UOB Kay Hian reported on Thursday (Aug 15) a net profit of S$113.9 million for the six months ended Jun 30, up 64.3 per cent from S$69.3 million in the previous corresponding period.
Revenue increased 10.2 per cent to S$317.1 million compared to S$287.8 million in the year-ago period.
On a per-share basis, earnings were 12.64 Singapore cents, up from 7.83 Singapore cents.
The brokerage firm attributed this to strong equity market performance and higher trading volumes in the US, which sustained improved investor activity for the period.
It also noted that there had been “considerable” interest in structured products and fixed income instruments as investor sentiment positioned for an expected rate cut in H2 2024.
Commission and trading income rose 18.8 per cent to S$166 million from S$139.8 million, while other operating income increased to S$27.3 million from S$16 million.
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This was offset by reduced interest income, down 6.2 per cent to S$132 million, which was a result of lower income from structured loans.
While staff costs climbed 28.7 per cent to S$101.1 million, finance costs fell 40 per cent to S$19.1 million.
Other operating expenses also dropped 35.1 per cent to S$43.1 million, as other operating expenses for H1 2023 included an additional allowance for impairment of trade receivables of S$17.8 million.
The brokerage said it will adopt a cautious outlook for the next six to 12 months as recent market events showed “significant volatility and investors’ nervousness towards valuations and direction of US economic policies”.
No dividend was recommended for the half year.
Shares of UOB Kay Hian ended at S$1.35 on Thursday, down S$0.02 or 1.5 per cent.
