SINGAPORE — As investors seek stability and consistent growth in an ever-fluctuating market, blue-chip stocks have emerged as a popular choice.

With a steady trajectory of profits, these stocks can provide both security and opportunity for growth. Here’s a look at three blue-chip stocks that have recently shown promising profit increases, according to insights from The Smart Investor.

1. United Overseas Bank (UOB)

United Overseas Bank, Singapore's third-largest bank, has delivered impressive results for the third quarter of 2024.

With net interest income increasing by 1% year-on-year to S$2.5 billion, UOB has also witnessed a remarkable rise in fee income—up 7% to S$630 million.

But that’s not all; the bank's non-interest income skyrocketed by an incredible 70% compared to last year, now standing at S$744 million.

Total income soared to S$3.8 billion, marking an 11% increase YoY. Operating profits were up by 10% to S$2.2 billion, and net profit surged by 16% to S$1.6 billion, leading the bank to celebrate healthy loan growth of 5%, totaling S$334 billion.

Despite a slight dip in net interest margin to 2.05%, UOB remains optimistic, forecasting high single-digit loan growth and double-digit fee revenue growth for 2025.

CEO Wee Ee Cheong emphasized plans to manage S$2 billion to S$2.5 billion in excess capital, hinting at potential share buybacks or increased dividends for investors.

2. Singtel

Singtel, Singapore’s largest telecommunications provider, has produced steady results for the first half of fiscal 2025 (ending September 30, 2024).

Though operating revenue dipped by 0.5% to S$7 billion, a reduction in costs led to a 7.4% increase in operating profit, which reached S$1.9 billion.

However, net profit experienced a 42% YoY drop to S$1.2 billion, largely due to extraordinary gains in the prior year.

Despite this, Singtel saw its underlying net profit rise by 6%, enabling the company to declare a dividend of S$0.07—a 35% increase from last year.

Notably, Singtel's Australian subsidiary, Optus, reported a 58% YoY increase in operating profit to A$223 million, signaling robust performance in overseas markets.

Looking ahead, Singtel intends to sharpen its focus through its ST28 strategy to enhance operating profitability and activate more dynamic capital management throughout the remainder of fiscal 2025.

3. SATS Ltd

SATS Ltd, which excels in air cargo handling and food catering services, took significant strides in the first half of fiscal 2025.

The company's income rose by an impressive 14.8% year-on-year to S$2.8 billion, with a staggering increase in operating profit from S$72 million to S$240.1 million.

In stark contrast to the previous year’s net loss, SATS recorded a net profit of S$134.7 million, along with a positive free cash flow of S$113.2 million.

Operations have ramped up, with flights handled rising by 5.5% to 316,000, and cargo tonnage increasing by 17.5% to 4.4 million tonnes.

As air travel and cargo demand are expected to peak during the year-end season, SATS anticipates the momentum will continue, promising potential for greater investor returns.

Investors Should Keep These Stocks on Their Radar!

These three blue-chip stocks—UOB, Singtel, and SATS—displaying remarkable profitability trends, are worthy additions to any investor's watchlist.

As market speculation can drive volatility, now is a crucial time to consider these companies that not only exhibit resilience but also provide opportunities for growth and returns.

Stay updated on the financial markets and invest wisely! This information serves as a guide, so always perform thorough research before finalizing any investment decisions.