Welcome to the latest edition of top stock highlights where we write on the latest business news and earnings.
Singapore bank deposit rates
Along with surging globalinterest rates, the trio of local banks has also jacked up its deposit rates to keep up.
Promotional interest rates on Singapore dollar (S$) fixed deposits have hit as high as 2.8% for a 24-month tenor.
At this level, the rate slightly surpasses the 2.6% one-year return for the latest Singapore Savings Bond.
United Overseas Bank Ltd(SGX: U11), or UOB, is offering an attractive interest rate of 2.6% on its one-year S$ fixed deposit.
However, due to a large surge in customers, the bank has imposed a limit of five fixed deposit placements per customer.
OCBC Ltd(SGX: O39) wasn’t far behind as it offered a 2.3% interest rate for the same product with a similar tenor.
DBS Group(SGX: D05), Singapore’s largest bank, has, however, kept its highest rate at 1.3% but this could change as its peers up their deposit rates to attract more funds.
Although deposit rates are on the rise, investors should still feel confident that the lenders’ net interest margin will expand as new loans can be priced at much higher rates.
Nio Inc (SGX: NIO)
Nio is a Chinese electric vehicle manufacturer that produces smart electric vehicles and invests in innovative charging solutions with its headquarters and global R&D centre located in Shanghai.
The company released its earnings and delivery update for the second quarter of 2022 (2Q2022).
Nio delivered 25,059 vehicles in 2Q2022, up 14.4% year on year, and was in line with the 25,768 delivered in 1Q2022.
For the first half of 2022 (1H2022), deliveries jumped 21.1% year on year from 41,956 to 50,827.
Total revenue increased by 21.8% year on year to RMB 10.3 billion for the quarter.
Gross margin, however, dipped from 18.6% in 2Q2021 to 13% due to an increase in delivery volume and higher material costs per vehicle.
Operating loss more than tripled year on year to RMB 2.8 billion as expenses such as research and development and selling costs surged higher.
Net loss ballooned from RMB 587.2 million a year ago to RMB 2.7 billion.
As of 30 June 2022, the electric car manufacturer had RMB 24.5 billion of cash along with RMB 30.5 billion of short and long-term investments.
Its total debt stood at RMB 20.3 billion, giving the company a net cash position of RMB 34.7 billion.
For 3Q2022, Nio expects to deliver between 31,000 and 33,000 vehicles, which would represent a 26.8% to 35% year on year increase.
