Agricultural Bank of China collaborates with DBS

DBS Bank and Agricultural Bank of China signed an MOU to enhance cooperation in Asia across a wide spectrum of businesses. These include cash management, treasury products, loan syndications, corporate finance, trade finance, asset management and private banking.

Among the areas of collaboration, ABC will mandate DBS as one of its major clearing banks for settlement of Singapore dollar and CLS trades. ABC will also appoint DBS as its custodian bank in Singapore, as well as other Asian markets. DBS, in turn, had appointed ABC as its QFII custodian in China in 2006.

In lead managing or arranging loan syndications, equity or debt market issues, both banks will also, where possible, invite the other to underwrite or participate in the transaction.

In the area of international trade finance, each bank will endeavour to increase the business volume channelled to the other party.

Collaboration opportunities will also be explored in asset management and private banking. For example, ABC will study the possibility of working with DBS to develop new products and funds, targeting both onshore and offshore investors.

"With Asia being the world's fastest-growing region, we are excited about the many business opportunities which we can collaborate on as we establish a win-win partnership," said Sun Meiyu, Acting General Manager of International Department at ABC.

DBS is the largest bank in Southeast Asia, with a leading presence in Singapore and Hong Kong. It is committed to expanding its footprint in Asia, which includes 40 branches each in Indonesia and Taiwan, 10 branches in India and 7 in China.

ABC enjoyed rapid growth with enhanced operational efficiency, and improved asset quality, in 2008. ABC's net profits in 2008 increased to US$531 million. Underscoring ABC's prudential operating approach and commitment to sustainable franchise development, ABC's non-performing loan ratio is 4.32 percent and its capital adequacy ratio is 9.41 percent. With the largest network across China and an advanced IT system, the Bank is able to provide convenient and efficient financial services to over 350 million clients.