SINGAPORE (Feb 12): Sing Investments & Finance saw its earnings surge 63.7% to $22.7 million for the full year ended December, from $13.9 million a year ago.
The better performance was driven by higher net interest income arising from lower funding costs, higher non-interest income, and lower allowances for impairment losses on loans and advances.
Net interest income and hiring charges grew 15.5% to $44.6 million in FY17, from $38.6 million a year ago.
This was largely attributable to lower interest expense, which fell 26.0% to $27.3 million in FY17, on the back of lower deposit rates and marginally lower deposit base.
Non-interest income increased by $2.0 million in FY17, primarily from the $2.4 million gain from sale of SGS bonds.
Allowances for impairment losses on loans and advances fell 52.9% to $2.4 million in FY17, due to lower specific provision made during the current year.
As at end December, cash and cash equivalents stood at $250.6 million.
The board has recommended a first and final dividend of 7 cents per share for FY17, 40% higher than the first and final dividend of 5 cents per share a year ago.
Looking ahead, the group says it will continue to seek new business opportunities within its prudent credit granting criteria, especially with the regulatory relaxation for finance companies to offer current account facilities and unsecured lending to corporates.
It adds that it will remain proactive in managing its interest margin and disciplined in its cost controls to deliver sustainable returns to stakeholders.
Shares of Sing Investments & Finance closed flat at $1.52 on Monday.
