iFAST Corporation (AIY) H2 2023 earnings summary

Executive summary

• FY2023 net profit attributable to owners rose 340.0% YoY to S$28.27m, on revenue growth of 22.8% to S$256.54m; growth reflected ePension contributions and stronger core wealth platform performance.

• AUA reached a record S$19.83b at 31 Dec 2023, up 13.8% YoY, with S$2.0b net inflows during the year.

• The three-year plan targets AUA of S$100b by 2028–2030, alongside global platform expansion, faster Hong Kong growth and new complementary fintech services.

Financial highlights

• 4Q2023 revenue rose 69.3% YoY to S$82.19m; net revenue increased 92.0% to S$57.13m.

• 4Q2023 profit before tax was S$16.63m versus S$2.31m; net profit attributable to owners was S$13.18m versus S$1.30m, and EPS was 4.46 cents versus 0.44 cents.

• FY2023 total net revenue rose 36.7% to S$161.66m; net profit attributable to owners increased 340.0% to S$28.27m, excluding the FY2022 S$5.2m India business impairment from the comparison basis.

• Non-banking FY2023 EBITDA increased 87.3% to S$70.50m; net profit attributable to owners rose 121.3% to S$36.88m.

• Recurring net revenue including banking rose 57.3% to S$131.94m in FY2023; non-recurring net revenue fell 13.6% to S$29.72m.

Outlook and guidance

• Barring unforeseen circumstances, 2024 is expected to deliver robust revenue and profitability growth versus 2023; Hong Kong ePension is expected to drive growth in 2024–2025.

• iFAST Global Bank targets a reduced loss in 2024 and breakeven by 4Q2024, mainly through net interest income growth as deposits expand; it is expected to become a key growth driver from 2025 onward.

• Updated Hong Kong targets: 2024 gross revenue above HKD800m, net revenue above HKD650m and PBT above HKD250m; 2025 targets are HKD1.2b, HKD1.0b and HKD500m, respectively.

• Capital expenditure is forecast at S$20.50m for 2024, following S$21.63m in FY2023.