Contributions from the Singapore firm's Hong Kong unit have increased slightly DBS Hong Kong yesterday announced strong third-quarter results on the back of record sales in wealth management products and a cut in operating costs. The bank, one of Hong Kong's top five financial services groups in terms of asset value, posted a 47.5 per cent increase in net profit to S$118 million (HK$527.11 million), up from $80 million in the second quarter. This was a significant contribution to its parent DBS Group Holdings, whose net income for the period rose 29 per cent to S$291 million. DBS Hong Kong's contribution to the Singapore-based group was 28 per cent of total net profit, up from 23 per cent a year ago. Profit for the first nine months at DBS Hong Kong rose 12.8 per cent to S$300 million, up from $266 million for the same period last year, while the year-to-date profit for the group saw a dip of 4 per cent to $733 million. At DBS Hong Kong, income from non-interest items, including treasury earnings and wealth management products, increased 33.7 per cent to S$115 million, contributing to the 39.2 per cent jump in the year-to-date figure. Retail wealth management sales grew to S$1.37 billion from $1 billion. Operating expenses decreased 5.5 per cent to S$120 million as the group's streamlining policy, which saw the number of its Hong Kong branches drop to 64 from 101 after it took over Dao Heng Bank and Kwong On Bank, continued to show its effect on the bank's balance sheet. 'Our latest results demonstrate the strength, diversity and flexibility of the DBS franchise in our key markets of Singapore and Hong Kong,' DBS Group vice-chairman and chief executive Jackson Tai said. He said the bank would continue to expand its business in the rest of Asia, including Hong Kong and Indonesia, where it already had a strong presence.