DBS Group's incoming president, Ms. Chen Shushan, will place particular emphasis on the development of high return on equity (ROE) businesses and generative artificial intelligence (AI).

Ms. Chen, currently the group's vice president, is set to take over from current president Piyush Gupta on March 28. When discussing her leadership style, she expressed her desire to be a president with a macro perspective and a strong sense of risk awareness.

Speaking at the earnings briefing on Monday, February 10, she said, "I believe Piyush Gupta is a leader who is hard to surpass, and we have different styles. Nevertheless, I will continue to uphold DBS's culture, operational approach, embrace of digital transformation, and our mission and focus on returns, whether it's high ROE businesses or leveraging generative AI to unlock productivity."

Ms. Chen emphasized her intention to integrate trends such as technological advancements and geopolitical developments into DBS's growth strategy, ensuring the group remains at the forefront, better serves its customers, and achieves sustained growth.

She also revealed that the group will hold a series of leadership workshops in the coming weeks to identify key initiatives for the short to medium term. Additionally, a series of personnel changes will be announced this week.

Ms. Chen highlighted that DBS has established robust data management and digital asset models, as well as developed numerous AI and machine learning models. Therefore, the group will continue to leverage emerging technologies to enhance customer experience and unlock more productivity, allowing employees to focus more on customer interactions and deepening relationships.

Wealth Management and Globalization as Key Business Focuses

She also pointed out that wealth management is undoubtedly one of the most promising areas. In the future, DBS will continue to optimize its services, not only focusing on high-net-worth clients but also strengthening services for mass affluent and priority banking customers.

Furthermore, globalization remains a key strategic direction for the group. DBS will further focus on the institutional banking and corporate banking sectors, foreign exchange sales, and global transaction services payments.

Ms. Chen believes that the Johor-Singapore Special Economic Zone (JSSEZ) presents numerous opportunities for Singaporean businesses, not only for small and medium enterprises but also for some large enterprises that can benefit from lower operating costs. "If the JSSEZ can develop similarly to the Guangdong-Hong Kong-Macao Greater Bay Area for Hong Kong, it would represent significant potential and opportunities for Singapore and DBS."

China Better Prepared for Trump 2.0; Group Focuses on Regional Trade Development

On Monday, US President Trump announced that he would impose a 25% tariff on all imported steel and aluminum products. Ms. Chen believes that China is better prepared to handle Trump 2.0, and the actual impact on the market may be limited, as the metals involved are relatively substitutable commodities and are primarily traded through exchanges.

Regarding the potential business impact of tariff wars, Ms. Chen stated that DBS is currently more focused on the development of trade within the Regional Comprehensive Economic Partnership (RCEP) and is concentrating on trade between ASEAN, Northeast Asia, and Europe. She noted that due to changes in the global trade environment, some multinational corporations from Europe and Asia are actively seeking to expand their operations in the region. "Regardless of what new announcements come from the Trump administration, we regularly conduct stress tests to ensure we remain sensitive to new developments."

She also mentioned, "Our previous forecast was for four US rate cuts in 2025, but we are now assuming two, likely concentrated in the second half of the year rather than the first."

New World Development Continues Normal Loan Repayments

New World Development, one of Hong Kong's four major developers, has recently been frequently cited as facing financial difficulties, leading to a decline in its stock price. Analysts have previously noted that DBS has approximately $1.5 billion to $2 billion in loans to New World, representing the highest exposure among banks.

At the press conference, Mr. Gupta stated that New World is seeking commercial refinancing and plans to monetize some of its assets. Additionally, it holds a large land bank in northern Hong Kong and premium assets in mainland China that are attracting market attention, and it is currently supporting its restructuring plan through asset monetization.

Regarding whether the bank will continue to provide financing, Mr. Gupta said that if a refinancing agreement is reached, it will be based on commercial terms. "Currently, our credit exposure to New World is not classified as Special Mention, and loans are being repaid normally."

However, he emphasized that DBS's loan-to-value (LTV) ratio for commercial loans in Hong Kong is around 50%, and most assets are trading above their valuations, indicating robust collateral coverage.