Fee income has emerged as the critical growth engine for Singapore’s financial heavyweights as they navigate an evolving rate environment.
With earnings season approaching, investors should watch how three SGX-listed companies are pivoting toward recurring, fee-based revenue streams to sustain their growth trajectories.
DBS Group Holdings (SGX: D05)
In its third quarter ended 30 September 2025 (3Q2025), Singapore’s largest bank showcased the resilience of its fee diversification strategy even as interest rate tailwinds began to fade.
While net interest income remained stable at S$3.6 billion despite a 15 basis point compression in net interest margin to 1.96%, the non-interest income segment emerged as the primary growth engine.
Non-interest income surged 9% year on year (YoY) to S$2.4 billion, driven by wealth management fees which jumped 31% to S$796 million.
The growth was broad-based, with loan-related fees climbing 25% and investment banking fees soaring 65% due to a resurgence in capital market activity.
These combined gains pushed total income to a record S$5.9 billion, representing a 3% increase from the previous year.
This robust performance supported a substantial total dividend of S$0.75 per share for the quarter, which included a S$0.60 ordinary dividend supplemented by a S$0.15 capital return.
As the bank prepares to release its latest results, the primary focus for investors will be whether this wealth management momentum remains strong enough to justify a continuation of such generous capital returns.
CapitaLand Investment (SGX: 9CI)
Asia’s largest diversified real estate investment manager is executing a deliberate shift toward capital-light, fee-generating businesses.
For the nine months ended 30 September 2025 (9M2025), fee-related revenue rose 7% YoY to S$900 million, driven by higher event-driven fees from listed funds and contributions from new fund launches.
The lodging management segment contributed S$259 million in fee-related revenue, up 3% YoY, supported by portfolio expansion across Europe and Asia.
The group signed approximately 13,500 units across 64 properties in 9M2025, representing 32% more units compared to a year ago.
Meanwhile, real estate investment business revenue fell to S$753 million as CLI continues divesting balance sheet assets.
The group raised S$3.7 billion in total equity across listed and private funds in 9M2025.
With S$120 billion in funds under management and a target allocation of 25% to 35% in lodging and living assets by 2028, investors should watch for progress on fundraising momentum.
iFAST Corporation (SGX: AIY)
The wealth management fintech exemplifies the recurring revenue model, with recurring net revenue reaching S$201.5 million for 9M2025, up 28.5% YoY.
This represented 89.8% of non-banking operations’ net revenue, highlighting the platform’s sticky, predictable income base.
Total revenue climbed 30.2% YoY to S$363.0 million whilst net profit surged 41.8% to S$67.2 million.
Assets under administration hit a record S$30.62 billion, up 29.6% YoY, fuelled by record net inflows of S$3.72 billion.
The Hong Kong eMPF project continues ramping up, whilst iFAST Global Bank turned profitable with S$2.0 million in 9M2025 compared to a loss of S$4.7 million a year ago.
Management expects robust growth in revenues and profitability for full year 2025, with total dividends projected at S$0.0820 per share or higher, representing at least a 39% YoY increase.
Get Smart: Follow the fees
The shift toward fee-based income reflects a broader transformation across Singapore’s financial sector.
For DBS, wealth management fees provide a buffer against net interest margin compression.
For CLI, fund management fees offer higher-margin returns than direct property ownership.
For iFAST, recurring revenue creates predictable cash flows that support dividend growth.
As these three companies report their upcoming results, the sustainability of fee income growth will be the key metric separating the winners from the also-rans.
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Disclosure: The Smart Investor owns shares of DBS and iFAST Corporation.
