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.