Enter Paillart, who was hired away from Ford Motor Credit, having earlier worked at Standard Chartered. But Olds clearly had him in mind as his successor. Having been hired only in May 2000 to head consumer banking, Paillart vaulted over the heads of earlier and equally heavy-hitting recruits. It reflects the importance DBS attaches to consumer banking operations. Indeed it could be key to DBS group's future.
Investment banking is the territory of the major U.S. and European banks.
Indeed, consumer banking has been one of the bank's fastest growing businesses. That's on the back of sharply lower provisions all round, reflecting the clean-up of troubled overseas subsidiaries. Nonperforming loans fell to 7.6 percent from the peak of 13 percent in 1999, while return on equity increased to almost 13 percent from 10 percent previously. DBS Group Chairman S. Dhanabalan told analysts and reporters at a briefing on March 5 that the target for NPLs is 2 percent-3 percent, while return on equity is targeted at 15 percent this year. Having cleared up its problems overseas, the bank's gradual approach towards acquisitions could portend bigger things.