From Kim Eng:-
UOB-Kay Hian recorded slimmer takings for the first quarter ended March 31, 2008, as it failed to repeat the stellar performance it put up during the industry boom last year.
Its total income slipped 22 per cent to $134.1 million, from $172.1 million last year. Its profit after tax attributable to equity-holders dropped 29.5 per cent to $43.2 million, from $61.2 million. Its earnings per share fell to 5.96 cents this year, from 8.44 cents last year.
UOB-Kay Hian explained its poorer showing by saying: '2007 was an exceptional year with record turnover for the stock broking industry and the group.
Market volume in Singapore and the region began to slow in (the) fourth quarter (of) 2007 and continued into (the) first quarter (of) 2008.' The brokerage said its revenues and net profit slipped 'in tandem with the general decline in trading volume and lower commission income'. 'The first quarter of 2008 was challenging for the financial markets.
Market and trading conditions were volatile during this period due mainly to concerns over the impact of the sub-prime mortgage on financial institutions, the effects of the credit crunch on consumer spending and longer-term economic growth prospects. Market turnover in Singapore was lower compared to the same period in 2007,' UOB-Kay Hian said.