DBS Group Eyes Bolt-On Acquisitions to Support Growth Strategy

DBS Group CEO Piyush Gupta announced that the bank is looking for bolt-on acquisitions in line with its geographic and business strategies, avoiding major buyouts to prevent distractions. The Singapore-based bank remains optimistic about Asia due to robust economic growth and focuses on markets like China, India, Indonesia, and Taiwan.

DBS Group is seeking bolt-on acquisitions to enhance its geographic and business strategy while steering clear of large-scale buyouts, according to CEO Piyush Gupta. Speaking Tuesday at the Reuters NEXT forum in Singapore, Gupta emphasized that despite increasing geopolitical risks, the bank remains optimistic about Asia, citing expansive economic growth rates of 4% to 5%, nearly double compared to other global regions.

Under Gupta's 15-year leadership, DBS has targeted geographical expansion in China, India, Indonesia, and Taiwan. Significantly, the bank acquired Citigroup's consumer banking business in Taiwan last August, making it the leading foreign bank in Taiwan by assets. Gupta highlighted that DBS aims to build its wealth business, SME retail, and transaction services through strategic bolt-on deals in key markets.

The bank holds the largest share in China's Shenzhen Rural Commercial Bank, offering a strong presence in the Greater Bay Area. Gupta indicated that this investment could eventually lead to an IPO. DBS continues to post strong financials, with shares rising 23.1% this year, outperforming peers amid expectations of a prolonged high-interest rate environment.

(With inputs from agencies.)