The first earnings season of this year is almost drawing to a close.
With most of the blue-chip companies having reported their financial results, we sift through the pile to look for those that reported rising profits.
Higher profits are a sign that the business is doing well, which should eventually translate into a higher share price as investors clamour to buy a piece of the company.
However, investors should also balance good news with risks to ensure a balanced assessment.
Here are four Singapore blue-chip stocks that announced better profits. You may wish to add them to your buy watchlist.
Singapore Airlines (SGX: C6L)
Singapore Airlines, or SIA, is Singapore’s national carrier.
The group recorded its highest-ever revenue with passenger carriage at its highest level ever.
The airline achieved this despite increasingly stiff competition and declining yields.
For the third quarter of fiscal 2025 (3Q FY2025) ending 31 December 2024, SIA saw total revenue inch up 2.7% year on year to S$5.2 billion.
With fuel costs declining by 9.8% year on year due to lower fuel prices, the airline’s operating profit increased by 3.3% year on year to S$629 million.
Net profit soared 146.7% year on year to S$1.6 billion and was boosted by a non-cash accounting gain of close to S$1.1 billion.
Both SIA and Scoot carried a quarterly record of 10.2 million passengers, 7.2% higher than 3Q FY2024.
Because of strong e-commerce activity, cargo flown revenue increased by 9.7% year on year to S$54 million, with loads improving by 14.6% year on year.
During 3Q FY2025, SIA strengthened its airline partnerships with Air India, adding 51 new codeshare destinations from October 2024.
Garuda Indonesia and SIA also increased flight frequencies between Jakarta and Singapore.
Management, however, warned of continued headwinds such as cost inflation, supply chain constraints, and increased competition.
SATS Ltd (SGX: S58)
SATS is a provider of air cargo handling services and is also Asia’s leading airline caterer.
After the acquisition of Worldwide Flight Services (WFS) in 2023, the group now operates more than 215 stations in 27 countries.
For 3Q FY2025, revenue rose 12.5% year on year to S$1.5 billion because of continued business volume growth and rate increases.
The group’s cargo volumes were supported by broad-based demand and the shift from ocean freight to air cargo due to Red Sea disruptions.
With operating expenses increasing by 10.3% year on year, operating profit surged 52.6% year on year to S$127.3 million.
Share of earnings from associates and joint ventures tumbled by 20.2% year on year to S$27.6 million.
Despite this, SATS’ net profit still more than doubled year on year from S$31.5 million to S$70.4 million.
Operating statistics also came in strong for the first nine months of fiscal 2025 (9M FY2025).
Flights increased by almost 6% year on year to 477,000 while meals served climbed 24% year on year to 48.6 million.
The International Air Transport Association (IATA) anticipates an 8% year-on-year increase in global passenger traffic this year, which should help to grow SATS’ food and ground handling businesses.
OCBC Ltd (SGX: O39)
OCBC is Singapore’s second-largest bank by market capitalisation.
The lender reported a commendable set of earnings for 2024.
Total income grew 7% year on year to S$14.5 billion on the back of a 1% year-on-year increase in net interest income to S$9.8 billion.
Non-interest income, however, jumped 22% year on year to S$4.7 billion, aided by higher trading income.
Net profit rose 8% year on year to a record S$7.6 billion.
In line with the good results, and in the spirit of returning excess capital to shareholders, OCBC declared a special dividend of S$0.16 and a share buyback scheme.
The total dividend for 2024 amounted to S$1.01, 23.2% higher than the S$0.82 paid out a year ago.
The bank’s financial target for 2025 is to achieve mid-single-digit loan growth (note: loans grew 8% year on year for 2024).
OCBC also announced a 60% dividend payout ratio, combined with share buybacks over two years.
DBS Group (SGX: D05)
DBS should be a familiar name to most Singaporeans and is Singapore’s largest bank by market capitalisation.
The lender reported a stellar set of earnings for 2024 with net interest income up 5% year on year to S$15 billion.
Fee and commission income climbed 23% year on year to S$4.2 billion, helping to lift total income by 10% year on year to S$22.3 billion.
Net profit for the lender increased by 12% year on year to a record high of S$11.3 billion for 2024.
In tandem with the robust results, DBS increased its quarterly dividend from S$0.54 to S$0.60, taking its annualised ordinary dividend to S$2.40 per share.
In addition, the bank also declared a capital return dividend of S$0.15 per share per quarter for 2025.
In total, the bank will return S$3 per share for 2025.
The outlook for 2025 remained sanguine – both the CEO (Piyush Gupta) and Deputy CEO (Tan Su Shan) see net interest income for this year coming in slightly higher than last year.
Non-interest income is expected to grow by high-single-digits.
Net profit, however, will be impacted by a global minimum tax rate of 15% and is projected to be lower than in 2024.
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Disclosure: Royston Yang owns shares of DBS Group.
