iFast Q3 profit up 29.5%, plans to list HK-China operations

Singapore

IFAST Corporation (iFast) has shrugged off volatile market conditions and its loss-making China business to post a 29.5 per cent rise in its third quarter net profit to S$2.6 million.

Earnings per share for the mainboard-listed wealth management fintech platform increased to 0.98 Singapore cent from 0.76 Singapore cent for the three months ended Sept 30. Revenue rose 19.6 per cent to S$31.4 million from a year ago. iFast credited this to the growth in its business and asset under administration (AUA) for its business-to-consumer and business-to-business divisions. AUA had swelled 18.7 per cent year-on-year to reach a new high of S$8.50 billion as at Sept 30.

Net asset value per share firmed to 31.7 Singapore cents, compared to 30.69 Singapore cents as at Dec 31.

Singapore, which contributed the lion's share of revenue, saw revenue grow 11.9 per cent in the third quarter, mostly thanks to stronger investment trading volumes in exchange-traded funds (ETFs) and stocks as well as subscription of investment in unit trusts.

Stock and ETF transactions have also risen in recent quarters in Hong Kong, where revenues jumped 41.4 per cent in the quarter. In Malaysia, its bonds and discretionary portfolio management service grew significantly this year, although its unit trusts saw a slight slowdown amid volatile market conditions and poor investors' sentiment in recent quarters. Revenue in Malaysia grew 38.1 per cent year-on-year in the quarter.

iFast's Chinese business in Q3 saw losses widen by 24.4 per cent year-on-year to S$1.28 million.

"(The) China operation is continuing to build the iFast brand and business in this new market," the company said.

"Poor market sentiment" in recent quarters from "the combined effects of weak performance in the China equity market due to escalating tensions over trade wars between the US and China and some failures in peer-to-peer lending platforms" dampened performance, it said.

Overall business performance in 2018 is expected to post a "healthy improvement" over 2017, but the Chinese operation may see slightly higher losses this year.

The group has been working towards a structure that could, in the medium to long term, have its Hong Kong and China businesses organised as a separate and standalone listed subsidiary.

iFast has applied for a virtual banking licence in Hong Kong.

An interim dividend of 0.75 cents per share, to be paid on Nov 20, has been proposed, same as last year.

iFast shares ended S$0.01, or 0.9 per cent, down at S$1.12 on Friday.