Wednesday, April 11, 2012

DBS to inject US$360m into China subsidiary

SINGAPORE: Singapore's DBS Group Holdings will inject 2.3 billion yuan (US$360 million) to expand its wholly-owned subsidiary DBS China, increasing its registered capital by nearly 60 per cent.

It will be the first time that DBS will be infusing additional capital into its China subsidiary since four billion yuan (US$630 million) was injected during its local incorporation five years ago.

The proposed capital injection is subject to regulatory approvals.

The investments will be in network expansion, headcount growth, infrastructure upgrades, consumer and corporate Internet banking platform enhancements and other technology developments.

DBS is looking to boost its exposure to growing emerging markets in the region.

DBS China CEO Melvin Teo said, "As one of the first foreign banks and the first Singapore bank to be locally incorporated in China five years ago, DBS has come a long way and established a firm foothold in the areas of corporate banking, trade finance, cash management, treasury and markets, as well as wealth management.

"Notwithstanding the challenging economic climate, last year was a good year for the bank overall and for DBS China in particular. Our 2011 net profit doubled from a year ago, crossing the RMB 500 million mark for the first time."

He added, "We set out on our journey to become The Asian Bank of Choice two years ago and I am very pleased to note that we have been steadily executing well against our stated strategy. Today, mainland China is the third largest revenue contributor to DBS Group, after Singapore and Hong Kong."

In January this year, DBS China opened its first inland China branch in Western China's biggest city Chongqing. Chongqing is home to 33 million people and is one of the largest cities in the world. It is also China's fastest growing city with 16.4 per cent GDP growth in 2011.

DBS group chairman Peter Seah said, "China is fast becoming a major driver of the world's economy and it is a privilege to be here in Chongqing, China's fastest growing city. I believe that in order to be a leading Asian bank, we have to be a key player in China.

"In 2011, our net profit exceeded S$3 billion, a historic first for the banking sector in Singapore. Greater China accounted for around 30 per cent of our total revenues and this year, we expect this proportion to further increase."

He added, "This is Asia's time and we are confident that we have the ability to seize the numerous opportunities before us as we seek to better serve our customers and create value for our shareholders."

Earlier this month, it announced a US$7.3 billion deal to acquire Indonesia's Bank Danamon.

View the original article here

Source From Channel News Asia

No comments:

Post a Comment