UOB-Kay Hian posts 21.1% rise in Q3 earnings to $20.4 million

SINGAPORE - UOB-Kay Hian Holdings posted third-quarter net profit of $20.4 million, up 21.1 per cent from the same period last year.

Revenue for the three months to Sept 30 rose by 14.4 per cent to $105.8 million.

The stockbroker said market volumes in Singapore remained low but Thailand and Hong Kong saw increases. It recorded pre-tax profit of $25 million, an increase of 18.6 per cent.

Commission income fell from $63.7 million to $62.7 million, reflecting a decrease of 1.5 per cent.

Interest income grew 70.9 per cent to $34.3 million with higher lending activities.

Other operating revenue expanded 23 per cent to $6.4 million due to higher corporate finance activities.

Commission expenses eased by 20.2 per cent to $13.7 million as a result of lower agency volumes.

However, personnel expenses increased 14.1 per cent to $30.3 million due to higher turnover volume transacted by employee dealers.

Overall sales related expenses were flat over the comparative periods, consistent with commission income levels.

Earnings per share climbed to 2.73 cents from 2.33 cents previously while net asset value per share firmed to 159.9 cents compared with 158.42 as at Dec 31.

Looking ahead, UOB-Kay Hian noted that unless investment sentiment improves significantly, market activity is likely to be muted for the remainder of 2014.

"The continued absence of a strong catalyst for global business growth could see low trading activity in 2015," it warned.