Singapura Finance's 1Q earnings surge more than threefold to $4.1 mil on higher interest income and writeback on loan impairment losses

SINGAPORE (May 10): Singapura Finance reported 1Q19 earnings surged more than threefold to $4.1 million from $1.2 million in 1Q18.

Interest income and hiring charges saw a 19.6% increase to $8.7 million from $7.3 million a year ago.

As interest expense increased by 13.3% y-o-y to $2.2 million, net interest and hiring charges came in at $6.5 million, 21.8% higher than $5.3 million last year, mainly due to higher recovery from non-performing loans, despite the increase in cost of funds.

Staff costs increased by 7.1% y-o-y to $1.9 million, while other operating expenses dropped 18.6% y-o-y to $953,000.

During the quarter, the group recorded write-back for impairment losses on loans and advances of $1.2 million, compared to allowances of $1.3 million in the previous year. The group says that it will continue to set aside adequate specific and collective allowances in respect of its loan portfolio.

Given the prevailing volatility in global economic outlook, the group expects challenging times ahead. Nevertheless, it will continue to be prudent in seeking new business opportunities and be proactive in managing our interest margin, credit exposure and operating expenses to remain competitive.

Shares in Singapura Finance closed at 87 cents on Wednesday.