IFS Capital (I49) H1 2025 earnings summary

Executive summary

• 1H FY2025 profit before tax rose 9.0% YoY to S$3.082m; net profit increased 31.6% to S$2.230m, despite sharply higher loan-loss provisions.

• Higher lending income, insurance revenue and fee income supported growth; operating expenses and a single-client default in Thailand partly offset gains.

Financial highlights

• Net interest income increased 16.4% YoY to S$14.299m; interest income rose 7.4% to S$18.364m and interest expense fell 15.6% to S$4.065m.

• Income before operating expenses grew 32.2% to S$18.602m; operating expenses rose 13.3% to S$12.076m.

• Profit attributable to owners increased 92.8% to S$1.747m; basic and diluted EPS each rose to 0.46 cents from 0.24 cents.

• Allowances for loan losses and other impairment reached S$3.421m versus S$0.590m, mainly reflecting a Stage 3 provision for one Thai client default.

Outlook and guidance

• Results were in line with the FY2024 prospect statement; cautious financing and prudent growth in target sectors remain the stated approach.

• Funding-cost trends are expected to support lending in H2; insurance is being repositioned to manage claims costs and diversify beyond motor.