SINGAPORE (Aug 14): IFS Capital has posted earnings of $0.8 million for 2Q18, representing an eightfold surge from its 2Q17 earnings of $0.1 million on lower allowances
For the 1H ended June, the group’s earnings rose to $0.5 million from $0.1 million a year ago.
Net interest income for 2Q remained relatively flat at $4.8 million, as 29.5% higher interest expenses of $1.9 million offset the 6.9% y-o-y growth in 2Q18 interest income to $6.7 million.
Non-interest income fell to $4.8 million, down 13.5% from $5.6 million in 2Q17 due to lower net earned premium.
Allowances for loan losses and impairment of other assets fell 78.6% to $0.2 million.
Notably, overall production volume fell by 43% in 2Q18 compared to that of the same period a year ago, as a result of the cessation of the group’s private hire cars portfolio since mid-2017, as well as more stringent underwriting standards being implemented.
IFS Capital says this is congruent with the group’s strategy to achieve better pricing, improve processes in underwriting risks, and better managing its operating costs.
Looking ahead, IFS says there is a good chance that the strong momentum enjoyed by its lending business can be sustained.
While IFS notes that the Insurance business continues to lag in performance, the group says it remains committed to take further steps in expediting the recovery of this segment. Despite having already substantially recalibrated its Insurance business strategy to reduce risks, it will take some time for the turnaround to materialise, it adds.
Shares in IFS Capital closed flat at 22 cents on Tuesday.
