iFast Corporation has reported total earnings of $8.5 million for the 3QFY2023 ended Sept 30, 308.4% higher than earnings of $2.1 million for the same period the year before.
The surge in net profit was attributed to the growth in the group’s operations in Singapore and Hong Kong.
Total revenue rose by 23.8% y-o-y to $66.2 million due to higher revenue and interest revenue for the three-month period. In the 3QFY2023, iFast’s net inflows of client assets stood at around $751 million, up 34.4% q-o-q.
In the 3QFY2023, iFast’s revenue for non-banking operations grew by 37.9% y-o-y to $38.4 million while its profit before tax surged by 141.8% y-o-y to $13.3 million.
The group’s ePension division in Hong Kong, which made an initial one-month contribution during the quarter, also helped to contribute more to the business.
iFast’s banking operation, iFast Global Bank, saw “encouraging progress” during the quarter with net revenues up by 49.4% y-o-y to $3.3 million. This was driven largely by the new divisions of digital transaction banking and the digital personal banking.
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Deposits and balances of customers grew 140.4% to $232.09 million as at Sept 30 from $96.6 million at the end of FY2022.
As at Sept 30, the group’s assets under administration (AUA) grew by 12.6% y-o-y and 1.7% q-o-q to $19.12 billion.
For the 9MFY2023, the group’s earnings stood at $14.2 million, 224.0% higher y-o-y.
Revenue for the nine-month period rose by 4.6% y-o-y to $165.2 million.
Earnings per share (EPS) for the 3QFY2023 and 9MFY2023 stood at 2.80 cents and 4.97 cents respectively and on a fully diluted basis.
Cash and cash equivalents stood at $224.6 million as at Sept 30.
Looking ahead, iFast says it expects to see “marked improvements” in its overall revenue and profitability. In FY2023, the group expects its profitability to be “substantially better” compared to that of FY2022’s. Its revenues and profitability for the FY2024 are expected to show “robust growth” compared to the FY2023.
“The expected improvements will come about as the group makes good progress on its three-year plan announced since earlier in the year. The group’s wealth management platforms are expected to continue to progress, while the ePension division will contribute more substantially going forward,” says iFast in its Oct 25 statement.
Meanwhile, iFast Global Bank is still expected to see negative profit contributions in the next three quarters although it will still play a major role in the group’s growth in the medium to long term, particularly beyond 2025.
iFast Global Bank’s liquidity coverage ratio (LCR), net stable funding ratio (NSFR) and total capital ratio stood at 454%, 289% and 33% respectively as at Sept 30.
iFast has declared a third interim dividend of 1.30 cents per share, unchanged from last year’s. The dividend will be paid on Nov 17.
Shares in iFast closed 3 cents higher or 0.55% up at $5.52 on Oct 25.
