SINGAPORE: Singapore’s biggest bank DBS Group is confident of achieving a return on equity ( ROE ) of 15 per cent to 17 per cent in the medium term or over the next three to five years, its chief executive said on Thursday.
At an annual general meeting, DBS Group CEO Piyush Gupta stated to shareholders that while rates have dropped from 5.5 % to the new normal, which is closer to 3 %, we still believe we can deliver 15 % to 17 % ROE.
Among its great Salmon businesses, such as wealth management and worldwide transaction services, are growing more quickly.
DBS, which is also Southeast Asia’s biggest banks by property, posted a record ROE of 18 per cent last month, which Gupta said was one of the highest among the biggest businesses worldwide. ROE in 2022 was 15 per share.
Meanwhile, DBS will allocate S$ 300 million to S$ 500 million ( US$ 369.99 million ) capital to its India operations over the next three to four years and grow profitable consumer and small and medium enterprises banking businesses there, Gupta said.
DBS is likewise bullish on China’s greater bay area, and China in the long term, Gupta said. In a S$ 376 million package, the lender announced at the end of December that it would increase its stake in Shenzhen Rural Commercial Bank in China.