iFAST Corporation (AIY) Q2 2024 earnings summary

Executive summary

• Net profit for Q2 2024 surged 346.1% year-on-year to SGD 16.03 million, driven by ePension and core wealth management improvements.

• Gross revenue rose 72.9% year-on-year to SGD 93.75 million; net revenue up 93% to SGD 61.38 million in Q2 2024.

• Assets under administration (AUA) reached a record SGD 22.37 billion as of 30 June 2024, with net inflows of SGD 0.79 billion in Q2.

• iFAST Global Bank's customer deposits grew 80.3% year-to-date to SGD 646.62 million, supporting 265.3% year-on-year growth in net interest income.

• Second interim dividend of 1.50 cents per share declared, up from 1.10 cents in the prior year, payable on 21 August 2024.

Financial highlights

• H1 2024 net profit was SGD 30.54 million, up 364.8% year-on-year; net revenue for H1 2024 was SGD 119.49 million, up 90.2%.

• Non-banking operations Q2 2024 net profit rose 195.6% year-on-year to SGD 17.6 million; H1 2024 net profit up 227.3% to SGD 34.39 million.

• Operating expenses increased 50.2% year-on-year to SGD 41.37 million in Q2 2024, mainly due to expansion in ePension and technology investments.

• Operating cashflows for H1 2024 reached SGD 287.90 million; capital expenditure at SGD 7.33 million.

• UK banking operation revenue increased 168.7% year-on-year in Q2 2024, with customer deposits up 440.7% to GBP 376.89 million.

Outlook and guidance

• ePension division in Hong Kong and iFAST Global Bank expected to be key growth drivers in 2024 and 2025.

• Robust growth in revenues and profitability anticipated for 2024 compared to 2023.

• Group targets AUA of SGD 100 billion by 2028–2030.

• Updated Hong Kong 2024 net revenue target: >HKD 650 million; PBT target: >HKD 250 million.

• IGB targets breakeven in Q4 2024 on a quarterly basis.