DBS Bank’s wealth management business boomed in the first quarter of the year, with fees hitting a record SGD$907m ($708m), according to its latest trading update.

The Singapore-headquartered bank said higher investment product sales and bancassurance drove most of the growth in its wealth management fee income.

DBS CEO Tan Su Shan said: “The quarter was anchored by record wealth management performance, alongside robust deposit growth, record transaction services fees and stronger markets trading income.”

The bank’s wealth management business has been offsetting lower margins from its lending business due to lower interest rates.

According to an investor presentation, DBS is seeing “structural momentum” in its wealth business, capturing flows across its newly launched wealth centres.

The bank announced last week plans to launch a flagship Treasures Centre in Kowloon, Hong Kong in the third quarter of this year.

Tan Su Shansaid: “While the Iran war and its potential second-order effects have added uncertainty to the outlook, our stress tests indicate that our credit portfolio remains sound.”

The bank also announced a hike in its dividend through an ordinary dividend of SGD66 cents per share and a capital return dividend of SGD 15 cents per share in the first quarter.

Tan Su Shan said: “We also continue to invest in structural growth initiatives, including transformational technology, to enhance how we serve our customers and capture long-term opportunities.”