SGX Market Updates

DBS, OCBC & UOB Average 18% Wealth Management Income Growth


PUBLISHED ON |

03 March 2020

  • Singapore’s listed local banks – DBS, OCBC and UOB – have a combined market value of more than S$150 billion and account for about 20% of daily stock market turnover.

  • Singapore has established itself as a leading private banking and wealth management centre, both globally and in Asia. It has breadth and depth of institutions that give HNWIs access to global and regional financial markets, as well as a full suite of wealth management services.

  • Over the last few years, Singapore’s three banks have been expanding their wealth management income, which now accounts for an increasing share of non-interest income. For FY19, the trio averaged 18% YoY growth in their wealth management income, ranging from 16% for DBS to 20% for OCBC.




Singapore’s 3 listed local banks – DBS, OCBC and UOB – have a combined market value of more than S$150 billion and account for roughly 20% of daily stock market turnover.

The three banks averaged net profit growth of 10% YoY for their financial year ended 31 December 2019, ranging from a 13.6% increase for DBS to an 8.4% gain for both OCBC and UOB. For their FY19 results, see market update: DBS, OCBC & UOB Average 10% Net Profit Growth in FY19.

Singapore has established itself as a leading private banking and wealth management centre, both globally and in Asia. It has breadth and depth of institutions that give high net worth individuals (HNWIs) access to global and regional financial markets, as well as a full suite of wealth management services.

Apart from robust financial regulation, strong rule of law, as well as political and economic stability, the city-state offers a comprehensive suite of wealth management players. This includes trust companies, philanthropy organisations, family offices and ancillary service providers such as tax, legal advisors, consultants and technology platform providers.

According to a recent Asian Private Banker survey, Singapore is the Most Preferred offshore wealth hub among industry professionals, and the city-state is expected to attract offshore wealth at a compound annual growth rate (CAGR) of 8% through 2021, which is more than twice the pace of Switzerland over the next three years. The country has also been ranked #2 International Wealth Management Centre in competitiveness and performance by the Deloitte International Wealth Management Centre Rankings 2018. The number of family offices in Singapore has also quadrupled from 2016 to 2018 on the back of increasing Asian wealth, as more families consolidate their wealth in Singapore through formal structures.

Over the last few years, Singapore’s 3 banks have been expanding their wealth management income, which now accounts for an increasing share of non-interest income. For FY19, the trio averaged 18% YoY growth in their wealth management income. 


DBS OCBC UOB Wealth Management Income



Highlights of DBS, OCBC & UOB's FY19 Wealth Management Income


DBS
  • FY19 wealth management income jumped 16% YoY to a new high of S$3.08 billion, as assets under management (AUM) increased 11% to $245 billion.
  • Wealth management income accounted for 48% of DBS’s FY19 total income, versus a 47% share in FY18.

OCBC
  • FY19 wealth management income – comprising income from insurance, private banking, asset management, stockbroking and other wealth management products – rose 20% YoY to a record of S$3.40 billion.
  • This represented 31% of the bank’s total income for the year, up from the 29% share in FY18.
  • Bank of Singapore’s AUM expanded 15% YoY to a record US$117 billion (S$158 billion), driven by sustained net new money inflows and positive market valuations.

UOB
  • FY19 wealth management income totalled S$641 million, up 18% YoY.
  • Wealth management income accounted for 31% of UOB’s FY19 total net fee and commission income, up from a 27% share in FY18.


Click herehere and here for the full results releases of DBS, OCBC and UOB.







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