DBS Group Holdings expects to expand its wealth management
operations as Asia's wealth grows, accounting for as much as 20 per cent of the
bank's total income over the next few years, Piyush Gupta, the CEO of Southeast
Asia's largest bank by assets, said.
"Our (wealth management) business has doubled in the
last 5 or 6 years and is close to 15 per cent of DBS's top line income. Our
ambition in the next few years is to get it to 20 per cent of the bank,"
said Mr Gupta, ahead of a Reuters Newsmaker in Singapore on Thursday.
Under Mr Gupta, 57, who took over the reins in 2009, DBS has
more than doubled its profits, broken into the ranks of top five private banks
in Asia Pacific and turned around its underperforming Hong Kong unit.
DBS and the private banking arm of rival Oversea-Chinese
Banking Corp are jostling for market share in a highly competitive wealth
management business in Asia, led by global players such as UBS and Citigroup.
DBS has diversified its business franchise to focus more on
transactional banking and wealth management but the bank still earned about 70
per cent to 80 per cent of its profits from Singapore in recent years,
highlighting its dependency on its home market.
Mr Gupta said he does not believe acquisitions "at
scale" are the way to go for DBS, but the bank will continue to consider
bolt-ons to expand its presence overseas.
Income from DBS' wealth management unit jumped 19 per cent
to S$1.7 billion in 2016. State investor Temasek Holdings owns a nearly 30 per
cent stake in DBS.
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