SINGAPORE (Nov 10): IFS Capital says 3Q17 losses narrowed to $333,000 from $3.95 million.
Interest income excluding non-performing loans (NPL) was 17.5% higher at $5.52 million compared to $4.70 million in 3Q16, mainly due to higher interest income earned from factoring and loans.
NPLs for the quarter was 29.9% lower at $693,000 from $988,000 a year ago.
Hence, interest income for the quarter was 9.2% higher at $6.21 million compared to $5.69 million a year ago.
Interest expense dropped 7.0% to $1.43 million from $1.54 million last year, due to lower average borrowing.
This brought net interest income came in at $4.78 million, 15.3% higher than $4.15 million recorded in 3Q16.
The group’s gross earned premium revenue was up by 68.3% to $4.0 million from $2.37 million last year.
Investment income cans in at $2.0 million, 188.6% increase from $0.70 million a year ago, contributed by redemption of a convertible loan during the quarter.
As at Sept 30, the group’s cash and cash equivalents stood at $40.9 million.
The group’s insurance business has continued to be a drag on its profitability.
Looking ahead, the group has identified the specific issues that lie at the root of this drag and have put in place strategies that it believes can turn the business around. However, it will take time before the insurance business is restored to full health.
Shares in IFS Capital closed 24 cents on Friday.
