IFS Capital (I49) H2 2023 earnings summary

Executive summary

• FY2023 net operating income rose to S$30.141m from S$26.349m; profit after tax increased to S$5.322m from S$4.856m.

• Loan book recovery continued, reaching S$292.8m at year-end, mainly driven by Singapore; higher interest costs compressed margins on new originations during 9M.

• 2024 priorities: improve execution of growth plans, continue rebuilding Indonesia and develop trade finance for intra-ASEAN and ASEAN-with-global trade flows.

Financial highlights

• Net operating income S$30.141m vs S$26.349m; operating profit before allowances S$8.855m vs S$7.705m.

• Net interest income rose to S$22.087m from S$19.347m; interest expense increased to S$8.145m from S$3.501m.

• Profit before tax S$7.138m vs S$6.427m; net income S$5.322m vs S$4.856m; attributable profit S$3.439m vs S$3.059m.

• Allowances for loan losses and impairment rose to S$1.717m from S$1.278m; total assets increased to S$491.3m from S$397.8m.

Outlook and guidance

• 2024 focus is faster, higher-quality execution of each business’s growth roadmap and sustainable long-term value creation.

• Trade finance infrastructure and networks are being developed to serve intra-ASEAN and ASEAN-to-global trade flows amid ongoing supply-chain realignment.

• A new Indonesia country head was approved by the regulator in Q1 2024 to lead the turnaround and rebuild the business.