iFAST Q1 net profit jumps 126.8% to S$3.6m

WEALTH management fintech firm iFAST on Thursday posted a 126.8 per cent rise in net profit to S$3.6 million for its first quarter ended March 31, 2020, from S$1.6 million a year ago.

Net profit had increased following a 25.3 per cent rise in net revenue and a 41.5 per cent increase in gross revenue, the group said in a bourse filing.

Earnings per share was 1.35 Singapore cents for the quarter, versus 0.60 cent a year ago.

Gross revenue rose 41.5 per cent to S$38.5 million, from S$27.2 million in the year-ago period. Significant increases in transaction fees due to more investment subscription from customers in exchange-traded funds and stocks, and service fees for currency conversion services helped to lift revenue, iFAST said.

A higher trade volume of customers' investment subscription in unit trusts and portfolio services in its business-to-business segment also contributed to increased revenue.

Geographically, the Singapore market was the largest contributor to net revenue for the quarter, making up S$12.2 million of the S$18.8 million total net revenue.

An interim cash dividend of 0.75 Singapore cent per share has been declared for the quarter, same as a year ago. The dividend will be paid on June 5, after books closure on May 27.

iFAST said 90 per cent of its Singapore office are working from home during the "circuit-breaker" period and its services remain essentially "fully operational".

There have been varying degrees of work-from-home policy in the group's other markets but there has been no disruption in iFAST's services, the group said. These markets include Hong Kong, Malaysia, China and India.

Shares of mainboard-listed iFAST closed down 0.5 Singapore cent or 0.6 per cent to 86 cents on Wednesday.