The chief executive of Singapore's largest bank DBS said his ambition in the next few years is to have the wealth management unit contributing up to 20 percent of the bank's total income.
In an interview with «Reuters Newsmaker» in Singapore the ebullient CEO said that the wealth management business had doubled in the last 5 or 6 years and is close to 15 percent of DBS's top line income. The ambition in the next few years is to get it to 20 percent of the bank.
Acquisitive Moves
The growth of DBS’ wealth management franchise has been fuelled and underpinned by the organic growth of emerging Asian new wealth and also by the successful execution of its wealth continuum.
Following the successful acquisition of Société Générale Private Banking Asia in 2014, DBS Private Bank continued to grow.
More Purchases Coming?
Last year DBS and ANZ took the market by surprise when they announced that an agreement had been struck for the Marina Bay Financial Centre headquartered bank to acquire ANZ’s wealth management and retail banking business in Singapore, Hong Kong, China, Taiwan and Indonesia, for approximately S$110 million above book value.
The bank had also been mentioned as having looked at the Asian private banking units of ABN Amro which were eventually acquired by Liechtenstein's LGT Group.
However 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.
In its latest annual report the consumer banking and wealth management income at DBS rose 21 percent to S$4.28 billion. The growth was broad-based across loans, deposits, bancassurance and cards.
Wealth management income increased 19 percent to S$1.68 billion with assets under management growing 14 percent to S$166 billion.
