The Bank seized opportunities
in 1998 to further extend its regional franchise. Notwithstanding the
economic downturn, we remain committed to becoming a leading bank in the
region. From our strong foundation in Singapore, we aim to create a
network of branches and subsidiaries located in key regional countries
that can deliver a comprehensive range of local and cross-border banking
products and services to an increasingly diverse customer base.
In March, DBS Bank acquired a 50.27% stake in
Thailand's Thai Danu Bank and shortly thereafter completed a 60%
acquisition of Bank of Southeast Asia (since renamed DBS Bank
Philippines). Integration of activities, systems and infrastructure of
the new banking affiliates is progressing smoothly. In December, we
announced a conditional voluntary offer for Kwong On Bank of Hong Kong
after receiving irrevocable undertakings from existing shareholders to
sell us a 65 percent interest.
The DBS regional network has now grown to include
1,424 banking locations including ATMs in 12 countries serving more than
5 million customers. In Shanghai, DBS Bank was in the second batch of
ten foreign financial institutions to be granted licences to conduct
Renminbi business. Our Shanghai Branch commenced Renminbi services in
April 1999.
