to new areas of Asia, such as Singapore, is an important part of this strategy, and we look forward to offering millions of customers in Asia the same high-quality online investing experience that has made us a leader elsewhere around the world. We are pleased to be allied in this effort with DBS Group, a recognized leader in Asia whose strong regional franchise and large distribution network will allow us to expand our presence quickly and effectively." The new joint venture company will combine a management team comprising both DBS and TD Waterhouse executives, and will operate independently as an affiliate of DBS and TD Waterhouse.
The new company will allow customers to trade stocks in Singapore, Hong Kong, the United States, Canada and other international markets. Customer will also have access to a broad range of financial products including mutual funds, placements and IPOs, fixed income investments, asset allocation tools and third-party research and information. Self-directed investors will be able to make trades and purchase investments through multiple channels, including call centers, Internet, mobile devices, web TV systems, or DBS branches.
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About DBS
DBS Bank is the flagship bank of DBS Group Holdings in Singapore. It is ranked among the top banks in Asia, and is the 70th largest in the world. A recognised leader in Internet banking and e-commerce, DBS is the market leader in Singapore-dollar loans and deposits, as well as equity and debt underwriting. Beyond Singapore, DBS Group serves corporate, institutional and retail customers through subsidiaries in Hong Kong, The Philippines, Indonesia and Thailand, and international banking services through a network of 13 overseas branches and offices. Recent developments for DBS Group Holdings Ltd. include the proposed acquisition of Dao Heng Group which was announced on April 11, 2001. With the acquisition, DBS will be the fourth largest bank in Hong Kong by assets.
DBS Securities is the securities arm of DBS Group. It has full stockbroking licenses in Singapore, Hong Kong, Indonesia, the Philippines, Thailand and India as well as offices in Malaysia and London. DBS Securities' presence in the region assures customers of its ability to provide them with in-depth research and expertise on the local and regional economies and financial markets.
In February 2001, DBS Securities announced its merger with Vickers Ballas Holdings to create a single Asian securities powerhouse. The new firm, DBS Vickers Securities will offer enhanced securities advice and securities and research capabilities for customers around the region, which include Singapore, Hong Kong, Thailand, the Philippines and Indonesia.
For more information about DBS group of companies and affiliates, please visit its website at www.dbs.com.
About TD Waterhouse
TD Waterhouse offers a wide range of financial products and services to Hong Kong investors, including access to securities traded in Hong Kong, the U.S. and Canada. Customers can trade and access information online (http://www.tdwaterhouse.com.hk), through WAP (https://wtdw.com.hk) or through registered representatives.
TD Waterhouse Group, Inc., (NYSE/TSE: TWE), also known as "TD Waterhouse," provides investors with a broad range of brokerage, mutual fund, banking and other consumer financial products on an integrated basis. Worldwide, TD Waterhouse currently services 4.6 million customer accounts in the United States, Canada, the United Kingdom, Australia, and Hong Kong. The firm also has joint ventures in Japan, India and Luxembourg to serve investors in those countries. TD Waterhouse can be found on the Internet at www.tdwaterhouse.com and on America Online at Keyword: TD Waterhouse.
TD Waterhouse's majority owner is TD Bank (NYSE/TSE: TD), which holds approximately 89% of the outstanding share capital of TD Waterhouse. Headquartered in Toronto, Canada, with offices around the world, TD Bank Financial Group offers a full range of financial products and services to approximately 13 million customers worldwide.
This release may contain forward-looking statements, including statements with respect to our operating goals. These statements, which reflect management's current beliefs and expectations, are subject to risks and uncertainties that may cause actual results to differ materially from these statements. Such risks and uncertainties include, but are not limited to, market volatility, decreased trading activity, the development and acceptance of new products and services, system delays and failures, competition, and general economic conditions. For a discussion of risks and uncertainties that may cause actual results to differ from those reflected in such forward-looking statements, please refer to our filings with the Securities and Exchange Commission, including the information included under the heading "Item 1. Business-Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended October 31, 2000.
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