Singapura Finance’s profit up 30.3% in Q1

Thanks to a net write-back of loan allowances.

Mainboard-listed Singapura Finance today reported that its profit after tax climbed 30.3% year-on-year to $1.646m in the first quarter ended 30 September.

The stronger performance was mainly attributed to a net write-back of loan allowances and absence of impairment loss on investments.

Profit from operations before allowances was $1.9 million, 5.0% higher vis-à-vis the same period last year. This was attributed to higher net interest income which was partially offset by lower non-interest income and increase in the operating expenses. 

Net interest income grew by 25.5% driven primarily by higher loan yield and volume while non-interest income declined 54.0% mainly due to lower gain on sale of investments and dividend income. 

Total operating expenses increased by $0.4 million, attributed largely by higher staff costs and other operating expenses, particularly amortisation of commissions to auto-loan dealers. 

Total loans and advances grew $40 million or 5.1% during the first quarter of this financial year. In tandem with the higher loan balance, total deposits also increased $85 million or 10.1% to $933 million as at 30 September 2014.