Sing Investments & Finance Ltd: 1H 2025 Financial Results Analysis
Sing Investments & Finance Ltd (SIF) has released its condensed interim financial statements for the six months ended 30 June 2025. The report reveals a robust performance, with record operating and net profits, strengthened by rising income and improved asset quality. Below, we break down the key financial metrics, performance trends, macroeconomic context, and management commentary as disclosed in the report.
Key Financial Metrics
- Total income: \$40.8 million (+21% YoY, +7% HoH)
- Net profit: \$21.7 million (+35% YoY, +7% HoH)
- Net interest income: \$35.6 million (+17% YoY, +4% HoH)
- Non-interest income: \$5.2 million (+53% YoY, +33% HoH)
- Operating expenses: \$14.9 million (+5% YoY, +6% HoH)
- Net interest margin (NIM): 2.15% (up from 1.92% YoY and 2.06% HoH)
- Cost-to-income ratio: 36.6% (improved from 42.0% YoY and 36.8% HoH)
- Non-performing loan (NPL) ratio: 0.2% (improved from 0.3% YoY; unchanged HoH)
- Capital adequacy ratio (CAR): 14.9% (vs 14.0% YoY, 15.3% HoH)
- Net asset value per share: \$2.01 (vs \$1.84 YoY, \$1.95 HoH)
- Annualized EPS: 18.35 cents (vs 13.61 cents YoY, 17.13 cents HoH)
Financial Performance Comparison Table
| Metric |
1H 2025 |
2H 2024 |
1H 2024 |
YoY Change |
HoH Change |
| Total Income (\$’000) |
40,796 |
38,137 |
33,827 |
+21% |
+7% |
| Net Profit (\$’000) |
21,696 |
20,252 |
16,088 |
+35% |
+7% |
| EPS (cents, annualized) |
18.35 |
17.13 |
13.61 |
+35% |
+7% |
| Net Interest Margin (%) |
2.15 |
2.06 |
1.92 |
+0.23 pp |
+0.09 pp |
| Non-interest Income (\$’000) |
5,182 |
3,893 |
3,393 |
+53% |
+33% |
| Operating Expenses (\$’000) |
14,914 |
14,038 |
14,214 |
+5% |
+6% |
| Cost-to-Income Ratio (%) |
36.6 |
36.8 |
42.0 |
-5.4 pp |
-0.2 pp |
| NPL Ratio (%) |
0.2 |
0.2 |
0.3 |
-0.1 pp |
0 pp |
| Dividend (cents) |
0 (interim) |
6.5 (final FY2024) |
0 (interim) |
– |
– |
Performance Trends and Notable Financial Events
- SIF achieved record highs in both net interest and non-interest income, driving total income to a new peak.
- Net profit improved by 35% YoY, reflecting strong income growth and controlled cost increases.
- Non-interest income, particularly from fees and commissions (+107%) and rental income (+16%), was a standout, rising 53% YoY and 33% HoH.
- Cost discipline was evident as the cost-to-income ratio fell to 36.6%, down from 42.0% a year ago.
- Credit quality improved: the NPL ratio dropped to 0.2% (from 0.3% YoY), and there was a \$0.3 million net write-back of credit allowances.
- Other comprehensive income jumped to \$7.8 million, mainly from fair-value gains in government securities and MAS bills held for liquidity.
- Loan growth was muted (+2% YoY, -1% HoH), with customer deposits up 4% YoY and 1% HoH.
- Liquidity remains strong (loan-to-deposit ratio 88.9%, improved from 90.6% YoY).
Macroeconomic and Industry Context
The first half of 2025 saw rising global uncertainty, with heightened trade tensions after US tariff actions, increased geopolitical risks, and global market volatility. Singapore’s export-driven economy avoided a recession, rebounding in Q2 2025, but full-year GDP growth is expected to slow sharply to 0.0–2.0% after a 4.4% expansion in 2024. On the positive side, inflation is easing, and interest rates have declined, reducing funding costs for SIF and contributing to NIM expansion.
Dividends
No interim dividend was proposed for 1H 2025, consistent with 1H 2024. However, a final dividend of 6.5 cents per share was paid for FY2024, up from 6.0 cents the prior year.
Related-Party Transactions & Corporate Actions
- No share buybacks, placements, or new share issuances occurred in the period.
- Significant related-party deposits totaled \$118.5 million (up from \$100.7 million at end-2024), with related-party interest expenses of \$1.77 million in 1H 2025.
- No major asset sales, divestments, or fundraising activities were reported.
- No legal disputes, natural disasters, or regulatory changes impacting the company were disclosed.
Management Commentary (Chairman’s Statement)
While no distinct Chairman’s Statement is presented, the tone of management’s review is positive. The Board highlights record profits, improved margins, and strong liquidity, while cautioning about global economic uncertainty and the need for robust risk management and governance. The company expresses confidence in its resilience and ability to deliver sustainable returns.
Conclusion: Outlook and Assessment
Sing Investments & Finance Ltd delivered a strong first half in 2025, marked by record profitability, margin expansion, and improved credit quality. The company is benefiting from declining funding costs and prudent cost management, even as loan growth remains subdued amid an uncertain macroeconomic backdrop. With a robust capital position (CAR 14.9%), low NPLs, and ample liquidity, SIF appears well-positioned to weather ongoing external volatility and capitalize on future growth opportunities. The outlook, based strictly on the disclosed results, is strong.
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