SINGAPORE: DBS Group Holdings said first-half net profit in China rose 160 per cent from a year earlier. Southeast Asia's largest lender said it was a record, driven by a 90 per cent increase in deposits.
According to a statement distributed before a briefing in Beijing on Tuesday, the bank plans to open three more outlets in China this year. DBS opened six outlets this year and currently has a total of nine branches and 13 sub-branches in China and has a staff strength of over 1,400.
DBS Bank said they were bullish on the long-term growth of China's business,
DBS Group chairman Peter Seah said: "DBS China's strong first-half growth is testimony of our bank's strategy."
DBS China booked record first-half earnings of 300 million yuan or more than S$58 million this year. That is more than double on-year, boosted mainly by loans growth.
DBS Group chairman Peter Seah said: "We'll probably focus on the lending business particularly in the corporate sector. But we'll be focusing on the consumer market particularly in the mass affluent sector... We think wealth management offers enormous opportunities for DBS."
DBS China added that it has garnered about 20 per cent of the offshore RMB interbank FX market in Hong Kong. This is another area which DBS wants to grow.
Piyush Gupta, CEO of DBS Bank, said: "I see no reason why we can't hold a reasonably significant market share position... I don't expect it to go up from 20 per cent but certainly staying in the high 10s to around 20 per cent, I think we can do that."
In Singapore and Hong Kong, it has booked over US$6.7 billion of RMB trade-related assets as at end-August 2011. This is more than five times that as of end 2010.
DBS China said it is also continuing to recruit, adding staff across all functions and particularly in the areas of consumer banking as well as technology and operations.
Mr Seah said DBS was committed to growing in China despite increasing global uncertainties. He said while Asia was not immune to the downturn, China is expected to reinforce its position as a global economic powerhouse.