UOB is divesting its asset management business to Allianz Global Investors for $555 million, the Singapore lender said on Aug 5. The sale is expected to generate a pre-tax gain of about $330 million and will increase UOB's capital ratio by an estimated 14 basis points, according to the bank.

UOB operates the asset management arm across eight Asian markets and will retain a long-term distribution partnership with AllianzGI to offer clients investment products. All 500 UOB Asset Management employees will transfer to AllianzGI, which has committed to maintaining their employment. The transaction is expected to close in 2027, subject to regulatory approval, The Straits Times reports.