UOBKH posts 10.6% drop in H2 net profit on lower revenue

BROKERAGE firm UOB Kay Hian (UOBKH) posted a 10.6 per cent fall in net profit to S$52.6 million for the six months ended Dec 31, 2022, down from S$58.9 million previously.

This was due mainly to lower commission and trading income as retail participation across regional markets decreased in the second half (H2), UOBKH said in a regulatory filing on Friday (Feb 24).

Earnings per share for the period stood at 5.93 Singapore cents per share, compared with 6.82 Singapore cents in the year-ago period.

Revenue for H2 2022 fell 9.3 per cent to S$260.5 million, from S$287.3 million previously.

The drop in revenue during the second half was due mainly to commission and trading income falling 32.6 per cent to S$139.6 million, UOBKH said. However, it was moderated by a 68.9 per cent increase in interest income to S$101.2 million, as a result of the high-interest-rate environment in H2 2022.

The board has proposed a final dividend of 6 Singapore cents per share, down from 8.8 Singapore cents per share previously.

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For the full year ended Dec 31, 2022, net profit fell 31.3 per cent to S$104.4 million, while revenue decreased 20.9 per cent to S$495.7 million.

“Global capital markets continued to operate in a challenging environment amid continued pressures in the general macro environment,” said UOBKH, though the brokerage expects an “eventual market recovery”.

Shares of UOBKH closed 0.7 per cent or S$0.01 lower to S$1.42 on Friday, prior to the earnings announcement.