Asia's DBS today reported a slight rise in group third-quarter net profit of S$862 million ($694 million), while its CEO was tight-lipped on whether it will bid for Societe Generale’s Asia private bank.

DBS, the Singapore-based banking group that provides services including wealth management, today reported a slight year-on-year rise in group third-quarter net profit of S$862 million ($694 million), while its chief executive was tight-lipped on whether his firm may bid for Societe Generale’s Asia private bank.

The Asian banking group reported net interest income of S$1.406 billion in the third quarter, up from S$1.332 billion a year ago; total expenses were S$462 million, a 9 per cent year-on-year increase. It has a total capital adequacy ratio of 15.9 per cent and a total cost/income ratio of 44.1 per cent.

As far as its consumer banking/wealth management arm was concerned, DBS logged a pre-tax profit in Q3 of S$179 million, up from S$134 million a year before, it said in a statement.

Piyush Gupta, DBS’s chief executive, fielded questions from reporters today on where the firm stands in any move to buy the Asian private bank of Societe Generale. More than a month ago, it was reported that the Paris-listed firm had put this business unit up for sale although SocGen has declined to comment when asked by this publication.

On 21 October, Bloomberg reported - citing several unnamed sources - that BS Group, had advanced as a potential buyer bidding for Societe Generale private banking assets in Asia. Societe Generale has selected about five suitors to study the unit’s finances after they made initial offers, the news service quoted one of the sources as saying.

CEO comments

Gupta kept to the DBS house view, often repeated, that the bank is content to grow organically in a way that has given it 15 quarters of consistent strong earnings. This, he said, included solid contribution from the wealth management business under the leadership of Tan Su Shan. However where opportunities arose that were in alignment with the bank’s strategy, acquisition will be considered, he said.

He stressed that DBS is not interested in acquiring a business where the book contained too much European or non-Asian client assets. He went on to say that if the book had the potential to be “cleaned out” there will definitely be interest.

Although DBS did not go ahead with the Bank Danamon acquisition earlier this year; it has a robust balance sheet to provide it with the means to make acquisitions.