Singapore's DBS to Strengthen Hong Kong Private Banking

Tom Burroughes

11 August 2008

Asian financial services firm DBS Group Holdings, which provides services including private banking, intends to continue strengthening wealth management operations in Hong Kong despite the tumble in the local stock market, according to media reports.

“We made some provisions for clients who leveraged on the Hong Kong equity market and we took a conservative approach,” Amy Yip, chief executive of DBS Bank ( Hong Kong), was quoted by the South China Morning Post as saying. “It is not an indication of a change in direction of the bank’s private banking business,” she said.

The banking group last week reported net earnings of S$668 million for the second quarter of 2008, a rise of 1 per cent from a year ago. Compared to the previous quarter, earnings rose 11 per cent as trading income recovered from a loss and total allowances were lower. First-half net profit of S$1.27 billion was down by 1 per cent from a year ago.

Net fee income fell by 8 per cent from a year ago to S$342 million as contributions from stockbroking, investment banking and wealth management declined with subdued capital markets.

However, most other activities continued to grow, including loan syndication, trade finance and credit cards.

DBS is one of the largest financial services groups in Asia with operations in 16 markets and is headquartered in Singapore.