DBS today said its consumer banking and wealth management arm logged pre-tax profit of S$216 million ($172 million) in the second quarter of 2014, up from S$176 million a year earlier. Group net profit set a record.

Singapore-listed DBS today said its consumer banking and wealth management arm logged pre-tax profit of S$216 million ($172 million) in the second quarter of 2014, up from S$176 million a year earlier and S$202 million in the previous three-month period.

This part of the bank reported net interest income of S$401 million in the latest quarter, up from S$364 million a year earlier, DBS, one of the three major domestic Singapore-based banking groups, said in a statement. (United Overseas Bank reported results yesterday; OCBC is due to report figures.) Total income was S$709 million, up from S$623 million a year earlier.

“The wealth business is in good shape,” Piyush Gupta, group chief executive, told this publication at a presentation about the results.

Shares in DBS Group were up around 0.5 per cent on the day.

The past few months have been eventful; DBS acquired the Asian private banking arm of France’s Societe Generale earlier this year, including part of that bank’s trusts business, a move seen as consolidating DBS’s hold on the local wealth market and highlighting pressures in favour of mergers and acquisitions.

For the DBS Group across all divisions, it said it delivered record net profit of S$2.00 billion for the first six months of 2014, up 9 per cent from a year ago, crossing the S$2 billion mark for the first time. Including one-time items, net profit was S$2.20 billion.

The bank said its performance was “underpinned by a 3 per cent increase in total income to S$4.76 billion as higher net interest margin, loan volumes and annuity fee income streams more than offset a decline in market-related income”.

First-half net interest income increased 12 per cent to S$3.05 billion as loan and deposit volumes grew and net interest margin improved three basis points to 1.66 per cent. Loans rose 10 per cent to S$257 billion from regional corporate borrowing and secured consumer loans.

Wealth management fees rose 19 per cent to a new high of $255 million.

Fee income was maintained around the previous quarter’s levels as increases in wealth management and investment banking fees were offset by a decline in loan-related fees.

Capital adequacy ratios were “comfortably” above regulatory requirements, with Common Equity Tier-1 at 13.5 per cent, Tier-1 at 13.5 per cent and the total adequacy ratio at 15.7 per cent.

DBS’s Gupta said: “DBS reached a new milestone with half year earnings crossing the SGD 2 billion mark for the first time. Margins rose, annuity income remained strong and asset quality improved. This broad-based performance enabled us to continue our multi-year track record of solid growth.”

Part of the bank’s strategy has been to focus on digital channels to find new clients; the bank has also won plaudits from organisations such as MyPrivateBankingResearch for the calibre of its mobile apps and digital engagement. Today, the bank said it has added 2,500 wealth clients via the iWealth app - which includes DBS Treasures, DBS Treasures Private Client and Private Bank.