iFAST Corporation (AIY) Q3 2024 earnings summary

Executive summary

• Net profit for 3Q2024 surged 97.3% year-over-year to S$16.81 million, with 9M2024 net profit up 213.8% to S$47.35 million, driven by strong revenue growth, record AUA of S$23.62 billion, and contributions from ePension and core wealth management platforms.

• Group AUA reached a record S$23.62 billion as of 30 September 2024, up 23.6% year-over-year, with net inflows of S$0.81 billion in 3Q2024 and S$2.29 billion for 9M2024.

• iFAST Global Bank's customer deposits grew 124.6% year-to-date to S$805.63 million, with losses narrowing by 61.0% to S$0.82 million and a conservative balance sheet strategy focused on cash and high-grade bonds.

• Improved investor sentiment and market rallies in both equity and fixed income benefited the wealth management platform.

Financial highlights

• 3Q2024 total revenue: S$99.14 million (+49.7% YoY); net revenue: S$63.99 million (+53.4% YoY); net profit: S$16.81 million (+97.3% YoY); EPS: 5.64 cents (+95.8% YoY).

• 9M2024 total revenue: S$278.85 million (+59.9% YoY); net revenue: S$183.48 million (+75.5% YoY); net profit: S$47.35 million (+213.8% YoY); EPS: 15.92 cents (+210.9% YoY).

• Dividend per share for 3Q2024: 1.50 cents (up from 1.30 cents in 3Q2023); 9M2024 dividend per share: 4.30 cents (+26.5% YoY).

• Non-banking operations 3Q2024 net profit: S$17.63 million (+66.0% YoY); 9M2024 net profit: S$52.02 million (+146.2% YoY); EBITDA for 9M2024: S$87.03 million (+98.9% YoY).

• Operating expenses grew 41.2% YoY to S$43.20 million in 3Q2024 and 45.9% to S$124.74 million in 9M2024, mainly due to business expansion and technology investments.

Outlook and guidance

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

• Management expects robust growth in revenue and profitability for 2024 compared to 2023, barring unforeseen circumstances.

• Updated Hong Kong targets: 2024 gross revenue > HKD800 million, net revenue > HKD650 million, PBT > HKD250 million; 2025 targets: gross revenue > HKD1.2 billion, net revenue > HKD1.0 billion, PBT > HKD500 million.