OCBC’s wealth management business saw assets under management stay flat as net new money managed to offset negative market movements.
OCBC’s group wealth management business saw assets under management reach S$258 billion ($192 billion) as of 31 December 2022, according to the bank's annual results, up slightly from S$257 billion a year ago.
This was driven by «continued growth in net new money inflows which offset negative market valuation».
Wealth Income and Profit
The group’s wealth management income, which covers insurance, private banking, premier private client, premier banking, asset management and stockbroking, fell 3 percent to S$3.9 billion, in part due to softer fee income from the prevailing risk-off investment sentiments.
Specifically within OCBC's consumer and private banking businesses, net profit rose 38 percent to S$1.5 billion. This was driven by net interest income growth and lower allowances which was partly offset by a decline in wealth and brokerage fee income as well as higher expenses.
Digitalization
A noteworthy contributor to wealth management at OCBC has been the ongoing digitalization of the business.
For example, nearly all customer transactions in Singapore are now conducted digitally and the bank also saw strong growth in digital wealth sales. The focus to boost artificial intelligence and analytics capabilities has helped better identify business opportunities, improve operational efficiency and reinforce cybersecurity infrastructure.
«We are constantly redefining our business through accelerating digitalization. We continue to enhance our digital platforms and introduce market-first initiatives to enrich the customer experience,» said OCBC group CEO Helen Wong.
