Singapura Finance (S23) H1 2024 earnings summary

Executive summary

• H1 2024 profit after tax was $2.758m, down 30.1% YoY, reflecting lower net interest income and higher loan impairment allowances.

• Total comprehensive income was $248,000, including a $2.510m net unrealised loss on debt investments in OCI.

Financial highlights

• Interest income and hiring charges rose 7.5% to $25.940m, while interest expense increased 18.4% to $14.736m; net interest income fell 4.1% to $11.204m.

• Total income declined 3.5% to $11.749m; operating expenses increased 4.8% to $7.712m, and profit from operations before allowances fell 16.1% to $4.037m.

• Loan impairment allowances were $715,000 versus $60,000 in H1 2023; PBT declined 30.1% to $3.322m and EPS was 3.48 cents versus 4.98 cents.

• Net loans and advances rose 12.3% from Dec 2023 to $925.815m; customer deposits rose 12.3% to $985.766m over the same period.

Outlook and guidance

• Singapore’s resilient H1 economy supported confidence in an improving market outlook; management plans to remain proactive, monitor risk exposure and pursue long-term growth.

• Persistently high inflation delayed anticipated interest-rate cuts; uncertain rate movements, geopolitical tensions and the upcoming US presidential election warrant caution on credit demand and economic conditions.