SINGAPORE - Finance company Sing Investments & Finance posted a 123.3 per cent rise in first quarter earnings to S$5.6 million, mainly due to higher net interest income and hiring charges and a net write back of allowance for impairment losses of S$377,000 compared to an allowance charge of $2.1 million in the previous corresponding period.
Net interest income and hiring charges for the three months to March 31 climbed by 15.6 per cent to S$10.6 million.
Profit from operations before allowances was S$6.3 million, up 23.6 per cent.
The jump in the net interest income and hiring charges was driven by higher interest income due to better loan yield as well as lower interest expense.
Total operating expenses edged up marginally by 1.5 per cent, largely due to higher other operating expenses incurred for the hire purchase loan business.
The write back of allowance for loan losses was largely due to lower collective impairment allowances, which is in tandem with the lower loan balance.
The group continues to maintain adequate individual and collective impairment allowances in respect of its loan portfolio.
Annualised earnings per share swelled to 14.18 cents from 6.35 cents previously while net asset value per share firmed to S$2.09 compared to S$2.03 as at Dec 31.
Looking ahead, Sing Investments said the group will continue to proactively manage its interest margin, focus on new business prudently as well as be disciplined in our cost controls, against the backdrop of expected modest economic growth.
Sing Investments shares today eased half a cent to S$1.525.
The stock is up 30 per cent year-to-date.