DBS Group Holdings Says Rajan Raju Resigned as Head of Consumer Banking
Raju, who spent 11 years with DBS, will leave his position tomorrow to “pursue new opportunities,” Chief Executive Officer Piyush Gupta said in a memo distributed to employees today. His last day at the bank will be Sept. 30, the memo said. DBS spokeswoman Edna Koh confirmed the contents of the document.
DBS in July reported a 14 percent drop in second-quarter profit at its consumer and private banking operations. Gupta, who took the helm at the Singapore-based lender in September, said in February he’s seeking to gain a bigger share of revenue from overseas.
“Changes are afoot at the bank,” said Christopher Wong, a fund manager at Aberdeen Asset Management, which oversees $45 billion of assets including DBS shares. “Recent announcements by the bank reflect cleaning up, whether it’s writing down on goodwill or ensuring the quality of the loan book.”
While DBS’s valuations are lower than that of rivals Oversea-Chinese Banking Corp. and United Overseas Bank Ltd., the bank may have to grapple with more problems such as the consistency of its customer-services delivery and growth in Southeast Asia, Wong said.
Deutsche Bank AG plans to appoint Raju, 44, to head Asian operations of DWS Investments, a unit of its asset management subsidiary, according to a person with knowledge of the matter.
Deutsche Bank’s Singapore-based spokeswoman Kathryn Hanes declined to comment. Raju, whose appointment at Deutsche Bank was reported earlier by Reuters, wasn’t immediately available.
Raju was appointed to his position at DBS in April 2008, following stints heading South and Southeast Asia, overseeing global transaction services and running technology and operations. Later that year, he oversaw DBS’s review of 1,400 cases in which the bank’s customers lost money on S$103 million ($76 million) of structured notes tied to Lehman Brothers Holdings Inc.
Shares of DBS had climbed 1 percent higher by the 5 p.m. close of trading in Singapore today. The stock has dropped 10 percent this year.
DBS said this month Sebastian Paredes will succeed Amy Yip as CEO of its Hong Kong unit, the source of a goodwill writedown that caused the bank to post a surprise second-quarter loss. Yip will step down at the end of the year, DBS said.