Many people may be unfamiliar with bank collaborations, but today it’s difficult to compete solo. Thai banks must partner with institutions that have strong international networks to expand their customer base and share strengths. This underpins the notable wealth management deal between TMBThanachart Bank (ttb) and Singapore’s DBS Bank Ltd. (DBS).
Earlier this week, ttb and DBS announced a strategic partnership to enhance Wealth Management services. Initially, the Thai baht investment portfolios of retail clients from DBS Vickers Securities (Thailand) or DBSVT, a DBS subsidiary, will be transferred to TTB Wealth Securities Company Limited (ttb wealth), expected to complete by May 2027.
Not all DBSVT clients will transfer because certain conditions apply, and portfolio transfers require each client’s consent. DBSVT will continue providing Private Wealth Management services in Thailand through its existing Private Banking. Foreign currency investment portfolios and DBSVT’s Equity Institutional Sales (EIS) business will operate normally and continue serving clients.
The reason Thai banks including ttb are increasingly focusing on Wealth or wealth management services is partly due to the slowing economy creating a K-shaped recovery—lower-income groups slow down while high-net-worth clients continue growing. ttb has launched campaigns to expand customers ranging from those with assets of 1 million baht to Private Banking clients with over 50 million baht under management. The bank aims to steadily increase Assets Under Management (AUM) by broadening investment tools covering Thai and foreign stocks, bonds, mutual funds, and more.
Piti Tantakasem, Chief Executive Officer of ttb, said the cooperation between ttb and DBS aims to elevate the Wealth Ecosystem by expanding opportunities and enhancing investment capabilities so the bank can comprehensively serve High-Net-Worth clients and meet their individual life goals.
Going forward, the two banks will develop further collaboration, including introducing DBS’s international investment products and solutions to ttb’s clients.
Chee Tze Koon, Group Head of Consumer Banking & Wealth Management at DBS, described the partnership, noting that in Singapore, holistic financial planning has incorporated digital personalized advice. He believes this partnership will enhance client access to better investments.
In Thailand, DBS Group Singapore wholly owns DBS Vickers Securities (Thailand) Ltd. (DBSV), which provides securities trading services for both institutional and individual clients and has operated in Thailand since 1998.
Kasikorn Securities views that this deal will accelerate ttb’s expansion into the High-Net-Worth client segment, increasing AUM and fee income. According to publicly available data from Global Private Banker (5 Sept 2024), DBS manages about 100 billion baht in wealth management assets in Thailand, targeting growth to 300 billion baht by 2026.
Assuming DBS has 200 billion baht AUM with a 1% annual fee base and a net profit margin (NPM) of 20–30%, every 10% portfolio transfer could increase ttb’s 2027 profit by approximately 0.18–0.28%. If 100% transfers, profit could rise about 1.85–2.77% in 2027.
From InnovestX’s perspective, this deal will positively impact ttb by increasing fee income by about 1–2%, supporting profit forecast revisions upward by 0.6% for 2027 and 1% for 2028. It may also help offset an expected 5% profit decline in 2027 due to expiring tax benefits.
Initial information from DBS indicates that portfolio transfers will affect retail client accounts opened with DBSVT involving securities, derivatives, and assets not under DCA accounts (which DBSVT will continue to manage).
Eligible DBSVT clients will be gradually contacted from 31 Aug 2026 onward to provide information about the transfer process and seek consent to move accounts, related assets, contracts, rights, and obligations to ttb wealth.
Retail clients with DBSVT accounts that have no cash, assets, or liabilities within 30 days before account closure will be informed about account closure per related contracts. Confirmation letters will be sent after closure. Institutional Sales (EIS) clients with Equity Institutional Sales accounts at DBSVT will continue receiving services as usual.
Finally, we await further developments of this deal and ttb’s new partnerships aimed at expanding product offerings for its clients.
Sources: DBS, Kasikorn Securities, InnovestX
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