Singapore bank DBS weighs hedge fund prime brokerage as trading income plunges 65%

DBS Group is weighing a move into hedge fund prime brokerage, according to remarks by Chief Executive Tan Su Shan. Tan said the Singapore-based lender is considering offering prime brokerage services to hedge funds and other institutional investors, citing Asia's existing infrastructure as a base for such a platform. She said, "in Asia we have all the building blocks and we may put it together," but stated that no operating structure has yet been selected.

The consideration comes against a backdrop of weaker trading income. Finance Magnates, in its coverage of the same remarks, reported that DBS trading income fell 65%. The available reporting does not provide the period covered by that decline or a breakdown by business line, so the figure should be read as the publication's headline reporting rather than a detailed financial disclosure.

For institutional allocators and hedge fund managers, a potential DBS prime brokerage offering would add a regional provider of financing, securities lending, and custody-related services in Asia. Any launch would depend on the structure DBS ultimately selects, and no timeline or capital commitment has been disclosed.