United Overseas Bank (UOB) has set its sights on expanding in East Asia after it integrates former rival Overseas Union Bank (OUB), which it took over last year.
Chairman and chief executive Wee Cho Yaw said the Singapore lender needed to escape the confines of its limited home base and China's fast-growing market presented the best opportunity.
Although he downplayed suggestions that a deal was imminent, Mr Wee's strategy would echo that of Singapore Government-linked DBS Group. Last year DBS boosted its Hong Kong presence with the acquisition of Dao Heng Bank.
Speaking as UOB reported its full-year results yesterday, Mr Wee said: 'You must go regional. My view is that the next area is China. I think that there is a lot of potential for growth.'
He also squashed talk that Singapore's banking scene could witness further consolidation.
Last year, five domestic banks were cut back to three as UOB swooped on OUB and Oversea-Chinese Banking Corp bought Keppel Capital Holdings. DBS also bid for OUB, but was unsuccessful.
'As long as the three [remaining] local banks are competitive [and] can compete with the international banks, the big giants, I think the Government should be happy,' Mr Wee said.
