Fees and commission income from wealth management services increased four-fold at DBS Group Holdings and more than doubled at Oversea-Chinese Banking Corporation and United Overseas Bank over the five-year-period, according to research from SGX My Gateway.
In 2015, DBS, OCBC and UOB averaged fee and commission income of SGD507m (£259.5m, $360.2m, €330.2m) from their wealth management services, an increase of 12.3% from SGD450.3m in 2014.
In the three months ending 31 December 2015, the three banks averaged fee and commission income of SGD110.7m from their wealth management services, up 7.4% from the same period last year, but a decrease of 8.9% from the third quarter.
Fee and commission income
Of the three banks, DBS registered the highest fee and commission income from its wealth management services and the largest year-on-year percentage gain – both for the December quarter as well as the full year.
In its most recent results, DBS said that a strong first half in wealth management services more than offset a slower second half when market volatility reduced investment activity. Wealth management fees accounted for 24% of total 2015 fee and commission income, up from a 22% share the previous year.
In comparison, wealth management fees accounted for 31% of OCBC’s total fee and commission income last year, unchanged from the previous year, the bank said in its latest results statement.
For UOB, wealth management fees accounted for 22% of its total fee and commission income in 2015, also unchanged from 2014.
DBS, OCBC and UOB have averaged a total return of negative 13.2% in the 2016 year thus far. Over a 12-month and three-year period, their dividend-inclusive total returns were a negative 23.5% and negative 3.1%, respectively.