Bank's local operations post a 52pc rise in profit as the economy recovers
DBS Bank's Hong Kong operation continued last year's strong run to post a year-on-year net profit growth of 52 per cent to S$149 million (HK$682.22 million) for the first quarter, thanks to a recovering economy and growing demand for wealth management products.
The bank's fee-based products and wealth management business were again the main drivers, with non-interest income soaring 33.8 per cent to S$107 million from $80 million a year ago.
Hong Kong remains DBS' No2 market, though its contribution to the group's total net profit fell to 26 per cent from 33 per cent last quarter. That was due largely to a rebound in DBS' other markets, such as Singapore, which now accounts for 68 per cent of its total profit.
'We're extremely pleased with the performance of our fully-integrated and rebranded Hong Kong franchise,' group vice-chairman and chief executive Jackson Tai said. 'We're pleased with its role in distributing our regional products and providing us with a regional platform and real clients to penetrate China.'
Last month, the group announced that it was selling its 10 per cent stake in Wing Lung Bank back to its controlling family, a move Mr Tai said was part of the group's disposal of non-core assets.