STANDARD Chartered yesterday revealed it is buying rival bank Morgan Stanley’s wealth management unit in India, expanding the scope of its Asian operations even further.
The emerging markets specialist hopes to increase the scale of its business to cut costs and so improve profits in the sector.
The unit has $800m (£525m) in assets under management, compared to Standard Chartered’s operations in the country which has around $3bn of client money.
Almost $5m is changing hands for control of the majority of the unit, and the transaction is expected to be completed by the end of this year.
Standard Chartered has been on a 10-year run of record annual profits, but analysts fear it may not match that this year. But the British bank remains keen on growing market share in the fast growing economy.
“Morgan Stanley’s onshore private wealth management business represented less than five per cent of its India revenues in 2012,” the bank said in a statement. “The firm continues to stay focused on its core institutional securities, investment banking and asset management businesses in the country.”
Standard Chartered’s shares rose 0.1 per cent on the day while Morgan Stanley’s were flat.