DBS Group Holdings, the Singapore-based bank with services including wealth management, has recorded a 21 per cent increase in second quarter net earnings to S$552 million ($384 million) from the previous quarter, as cost reduction strategies and sustained revenue growth drove profits up to a record S$1.16 billion.

Revenues increased by 8 per cent from the year before quarter to a new high of S$1.79 billion. Net interest income rose by 3 per cent to S$1.11 billion, capital markets boosted the net fee income 13 per cent to S$358 million, while productivity improvements helped expenses stay around the previous quarter's levels at S$631 million.

Net fee and commission income was still up on a generally positive performance from wealth management, stockbroking and investment banking. During the year the bank has been the beneficiary of swelling assets from clients previously customers of some foreign banks based in the city state.

DBS Chairman Koh Boon Hwee said, "Our operating performance in the first six months of 2009 reflects the underlying strength of our franchise and the depth of our relationships with customers. We will continue to focus on our customers, on managing risks and on being disciplined in managing our costs. DBS is well positioned to weather the uncertainties ahead as our balance sheet remains strong."

DBS, whose primary operations are in Singapore and Hong Kong, has a presence in 16 markets across Asia. It is a well-regarded custodian for institutional investors and provider of wealth management products for wealthy individuals.

Capital adequacy ratios exceeded the regulatory minimum, with tier-1 at 12.6 per cent.