Sing Investments & Finance Limited (SIF): FY2025 Results Analysis

Sing Investments & Finance Limited (“SIF”) has announced its financial results for the second half and full year ended 31 December 2025. The company, headquartered in Singapore, reported record profits and sustained growth momentum amid a volatile macroeconomic environment. Below, we examine the key financial metrics, performance trends, dividend proposals, and strategic outlook for investors.

Key Financial Metrics and Comparative Performance

Historical Performance Trends

• Full-year net profit after tax reached \$42.3 million, up 16% YoY, marking a new record for SIF.
• Total income grew 19% YoY to \$85.6 million, driven by double-digit increases in net interest income (NII) and non-interest income.
• Customer loans expanded 4% YoY to \$2.79 billion, achieving consecutive year-end highs since 2023.
• Net interest margin (NIM) rose to 2.27%, a 28-basis point expansion from the previous year.
• Non-interest income surged 41%, mainly from higher fees & commissions (+76%) and rental income (+13%).
• Operating expenses increased 7% YoY to \$30.2 million, mainly due to higher staff costs and other expenses.
• Cost-to-income ratio improved to 35.3% (from 39.3%).
• Capital Adequacy Ratio remained strong at 15.2%, well above regulatory requirements.

Dividend Proposal

The Board proposes a first and final dividend of 7.5 cents per share (one-tier tax exempt) for FY2025, up from 6.5 cents in FY2024. This represents a 15% increase YoY.

Macroeconomic and Industry Overview

• Singapore’s GDP grew 5.0% in 2025, with CPI-All Items inflation averaging 0.9% (down from 2.4%).
• Interest rates declined sharply; global central banks eased monetary policy as inflation pressures subsided.
• MAS noted lower rates supported credit growth and investment, underpinning financial system resilience.
• Despite easing uncertainties in 2H 2025, downside risks remain for 2026 (trade tensions, geopolitical risks).
• SIF adopts a cautious outlook for 2026, emphasizing prudent risk management and capital strength.

Exceptional Items and Credit Risk

• SIF set aside \$4.5 million in credit allowances in FY2025 amid economic uncertainties, compared to an immaterial charge in FY2024.
• Non-performing loan ratio increased to 0.4% (from 0.2%), but remains low by industry standards.
• Other comprehensive income of \$8.8 million (up from \$1.8 million) was driven by fair value gains in bond and equity portfolios.

Related Party Transactions and Corporate Actions

• No share buybacks, new shares, or dilution occurred in FY2025. Share capital remained unchanged.
• No treasury share transactions or mandates for interested party transactions.
• Related party deposits stood at \$72.1 million, with related-party interest expenses of \$2.2 million.
• Directors’ remuneration: The Managing Director (Lee Sze Leong) and Deputy Managing Director (Lee Sze Siong) are brothers and substantial shareholders, with no changes in duties or positions during the year.

Forecasted Events and Outlook

• Singapore economy projected to expand by 2–4% in 2026, a moderation from 2025.
• SIF will maintain a cautious stance, focusing on prudent risk management and capital adequacy.
• No specific forecasts or prospect statements were previously issued by SIF.

Conclusion and Investment Recommendation

Overall Assessment: SIF’s FY2025 results reflect strong financial performance, record profits, robust loan growth, and improved cost efficiencies. The company’s capital and liquidity positions remain healthy, and the proposed dividend increase signals confidence in future prospects. While credit allowances and a modest uptick in non-performing loans suggest SIF is preparing for macroeconomic uncertainties, the risk remains well-managed. The outlook for 2026 is more cautious but still constructive, backed by Singapore’s resilient economy and SIF’s prudent strategy.

Investor Recommendations

• If you are currently holding SIF shares:
  • Consider maintaining your position. The company’s strong capital base, record profits, and rising dividend suggest continued value for shareholders. However, monitor credit quality and macroeconomic risks closely.
• If you are not currently holding SIF shares:
  • SIF presents an attractive entry point for income and stability-focused investors, given its track record, robust dividend, and healthy capital ratios. Investors should, however, be mindful of the cautious macro outlook and potential for increased credit risk if global volatility resumes.

Disclaimer: This article is based solely on content from SIF’s FY2025 financial report and is not a substitute for professional investment advice. Investors should conduct their own due diligence and consider their risk appetite before making investment decisions.

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