UOB-Kay Hian posts 12.9% lower net profit for H1

[SINGAPORE] UOB-KAY Hian posted a 12.9 per cent year-on-year dip in its net profit to S$99.2 million for the half year of FY2025 ended June, from S$113.9 million for the year-ago period, as net foreign exchange loss and higher commission expense eroded profitability.

In a regulatory filing published on Friday (Aug 8), the securities brokerage posted a 7 per cent rise in its revenue to S$339.1 million, from S$317.1 million in the corresponding period of FY2024.

Commission and trading income increased by 24.5 per cent from S$166 million to S$206.7 million, mainly due to higher market volumes across regional and the United States markets.

However, interest income dropped 7.6 per cent from S$123.8 million to S$114.4 million amid a lower interest-rate environment.

UOB-Kay Hian’s revenue improvement was offset by net foreign exchange loss of S$16.4 million, compared with net foreign exchange gain of S$17.1 million for the year-ago period. It was mainly due to revaluation of its balances maintained in the US and Hong Kong currencies to support its businesses in the respective markets. Commission expenses, which surged by 32.1 per cent, also impacted the bottom line.

Hence, earnings per share fell from S$0.1264 to S$0.106. Net asset value per share was S$2.1618 as at end-June, lower than S$2.264 in end-December 2024. UOB-Kay Hian did not declare an interim dividend for this period.

UOB-Kay Hian shares were down 1.2 per cent or S$0.03 to S$2.45 at market close on Friday, before the financial results were published.