From Investing.com: 2024-11-08 23:00:51

DBS Group Holdings Ltd is considering expanding into Malaysia by acquiring stakes in local banks, including Temasek’s 29.1% stake in Alliance Bank Malaysia Bhd valued at $460 million. DBS, without a retail presence in Malaysia, is also eyeing Kuwait Finance House’s retail banking assets worth over $500 million. The move comes as Malaysia’s economy booms, with a 5.9% GDP growth in Q2 and a strong currency performance.

DBS, led by outgoing CEO Piyush Gupta, has been on an acquisition spree in the region, with a focus on strategic expansion. Gupta’s successor, Tan Su Shan, will take over in March 2022. DBS posted record quarterly profits in July-September, driven by fee income. The bank’s last attempt to buy Temasek’s stake in Alliance Bank in 2012 was thwarted by regulatory hurdles.

The Malaysian government, under Prime Minister Anwar Ibrahim, is seen as more receptive to foreign investments, prompting DBS to revisit its expansion plans. Discussions for acquiring stakes in Malaysian banks are in early stages and would require approval from the Malaysian central bank. DBS’ plan to enter Malaysia aligns with its strategy of seeking bolt-on acquisitions to support regional growth. The move also reflects the bank’s confidence in Malaysia’s economic prospects and growth potential.



Read more at Investing.com: Exclusive-Singapore’s DBS eyes Malaysian bank stakes in expansion push, sources say By Reuters