The Business Times

DBS charts steady course in transaction banking

Risks in China-linked trade finance eased by the bank cherry-picking its clients

Published Tue, Apr 8, 2014 · 10:00 PM
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[SINGAPORE] In just five years, DBS Group has shot out of nowhere to become a worthy competitor in Asian trade financing - snatching an advantage from European banks that retreated to repair their balance sheets, and this comes as banks are eager to lift their fee income.

The performance has put pressure on its stock as investors turn wary on the bank's China exposure. But DBS is not backing down and is confident of its risk management in the area of trade finance, said Tom McCabe, head of global transaction services at DBS.

The fastest growth for DBS's transaction banking is from China, and among the three homegrown banks, DBS has the highest exposure - its China-linked loans make up 35 per cent of its loan portfolio.

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