DBS Group Considers Bolt-On Acquisitions to Support Growth Strategy

DBS Group is pursuing additional acquisitions to bolster its geographic and business strategy while avoiding large-scale buyouts, according to CEO Piyush Gupta. Speaking at the Reuters NEXT forum in Singapore on Tuesday, Gupta stressed that despite rising geopolitical risks, the bank remains bullish on Asia, citing expansionary economic growth rates of 4% to 5%, almost twice as high as in other regions of the world.

Under Gupta’s 15-year leadership, DBS has focused on geographic expansion in China, India, Indonesia and Taiwan. Significantly, the bank acquired Citigroup’s consumer banking business in Taiwan last August, becoming the leading foreign bank in Taiwan by assets. Gupta said DBS intends to grow its wealth, SME retail and transaction services businesses through strategic add-on deals in key markets.

The bank has the largest stake in China’s Shenzhen Rural Commercial Bank, offering a strong presence in the Greater Bay Area. Gupta indicated that the investment could eventually lead to an IPO. DBS continues to post strong financial results, with shares up 23.1% this year, outperforming its peers on expectations of prolonged high interest rates.

(Disclaimer: Based on information obtained from the agency.)