DBS Group announced several senior internal moves last week. The most prominent is the appointment of Derrick Goh as the new head of POSB, part of DBS’s consumer banking group.
Goh has more than 11 years of experience in global and regional consumer banking, and joined DBS in 2008. He is currently the chief operating officer for the institutional banking group, where he provided strategic direction in implementing a consistent approach to customer analytics, business analysis, risks and controls across the investment banking group globally to drive business performance, according to a statement on Thursday.
As chief of POSB, Goh is expected to further develop and grow the so-called “people’s bank”, which started life as a low-cost savings bank in 1877. DBS has a new branch operating model to foster deeper customer-branch relationships, and the emphasis is now also on a customer segmentation strategy. In addition, Goh intends to strengthen POSB’s community roots through local programmes.
“As we further entrench our position as a leading bank in Asia, I believe that it is important to groom the next generation of leaders from within,” said Sim Lim, DBS’s Singapore country head “[Goh] grew up with POSB and is a seasoned industry professional. POSB is a bank that is dear to many of us in Singapore and I believe he will help us to deliver even greater value to our customers and enable us to develop deeper bonds with the local community.”
Goh takes up the position on October 1 and replaces Koh Kar Siong, who will succeed Pearlyn Phau as the regional head of DBS Treasures, the bank’s private client business. Phau moves to Hong Kong to lead consumer banking in Hong Kong.
Koh has 19 years of banking experience and moved to DBS in 2003, where he has held several senior management roles. He has been responsible for growing the POSB franchise since 2009 and implementing the branch operating model. He was also instrumental in helping the bank establish a strategic partnership with SingPost, which increased the bank’s branch “touchpoints” to 145 outlets.
In her new job as head of consumer banking in Hong Kong, Phau’s portfolio will include wealth management, mortgages, deposits, credit cards and unsecured loans. Phau joined DBS in 2003 and was head of both internet banking and Treasures Singapore before becoming regional head of Treasures. She also played a key role in the development of the Treasures private client proposition, the launch of the DBS Wealth Continuum and the establishment of DBS Asia Treasures — a premier rewards platform for the bank’s wealth management clients.
“The appointments underscore DBS’s commitment to mobility and talent development as it further entrenches its leadership in the region,” according to the statement.
Separately, on Friday DBS reported record half-year net profits of S$1.74 billion for the first six months of 2012, up 13% from a year ago. Return-on-equity increased to 11.9% from 11.4% a year ago.
“Improved product and distribution capabilities, a strong balance sheet and consistent execution resulted in sustained business growth as half-year total income crossed S$4 billion for the first time,” according to a media release.
However, Barclays pointed out in a research note that the bank’s net interest margin fell to 1.72%, down 5bp quarter-on-quarter, due to higher funding costs. Fee income also dropped by 7% quarter-on-quarter, due to less investment banking-related business.
