DBS Sets Sights on $370 Billion in Wealth Assets by 2026

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DBS Group, the largest bank in Southeast Asia by assets, is ambitiously targeting to increase its wealth management assets to S$500 billion (approximately $369.7 billion) by the end of 2026. This goal reflects DBS’s confidence in Singapore’s role as a magnet for wealth due to its political stability, favorable tax environment, and supportive policies for family offices and trusts.

In 2023, DBS’s wealth assets reached a record high of S$365 billion, marking a 23% increase from the previous year. The bank attributes this growth to robust inflows of wealth into Asia, driven by improving market conditions as interest rates are expected to decrease, potentially boosting market performance.

Shee Tse Koon, Group Executive and Head of Consumer Banking Group and Wealth Management at DBS, expressed optimism about achieving the S$500 billion target, barring unforeseen “black swan” events. He also highlighted DBS’s intention to double its base of affluent and high-net-worth clients with assets exceeding S$1 million by 2026. Over the past two years, DBS has already expanded its affluent client base by more than 50%.

The global landscape for high-net-worth individuals has been favorable, with both wealth and population increasing in 2023 after a decline in 2022, according to the Capgemini Research Institute’s World Wealth Report 2024. This resurgence in wealth, coupled with a decrease in cash holdings among the wealthy, has bolstered the attractiveness of wealth management services.

Despite a S$3 billion money laundering scandal that surfaced last year, prompting tighter scrutiny from Singaporean authorities, the growth trajectory of wealth management in Singapore remains robust. The number of family offices managing wealthy portfolios in Singapore has continued to rise, underscoring the city-state’s appeal as a financial hub.

Shee emphasized the resilience of Singapore’s anti-money laundering framework, noting its adaptability to combat evolving criminal tactics. His tenure and experience, including as CEO of Indonesia at Standard Chartered before joining DBS, position him to navigate and lead DBS through the complexities of wealth management and regulatory challenges.

In conclusion, DBS Group’s strategic focus on expanding its wealth management business aligns with Singapore’s growing prominence as a global wealth management hub, supported by favorable economic conditions and regulatory frameworks.