Singapura Finance's profit tumbles 21% on margin compression, impairment loss

Singapura Finance has turned in a 21.2 per cent drop in full year net profit to $5.3 million.

Net interest income and hiring charges for the year to June 30 fell by 2 per cent to $16.6 million.

Total income before operating expenses decreased by 2.9 per cent to $20 million.

The weaker performance was mainly due to the continual compression of interest margin, an impairment loss on investments and a net allowance for loan losses made as compared to a net write-back in the previous year.

Total loans and advances grew by 15 per cent as the group continued to seek loan growth in order to cushion the negative impact of lower yield from assets.

In tandem with the higher loan balance, total deposits also increased 15 per cent to $798 million.

Singapura Finance registered an impairment loss on investments of $500,000 due to prolonged decline in the market value of a quoted equity investment.

Earnings per share slipped to 6.63 cents from 8.41 cents previously while net asset value per share eased by five cents to $2.10.

A final dividend of five cents a share was proposed, down from six cents last year.