(Bloomberg) -- DBS Group Holdings Ltd.’s shares are set to close out their best year since 2009, with some analysts predicting the rally could extend, driven by the bank’s burgeoning wealth management business.

Southeast Asia’s top-performing bank is best placed to tap into the growing pool of affluent clients and family offices in Singapore, according to Macquarie Group Ltd.’s analysts, including Jayden Vantarakis. They raised the stock target price in November to S$45.50, implying a potential 5% gain from Monday’s close.

Singapore’s biggest banks are witnessing a surge in wealth fees as more of the world’s ultra-rich investors shift assets to Asia, drawn to the city-state as a safe haven. DBS, whose shares have rallied 43% this year — the top performer among bank stocks on the MSCI AC ASEAN Index — aims to double its wealth fees by 2027.

“We expect DBS to continue to lead the pace of growth among peers in Singapore,” said Bloomberg Intelligence analyst Sarah Jane Mahmud. The bank’s wealth fees, up 55% year-on-year in the third quarter, could boost non-net interest income in 2025, she said.

To be sure, the stock is more expensive than its peers. DBS’ shares trade at 1.8 times their book value, higher than the five-year average of 1.4 times. Local rivals United Overseas Bank Ltd. and Oversea-Chinese Banking Corp. trade at 1.2 times and 1.3 times, respectively, according to data compiled by Bloomberg.

While all three banks have reported strong results this year, DBS stands out for having wealth management as its key growth driver, according to Michael Makdad, senior analyst at Morningstar Inc.

Shifts in the global interest rate cycle could provide a further boost to the lender’s shares. The Federal Reserve’s latest policy projections delivered a “surprise to the market in terms of how hawkish it was,” which will benefit Singapore banks’ profits and share prices, said Makdad.

Goldman Sachs Group Inc. forecasts higher net income and stable net interest margins for DBS, with the Fed scaling back the number of cuts it anticipates in 2025. The Wall Street bank raised its 12-month target price for the stock this month to S$50.30, implying a potential 16% upside from the last close.

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