Banking News
- DBS plans to increase China outlets
Date: 30-May-2007 Sources: (Shenzhen Daily)
DBS Group Holdings Ltd., Singapore's largest lender, plans to sharply increase the number of outlets and staff in China as it boosts its retail banking services to tap the country's burgeoning middle class.
Teresa Lin, CEO of DBS Bank (China) Ltd., said Friday the bank aimed to increase its China outlets to 30-40 from five now, and boost its China headcount to at least 2,000 from 400, in five years.
By then, the China unit should account for 7-9 percent of DBS group profit, up from less than 1 percent now, Lin told reporters at an event marking the unit's local incorporation.
'Our retail banking services will target two types of domestic clients in particular, people who have at least 500,000 yuan (US$65,350) of assets, and the middle-class who have at least 8,000 yuan monthly salary,'Lin said.
China's economy is growing at about 10 percent a year.
Only foreign banks that are incorporated in China may operate accounts with less than 1 million yuan for Chinese individuals, according to China's banking rules.
Earlier this year, the government allowed the first four foreign banks, including Citigroup and HSBC Holdings Plc., to start locally incorporated businesses, which can conduct the same yuan retail banking services as those offered by domestic lenders.
DBS and others, including Hang Seng Bank and Wing Hang Bank, are among a second batch of overseas lenders to win approval.
Retail banking currently accounts for about 20 percent of DBS' China revenue, and Lin said she expected that percentage to double in five years.
'We want to see the two horses of our bank, retail banking and wholesale banking, race fast in China at the same time,'Lin said. 'We want to grow our market position to between No.3 and No.5 among all the foreign banks in China within five years.'
Shanghai-headquartered DBS Bank (China) Ltd., with 4 billion yuan in registered capital, officially opened last Monday.
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