Group 1998: S$222.7 million (-49.0%) 1997: S$436.4 million
Bank 1998: S$239.0 million (-40.5%) 1997: S$401.6 million
Group net profit was in 1998 S$222.7 million compared to S$436.4 million in 1997 due mainly to provisions on non-performing loans (NPLs) in Malaysia, Indonesia, Thailand, Korea and the Philippines (Regional Countries). Total provisions made for 1998 were S$996.4 million compared to S$495.5 million for 1997.
Excluding the contribution from POSBank and losses at Thai Danu Bank (TDB), the decline in Group net profit would have been 27.6%.
Group 1998: S$1,151.7 million (+13.0%) 1997: S$1,019.4 million
Bank 1998: S$1,109.0 million (+18.2%) 1997: S$938.1 million
Group operating profit rose by 13.0% to S$1,151.7 million in 1998, contributed mainly by an increase in net interest income.
Excluding the consolidation of POSBank and TDB, growth in Group operating profit would have been 7.9%.
Group Net Interest Income & Non-interest Income
Net Interest Income 1998: S$1,430.0 million (+42.7%) 1997: S$1,001.8 million
Non-Interest Income 1998: S$476.1 million (-6.7%) 1997: S$510.5 million
The growth in net interest income was due mainly to higher loan volume and margins;
as well as the inclusion of POSBank's net interest income from 1 July 1998 and TDB's net interest income from 1 April 1998. Excluding contributions from POSBank and TDB, growth in net interest income would have been 15.6%.
Fee and commission income declined due to lower loan-related income, stockbroking and fund management fees. Lower dividend income was the result of lower payout by affiliated companies. Other Income, which is market dependent, and rental income were higher.