SINGAPORE (July 27): Great Eastern Holdings saw 2Q16 earnings fall 63% to S$102.2 million, from S$277.7 million in 2Q15.

The weaker bottomline was due to a S$18.7 million loss on disposal of the group’s Vietnam subsidiary, unfavourable financial markets and low interest rate environment.

Profit for 2Q15 also included a S$119.9 million gain on disposal of its investments in New China Life Insurance Company.

Operating profit for 2Q16 was 2% higher at S$134.6 million compared to 2Q215. Operating profit for 1H16 of S$255.0 million was 10% lower than 1H15 though.

Total Weighted New Sales (TWNS) for 2Q16 grew 23% to S$245.9 million in 2Q15. For 1H16, TWNS was 16% higher at S$466.7 million.

New Business Embedded Value (NBEV), a measure of long-term economic profitability, for 2Q16 was S$105.1 million, 24% higher than 2Q15. NBEV for 1H16 was 12% higher at S$188.9 million.

NBEV margin for 2Q16 also improved to 42.8%, compared with 37.9% for 1Q16.

However, profit from investments from shareholders’ funds for 2Q16 was 89% lower at S$19.2 million, compared with S$180.3 million for the same quarter last year.

Group CEO Khor Hock Seng says, “Our group’s key operating metrics such as total weighted new sales and NBEV have shown significant growth compared with the same period last year. Our positive 2Q16 performance is a direct result of building upon, and even surpassing, our 1Q16’s sales momentum for our major markets, Singapore and Malaysia. While we maintain our focus to grow our core markets, we will increase efforts to build our business in Indonesia.

The board has declared an interim dividend of 10 cents per share for the fiscal year ending December, to be paid on Sept 2.

Shares of Great Eastern closed 2.3% higher at S$21.80 on Tuesday.