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Stellar 3Q performance at Sing Investments keeps it at 'buy'

PC Lee
PC Lee10/26/2017 10:54 AM GMT+08  • 2 min read
Stellar 3Q performance at Sing Investments keeps it at 'buy'
SINGAPORE (Oct 26): Phillip Capital is maintaining Sing Investments & Finance at ‘accumulate’ with a higher target price of $1.725 after 3Q17 net profit exceeded estimates on higher interest income and lower hiring charges and bad loans.
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SINGAPORE (Oct 26): Phillip Capital is maintaining Sing Investments & Finance at ‘accumulate’ with a higher target price of $1.725 after 3Q17 net profit exceeded estimates on higher interest income and lower hiring charges and bad loans.

In 3Q17, Sing Investments expanded its Loan-to-Deposit Ratio (LDR) to 85.7% from a low base of 82% in 2016, by cutting high-cost deposits. Net interest income was also stronger q-o-q as it managed to pass the higher rates to clients.

In a Thursday report, analyst Jeremy Teong says this comes as a pleasant surprise because interest rates of customer loans declined q-o-q in 2Q17 and “we thought that NII growth for the rest of the year will be driven by interest expense reduction rather than higher customer loans interest rates”.

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