IFS Capital (I49) H1 2023 earnings summary

Executive summary

• H1 FY2023 profit before tax rose 31.7% to S$3.0m; profit for the period increased 29.3% to S$1.9m.

• Growth in asset-based lending lifted interest income, while higher funding costs and loan-loss allowances partly offset the benefit.

Financial highlights

• Interest income rose 33.0% to S$13.3m; interest expense increased 119.2% to S$3.3m, lifting net interest income 17.5% to S$9.9m.

• Non-interest income increased 21.2% to S$5.6m; income before operating expenses rose 18.7% to S$15.5m.

• Operating expenses increased 10.6% to S$11.6m; allowances for loan losses and impairment rose to S$936k from S$319k.

• Net income was S$1.9m versus S$1.5m; attributable profit was S$1.1m versus S$629k, and basic EPS was 0.28 cents versus 0.17 cents.

Outlook and guidance

• Results were in line with the FY2022 prospect statement.

• Pricing strategies will be calibrated to balance portfolio growth with elevated costs; product pricing will reflect ongoing interest-rate and inflation conditions.

• Insurance efforts include strengthening key partnerships and embedding products in different ecosystems.