Sing Investments suffers profit drop on rising allowances for impairment loss

SINGAPORE - Sing Investments & Finance reported a 6.7 per cent drop in third quarter net profit to $3.5 million.

This was despite net interest income and hiring charges for the three months to Sept 30 rising by 11.4 per cent to $9.1 million.

The finance company was hit by a widening of allowances for impairment losses on loans and advances to $915,000 from $89,000 previously.

Total loan assets grew 14.2 per cent to $1.93 billion as at Sept 30 compared to $1.69 billion as at Dec 31.

In tandem with the increase in loan assets, deposits and savings accounts of customers increased by 17.2 per cent to $2.25 billion.

Earnings per share slipped to 8.92 cents from 9.56 cents in the same period last year while net asset value per share eased to $1.96 compared to $1.99 as at Dec 31.

Sing Investments said it expects the business environment to continue to be challenging and competitive amid weaker growth prospects and the continual impact of the property cooling measures and car financing restrictions.

The company will strive to grow its loan portfolio prudently and manage interest margin and operating expenses to remain competitive, it added.