Tuesday, May 21, 2013

6:12 AM

While compiling information for financial investment in the AEC region, I happen to come across the fact that among the top 10 largest bank in Asia, the top 3 nearly share half of the market. To understand how they succeed, let’s have a brief look into their operations performance.

Apart from serving local business in Singapore, DBS covers international operations in HK, China, Taiwan, India and Indonesia – countries with large population and development, earning a total of operating income of 7 billion SGD in 2010). With the potential deal to acquire BDMN in Indonesia as well, even a wider coverage will soon happen.

OCBC known as the largest local bank in Singapore with operations in over 15 countries gaining massive market capitalization ranked as World’s strongest bank. It’s operations and market in the past 5 years has grown enormously around focus on the customer, establish a strong capital base and minimize risks.

Finally, UOB with operations in HK, Philippines, Indonesia, Malaysia and Thailand. When combined with ith various financial products and management principles. UOB reported profit for the fourth straight quarter of 25%, driven by operations such as capital markets and wealth management.

A good quote from Aberdeen Asset Manager Asia, Hugh Young gave on why Singaporean banks score so high in the global ranking is simply, Stupid things… simply because they don’t do the stupid things Western banks do.

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