Oversea-Chinese Banking Corp. said on Wednesday that net new money climbed 30% to SGD27 billion, lifting wealth assets under management (AUM) to a record SGD343 billion, Bloomberg reported.
Singapore banknotes in Singapore in March 2023. Photo by AFP |
The results followed similar announcements from DBS Group Holdings Ltd., which posted SGD39 billion in fresh inflows, bringing its wealth AUM to SGD488 billion.
United Overseas Bank Ltd. reported SGD11 billion in net new money, with high-net-worth AUM reaching SGD201 billion.
The figures underscore how Singapore’s lenders are increasingly leaning on wealth-related fees as loan margins tighten.
The pivot toward wealth and investment products lifted wealth management fees by 33% at OCBC and 29% at DBS last year.
The inflows came against a backdrop of conflicts in Europe and the Middle East, strained U.S.-China relations and uneven growth in China, factors that have unsettled investors across the region.
DBS chief executive Tan Su Shan struck an optimistic note earlier this month, saying she was “very happy to see the record net new money growth, which is structural.”
She added that the bank has expanded its wealth franchise across China, India, Indonesia, Taiwan, Hong Kong and Singapore.
OCBC, meanwhile, intends to expand its private banking operations in Indonesia, leveraging its subsidiary Bank of Singapore Ltd. to serve affluent clients in Southeast Asia’s largest economy.
The lender is aiming to move further upmarket by targeting high-net-worth individuals with assets both domestically and overseas.
“We have been there for 80 years,” Tan said. “We continue to be invested and very committed to the Indonesian market.”
Singapore’s political stability and predictable regulatory environment have bolstered its appeal at a time when policy shifts elsewhere have prompted some wealthy individuals to rethink where they park their assets.
Changes to tax rules in the U.K., for example, have led some affluent residents to reassess their positions and have tested London’s status as a global wealth hub.
The city-state’s wealth surge is also fueling growth among other financial services providers, including insurers.
Manulife Financial Corp. sold a US$300 million life insurance policy in Singapore, surpassing what Guinness World Records certified as the most valuable policy ever issued.
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