2 Singapore Blue-Chip Shares That Announced Growth in Their Latest Results
Its earnings season again! Given many companies have reported results over the past few weeks, I thought it may be useful to summarise the results of some of these companies in three different buckets – positive, negative, or mixed.
This will give our readers a quick overview of the performances of these companies. With that, we will focus on two of those companies that have delivered growth in their latest results.
Singapore Exchange Limited (SGX: S68), or SGX, is the first company that we will look at in this article. As a quick introduction, SGX is the only stock exchange in Singapore.
For the quarter ended 30 June 2019, SGX reported that revenue improved 16.5% year-on-year to S$248.0 million. Similarly, operating profit improved by 25.2% year-on-year to S$122.8 million. As a result, net profit grew 24.1% year-on-year to S$103.9 million. The stronger performance was driven by stronger performance in the Derivatives segment.
SGX also proposed a final dividend of 7.5 cents bringing the total dividend for the year to 30 cents per share.
Loh Boon Chye, CEO of SGX, said:
“We continued the strong momentum from previous quarters and closed FY2019 with another record performance, reflecting the combined strengths of our multi-asset businesses. We set all-time records in our derivatives volumes and open interest, driven by strong global institutional demand for Asian risk management and investment solutions. The second half of the year also saw an improvement in our securities business as trading activity picked up.”
DBS Group Holdings Ltd (SGX: D05) is another company that announced positive results recently. For the second quarter ended 30 June 2019, DBS Group reported that total income grew by 16% from a year ago to a record high S$3.7 billion.
Net interest income (income from loans) improved by 9% year-on-year to S$2.43 billion, driven by improvement in net interest margin and loan volume growth. Similarly, net fee income was up by 9% year-on-year to S$767 million. Net profit also strengthened by 17% to S$1.6 billion due to higher total income and lower operating costs.
DBS Group declared a dividend of 30 cents per share for the quarter.
DBS CEO Piyush Gupta said:
“We achieved a record half-year performance despite heightened economic uncertainty and geopolitical tensions. The results reflect the strengths of an entrenched broad-based franchise that is well placed to nimbly navigate market volatility and capture opportunities as they arise.”