DBS Bank eyes more Asian banks

DBS Bank eyes more Asian banks

SINGAPORE (Reuters): Singapore's acquisitive DBS Bank plans to
buy more Asian banks in a bid to build itself as a leading
regional bank, vice president and chief executive officer John
Olds said on Monday.

Speaking to reporters at a lunch meeting, Olds, an ex-JP
Morgan banker who joined DBS seven months ago, said: "We are
going to have to do more before we can be viewed as a regional
franchise. We are still a Singapore franchise."

"We see an opportunity to be an Asian bank staffed by Asians
whose predominant focus is in Asia."

As the government-linked bank concentrated on consolidating
its franchise in the region, it would not consider selling out or
merging with an international banking group, he said.

"My focus is regional. It is up to the next management team to
decide whether it wants to go global."

Olds said DBS, which has drawn up a three-year plan after a
review with consultants McKinsey and Co and A.T. Kearney, would
target big banks in future acquisitions as opposed to small to
medium-sized banks in its earlier forays.

DBS, the country's largest bank as measured by shareholders
equity of Singapore $8.2 billion (US$4.8 billion), went on a
buying spree in the region last year.

It bought POSBank from the Singapore government and
controlling stakes in Thailand's Thai Danu Bank, Philippines'
Bank of Southeast Asia and Hong Kong's Kwong Oon Bank.

"We will continue to be opportunistic in our acquisitions but
we will be careful about small and medium-sized banks," Old said,
adding that to integrate a small bank was as time-consuming as
assimilating a larger one.

He said DBS would "love to make a significant acquisition in
Malaysia" but banking rules there did not allow for such a move.
He said DBS had held some talks with parties in Malaysia but it
was not willing to sink in capital and other resources unless it
could obtain a controlling stake in a bank there.