DBS, OCBC Bank and UOB, the Singapore investment banks, reported higher net profits for the second quarter of 2017compared to the same period last year. However, according to SRP data, the overall sales volumes of the Singapore-based distributors decreased by 51. The total net estimated sales of DBS, UOB and OCBC went down by 79%, 89% and 96%, respectively.

Between April 1 and June 30, 2017, net profit of DBS grew 8% from a year ago to SG$1.14bn (US$0.84bn). Compared to the previous quarter, net profit was 6% lower due to higher allowances. Net profit for the first half of 2017 was SG$2.35bn.

As compared to 2016, net fee income was 1% higher at SG$636m. The growth was led by a significant increase in wealth management fees to SG$245m from stronger sales of unit trusts and other investment products.

Other non-interest income fell 13% from a year ago to SG$400m as a result of lower trading income and income on investment securities, as well as an absence of gains on fixed assets. Non-performing assets increased marginally to SG$4.85bn as compared to the first quarter of 2017 due to write-offs and recoveries offsetting non-performing loan formation.

DBS is among the leading distributors of structured products in the Asia-Pacific region, according to SRP data. In the first half of 2017, the bank has marketed over 330 products, excluding non-retail, leverage and flow, worth US$1.4bn.

OCBC Bank reported a net profit after tax of S$1.08bn for the second quarter of 2017, an increase of 22% from SG$885m a year ago, and 11% above SG$973m in the first quarter of 2017. The group's banking, wealth management and insurance operations delivered a strong year-on-year performance which resulted from the growth in net interest income, fees and commissions, net trading income and profit from life assurance.

Overall wealth management income, including income from insurance, private banking, asset management, stockbroking and other wealth management products, grew 51% to SG$1.51bn, from SG$1bn in 2016. As a proportion of the group's total income, wealth management contributed 33%, higher as compared with 24% in the first quarter of 2016. OCBC's private banking business continued to achieve strong growth, as reflected by an increase in assets under management to SG$123bn as at June 30, 2017, up 47% from SG$82bn the previous year.

Wealth management fee income rose 45% year-on-year. The increase is due to the inclusion of the former wealth and investment management business of Barclays PLC in Singapore and Hong Kong (Barclays WIM) acquired in November 2016, the bank said.

The OCBC's consumer and private banking operating profit after allowances was SG$320m in the second quarter of 2017. This represented a year-on-year increase of 36% as a result of higher net interest income and fee income, as well as lower allowances, partly offset by an increase in expenses. Quarter-on-quarter, operating profit grew by 3%, following net interest income and fee income growth.

UOB reported net earnings of SG$845m in 2Q17, 5.5% higher compared with the second quarter of 2016 and 4.6% higher compared to the previous quarter. Driven by stronger performance from credit card, fund and wealth management products, fee and commission income rose 13% to SG$1.03bn as compared to the first quarter of 2017.

Compared to the first quarter of 2016, the profit of the UOB's retail segment, covering personal and small enterprise customers, increased by 7% to SG$445m, led by higher operating income. Compared to the previous quarter, the profit before tax of the retail segment was relatively flat.

The group's global market segment's profit before tax declined SG$9m to SG$66m against the corresponding quarter last year, mainly due to unfavourable foreign exchange movement and lower gain on sale of securities.

By geographical segment, Singapore accounts for 58% of OCBC's operating income (SG$1.2bn), followed by Malaysia and Thailand with 11% and 10.5%, respectively.

The net estimated sales of DBS, UOB and OCBC based on year-to-date SRP data for 2017 are 1.8%, 0.33% and 0.12%, respectively, of the overall volume of net sales for the Asia-Pacific region.

Click on the respective links for the full 2Q17 results of DBS, UOB and OCBC.

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