SINGAPORE (Nov 8): Brokerage house UOB KayHian reported a 23.9% rise in 3Q earnings to $18.2 million from $14.7 million a year ago as trading volumes in major regional markets where it operates rose substantially.
Commission income grew 23.1% to nearly $63 million on higher market volumes. Interest income increased 14.1% to $22.4 million with higher financing activities. Other operating revenue increased 10.5% to $6.6 million with higher corporate finance activities.
Commission and personnel expenses rose due to higher business volume. Commission expenses increased 16.9% to $14.2 million while personnel expenses increased by 18.6% to $31.5 million. Finance expenses increased 17.7% to $5.8 million with higher financing activities and rising interest rates. Tax expense rose 41.9% to $18.4 million with higher profits.
UOB KayHian says global and regional markets remained resilient in 3Q17. In its outlook, the group says the rising tide of en bloc property sales in Singapore is expected to release over $6 billion of liquidity into the Singapore economy and this is expected to benefit the property as well as financial sectors.
“We remain optimistic about our prospects in regional as well as global markets as investor confidence improves,” says UOB KayHian.
The counter closed 1 cent higher at $1.38 on Wednesday.
