SINGAPORE Singapore's biggest bank DBS Group is confident of achieving a return on equity (ROE) of 15% to 17% in the medium term or over the next three- to five years, its chief executive officer (CEO) said on Thursday.

"Rates have come down from the 5.5%, we think the new normal is closer to 3% but even in that environment, we think we continue to deliver 15% to 17% ROE," DBS Group CEO Piyush Gupta told shareholders at an annual general meeting.

Drivers include faster growth among its high ROE businesses, such as wealth management and global transaction services.

DBS, which is also Southeast Asia's biggest bank by assets, posted a record ROE of 18% last year, which Piyush said was one of the highest among the biggest banks globally. ROE in 2022 was 15%.

Meanwhile, DBS will allocate S$300 million to S$500 million (US$369.99 million) in capital to its India operations over the next three- to four years, and grow profitable consumer and small-and-medium-enterprises' banking businesses there, Gupta said.

DBS is also bullish on China's greater bay area, and China in the long term, Gupta said. The bank announced in end-December that it was raising its stake in China's Shenzhen Rural Commercial Bank in a S$376 million deal.

  - Reuters