Private banking offers rich pickings for S'pore banks but it's an expensive business

AS economies slow, one business that continues to thrive is private banking. It may be counter-intuitive and while the rich may fret along with the masses over the lousy economy, they have other concerns, like wealth preservation. This instinct especially in uncertain times makes them rich pickings for banks desperate to boost fee income when sales of mortgages and corporate loans falter.

Bank lending in April fell again, the seventh month of consecutive contractions marking the longest-ever period of declines on record, preliminary data from the Monetary Authority of Singapore showed.

OCBC Bank in its 2016 first-quarter results said that private banking income grew but was offset by lower insurance sales which led to lower overall wealth management income. Its private bank unit also saw assets under management rise by US$2 billion during the quarter.