High Uncertainty, Banking Wealth Management Business Still Contributes Profit

JAKARTA. Although market uncertainty is driving a shift in customer investment preferences, the wealth management business remains a source of profit for banks. For instance, at Bank DBS Indonesia, assets under management (AUM) in the priority segment (private client) rose 13% year-on-year (yoy) as of June 2026, while total AUM per customer grew 15% yoy. Consumer Banking Director of Bank DBS Indonesia, Melfrida Gultom, stated that these results were achieved amidst an unpredictable situation. The bank had previously predicted a decline in global and domestic benchmark interest rates this year, but the opposite has occurred. Despite this, DBS Indonesia ensures customers are always informed of every change so they can determine appropriate investment strategies. Melfrida explained this is one of the relationship management (RM) strategies applied to maintain customer loyalty amid market uncertainty. “So once we get an insight, we package it in such a way and then give it to the client. There, our RM plays a role in ensuring every insight is translated into portfolio execution,” Melfrida clarified. Additionally, products currently in demand by customers include offshore equity mutual funds, including Sharia-compliant ones, originating from Asia and America, and from the technology and infrastructure sectors. Furthermore, customer interest is also quite high in structured products that provide derivatives, which are favoured when volatility is high. If uncertainty and volatility continue, the bank sees potential for further growth in these products. With this performance, the wealth management business has become a source of profit for Bank DBS Indonesia. In the same period, its total revenue grew 34% yoy, partly supported by investment commission income which grew 65% yoy, and net profit grew by 24% yoy. In general, affluent customers have diverse investment orientations and are not limited to a single asset class. They tend to observe the expected performance of certain financial products when market orientation changes, such as interest rates. In addition to deposit or savings products, investment products based on government bonds are currently in high demand because rising interest rates make prices and yields more attractive. Sharia-based equity mutual funds with access to global equities are also gaining significant interest, especially those oriented towards technology. Gold is also an asset class that has recently attracted quite a number of customers.