SING Investments & Finance on Wednesday said net profit for the full year inched up 1.2 per cent as higher net interest income was mostly offset by a surge in allowances for impairment losses on loans and advances.
Net profit for the 12 months ended Dec 31, 2015 stood at S$12.8 million, compared to S$12.7 million a year ago.
Net interest income and hiring charges rose 8 per cent to S$35.2 million, boosted by higher net loan assets.
But allowances jumped to S$3.98 million, more than tripling from S$1.25 million set aside a year ago.
"Global growth outlook in 2016 will remain tepid with the volatility in the financial markets and risks of potential capital flight that could result from further United States rate hikes as well as fears of further economic slowdown in China. On the domestic front, slower labour force growth and lacklustre productivity are dragging down Singapore's long-term potential expansion rate," the financing company said in its financial statement.
"Given the challenging growth outlook and the continual impact of the property cooling measures and car financing restrictions, we expect the business environment to be increasingly challenging and competitive."