SINGAPORE - DBS Group Holdings announced on Thursday (Jan 15) that its wholly-owned subsidiary, DBS Bank, has agreed with Postal Savings Bank of China (PSBC) and five other Chinese firms to set up a consumer finance company in China.
DBS Bank will be investing 120 million yuan (S$25.85 million) in China Post Consumer Finance Company Limited (CPCFC) to become its second-largest and only foreign shareholder, with a 12 per cent share of its registered capital.
PSBC, as the major sponsor, will hold a 61.5 per cent share. The bank is one of the largest lenders in China with total assets of 5.58 trillion yuan as at Dec 31, 2013. It operates close to 40,000 branches and network points and has over 470 million customers in China.
DBS Group said the China Banking Regulatory Commission recently approved preparatory work to set up CPCFC. CPCFC will be registered in Guangzhou City and be principally engaged in the provision of personal consumer finance services across China.
DBS Group said the above transaction is not expected to have any material impact on the company's financial position for the financial year ending Dec 31, 2015.