Following a slow start, Singapore-listed companies started to pick up in the second quarter, due to continued economic recovery.
The 105 firms that released their Q2 financial results posted a combined net profit of $3.676 billion, which represents a 47.1 percent year-on-year-increase. Out of the 105 companies, 99 recorded a profit in Q2.
OCBC Bank recorded an increase in net profit, up 7.9 percent year-on-year to $503 million, though it failed to meet the analysts’ forecast of $508 million.
The performance of the bank this year was “largely due to poorer market conditions and may not persist for the rest of the year,” said Magdalene Choong of Phillip Securities Research, who maintained her ‘hold’ rating on the stock with a fair value estimate of $9.10.
Rival bank DBS Group posted a $300-million loss because of a $1.02 billion write-down on its business in Hong Kong. Without this write-down, the bank would have recorded quarterly earnings of $718 million.
One of the largest advances in net profit gains was recorded by CWT, which saw a near 18 times increase in net profit to $154.4 million, driven by the $147.6 million one-off gain from the sale and lease-back of CWT Cold Hub and CWT Commodity Hub.
Meanwhile, MCL Land’s Q2 net profit reached $159.9 million, compared with $51.33 million in 2009, attributed to the recognition of profit from the reversal of a US$51 million write-down and the completion of Waterfall Gardens.
Cosco Corporation (Singapore) saw an 85 percent increase in earnings to $68.4 million, due to higher charter rates for dry bulk ships.
An improvement from the previous year was also evident in the 140 firms that released their H1 financial results, with the 139 comparable firms recording a 145.7 percent growth in total net profit to $12.84 billion.
While the Singapore economy failed to reach the July advance estimate of 18.1 percent growth, it gained 17.9 percent in H1, said Prime Minister Lee Hsien Loong.
Previous estimates pegged growth in Q2 at 19.3 percent, but it is now expected to be lower, based on the figures for H1.