Singapore banks have reported falling wealth management fees despite posting record inflows of money and earnings, as a recent influx of wealthy individuals including Chinese family offices hold back from investing in capital markets.

Income from managing billions of dollars owned by rich clients has fallen among Singapore’s biggest lenders DBS, OCBC and UOB in the past year. While wealth management fees have fallen, the banks have posted higher than expected profits off the back of rising interest rates.

OCBC, the city’s second-biggest lender, reported on Wednesday that non-interest income was down 11 per cent year on year to S$1bn ($753mn) owing to a drop in wealth management fees. That was even as the bank reported a 39 per cent rise in net profit year on year to deliver a record first quarter result of S$1.88bn.