Singapore’s DBS Group (DBSM.SI), Southeast Asia’s largest lender, is shrinking its Islamic bank subsidiary following losses in the Middle East and a decision by the group to focus on markets closer to home.  Islamic Bank of Asia (IB Asia), in which DBS owns 50% plus one share, has transferred 10 of its 65 staff to DBS and redeployed others to new roles within the Islamic bank, a spokeswoman said. 
“IB Asia will continue to focus on wholesale banking but prioritise its business focus on fee-based investment banking business activities and in private equity,” she said in response to queries from Reuters. 

 

A source had earlier told Reuters the Islamic unit of DBS planned to get out of the lending business entirely. The bank has also not replaced departing staff, including former CEO Vince Cook who left in December.