Singapore's largest bank DBS beat market expectations with net profit of $1.14 billion in the second quarter. The wealth management business continued to bulk up, even as revenue stagnated.
DBS' wealth unit saw assets under management increase 16 percent on the year to SG$175 billion, with the bank expecting to add another $20 billion in assets when the full integration of the ANZ Asian wealth business it acquired last year is complete.
To date, the bank has integrated the China units from ANZ and will complete the Singapore transition in the next few days. The Taiwan and Hong Kong units will be absorbed this year, with the Indonesian unit expected to be fully merged in the first quarter.
A Slip to Watch?
For the second quarter, total wealth management fees increased to SG$467 million on higher sales of unit trusts and other investment products.
However there was a slip compared to the previous quarter, as total income decreased 2 percent. Non-interest income fell 5 percent, as investment sales fell from a high base in the previous quarter and expenses crept 6 percent higher.
«We achieved strong operating performance in the first half and the business pipeline remains healthy, in line with general economic trends in our key markets,» DBS CEO Piyush Gupta said.
