UOB Kay Hian H1 net profit jumps 66% to S$164.7 million on higher volume

[SINGAPORE] UOB Kay Hian (UOBKH) posted a 66 per cent surge in net profit to S$164.7 million for the first half of FY2026 ended June. This increase from S$99.2 million in the year-ago period was driven by higher trading volume and revenue growth.

In a bourse filing on Friday (Aug 7), the securities brokerage reported a 41.8 per cent rise in revenue to S$481.1 million for H1 FY2026, compared with S$339.1 million in the corresponding period a year earlier.

Commission and trading income increased by 51.6 per cent to S$313.2 million, from S$206.7 million in H1 FY2025.

Interest income grew 19.9 per cent to S$137.3 million from S$114.4 million, while other operating income rose 69.6 per cent to S$30.6 million from S$18.1 million.

The group also recorded a net foreign exchange gain of S$9.6 million for the period, reversing a net foreign exchange loss of S$16.4 million in H1 FY2025.

However, expenses also expanded alongside business growth.

Commission expense increased 33.5 per cent to S$68.8 million in line with higher volumes, while staff costs went up 40.6 per cent to S$142.9 million.

Finance expense more than doubled to S$37.3 million due to higher funding requirements.

Earnings per share stood at S$0.1686 for the half-year, up from S$0.106 previously.

SEE ALSO

UOB Kay Hian H2 earnings up 27% at S$140.1 million

Net asset value per share was S$2.385 as at end-June 2026, compared with S$2.3299 as at Dec 31, 2025.

No interim dividend was declared for the half-year period, unchanged from the previous corresponding period.

Outlook

Commenting on market conditions, UOBKH noted that market development initiatives introduced by the Monetary Authority of Singapore continued to support investor participation locally.

In Hong Kong, a recovery in initial public offering activity and strong Stock Connect trading volumes were underpinned by robust interest in Chinese technology, artificial intelligence and advanced manufacturing.

Looking ahead, the group said that it expects market conditions to remain supportive over the next 12 months, although volatility is likely to persist amid uncertainties surrounding the US interest rate outlook, AI-related investments and geopolitical developments.

It added that it will focus on expanding its wealth management franchise, while maintaining cost discipline and managing risk.

The counter closed on Friday at S$4.14, down 0.7 per cent or S$0.03.