iFAST Corporation reported a 0.5 per cent decline in net profit to S$2.95 million for the third quarter ended Sept 30, 2015, with the sharp drop in profit from Hong Kong being the key drag.
The profit generated from Hong Kong operations slumped 58.8 per cent to S$305,000 during the quarter, resulting from the combined impacts of the sharp decline in equity markets, particularly China/Hong Kong equity markets, reduced investment subscription volume as a result of the suspension of Capital Investment Entrant Scheme announced in January, as well as an increase in its office rental from January resulting from office lease renewal.
But net revenue, which represents revenue earned by the group after commission and fee paid or payable to third-party financial advisers, rose 1.9 per cent from a year ago to S$10.1 million.
Assets under administration (AUA) rose 5.5 per cent year on year to S$5.42 billion as at Sept 30, but declined compared to the June 30 level of S$5.71 billion.
Net sales in the third quarter stood at S$46 million and contributed positively to AUA, but the selloff in global markets negatively affected the valuation of the group's investment products.
In the first nine months of this year, the group's net profit rose 21.9 per cent year on year to S$9.24 million, while net revenue rose 14.8 per cent to S$31.38 million.