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Bank of Singapore income jumps 43%

Bank of Singapore income jumps 43%

Bank of Singapore, the private banking arm of OCBC Bank, recorded new high in wealth management income and assets under management (AUM) for the 2017 financial year.

Driven by net new money, OCBC said wealth management income increased 43% to SGD 3.25 billion ($2.5 billion) and AUM increased 25% to $99 billion from $79 billion a year ago.

As a proportion of the group’s total income, wealth management income contributed 34%, as compared to 27% in 2016.

Total income for the global consumer and private banking segment hit SGD 3.21 billion ($2.43 billion) last year, an increase from the SGD 2.72 billion ($2.1 billion) recorded in 2016.

What’s more, the unit’s profit after allowances was SGD 1.23 billion ($0.93 billion) in 2017 and SGD 286 million ($216 million) in the fourth quarter, a year-on-year increase of 36% and 32%, respectively.

In November 2017, the group completed the acquisition of National Australia Bank’s private wealth business in Singapore and Hong Kong.

OCBC said this added SGD $2.06 billion ($1.56 billion) in loans and SGD 2.42 billion ($1.83 billion) in deposits to its franchise.

Last October, Bank of Singapore recorded 53% jump in nine months AUM amounting $95 billion, from $62 billion a year ago. This was partially contributed by the acquisition of Barclays Wealth and Investment Management.

Its wealth management income of SGD 2.25 billion ($1.7 billion) grew 38% from SGD 1.63 billion ($1.23 billion) a year ago.

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