ARA Asset Management reports 18% rise in 1H net profit

ARA Asset Management (ARA) reported an 18 per cent year-on-year increase in net profit to S$29.6 million for the six months ended 30 June.

Total revenue for the same period rose 14 per cent to S$52.55 million.

On a quarterly basis, net profit increased by 17 per cent to S$14.74 million while total revenue for the quarter rose by 8 per cent to S$25.35 million.

ARA Group CEO, John Lim said that its financial performance, “was particularly significant given the strong appreciation of the SGD against the USD and HKD in which a sizeable portion of our revenues are denominated”.

A tax-exempt (one-tier) interim dividend of 2.3 cents per ordinary share has been declared. While this is unchanged from 1H 2010, ARA said that with the increased share capital base following the 1-for-10 bonus share issue in June, the interim dividend represents a 10 per cent increase in payout compared to 1H 2010.

ARA said it has secured firm commitments of US$300 million to date for the ARA Asia Dragon Fund II. The group said it is targeting to garner aggregate commitments of US$1 billion for the fund by the end of the year and commence investments in Q4 2011.

Total assets under management increased by 36 per cent to S$18.8 billion as at 30 June compared to S$13.8 billion a year ago.

Source : Channel NewsAsia – 8 Aug 2011

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