SINGAPORE (April 28): iFAST Corporation, the investment and funds platform, has announced earnings of $2 million for the first quarter ended March 31, nearly doubling from the $1.2 million it posted in 1Q16 on higher revenue after achieving record high assets under administration (AUA).
Group revenue grew 18.3% to $22.1 million from $18.7 million a year ago, mainly due to the growth of the group’s business and AUA in the quarter.
iFAST says the spike in AUA was supported by its continuing efforts to broaden the range and depth of its investment products and services in the recent years, besides benefiting from improved market sentiment from 2H16.
Notably, AUA increased 17.2% on-year to hit $6.46 billion as at March 31, with core markets Singapore (+13.8% y-o-y), Hong Kong (+17.3% y-o-y), and Malaysia (+33.5% y-o-y) all hitting record-high AUA levels which translated to higher revenue contributions across all core markets.
Following the soft launch of iFAST’s China business in March 2016, the segment has contributed revenue of $0.14 million in 1Q17, and remains in the early stages of growing its business. loss from the China operation increased 11.8% YoY to S$0.94 million in 1Q2017.
Total operating expenses increased 5.1% to $9.44 million from $8.98 million in 1Q16, largely due to higher expenses incurred from the China operation as the group ramped up its efforts in building its brand and business in the market.
As a result, loss from the China operation increased 11.8% on-year to $0.94 million during the quarter.
For the first interim dividend for 1Q17, iFAST has proposed a dividend per share of 0.68 cent, which is about 60.6% of its net profit excluding its China operation and exceptional items.
iFAST says it finds its 1Q17 results encouraging after experiencing a difficult 2016, and believes that the full benefits from its efforts to broaden its products and services will be realised in the coming years.
The group also hopes to gain strong footing to grab a potentially larger slice of the wealth management industry with its improved IT solutions and focus on giving transparent pricing, research and information to clients.
Shares of iFAST closed flat at 60 cents on Thursday.
