DBS China on track for 50 Outlets by 2013

DBS China is on track for 50 outlets by 2013, with plans to open a total of at least eight new branches and sub-branches in 2011.

 DBS Bank, which has made significant strides in growing its China franchise over the past few years, today announced that it is on track for 50 outlets by 2013, with plans to open a total of at least eight new branches and sub-branches in 2011.

The new outlets will be established mainly in Shanghai, Beijing and Guangzhou. In the first four months of 2011, three DBS China outlets were opened in Hangzhou, Shanghai and Beijing, bringing DBS' network in China to nine branches and 10 sub-branches.

This year, DBS China also plans to double its current workforce of over 1,000 employees, with hires primarily in the areas of consumer and institutional banking.

In addition to expanding its branch network, as well as growing its consumer banking and institutional banking customer base, DBS China will be also deepening relationships through increased cross-sell of Treasury & Markets and Global Transaction Services products.

In 2010, DBS China expanded its customer base by over 40%. It also improved significantly its loan-to-deposit ratio (LDR) through almost doubling its deposit base. The bank's LDR is now within the stipulated 75% or less requirement. Year on year loans growth was strong in the double-digits range. A strong business performance, coupled with an improved credit environment, resulted in DBS China’s net profit doubling last year.

A landmark agreement was inked in December last year, offering RBS China’s retail and commercial banking customers in Shanghai, Beijing and Shenzhen the option of moving to DBS China. This will further bolster DBS China’s customer base. The transfer process is progressing well and is expected to be largely completed within the first half of the year.

Said DBS China CEO Melvin Teo: “DBS China had a strong year in 2010, and this year, we will continue to execute according to strategy, strengthening our processes, products and services, and people/ talent development. DBS is committed to the China market and targets to expand our branch footprint to serve our customers even better.”

DBS also announced that it has launched the DBS-Fudan Banking Programme in April, as it moves to identify talent for the bank. The programme will be jointly delivered by Fudan University as well as DBS bankers. Over a two-month period, Fudan University MBA / master degree students in Finance and Finance Engineering will be exposed to subjects such as Institutional Banking, Consumer Banking, Banking Technology and Operations, Risk Management and Compliance. The students will also be offered internship opportunities at DBS.

One of DBS’ strengths is its growing presence in the three key axes of growth - Greater China, Southeast Asia and South Asia. Today, DBS has a significant footprint in China, Hong Kong and Taiwan, with 110 branches and over 150 ATMs across these three markets. This allows DBS to offer seamless regional connectivity to customers, and to intermediate the increasing trade and investment flows within the Greater China region.

A large part of the DBS Hong Kong strategy is driven around intermediating flows within the Greater China region. In 2010, DBS Hong Kong had a very successful year in the red chips space, growing assets and revenues from the business by 80% and 190%, respectively. By moving quickly to capture opportunities arising from Hong Kong’s position as an offshore RMB centre, DBS Hong Kong now has a leading position in the RMB space. As at end-2010, it had the equivalent of over HKD 10 billion of RMB deposits.

In Singapore, DBS also launched a suite of offshore RMB products in February 2011. DBS leads the market with a comprehensive suite of CNH-related products including CNH deposits with inward and outward remittance capabilities, currency linked investments, CNH-denominated bonds and CNH-denominated unit trusts. Customer interest in these products has been very strong.

DBS shared its expansion plans in conjunction with Singapore Day 2011, of which it is a corporate sponsor. To be held in Shanghai on 16 April 2011, Singapore Day is a signature event aimed at engaging overseas Singaporeans and helping them stay connected with home and with one other. The event is held in cities with a significant number of overseas Singaporeans. There are an estimated 20,000 Singaporeans in China, with about 10,000 living in and around Shanghai.

DBS Group Chairman Peter Seah, who is in Shanghai in conjunction with Singapore Day, said: "China is a very important market to DBS. We are not only bullish about China’s potential, we also see it as being integral to our Greater China strategy. Today, DBS derives over 25% of our income from Greater China, and going forward, we are committed to investing even more to strengthen this franchise and bring value to our customers.”

To serve institutional banking and SME banking customers more seamlessly across the region, last year DBS set up various country desks. These include Singapore and Taiwan desks in China, as well as a China desk in Singapore.

In connection with Singapore Day, DBS China organised a gala customer dinner on 15 April 2011. The dinner was hosted by DBS Chairman Peter Seah, CEO Piyush Gupta and DBS China CEO Melvin Teo, and was graced by Singapore’s Deputy Prime Minister Wong Kan Seng.

Distinguished guests and customers watched the Singapore story unfold in an evening of glitz and glamour. All present were treated to special performances by Singapore artistes JJ Lin, the T’ang Quartet and Budak Pantai.

DBS was the first Singapore bank to be locally-incorporated in China in May 2007. Since then, DBS China has been registering strong growth. Last year, the bank underscored its commitment to China with the inauguration of DBS Bank Tower, a new headquarters building in Lujiazui, at the heart of Shanghai’s financial district.