Singapura Finance Ltd FY2025 Financial Results Analysis
Singapura Finance Ltd reported robust results for the full year ended 31 December 2025, demonstrating strong loan growth, improved profitability, and solid capital adequacy. This analysis reviews key financial metrics, year-over-year and half-year comparisons, dividend proposals, and other notable disclosures for investors seeking insight into the company’s operational performance and outlook.
Key Financial Metrics
- Profit after tax: \$9.15 million (+50.2% YoY)
- Net interest income: \$29.24 million (+25.8% YoY)
- Total assets: \$1.53 billion (+16.5% YoY)
- Loans and advances (net): \$1.17 billion (+18.7% YoY)
- Customer deposits: \$1.25 billion (+20.7% YoY)
- Net asset value per share: \$1.66 (up from \$1.60)
- Capital adequacy ratio: 20.82% (well above regulatory minimum)
- Basic earnings per share: 5.77 cents (up from 3.84 cents)
Quarter-over-Quarter (QoQ) & Year-over-Year (YoY) Comparison
| Metric |
2H 2025 |
1H 2025 |
2H 2024 |
YoY Change |
HoH Change |
| Total Income (\$’000) |
16,437 |
13,631 |
12,482 |
+31.7% |
+20.6% |
| Profit After Tax (\$’000) |
5,827 |
3,324 |
3,336 |
+74.7% |
+75.4% |
| Net Interest Income (\$’000, FY) |
29,236 |
– |
23,248 |
+25.8% |
– |
| Basic EPS (cents, FY) |
5.77 |
– |
3.84 |
+50.3% |
– |
| Dividend per share (cents, total) |
3.5* (proposed) |
– |
3.0 |
+16.7% |
– |
*Subject to shareholder approval at AGM, consisting of 2.0 cents final and 1.5 cents special dividend.
Dividend Summary
- FY2025 Proposed Dividend: 3.5 cents per share (2.0 cents final + 1.5 cents special), an increase from 3.0 cents (2.0 cents final + 1.0 cent special) in FY2024.
- Total payout for FY2025: \$5.55 million (FY2024: \$4.76 million).
Performance Trends and Noteworthy Items
- Exceptional Earnings: The Group saw a significant YoY spike in profit after tax (+50.2%) and net interest income (+25.8%) driven by strong loan growth and a reduction in cost of funds.
- Operating Expenses: Increased by 19.9% YoY, notably in staff costs, depreciation, and IT upgrades.
- Loan Losses: Net write-back of \$0.6 million in FY2025 compared to a net charge of \$0.5 million in FY2024, reflecting improved loan portfolio quality.
- Fair Value Reserve: Increased by \$5.2 million, mainly due to higher valuations of Singapore Government Securities held for regulatory liquidity requirements.
- No Borrowings or Debt Securities: The Group had no borrowings or debt securities outstanding as of year-end.
- Capital Adequacy: The capital adequacy ratio remains strong at 20.82%, well above regulatory minimums.
- Related-party Transactions: Interest paid on deposits to related parties was \$3.34 million in FY2025 (down from \$4.65 million in FY2024), with other related-party expenses remaining routine.
- No share buybacks, new issues, or asset sales/disposals in the period.
Directors’ Remuneration
- Directors’ fees for FY2025: \$640,000 (up from \$580,000 in FY2024)
- Short-term employee benefits for key management: \$1,015,000 (down from \$1,142,000 in FY2024)
- Total outstanding remuneration payable: \$1,233,000 (down from \$1,434,000 at end-FY2024)
Macroeconomic & Forward-looking Commentary
The Group highlighted the positive but moderating macroeconomic environment in Singapore, with 2025 GDP growth at 5.0% (down from 5.3% in 2024). However, the outlook for 2026 is cautious, with expected GDP growth of 2-4% amid uncertainties such as geopolitical tensions, global trade volatility, and financial market disruptions.
“In this environment, the Group will continue to adopt a prudent and conservative approach in managing our risk exposures. The Group continues to navigate economic uncertainties while staying committed in pursuing sustainable growth that enhances stakeholder value.”
Conclusion & Recommendations
Overall, Singapura Finance Ltd has delivered a strong set of results for FY2025. The company demonstrated robust profit growth, healthy expansion of its loan and deposit base, disciplined cost management amid necessary technology upgrades, and maintained a solid capital buffer.
The proposed dividend increase signals confidence, while the high capital adequacy ratio and improved asset quality support resilience. However, management’s forward tone is cautious due to macroeconomic uncertainty, though there are no signs of material adverse events or significant risks in the immediate term based on the disclosures.
Investor Recommendations
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If you currently hold the stock: The fundamentals are solid, and the increased dividend is a positive. Unless your investment horizon is very short-term or highly risk-averse, consider holding your position to benefit from the company’s continued recovery and prudent management.
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If you are not yet a shareholder: The company’s strengthening financials, attractive dividend yield, and robust capital base make it a compelling candidate for further research and possible accumulation, especially if your portfolio seeks exposure to stable, Singapore-based financial institutions. However, watch for macroeconomic headwinds and remain vigilant for any deterioration in loan quality or margin compression.
Disclaimer: This analysis is based strictly on the company’s published financial statements and should not be considered personalized investment advice. Please consult your financial advisor and consider your own risk profile before making investment decisions.
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