Business

Wednesday February 15, 2012

DBS sees ‘exponential’ growth in China       


SHANGHAI: DBS Group Holdings sees “exponential” growth in its China business in the near term even as the world's second-largest economy slows, according to its chief executive officer.

As part of its plans to expand operations in China, South-East Asia's biggest lender said it planned to increase its workforce in the country to 2,000 this year from about 1,600.

DBS said net profit in its China unit doubled to more than 500 million yuan (US$79.40mil) in 2011, with revenue growing by 65%, making it the third largest market after Singapore and Hong Kong.

CEO Piyush Gupta said while the Chinese economy was set to slow, the bank was well-placed to maintain that strong momentum.

“In the big scheme of things in China, we are a very small bank. What this means is, therefore, we can still be nimble and we can still find opportunities in the niche areas we want to grow,” he told a news conference in Shanghai.

“We are quite confident in our ability to continue to grow our business in China exponentially in the near term.”

Last week, DBS chairman Peter Seah said a focus on the China, Hong Kong and Taiwan markets would see its revenue from Greater China rise to a third of the total this year from 30% last year.

The lender posted an unexpected 8% rise in fourth quarter 2011 earnings to achieve its best-ever annual profit, but analysts warned it might face a stiffer challenge in 2012 as Asian economies slowed.

Gupta said the bank was aiming to expand its business in both corporate and consumer banking in China.

The Singapore-based lender, which has 26 banking outlets in 10 Chinese cities, was planning to add 67 sub-branches annually in the near term, said Melvin Teo, the head of its China unit. Reuters

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