iFAST Corporation (AIY) Q2 2024 earnings summary

Executive summary

• Net profit surged 346.1% year-over-year to S$16.03 million in 2Q2024, driven by ePension and core wealth management growth.

• Gross revenue rose 72.9% year-over-year to S$93.75 million; net revenue up 93.0% to S$61.38 million in 2Q2024.

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

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

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

Financial highlights

• Net profit for 1H2024 increased 364.8% year-over-year to S$30.54 million; net revenue for 1H2024 rose 90.2% to S$119.49 million.

• Non-banking operations 2Q2024 net profit: S$17.60 million (+195.6% YoY); EBITDA: S$28.85 million (+124.2% YoY).

• Operating expenses rose 50.2% year-over-year in 2Q2024 to S$41.37 million, mainly due to expansion in ePension and technology investments.

• Operating cashflows for 1H2024 reached S$287.90 million; capital expenditure at S$7.33 million.

• Dividend per share for 1H2024: 2.80 cents (+33.3% YoY).

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 S$100B by 2028–2030.

• Updated Hong Kong 2024 net revenue target: >HKD650M; PBT target: >HKD250M.

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