DBS Group partner Austrade, plans to expand Australian footprint

SINGAPORE: The DBS Group plans to expand Australian operations and double its lending book from A$11 billion (S$9.2 billion) to A$20 billion. As part of this, it has also partnered with the Australian Trade and Investment Commission (Austrade). The bank plans to capitalise on growing Australia-Southeast Asia trade.

The DBS-Austrade partnership will focus on enhancing trade and investment between Australian businesses and their counterparts in Southeast Asia, with a particular emphasis on Singapore, Indonesia, Malaysia, and Vietnam.

“Australian companies have been more domestic-centric. We are trying to change that narrative,” DBS CEO Tan Su Shan said. She highlighted the bank’s commitment to helping Australian firms expand internationally.

She mentioned AirTrunk, a data center operator that a Blackstone-led consortium acquired for A$24 billion last year, as a key example of successful investment beyond Australia.

DBS has recently announced quarterly results that exceeded expectations. A 35% year-on-year increase in wealth management fees reached a record S$724 million. The bank’s assets under management also rose by 13% to a record S$432 billion in the first quarter. It is also the first Singapore-listed company to hit a S$100 billion value.

Tan pointed out a shift among clients towards diversifying investments away from US dollar-linked assets. There is growing interest in currencies like the euro and yen. “We see people now looking at ‘where do I invest in yen’,” she said, reflecting a broader trend in global investment strategies.

The DBS-Austrade partnership is a first between the Australian trade agency and a Singaporean bank. It aims to provide valuable resources, including market insights, regulatory guidance, and connections with regional partners. DBS will also offer advisory services to help Australian companies with market entry strategies and financial planning.

Looking back on DBS’s growth in Australia, Tan highlighted the bank’s journey from serving seven clients in the real estate sector to over 300 clients across more than ten industries. Staff numbers have also increased to over 85.

“I’m especially proud of how our journey has evolved,” she said, mentioning the bank’s role in supporting both Asian companies entering Australia and local businesses expanding into Asia.

Australian businesses are expected to tap the strong opportunities that the growing middle class and rapid urbanisation in Southeast Asia provide.