Singapore’s DBS eyes $369.7b in wealth assets by ’26

Singapore’s biggest bank DBS Group is targeting S$500 billion ($369.7 billion) in assets under management (AUM) for its wealth business by the end of 2026.

This ambitious plan reflects the bank’s confidence in Singapore’s position as a wealth management hub, fueled by strong inflows into Asia.

DBS’ wealth assets grew a significant 23 per cent to a record S$365 billion in 2023. The bank attributes this success to Singapore’s political stability, low taxes, and favourable policies for family offices and trusts.

Shee Tse Koon, DBS Group Executive and Head of Consumer Banking and Wealth Management, is confident in reaching the S$500 billion target, expecting a market recovery as interest rates peak and markets rebound.

Along with increasing AUM, DBS aims to double its high-net-worth clientele (S$1 million+) by 2026. This follows a successful period where the bank grew its affluent and high-net-worth client base by more than 50 per cent over the past two years.

The Capgemini Research Institute’s World Wealth Report 2024 showed a 4.7 per cent increase in global high-net-worth individual wealth and a 5.1 per cent rise in population in 2023, reversing a decline in 2022.

This report also highlighted an improving risk appetite among the wealthy, with cash holdings in portfolios declining from multi-decade highs of 34 per cent in January 2023 to 25 per cent by the same month in 2024.

Rising asset inflows are making wealth management a critical revenue source for Singaporean banks, including DBS. The bank recently reported record-breaking quarterly results and expects net profit to surpass the previous year’s record.

Attribution: Reuters