THANKS to rising interest rates, Singapore’s lenders are doing well. DBS Group : D05 0%, OCBC Bank : O39 0% and UOB Group : U11 0% posted strong growth in net interest margins (NIMs) and net profit in 2022.

Singapore’s largest finance company, locally-listed Hong Leong Finance : S41 0% (HLF), has seen similarly good numbers. Net profit came to S$131 million for 2022, up 54 per cent from 2021, helped by loan growth and higher asset yields. NIM grew 41 basis points between 2021 and 2022 to 1.82 per cent.

Compared with its pre-pandemic numbers in 2019, HLF’s net profit for 2022 was up 27 per cent. Net asset value (NAV) per share rose by 6 per cent from S$4.28 at end-2019 to S$4.55 at end-2022.