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Third Quarter Financial Statement And Dividend Announcement for the Period Ended 31 March 2012
Financials Archive
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Profit & Loss
Statement of Comprehensive Income
Balance Sheet
Review of the Performance of the Company and its Principal Subsidiaries
The Group registered a profit after tax of $1.3 million for the quarter under review and $5.0 million for the nine months ended 31 March 2012, a decline of 29.3% compared to the same nine-month period last year. The prolonged low interest rate environment coupled with fierce market competition continued to compress the Group's interest margin and earnings as assets' yield continue to fall at a faster pace compared to the cost of funds.
Operating profit before allowances for the nine months was $5.2 million, 33.9% lower vis-à-vis the same period last year, as total income contracted by $$2.9 million or 15.7% while operating expenses were marginally lower by 2.1%.
During the last nine months, the Group managed to writeback $0.7 million in allowances for loan losses compared to $0.4 million for the corresponding period last year. The Group continue to set aside adequate individual and collective allowances for the loan portfolio.
Total loans and advances grew 26.9% as the Group continue to seek loan growth in order to cushion the negative impact of lower yield from our assets. In tandem with the higher loan balance, total deposits also increased 16.3% to $599 million as at 31 March 2012.
In the opinion of the Directors, no item, transaction or event of a material and unusual nature has arisen which is likely to affect substantially the results of the operations of the Group and the Company in the interval between the end of the financial period and the date of this announcement.
Commentary
According to the Ministry of Trade and Industry ("MTI")'s advance GDP estimates, the Singapore economy registered a modest growth of 1.6% on a year-on-year basis for the first quarter of 2012. However, on a seasonally-adjusted quarter-on-quarter annualised basis, growth momentum has picked up and the economy grew by 9.9% compared to 2.5% contraction in four quarter of 2011.
While the Singapore economy saw a stronger than expected start in 2012, the low interest rate outlook and the relentless competition continue to set the challenging operating environment for the year ahead.
During these challenging times, the Group will continue to focus on building a strong balance sheet with good quality assets as well as actively manage our operating expenses so as to sustain our profitability.