Stanley, who is 47, has been CEO of CitiÆs China business since 2005 and has been instrumental in building the bankÆs China franchise for the past eight years, having also acted as country officer and managing director between 1999 and 2004. However, he also has extensive experience from elsewhere in Asia, having spent 18 years out of his 27-year banking carrier with Citi in this region.
His previous jobs include regional head of markets and banking for Asean, country officer for Singapore and head of corporate banking for Thailand. He has broad-based banking experience spanning corporate and investment banking, consumer banking, transaction and custody services as well as credit, which ôpositions him well to pursue growth balanced by strong controls and risk managementö, DBS said in a release announcing the appointment.
As CitiÆs most senior executive in China (he is also chairman of the bankÆs locally incorporated business), Stanley has been responsible for all businesses, investments, infrastructure and strategy in the country. Notably, he was instrumental in the acquisition of a controlling stake in Guangdong Development Bank by a Citi-led consortium and the bankÆs purchase of a minority stake in Shanghai Pudong Development Bank.
The fact that DBS has settled for someone with an extensive background in China may suggest that the Singapore-based bank would like to put greater emphasis on this market. However, in the release the bank didnÆt single out China but said that Stanley is well-positioned to help the bank ôgrow its footprint in emerging markets, especially in the Greater China regionö. A Singapore-based banking analyst notes that the focus on Greater China is also reflected in its acquisition of Bowa Bank in Taiwan earlier this month.
Over the past five yearÆs DBS has attempted to buy banks in China, South Korea and Thailand, but has come up short each time. Aside from its home market, the bank also has operations in Hong Kong, China, India, Indonesia, Malaysia, Thailand and the Philippines, but 90% of its earnings still come from the mature markets in Singapore and Hong Kong.
Stanley had been rumoured as one of three front-runners for the top job at DBS - the other two being Francis Rozario, head of TemasekÆs financial arm, and Mike DeNorma, head of Standard CharteredÆs consumer banking business. Qualifications aside, by choosing Stanley, the bank may have wanted to mark its independence versus government-owned Temasek, which holds 28% of DBS and 19% of Standard Chartered.
Not commenting on this, DBS said key criteria in selecting its new leader included: leadership skills and franchise-building capabilities; familiarity with the complex business and regulatory environment in Asia; and the ability to forge lasting partnerships with investors, regulators and other key stakeholders.
ôAs a seasoned banker with a proven track record in Asia, Richard is well-positioned to help DBS grow our regional footprint, diversify our revenue base and focus on higher-return businesses,ö says DBS chairman Koh Boon Hwee.
The new CEO comes on board at a tough time as global financial stocks are being sold off because of concerns about subprime-related losses. And according to the Singapore analyst, DBS has the most exposure among the Singapore banks to credit default obligations and other subprime-related instruments and has been underperforming the broader market as a result. The bank is due to report its fourth quarter earnings tomorrow and analysts are worried it will announce more write-downs because of this exposure. DBSÆs share price has fallen 25% since its most recent peak at the end of October, and is down 32.5% from its 2007 peak in May.
Until Stanley takes up his new position in May, DBS will be led by chairman Koh, who has taken on an active management oversight role since Jackson Tai left the bank at the end of December. Tai joined DBS in 1999 as chief financial officer and was appointed CEO in June 2002. He stepped down to rejoin his family which had remained in New York during TaiÆs eight years with DBS.
¬ Haymarket Media Limited. All rights reserved.
