DBS expects Taiwan unit to turn profit next year

Singapore-based DBS Group Holdings Ltd expects its Taiwan unit to turn profit from 2009, Taiwan's Commercial Times cited DBS chief executive Richard D. Stanley as saying.

Stanley said currently DBS Taiwan unit is mainly engaged in credit services for small and media-sized enterprises (SMEs) and wealth management services.

In May, the Southeast Asia's biggest lender announced it had won approval from Taiwan's financial market watchdog Financial Supervisory Commission to take over failed Bowa Commercial Bank Ltd.

The acquisition will help DBS expand beyond its core markets in Singapore and Hong Kong, where it earns 90% of its profits, and further boosts its Greater China operations.

However, the Singapore lender does not have any plans to acquire a mainland bank so far, according to Stanley.