iFast swings into the black with S$3.6 million net profit in Q2
Jessie Lim
FINTECH platform iFast has reversed into the black with a net profit of S$3.6 million for its second quarter ended Jun 30, as financial market conditions stabilised this year which benefited its core wealth management platform business. A year earlier, it made a net loss of S$2.7 million.
Earnings per share stood at 1.22 Singapore cents for the second quarter. In the year before period, the company had a loss per share of 0.92 Singapore cent.
Net revenue for Q2 rose 6.5 per cent to S$31.8 million from S$29 million previously.
While markets and investor sentiments remained volatile, net inflows remained positive and improved as compared with the previous quarter, rising 78.6 per cent quarter-on-quarter to S$559 million, iFast said in a bourse filing on Tuesday (Jul 25).
Profit before tax from the group’s non-banking operations grew by 62 per cent year-on-year to S$7.4 million in Q2. However, its banking business reported a loss of S$2.2 million within the same period.
The group said it is in the “early stages” of building up the digital transaction banking and digital personal banking divisions at iFast Global Bank which is based in the United Kingdom.
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Contributions from its banking business are expected to still be negative in the second half of the year, iFast said. However, it expects iFast Global Bank to play a “major role in the growth of the group in the medium to long-term, particularly beyond 2025.”
As at Jun 30, the company’s assets under administration grew 8 per cent year on year to S$18.8 billion.
Looking ahead, iFast said it expects its overall revenue and profitability to show marked improvements.
“The expected improvements will come about as the ePension division in Hong Kong starts to contribute more significantly, and as the core wealth management platform business continues to progress,” it said.
An interim dividend of 1.10 Singapore cents per share was proposed for Q2, unchanged from the year before. The dividend will be paid on Aug 21.
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