We are now in the busiest part of earnings season. Many companies have reported their results over the past few weeks — some of them have had good news to share, and some bad.
Today, we’re focusing on two companies that delivered growth in their latest results.
United Overseas Bank Ltd (SGX: U11) is first on the list with some positive results.
For the quarter ended 31 March 2019, UOB reported that net interest income grew by 8% year on year to S$1.6 billion. The improvement in net interest income was mainly due to 12% growth in customer loans. Similarly, non-interest income was up by 8% year on year to S$819 million. As a result, total income also increased by 8% year on year to S$2.4 billion. Net profit also grew by 8% year on year to S$1.1 billion.
No dividend was declared by the bank for this quarter.
Wee Ee Cheong, UOB’s deputy chairman and chief executive officer, commented:
“We started 2019 with strong quarter earnings, underpinned by our continued focus on our fundamentals and prudence in managing our business. This discipline is key, especially when the macro environment remains uncertain due to the slowing global economy and ongoing trade tensions. Our steadfast approach to ensuring continued sustainable growth has seen strong investor support, which was also recently reflected in their response to our debut Panda Bond and US dollar-denominated subordinated notes issuances.
Placing our customers at the heart of all that we do, we will continue to harness technology and to tap our partner ecosystems to enhance the customer experience and to drive performance. In investing in and strengthening our omni-channel and connectivity capabilities, we will offer more solutions at scale and with speed to market to more consumers and businesses across our regional network.”
Singapore Technologies Engineering Ltd (SGX: S63), or STE, is the second company on our list today. STE is a conglomerate with a business interest in various sectors, namely Aerospace, Electronics, Land Systems, Marine, and others.
For the quarter ended 31 March 2019, STE reported that revenue grew by 5.1% year on year to S$1.7 billion. Similarly, earnings before interest and taxes (EBIT) for the quarter improved by 16.2% year on year to S$141.9 million. Consequently, net profit attributable to shareholders for the period was up by 11.4% year on year to S$131.1 million. Earnings per share (EPS) also improved from 3.78 Singapore cents last year to 4.20 Singapore cents in this quarter.
The engineering conglomerate’s order book stood at S$14.1 billion at the end of the quarter, with S$4.2 billion of its order book to be delivered in 2019.
STE’s President and CEO Vincent Chong commented:
“We had a good start to the year and our recent contract wins have increased our order book to a high of $14.1b. Our focus remains on strengthening our core businesses and pursuing growth in Smart City and in the international defence business.
On the M&A front, we have agreed to acquire Newtec Groupi, which operates in the high-tech satellite communications industry driving connectivity. This acquisition is expected to complete in 2H2019, and when combined with our existing satellite communications businesses, will further enhance our value proposition for Smart City.”
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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned. The Motley Fool Singapore recommends shares of United Overseas Bank.