Singapura Finance (S23) H2 2023 earnings summary

Executive summary

• FY2023 profit after tax was $6.156m, down 26.2% YoY, as the increase in funding costs outpaced higher interest income.

• Shareholders’ funds were $253.3m at year-end; capital adequacy ratio was 29.31%, above the regulatory minimum.

Financial highlights

• Total income fell 15.0% to $22.937m; net interest income declined 16.1% to $22.006m.

• Interest income rose 41.3% to $48.150m, while interest expense increased 232.7% to $26.144m.

• Operating expenses were $15.362m, down 0.4%; profit before tax fell 25.7% to $7.521m.

• Total assets were $1.163bn; net loans were $824.3m, down 2.4%, and customer deposits were $877.7m, down 1.8%.

Outlook and guidance

• Singapore GDP growth was 1.1% in 2023 versus 3.8% in 2022; global growth was forecast at 2.9% for 2024, below the 2000–2019 average of 3.8%.

• Interest rates were expected to remain high, with possible central-bank cuts in H2 2024 as inflation eases; geopolitical tensions and policy uncertainty cloud the outlook.

• Priorities include managing net interest margin and risk exposures closely, while advancing digital transformation and customer touchpoints.