SINGAPORE: Blue-chip stocks are popular with new and seasoned investors for their stability and reliable track records.
If you’re looking for stocks to add to your buy watchlist, here are three blue-chip stocks that reported growing profits, according to The Smart Investor.
1. United Overseas Bank
United Overseas Bank (UOB), Singapore’s third-largest bank, posted strong results for Q3 2024. Its net interest income rose by 1% year-on-year (YoY) to S$2.5 billion, while fee income grew by 7% YoY to S$630 million.
UOB’s non-interest income saw a huge jump of 70% YoY, reaching S$744 million.
The company’s total income grew by 11% YoY to S$3.8 billion. The bank’s operating profit increased by 10% YoY to S$2.2 billion, and net profit was up 16% YoY to S$1.6 billion.
The bank saw healthy loan growth of 5% YoY to S$334 billion. While its net interest margin (NIM) dipped slightly to 2.05%, this remained constant compared to the previous quarter.
The bank’s fee income rose due to higher wealth demand and a pick-up in credit card spending. Looking ahead, UOB is optimistic for 2025, expecting high single-digit loan growth and double-digit fee growth.
According to CEO Wee Ee Cheong, UOB plans to actively manage its capital, with S$2 billion to S$2.5 billion in extra capital from Basel IV reforms, which it may use for growth or return to shareholders through share buybacks or higher dividends.
2. Singtel
Singtel, Singapore’s largest telecommunications company, posted steady results for the first half of fiscal 2025 (1H FY2025) ending Sept 30, 2024.
Operating revenue fell 0.5% YoY to S$7 billion. Operating expenses also fell by 3.7% YoY to S$5.2 billion, while operating profit rose by 7.4% YoY to S$1.9 billion.
However, net profit dropped by 42% YoY to S$1.2 billion due to an exceptional gain in 1H FY2024.
The company’s underlying net profit rose by 6% YoY, allowing Singtel to declare a total interim dividend of S$0.07, 35% higher than the previous year.
This included a core dividend of S$0.056 and an additional value realisation dividend of S$0.014 from capital recycling.
Singtel’s Australian subsidiary, Optus, performed well, with a 58% YoY increase in operating profit to A$223 million. NCS saw a 3% YoY rise in revenue and a 40% YoY increase in operating profit to S$130 million.
Digital InfraCo and Singtel Singapore maintained stable performances with operating profits of S$39 million and S$439 million, respectively.
For the second half of fiscal 2025 (2H FY2025), Singtel plans to focus on its ST28 strategy to improve operating profit and manage capital more actively.
3. SATS Ltd
SATS provides air cargo handling and food catering services. The company reported strong earnings for 1H FY2025.
Revenue increased by 14.8% YoY to S$2.8 billion, while operating profit grew more than three times from S$72 million to S$240.1 million.
Net profit reached S$134.7 million, compared to a net loss of S$7.8 million in the previous year.
SATS also reported a positive free cash flow of S$113.2 million for 1H FY2025, a turnaround from the negative free cash flow of S$20.7 million in 1H FY2024.
The group announced an interim dividend of S$0.015.
Flights handled increased by 5.5% YoY to 316,000 during the period. Cargo tonnage also grew 17.5% YoY to 4.4 million tonnes, while the number of aviation meals served rose 26.1% YoY to 32.3 million.
SATS anticipates this positive trend to continue as travel and air cargo demand peaks towards the year-end season. /TISG
Disclaimer: This article is for educational purposes only. It should not be considered Financial or Legal Advice. Investors should conduct their own due diligence before making major financial decisions
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