DBS Group plans to increase its wealth management assets to SGD 500 billion (USD 369.7 billion) by the end of 2026, according to the head of its wealth management division. The bank is betting on the strong inflow of funds into Singapore.
Last year, DBS Bank's wealth assets grew by 23%, reaching a record SGD 365 billion. Singapore has attracted a significant influx of wealth into Asia due to its relative political stability, low tax rates, and favorable policies for setting up family offices and trusts.
As the largest bank by assets in Southeast Asia, DBS Bank provides banking services to over a third of Singapore's family offices.
DBS Group's Executive Director and Head of Consumer Banking and Wealth Management, Joseph Poon, stated, "I am still growing... The market is actually on the verge of recovery because interest rates are peaking. When rates drop, the market will rebound."
Regarding the plan to expand the bank's wealth assets, Poon, who has worked at DBS for nearly eight years, told Reuters that he is quite confident about meeting the target unless a "black swan" event occurs.
He also mentioned that DBS Bank aims to double the number of affluent clients with assets of at least SGD 1 million by the end of 2026, highlighting that the number of affluent and high-net-worth clients has grown by over 50% in the past two years.
According to the "2024 Global Wealth Report" released by Capgemini on June 7, 2023, global high-net-worth individual wealth and population grew by 4.7% and 5.1%, respectively, reversing the decline seen in 2022.
The report also showed that the risk appetite of affluent individuals has improved, with cash holdings dropping from 34% in January 2023 to 25% in January 2024, which marks a multi-decade high.
