Singapore Bank Fee Income Share 2024: Fee-based income as a share of Singapore bank revenue reached 25–30% in 2024, up from approximately 18% a decade earlier
By Marcus Tan·June 4, 2025·5 min readOrionmano Industries
Fee-based income as a share of Singapore bank revenue reached 25–30% in 2024, up from approximately 18% a decade earlier.
The Structural Shift: From Interest to Fees
Singapore’s three largest banks—DBS, OCBC, and UOB—generated an estimated 25–30% of total revenue from fee-based sources in 2024, marking a substantial increase from approximately 18% a decade prior. This shift reflects a deliberate strategic pivot away from reliance on net interest income, which has faced persistent margin compression as interest rates normalised after the 2022–2023 tightening cycle.
The magnitude of the transition is clearest in aggregate. DBS reported total income of SGD 22.3 billion in 2024, of which net fee income alone reached a record SGD 4.17 billion—a 23% year-on-year increase (Source 2). OCBC’s non-interest income surged 16% to SGD 5.5 billion, with net fee income climbing 22% to SGD 2.4 billion (Source 3). UOB posted a record net fee and commission income of SGD 2.6 billion, up 7% (Source 3). Collectively, fee income across the three banks exceeded SGD 9 billion for the first time.
The structural driver is unambiguous: wealth management fees have become the primary engine. DBS wealth management fees jumped 45% in 2024; OCBC reported a 34% surge; UOB saw an 18% increase (Sources 2, 3). These figures are not cyclical outliers. They represent a decade-long build-out of asset-gathering capabilities, digital distribution platforms, and bancassurance partnerships that have converted Singapore’s status as a wealth hub into recurring revenue streams.
The Fee Income Detail Across the Big Three
DBS’s 2024 net fee income growth was more than double that of its peers, according to the bank’s own disclosure (Source 2). The record SGD 4.17 billion was underpinned by wealth management fees that rose 45%, reflecting broad-based growth across investment products and bancassurance. Total assets under management climbed 17% to SGD 426 billion, with net new money inflows of SGD 21 billion sustained near the record highs of the prior two years. Critically, 56% of AUM was held as investments—a structure that generates recurring advisory and transaction fees rather than just custody or deposit income (Source 2).
OCBC’s fee story is similarly dominated by wealth. Its 34% jump in wealth management fees drove net fee income to SGD 2.4 billion. Insurance income from Great Eastern Holdings added SGD 1.1 billion, up 17% (Source 3). UOB’s record SGD 2.6 billion net fee and commission income featured an 18% rise in wealth management fees and a 13% increase in loan-related fees (Source 3). Fee growth at UOB was more tempered than at DBS or OCBC, consistent with its more cautious diversification strategy.
These numbers matter because they came during a year when net interest income declined at all three banks. DBS’s NII still grew on balance sheet management; OCBC’s NII fell 6% to SGD 9.2 billion as net interest margin compressed 29 basis points to 1.91%; UOB’s NII dipped 3% to SGD 9.4 billion as NIM tightened 14 basis points to 1.89% (Source 3). Fee income effectively cushioned earnings against the rate cycle.
Wealth Management as the Structural Accelerant
Singapore’s financial sector grew 6.8% in 2024, more than double the 3.1% growth recorded in 2023, and accounted for approximately 14% of GDP (Source 6). Assets under management in Singapore crossed SGD 6 trillion for the first time, according to the Monetary Authority of Singapore (Source 6). The banks are direct beneficiaries of this ecosystem expansion.
The fee-income share increase from 18% to 25–30% over a decade tracks closely with the rise of Singapore’s wealth management industry. DBS CEO Piyush Gupta explicitly linked the 2024 record performance to digitalisation and nimble execution in capturing wealth management market share (Source 5). The bank’s return on equity of 18.0% was among the highest for developed-market banks (Source 5).
Exhibit
Fee Income Growth at Singapore's Three Largest Banks, 2024
Year-on-year change in net fee and commission income
The 25–30% fee-income share is not a ceiling. DBS’s record 56% investment-to-AUM ratio suggests further room to convert custodial assets into fee-generating portfolios. The broader financial sector’s 4.7% average annual growth from 2021 to 2024, above the ITM 2025 target range, implies continued structural tailwinds (Source 6).
However, dependence on wealth management fees introduces sensitivity to market volatility. The 2024 fee surge was partly driven by “animated animal spirits” as rates peaked and declined (Source 2). A sharp equity downturn or geopolitical shock could compress transaction volumes and bancassurance sales. Asset quality also warrants monitoring: Singapore banks maintain significant exposure to commercial real estate in Greater China, and non-performing loan ratios—1.1% at DBS, 0.9% at OCBC—remain benign but could trend higher (Sources 2, 3).
The more durable question is whether the 25–30% fee share can persist as net interest margins stabilise. If NIMs bottom and NII recovers, the fee-income ratio may plateau or decline in percentage terms even if absolute fee income continues growing. The key metric to watch is absolute fee income, not the ratio—and on that front, the trajectory is clear.