Singapore's leading banks reported an overall increase in net profit and total income in 2017.

DBS Group's net profit rose 4% to a record SG$4.39bn (US$3.33bn) and its total income reached a new high, increasing by 4%, to SG$11.9bn from broad-based growth in loans and fee income, which more than offset the impact of a lower net interest margin and weaker trading performance, according to the bank. Fee income increased 23%.

The bank issued 1,535 structured products worth SG$5.14bn in Apac over the year, compared to 783 structured products worth SG$9.9bn in 2016, according to SRP data.

In the fourth quarter of 2017, net profit reached a new quarterly record of SG$1.22bn, up 33% from a year ago. Total income rose 10% to SG3.06bn, staying above the SG$3bn mark for the second consecutive quarter, as net interest income rose 15% to cross the SG$2bn mark for the first time.

The group's income from wealth management increased 25%, from SG$1.7bn in 2016 to SG$2.1bn in 2017. Income from retail banking decrease 1% year-on-year, from SG$2.59bn to SG$2.56bn.

In a recent interview, Rohit Jaisingh, head of equity products advisory, wealth at DBS Bank, said the preferred underlying asset class in 2017 was equities - in particular, from Hong Kong, China and the US - and funds. The bank also reported, in the third quarter, that its consumer banking and wealth management hit several milestones, including the integration of the acquired ANZ bank in China, Singapore and Hong Kong.

UOB reported record net earnings of S$3.39bn for 2017, up 9% on the year, as total income rose 10% to S$8.85bn, led by new highs in both net interest and fee and commission income. For the fourth quarter of last year, the group registered net earnings of S$855m, 16% higher than the fourth quarter of 2016, largely due to an increase in net interest, fee and commission and net trading income.

In 2017, the bank issued nine structured products worth US$347m (2016: 30 products; US$2.5bn), according to SRP data.

Additionally, the group reported net profit before tax of SG$1.09bn in the fourth quarter, 18% higher compared with the same period in the previous year. In 2017, net profit before tax increased 11% year-on-year, from S$3.78bn to S$4.2bn.

In December, Gidon Kessel, head of structured products at UOB, said that non-principal protected flow payoffs remained dominant, while fund-linked principal protected structures proved popular 'with better optics catering for more conservative profiled clients'.

OCBC Bank reported a net profit after tax of SG$4.15bn in 2017, an increase of 19% from SG$3.47bn a year ago. The strong performance was driven by sustained growth in banking, wealth management and insurance.

Total income rose 14% over the prior year to exceed SG$9.6bn. Net interest income rose 7% from the previous year to SG$5.42bn on the back of strong asset growth. Fee and commission income climbed 19%, to SG$1.95bn, lifted by a 45% increase in wealth management fee income. Investment banking, fund management and trade-related fees were also higher year-on-year. Net gains from the sale of investment securities more than doubled to SG$431m.

Operating expenses of SG$4.03bn were 6% above the previous year, including the consolidation of Barclays wealth and investment management in Singapore and Hong Kong, following the November 2016 acquisition.

In 2017, OCBC issued nine structured products worth US$231m in Apac (2016: 23 products; US$2.23bn), according to SRP data. The bank also launched private banking in Indonesia in the second quarter of last year through 85%-owned subsidiary OCBC NISP to target demand from Indonesian high net worth (HNW) investors for more sophisticated structured products.

According to SRP data, in 2017 the net sales of structured products by the major Singaporean banks decreased compared to previous years. DBS's net sales were US$3.9bn, down almost 50% on the year. Similarly, the net sales of UOB went down 86%, from US$2.5bn to US$347m. OCBC's net sale saw a decrease of almost 90%, from US$2.2bn to US$231m.

Click on the respective links for the financial results of DBSUOB and OCBC.

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