Other income decreased by 70.4% to $53,000. Operating expenses widened 7.1% to $5.8 million mainly from higher staff costs and other operating expenses. Allowances for impairment losses on loans and advances of $340,000 were 45.6% lower than a year ago. This was due mainly to lower specific provisions and release of collective impairment allowances. The group says it continues to maintain adequate individual and collective impairment allowances in respect of its loan portfolio.
Total loans and advances edged down 3% to $1.8 billion as at Sept 30 from $1.9 billion as at Dec 31 2016. In tandem with the lower loan balance, deposits and savings accounts of customers also declined by 7.0% to $2.2 billion as of Sept 30 from $2.3 billion as at Dec 2016. Accordingly, loan-to-deposit ratio rose from 82.2% to 85.7%.
In the midst of expected moderate growth in the coming quarters, Sing Investments & Finance says it will continue to seek new business opportunities, and at the same time continue to be prudent in its credit lending. Management of interest margin will also be a key challenge for the group in anticipation of a rising interest rates environment.
Shares of the counter closed 3 cents higher at $1.58.
