Singapura Finance Ltd has reported a net profit of S$9.15 million for the 12 months ended 31 Dec 2025, up 50.2 per cent year-on-year, lifted by wider net interest margins and a write-back of loan-loss allowances.

Total income rose 24.1 per cent to S$30.07 million, while basic earnings per share increased to 5.77 Singapore cents from 3.84 cents a year earlier. The board has proposed a first-and-final dividend of 2.0 cents a share and a special dividend of 1.5 cents a share, compared with 2.0 cents and 1.0 cent respectively for FY2024. The book-closure and payment dates will be announced after shareholder approval at the upcoming AGM.

Performance was underpinned by a 25.8 per cent jump in net interest income to S$29.24 million, supported by an 18.7 per cent expansion in loans and advances to S$1.17 billion and a reduction in cost of funds. Net interest margin firmed to 2.08 per cent from 1.87 per cent. Non-interest income slipped 15.4 per cent to S$0.83 million on higher loan commission expenses. Operating expenses climbed 19.9 per cent to S$19.67 million, reflecting higher staff costs, IT upgrades and increased depreciation.

The finance company booked a net write-back of loan-loss allowances amounting to S$0.58 million, reversing a S$0.49 million charge in FY2024 as both credit- and non-credit-impaired provisions eased. Pre-tax profit grew 49.7 per cent to S$10.98 million. Return on equity improved to 3.46 per cent (FY2024: 2.39 per cent), while the cost-to-income ratio narrowed to 65.4 per cent from 67.7 per cent. The capital adequacy ratio stood at 20.82 per cent, comfortably above regulatory requirements.

On the funding side, customer deposits rose 20.7 per cent to S$1.25 billion, keeping the loans-to-deposits ratio steady at 93.7 per cent. Asset quality remained stable with the non-performing loans ratio easing to 2.05 per cent (secured and unsecured combined) from 2.88 per cent a year earlier.

Looking ahead, the group noted that Singapore’s economy is projected to expand by 2–4 per cent in 2026 but cautioned that external risks stemming from geopolitical tensions, trade volatility and market uncertainty could weigh on operating conditions. Management indicated it will maintain a “prudent and conservative” stance on risk while continuing to pursue sustainable growth and preserve capital strength.