KEY POINTS
H2 FY2024
UOB Kay Hian’s net profit rose 9.2 per cent year on year to S$110.3 million for the second half of financial year 2024 ended December, the securities brokerage announced on Wednesday (Feb 26).
Revenue increased 16.3 per cent to S$353.2 million.
Commission and trading income improved by 32.6 per cent to S$202.7 million. Interest income and other operating income remained “relatively stable” at S$129.6 million and S$20.9 million, respectively.
Meanwhile, commission cost was up 38.8 per cent at S$47.9 million, in line with higher business volume, the brokerage said.
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Staff costs rose 20 per cent to S$111.2 million.
Other operating costs were 39.7 per cent higher at S$62.6 million, largely due to a write-off of goodwill and additional allowance for impairment of trade and loan receivables.
Earnings per share stood at S$0.118 for the half-year, compared to S$0.109 for the year-ago period.
The board has proposed a first and final dividend of S$0.119 per share for FY2024, compared to S$0.092 for FY2023. Payment will be made on Jun 26 if shareholders approve it at the annual general meeting to be held on Apr 25.
The group’s net profit increased 31.6 per cent to S$224.2 million, while revenue was up 13.3 per cent at S$670.3 million for the full year.
The group – which deals in securities and futures broking in Singapore, Hong Kong, Thailand, Malaysia and other markets – pointed out that the continued recovery of US and major Asian equity markets have underpinned bullish investors sentiment and fuelled higher trading volumes in 2024.
Higher volatility and attractive yields have also encouraged significant activity in derivatives and structured products.
The upcoming economic policies of the new US administration are key developments to watch given their cascading impact on inflation, interest rates and currency movements, added UOB Kay Hian.
The continued momentum of technological innovation, impact of China’s various stimuli and resilience of the global large economies are also expected to impact the markets.
The counter closed 2.1 per cent or S$0.04 higher at S$1.98, before the financial results were published.
