UOB Kay Hian has reported earnings of $113.9 million for the 1HFY2024 ended June 30, 64.3% higher y-o-y.
Revenue was up by 10.2% y-o-y to $317.1 million as all income – except interest income – rose on a y-o-y basis.
Commission and trading income rose by 18.8% y-o-y to $166.0 million mainly due to higher market volume across the US markets. Interest income fell by 6.2% y-o-y to $123.8 million from lower income from structured loans. Other operating income rose to $27.3 million from $16 million.
Net foreign exchange (forex) gain surged by 2.5 times to $17.1 million from $6.8 million previously.
Profit before tax was up by 64.1% y-o-y to $131.8 million.
As at June 30, cash and cash equivalents stood at $766.5 million.
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According to the brokerage, strong equity market performance and higher trading volumes in the US helped to sustain strong investors activities in the 1HFY2024. There were also considerable interests in structured products and fixed income instruments to lock-in yields as investors’ sentiments positioned for an expected rate cut in 2H2024.
“We are cautious with regards to the outlook of our business in the next six to 12 months as recent market events have demonstrated significant volatility and investors’ nervousness towards valuations and direction of US economic policies,” says UOB Kay Hian in its results statement on Aug 15.
Shares in UOB Kay Hian closed 2 cents lower or 1.46% down at $1.35 on Aug 15.
