SINGAPORE (May 15): Brokerage house UOB Kay Hian reported a 39.4% rise in 1Q earnings to $19.7 million from a year ago as the market rally after the US presidential election in the late 4Q16 continued into 1Q17.
There was also an overall increase in interest in regional markets by retail investors and trading volumes in major regional markets where UOB operated in were higher with active retail participation.
Total income rose 19.3% to $91.4 million for the quarter as total revenue rose 17.2% to $90/5 million. This was led by a 23.9% rise in commission income to $62.8 million, a 3.7% rise in interest income to $20.9 million and a 6.4% rise in other operating income to $6.7 million. There was also a foreign exchange gain of $914,000.
Total costs and expenses widened 13.4% to $23.7 million. Overall commission and personnel expenses increased due to higher business volume. Commission increased 54.3% to $15.6 million and personnel expenses rose 11.5% to $27.6 million. Finance expenses declined due to lower level of outstanding debt issued. Other operating expenses increased 8.2% with higher trading volumes.
Profit after tax rose 39.5% to $20.2 million.
“The market's positive response to the release of the Singapore banks' 1Q17 results is an encouraging sign. We hope the favourable response will spill over to the broader equity market in the months ahead,” says UOB, “However sentiment in the regional markets will be influenced by the evolving North Korean political situation and China's economic performance. Despite the uncertainties, we are cautiously optimistic on the prospects facing our regional markets in the months ahead.”
The counter closed at $1.35 before the announcement.
