UOB Kay Hian's Q2 net profit drops 38.6% on lower trading volumes

SINGAPORE - Low trading volumes affected brokerage UOB Kay Hian's second quarter net profit for the period ended June 30.

Net profit dropped 38.6 per cent to $17 million, as revenue fell 11.1 per cent to $101.5 million

It said market traded volumes across the region were adversely affected by political uncertainties in Thailand and Indonesia.

A weakening China economy and investment outflows from Asia to developed markets further exacerbated its business.

UOB Kay Hian expects the challenging conditions to prevail for the rest of the year.

Net profit for the half year declined 55 per cent to $30.6 million, as revenue over the period decreased 15 per cent to $197.8 million.

Earnings per share for the quarter was 2.31 cents, down from 3.68 cents previously.

Net asset value per share was $1.5612 at the end of June, down from $1.5842 at the end of December.

UOB Kay Hian's shares were flat at $1.61. It reported its earnings after markets closed.