It has been one hit and one miss so far for two of Singapore’s listed banks. On which side of the divide will Oversea-Chinese Banking Corporation (SGX: O39) fall?
In May, Singapore’s second-largest bank posted a 29% jump in first-quarter earnings to S$1.1 billion. OCBC said net interest income growth was strong, wealth-management income was higher and allowances for bad debts were lower.
StarHub (SGX: CC3) has said that service revenue for the full year could be lower by between 1% and 3%. The telecom operator reported a 15% drop in first-quarter net profits, on the back of falls in revenue in mobile and pay-TV services.
The absence of a one-off gain from disposals resulted an 18% fall on first-quarter earnings at CapitaLand (SGX: C31). But the developer did report a 53% jump in revenues thanks to higher contributions from projects in Singapore and China.
Quarterly earnings were also lower at City Developments (SGX: C09). This was due to compressed property margins at the developer’s executive condominium, The Criterion. In May, the company was optimistic about prospects for Singapore office rentals.
It was a full house for Genting Singapore (SGX: G13) in the first quarter. The casino operator said there were healthy growth volumes at all its major business segments. Net profit rose 3%, while revenue gained 15%.
Singapore Technologies Engineering (SGX: 63) posted an 18% jump in earnings in the first quarter. The defence contractor said profits rose at aerospace, electronics, land systems and marine business sectors. The company also said it remains on track for steady growth.
India was a notable drag on results at Singapore Telecoms (SGX: Z74) in the fourth quarter. The company said it was hurt by lower contributions from its regional associates that also include Indonesia.
ComfortDelGro (SGX: C52) posted a 20% drop in first-quarter earnings in May. The transport company said revenue improvement at its public transport business was offset by weakness at almost every other division.
On the economic front, the US will announce inflation rates for July. Core and headline inflation rates are expected to be unchanged at 2.3% and 2.9%, respectively. In June, inflation was driven by higher oil and gasoline prices, medical care services and food.
China is also on the hook for inflation numbers for July. The consumer prices inflation is expected to have crept up from 1.9% to 2.1%. In June, prices of food went up at a faster pace and cost of non-food continued to increase.
The UK economy is expected to have expanded 1.4% in the second quarter. In the first quarter, the economy only grew 1.2%, which was the slowest pace of expansion since the second quarter of 2012.
And finally, Thursday is National Day. The Singapore market will be closed. Majulah Singapura.
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