DBS does not rule out future merger

DBS does not rule out future merger

SINGAPORE (Reuters): DBS Group, Southeast Asia's largest bank, will continue to pursue its ambition of being a world class Asian bank, although does not rule out merging with a global bank.

"Our challenge is to be world class while not operating out of New York or London," Chief Executive Officer John Olds told the Foreign Correspondents Association on Friday.

DBS has bought several banks in the last three years including DBS Thai Danu Bank, DBS Bank Philippines, Hong Kong-based DBS Kwong On Bank and PT Bank DBS Buana of Indonesia.

Olds said the group continued to look for acquisitions in the region, but not all markets were suitable to enter as there still needed to be a significant amount of reform.

"Worst case scenario - we don't get to build a regional bank, we don't see the kind of things that are worth buying and we become part of somebody else's franchise running the Asian part of that franchise."

"I don't happen to think that's threatening. I think it's much more interesting to really be the master of your own fate," he said.

The government, which owns 39.7 percent of DBS, has said it does not object to Singapore's biggest bank becoming totally foreign owned.

DBS earlier identified Hong Kong as an area where it needs a greater presence and is in the running to acquire Chase Manhattan's retail business in the territory.