Higher loan base, lower expenses lift Sing Investments' Q3 profit

SINGAPORE - Sing Investments & Finance said its third quarter net profit rose by 25.7 per cent to $3.8 million.

Net interest income and hiring charges for the three months to Sept 30 climbed by 8 per cent to $8.2 million while income before operating expenses was up 6.4 per cent at $9.3 million.

Total loan assets grew by 7.2 per cent to $1.66 billion compared to $1.55 billion as at Dec 31.

In tandem with the increase in loan assets, deposits and savings accounts of customers increased by 8.7 per cent to $1.89 billion.

The rise in net profit was mainly attributed to an increase in net interest income and hiring charges from an increased loan base and a 5 per cent reduction in operating expenses.

The group continues to maintain adequate individual and collective impairment allowances in respect of its loan portfolio.

Annualised earnings per share firmed to 9.56 from 7.61 cents previously.

Net asset value per share rose to $1.96 compared to $1.93 as at Dec 31.

Given the expected moderate economic growth and the continual impact of the property cooling measures and car financing restrictions, Sing Investments expects the business environment to continue to be challenging and competitive.

"Nevertheless, the group will strive to grow our loan portfolio prudently and manage our operating expenses to remain competitive."