DBS Wealth Assets Reach Record High as Q3 Profits Dip

The Singapore-based lender saw wealth management fees climb 9 per cent compared to the previous year, reaching S$864 million. Despite this growth, fees fell 6 per cent from the second quarter as client activity moderated. Over the first nine months of the year, wealth fees hit a record S$2.69 billion, bolstering a 15 per cent increase in total net fee income. The segment also drove loan growth, which rose 3 per cent quarter-on-quarter.

Profitability faced headwinds from markets trading income, which plummeted 65 per cent to S$152 million due to unfavorable equity conditions. While net interest income increased 4 per cent to S$3.71 billion, the net interest margin compressed by nine basis points to 1.87 per cent. CEO Tan Su Shan noted that while the global economy remains resilient, the outlook faces mounting pressure from geopolitical risks and tighter financial conditions.

Regulators recently eased capital requirements for the bank, with the Monetary Authority of Singapore lowering the operational risk multiplier from 1.8 to 1.5. This adjustment reflects improved technology and risk controls. The board responded to the bank's nine-month record profit of S$8.82 billion by declaring a dividend of 81 Singapore cents per share. DBS now faces intensifying competition for wealth, with domestic rivals OCBC and UOB similarly pivoting toward high-net-worth services to hedge against declining interest rates.