DBS Bank may see challenges in the near future for its wealth management financing products.
Singapore's DBS Bank sees customers are pretty well cashed up at this moment with higher interest rates. This encourages them to put their own money to work than borrow from the bank, CEO Piyush Gupta said during the Q1 earning session.
During the first quarter of this year, DBS saw wealth management fees increase. At the same time, the customers withdrew their money from deposit accounts and put it into the investment account without actually borrowing. «So we might see some challenges in trying to grow that particular part of the book,» Gupta said.
Therefore, DBS expects to grow its loan book by around three to five percent. However, the bank sees its non-trade corporate loan pipeline remains healthy and the housing loan bookings have recovered.
In Q1 of 2023, DBS booked a total of S$ 416.9 billion of customers loan which was a one percent decline from Q4 of 2022, as wealth management loans declined.
