Singapore’s banking triumvirate – DBS, OCBC, and UOB – have reported record profits for 2024, with their respective private wealth units playing a key role in their robust performance.

DBS, Singapore’s largest lender, delivered standout results in its wealth management business. The segment’s full-year income surged 18% to a record S$5.22 billion ( US$3.92 billion ), with assets under management ( AUM ) also hitting a record S$426 billion, up 17% from the previous year. Investor sentiment remained strong, driving S$21 billion in net new money inflows.

At OCBC, wealth management income, comprising income from private banking, premier private client, premier banking, insurance, asset management and stockbroking, increased 13% to a record S$4.89 billion. Driven by net new money inflows and positive market valuation, the group’s wealth management business accounted for 34% of total income, up from 32% in the previous year, with AUM rising 14% to a new high of S$299 billion.

The same storyline invigorated UOB, where wealth management income rose 30%. Strong net new money inflows brought AUM from high-net-worth clients to S$190 billion, an 8% year-on-year growth.

With local private banks in Asia attracting record inflows and revenue, is their success coming at the expense of international banks? Or does it merely reflect the expanding wealth creation across the region?

In Q4 2024, the world’s biggest private bank UBS Global Wealth Management experienced net asset outflows of US$1.2 billion in Asia-Pacific, contrasting with net inflows in its other markets. HSBC also experienced net outflows of US$2 billion in invested assets from its Asian operations. ​

Asia’s wealth shift

The reality is likely somewhere in between, but the shift of wealthy Asian clients moving assets from global firms to local institutions is a trend that shows no signs of slowing. Asian banks are attracting more local and international funds, while international banks are facing increasing challenges to retain their market share in the region.​

Joseph Poon, group head of DBS Private Bank, says while his bank’s sustained outperformance in recent years can be partly attributed to the overall rise in wealth across Asia, its results go beyond this macroeconomic trend. “They reflect a strategic shift, with us becoming the go-to and trusted banking partner for clients in Asia and around the world. These clients, some of whom have family offices and interests across multiple jurisdictions, are looking to diversify their holdings and leverage DBS as a gateway to the increasing, dynamic investment opportunities in Asia.”

According to Jason Moo, chief executive officer of OCBC’s private banking arm Bank of Singapore, this is Asia’s time in the limelight as a region of investment and business opportunities, especially in the wake of recent macroeconomic and geopolitical developments.

“As one of Asia’s key gateway cities, Singapore has also grown over time into a very strong, leading global wealth management and business hub, with a reputation for transparency and upholding the rule of law. As a result, Singapore banks with their strong credit ratings have drawn strong interest from investors around the world,” says Moo.

“We are well positioned to support not only clients in this region who want access to global capabilities and global markets, but also international clients who want better access to the uniquely Asian opportunities that may not exist in their home markets. For instance, we have been seeing in recent years growing interest from European high-net-worth individuals and families to have their money managed here,” he adds.

UOB’s private banking chief, Chew Mun Yew, sees the bank gaining ground against its specialized international rivals. “We may not replace them as a client’s main private bank, but we are a strong complement to their panel of private banks,” he says.

“Our key strength lies within our strong and unparalleled Asean network, equipping us with in-depth knowledge of the domestic markets, including regulatory landscapes and local and regional investment opportunities. We have the capabilities to offer a wide suite of solutions for both onshore and offshore banking, for both personal and business needs. We are also able to provide bespoke investment solutions and wealth management services on par with those of international private banks,” Chew explains.

Our key strength lies within our strong and unparalleled Asean network, equipping us with in-depth knowledge of the domestic markets, including regulatory landscapes and local and regional investment opportunities

Talent migration windfall

In recent years, the private wealth management divisions of Asian banks have also emerged as key beneficiaries of another industry shift, an inflow of experienced talent from international private banks.

This shift has been driven by a number of factors, including structural changes, such as global private banks scaling back in Asian markets. Experienced Asian-based wealth professionals now also see better career opportunities and cultural fits in the growing wealth businesses of local banks.

Wealth professionals who built their careers in global firms, honing their expertise, deepening client relationships, and mastering wealth products, are now happy joining local institutions. These individuals bring with them global best practices, compliance knowledge, and a sophisticated understanding of high-net-worth clients’ needs.

Banks, such as DBS, UOB, and OCBC in Singapore, as well as banks in Hong Kong and other Asian business hubs, have been aggressively expanding their private banking and wealth management arms.

Collectively, they have actively recruited experienced bankers from Swiss, German, French and North American private banks, leveraging these hires to enhance service offerings and strengthen regional credibility.

Wealth professionals who built their careers in global firms, honing their expertise, deepening client relationships, and mastering wealth products, are now happy joining local institutions

The leaders of the Singaporean banks’ wealth units all have international wealth management backgrounds.

Before joining DBS, Joseph Poon led UBS’ ultra-high-net-worth and global family office in Southeast Asia; he also headed private wealth at Macquarie and J.P. Morgan and led co-investments at Julius Baer. Prior to taking on the role of CEO of Bank of Singapore, Jason Moo worked for Goldman Sachs. Chew Mun Yew at UOB held leadership roles at Julius Baer, UBS, and Carlyle Asia.

These seasoned bankers are also a source of learning and knowledge transfer for the pipeline of aspiring local wealth managers. The Singaporean lenders have a healthy internal conduit of private banking relationship manager candidates who start honing their craft in their respective banks’ lower-threshold wealth management units.

These former international bankers bring expertise in areas like discretionary portfolio management, alternative investments, and structured lending. Their transition to local banks has accelerated the professionalization of wealth management services in Asia, aligning local firms with global standards.

Clients, many of whom have long-standing relationships with these bankers, are also more willing to transfer assets from global banks to local players, further strengthening domestic institutions.

Perhaps most notably, Tan Su Shan, the incoming CEO of Singapore’s DBS Bank, brings extensive private banking experience from multiple global financial institutions. Her deep expertise has played a key role in DBS’s expansion in wealth management.

This recruitment trend has also been strengthened by recent industry shifts, including UBS's acquisition of Credit Suisse and the strategic downsizing of private international banks in Asia. Another relevant example is Liechtenstein-based private bank VP Bank, which recently closed its Hong Kong operations after 18 years.

Asia’s competitive wealth market

The rise of Asia’s homegrown private banks is reshaping the competitive landscape, and reducing or diluting reliance on the foreign institutions. Homegrown Asian banks are also leveraging this talent influx to refine their digital wealth platforms, expand family office services, and enhance offshore wealth management capabilities.

Regulatory shifts, such as China’s tightening control over capital outflows and Singapore’s status as a regional wealth hub, further encourage asset migration to local players.

This trend is not just about a shifting of assets and workforce; it’s also about the long-term transformation of wealth management in Asia.

The strategic hiring of seasoned professionals from global banks has enabled local institutions to become serious contenders in private banking, offering high-quality services that were once the exclusive domain of the international firms.

As Asia’s wealth market continues to grow, local banks are increasingly well-positioned to capture an even greater share of this thriving business.