Singapore's top three banks have reported higher earnings and increased issuance of structured products in the first quarter of 2018.

DBS Group's net profit rose 26%, year-on-year, to a record high of SG$1.5bn (US$1.12bn) in the first quarter of 2018 (Q1 2018). Additionally, led by broad-based growth in loans and non-interest income as well as a higher net interest margin, total income increased by 16%, year-on-year, and by 10%, quarter-on-quarter, to SG$3.4bn. Fee income increased 23% while net interest income was SG$2.13bn, up 12% compared to the same period last year. On the other hand, net fee income reached a record high of SG$744m, up 12% year-on-year, led by wealth management.

The bank's wealth management business reported income increase of 28% year-on-year, from SG$516m to SG$663m. On the other hand, compared to the same period last year, income from retail banking went up slightly by 8%, from SG$643m to SG$696m. DBS's assets under management (AUM) increased by 22% to SG$208bn.

In the first quarter of 2018, DBS issued 694 structured products worth US$2.5bn in Apac, compared to 430 structured products worth US$1.3bn in the same period last year, according to SRP data.

UOB achieved record net earnings of SG$978m in the first quarter of 2018, up 21% from SG$807m a year ago. Total income reached SG$2.23bn, up 9% year-on-year, led by strong growth in both net interest income and net fee and commission income. A higher net interest margin coupled with healthy loan growth of 5% lifted the net interest income to a new high of SG$1.47bn, up 13% from a year ago. Net fee and commission income registered strong growth of 18% to SG$517m. Strong momentum in wealth management and fund management continued to support the uplift in fee income.

All business segments delivered good performance year-on-year, according to the bank. UOB's global markets business, which houses the group's structured products, reported double digit income growth of 20% year-on-year to SG$142m, largely driven by favourable foreign exchange movements. The group's retail business reported income growth of 6% to SG$963m mainly from wealth management and fee based products. Additionally, UOB's wholesale banking income grew 4% to SG$928m supported by higher cash management, trade and investment banking activities.

In the first quarter of 2018, UOB issued seven structured products worth SG$153m in Apac, compared to four structured products worth US$134m in 1Q17, according to SRP data.

OCBC Bank reported net interest income of SG1.42bn in Q1 2018, up 11% from SG$1.27 in 1Q17. Similarly, non-interest income was up 8% year-on-year, from SG$850m to SG$920m. Net profit after tax increased by 29% compared to the first quarter of 2017, from SG$860m to SG$1.11bn. 'The robust year-on-year performance was underpinned by strong net interest income growth, higher wealth management income, lower allowances and increased contributions from the Group's overseas banking subsidiaries,' OCBC announced in a press release.

The group's overall wealth management income, comprising income from insurance, private banking, asset management, stockbroking and other wealth management products, grew 22% to SG$727m, from SG$597m a year ago.

In the first quarter of 2018, OCBC issued four structured products worth US$85m in Apac, according to SRP data. In the same period last year, there were three products of the bank worth SG76m added to the SRP database.

Click on the respective links for the financial results of DBS, UOB and OCBC.

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