IFS Capital (I49) H1 2024 earnings summary

Executive summary

• H1 FY2024 profit before tax was S$2.8m, down 6.0% YoY, as lending growth was offset by higher insurance claims and operating expenses.

• Net interest income rose 23.5% YoY, while non-interest income fell 53.8%; net profit declined 11.9% to S$1.7m.

Financial highlights

• Interest income increased 28.7% to S$17.1m, led by asset-based lending; interest expense rose 43.8% to S$4.8m.

• Income before operating expenses was S$14.1m, up 2.4% YoY; operating expenses increased 8.7% to S$10.7m.

• Operating profit before allowances fell 13.3% to S$3.4m; loan-loss and other impairment allowances were S$0.6m versus S$0.9m a year earlier.

• Net profit attributable to owners was S$0.9m versus S$1.1m; basic and diluted EPS were both 0.24 cents, down 14.4% YoY.

• Total comprehensive income was negative S$1.6m, mainly reflecting S$3.3m of foreign-currency translation losses from overseas operations.

Outlook and guidance

• H1 results were in line with the outlook statement issued with FY2023 results.

• Focus remains on growth across all businesses in 2H24; financing margins could benefit if interest rates ease meaningfully.

• Inflation expectations were easing in regional economies, with attention shifting back toward growth.