Total income rose 10.2% to $24 million, on the back of higher net interest income which arose from higher loan volumes. But total income was partly offset by lower non-interest income, which saw a lower gain on sale of investments, dividend income and other operating income.

Operating expenses rose 18.6% from higher other operating expenses, due to the additional commissions paid to auto loan dealers in line with growth in auto loans.

Total loans and advances net of allowances grew 18.1% to $935 million, and total deposits increased 15.4% to $978 million.

Singapura Finance expects a challenging time ahead, due to Singapore’s modest economic outlook, property cooling measures and possible competitive pressures on funding costs.

The group declared a first and final dividend of two cents for the current financial year.

Singapura Finance’s shares closed 0.5% higher at 97.5 cents on Wednesday.