Thu, Jul 11, 2019 - Page 12 News List

DBS Taiwan receives NT$2.25bn injection

By Kao Shih-ching  /  Staff reporter

DBS Bank Taiwan general manager Lim Him-chuan, left, and DBS Bank Ltd chairman Peter Seah pose for photographers yesterday at a news conference in Taipei.

Photo: Kao Shih-ching, Taipei Times

Singapore-based DBS Bank Ltd (星展銀行) has injected NT$2.25 billion (US$72.21 million) in new capital to DBS Bank Taiwan (星展台灣) to fund the wholly owned subsidiary’s digital transformation, bank officials announced yesterday.

DBS Taiwan’s paid-in capital would increase from NT$30 billion to NT$32.25 billion, making it the third-largest foreign bank in Taiwan after Citibank Taiwan Ltd (台灣花旗), with NT$66 billion, and HSBC Bank Taiwan Ltd (匯豐台灣商銀), with NT$34 billion, Financial Supervisory Commission data showed.

DBS Bank bought the NT$2.25 billion worth of common shares issued by its subsidiary last month, DBS Bank Taiwan general manager Lim Him-chuan (林鑫川) told a news conference in Taipei.

It was the first time the local unit has raised capital by issuing common stocks since its establishment in 2012, Lim said.

With 1 million clients and a strong customer base, it is ready to move onto the next stage, he said.

“The capital injection proved our commitment to Taiwan, which has shown great potential in recent years, as the younger generation in Taiwan is embracing innovative banking and we are good at digitalization,” DBS Bank chairman Peter Seah (佘林發) said.

The funds would enable DBS Taiwan to upgrade its equipment and introduce more financial technology (fintech), such as application programming interface solutions, for corporate clients to provide them with improved financial and non-financial services, Seah said.

The Singaporean lender believes that digitalization is the future of banking and consumers can enjoy digital banking services without any inconvenience through the use of mobile payments, he said.

“Five years ago we saw the beginning of fintech, such as Alibaba [Group Holding Ltd (阿里巴巴)], and the financial evolution is going much faster today, with the new generation, regardless of retailer or customer, are using technology to do business,” Seah said.

Although Taiwan’s banking industry is often described as “saturated,” Seah said he is not worried, since DBS has a good performance record in Singapore, which is a more saturated market with 150 banks serving a population of 5 million people.

DBS Bank Taiwan plans to introduce new programs for wealth management, as local clients are still accustomed to saving money in bank accounts, Lim said.

It would also continue helping small or medium-sized firms grow by offering loans and other financial services, Lim said.

The lender reported double-digit percentage growth in pretax profits for last year and Lim said the momentum would continue this year.

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