DBS Taps Russian Wealth as Rivals Recede

In a strategic move, DBS Group, one of Asia's largest banks, has bolstered its private banking division by hiring seasoned professionals to cater to wealthy Russian clients. This comes at a time when rival banks, such as Credit Suisse and Julius Baer, have scaled back their operations in Russia due to geopolitical risks and regulatory scrutiny.

DBS's hiring spree includes Alex Law, who joins Bank of Singapore as its team head for Greater China, and Shin-Yi Jeng, who joins DBS Private Bank as a senior market head. Both professionals have extensive experience in serving Russian clients and are well-versed in the complexities of the market. Irene Wat, market head for Greater China, Hong Kong branch, also joined DBS from Credit Suisse earlier this year, further cementing the bank's commitment to the region.

DBS's move is not without risks. The European Union and the United States have imposed economic sanctions on Russia, limiting the country's ability to transfer capital out of the country. However, DBS appears undeterred by these challenges, seeing an opportunity to capture a larger share of the growing Russian wealth market as its competitors retreat.



DBS's expansion into the Russian market is part of its broader strategy to grow its private banking business, which is expected to reach S$500 billion in assets under management by 2027. The bank has been focusing on family offices and wealth management, areas where it has seen robust growth in recent years. Southeast Asia's largest lender aims to grow its wealth assets by 7-8% annually, driven by family offices and global trends.

DBS's aggressive expansion into the Russian market sets it apart from competitors like Deutsche Bank, which has reduced its Russian exposure significantly since 2014. As of December 31, 2021, Deutsche Bank's net loan exposure to Russia was only €0.6 billion, around 0.3% of its overall loan book. In contrast, DBS's move signals a more proactive approach to capitalizing on the growing wealth of Russia's elite, despite the geopolitical tensions and regulatory challenges.

As DBS competes with other international private banks in the Russian market, it will need to navigate the complex regulatory landscape and mitigate the risks associated with serving Russian clients. However, the bank's strong Asian presence and Singapore's attractive regulatory environment position it well to appeal to Russian clients seeking diversification and safety.

In conclusion, DBS's hiring of private bankers specializing in Russian clients is a strategic move that sets the bank apart from its competitors. While geopolitical tensions and regulatory challenges persist, DBS sees an opportunity to capture a larger share of the growing Russian wealth market. As the bank continues to grow its private banking business, it will need to effectively manage the risks associated with serving Russian clients to ensure sustainable growth and profitability.