Slide 1: 1Q2023 Results Presentation
iFASTCORPORATION iFAST CORPORATION LTD. LTD. 1Q2023 Results Presentation 25 April 2023
Slide 2: Disclaimer
Disclaimer This presentation should be read as an overview of iFAST Corporation Ltd.’s (“iFAST Corp” or the “Company”, and together with its subsidiaries, the “Group”) current business activities and operating environment. This presentation should not be solely relied upon by current and potential i
Slide 3: Contents
Contents ▪ Key Summary Pg. 4 ▪ 1Q2023 (Jan-Mar 2023) Results Pg. 8 SECTION I Financial Results ▪ Financial Indicators ▪ Interim Dividends ▪ Launch of iFAST Global Bank’s Digital Personal Banking Platform Pg. 24 SECTION II Business Update ▪ iFAST’s 3-Year Plan ▪ AUA Breakdown: Markets & Products Pg.
Slide 4: Key Summary
Key Summary • As at 31 March 2023, the Group’s assets under administration (“AUA”) declined 2.6% YoY to S$18.14 billion. On a QoQ basis, the Group’s AUA rose 4.2%. • While markets continued to be volatile in 1Q2023, net inflows of client assets remained positive in 1Q2023, coming in at S$329 million
Slide 5: Key Summary
Key Summary • The UK-based iFAST Global Bank (iGB) launched its Digital Personal Banking (DPB) platform on 24 April 2023, providing an online portal and mobile application for global customers to be able to open an iGB bank account. In the initial stage, the DPB platform will be offering a basic ban
Slide 6: Group AUA declined 2.6% YoY but rose 4.2% QoQ to S$18.14 billion
Group AUA declined 2.6% YoY but rose 4.2% QoQ to S$18.14 billion as at 31 Mar 2023 S$ million $20,000 AUA (as at 31 Mar 2023): S$18.14 billion1 $18,000 $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $- Sep-04 Sep-08 Sep-12 Sep-16 Sep-20 Sep-01 Sep-02 Sep-03 Sep-05 Sep-06 Sep-07 Sep-09 S
Slide 7: Net Inflows & Gross Unit Trusts (UT) subscription
Net Inflows & Gross Unit Trusts (UT) subscription S$ million S$ million Net Inflows Gross UT Subscriptions $4,000 $8,000 $3,745 $7,052 $3,500 $7,000 $3,160 $3,000 $6,000 $5,647 $5,223 $2,500 $5,000 $2,125 $2,000 $4,000 $3,000 $2,870 $1,500 $976 $1,000 $2,000 $1,642 $669 $1,130 $500 $329 $1,000 $- $-
Slide 8: Financial Results
SECTION I Financial Results 8
Slide 9: Financial Indicators for Non-banking Operation
Financial Indicators for Non-banking Operation S$ (Million) 1Q2022 1Q2023 YoY change (%) Total revenue 52.931 49.89 -5.7 Total net revenue 28.551 28.07 -1.7 Operating expenses 21.12 22.53 +6.7 Profit before tax 7.33 6.07 -17.1 Profit after tax 5.67 4.62 -18.5 Net profit attributable to 5.74 4.68 -18
Slide 10: Financial Results for Group
Financial Results for Group (1Q2023 vs 1Q2022) S$ (Million) 1Q2022 1Q20231 YoY change (%) Total revenue 52.932 53.93 +1.9 Total net revenue 28.552 31.01 +8.6 Other income 0.30 0.40 +35.6 Operating expenses 21.12 27.37 +29.6 Interest expenses on lease liabilities 0.13 0.10 -25.2 Share of results of a
Slide 11: Results Overview for Group
Results Overview for Group S$ (Million) FY2019 FY2020 FY2021 FY20221 1Q20231 Total revenue2 126.61 170.76 216.90 208.87 53.93 Total net revenue2 65.91 86.64 113.91 118.24 31.01 Other income 2.04 5.21 0.49 1.72 0.40 Operating expenses 56.06 65.29 77.68 103.84 27.37 Interest expenses on lease liabilit
Slide 12: Regulatory Ratios – iFAST Global Bank
Regulatory Ratios – iFAST Global Bank Minimum Average Ratio of Regulatory Ratios Regulatory As at 31 Mar 2023 3 Singapore local Requirement banks Liquidity Coverage Ratio (“LCR”) 100% 809% 151% Net Stable Funding Ratio (“NSFR”) 100% 284% 117% Total Capital Ratio 12.91% 42% 17% The Group will be star
Slide 13: PBT Margin for Group
PBT Margin for Group (Based on Total Net Revenue) 35.0% 31.6% 29.6% 30.0% 25.0% 20.0% 17.0% 15.0% 13.5% 13.4% 10.0% 5.0% 0.0% 2019 2020 2021 2022 1Q2023 Notes: 1. Includes the new banking operation for FY2022 and excludes impairment loss of S$5.2 million related to India Business recognised in 2Q202
Slide 14: Return on Equity
Return on Equity 30.0% 25.8% 25.0% 21.8% 20.0% 15.0% 10.9% 10.0% 5.0% 1 5.3% 5.0% 0.0% 2019 2020 2021 2022 2 1Q2023 Notes: 1. Excluding impairment loss of S$5.2 million related to India Business recognised in 2Q2022. 2. The Group conducted a S$103 million share placement exercise in January 2022. 14
Slide 15: Financial Indicators
Financial Indicators S$ (Million) FY2019 FY2020 FY2021 FY2022 1Q2023 EBITA 17.49 32.98 45.01 26.773 7.63 Net Cash Position1 40.15 53.28 59.29 84.09 72.70 Operating Cashflows 19.38 41.56 46.53 47.40 9.314 Capital Expenditure2 11.90 12.63 21.62 17.87 2.37 Net Current Assets 49.86 58.35 68.03 108.45 10
Slide 16: Net Cash Position
Net Cash Position As at 31 Dec 2022 As at 31 Mar 2023 (S$ million) (S$ million) Cash and Cash Equivalents 151.13 116.69 Other Investments¹ 41.71 54.81 Less: Customers’ Deposits (96.54) (86.56) Total Cash 96.30 84.94 Less: Bank Loans (12.21) (12.24) Net Cash Position 84.09 72.70 Gross Debt-to-Equity
Slide 17: Group Operating Cashflows
Group Operating Cashflows S$ million 50.00 47.40 46.53 45.00 41.56 40.00 35.00 30.00 25.00 19.38 20.00 15.00 9.31 1 10.00 5.00 0.00 Note: 2019 2020 2021 2022 1Q2023 1. Excluding UK banking operation 17
Slide 18: Capital Expenditure
Capital Expenditure S$ million 25.00 21.62 21.00 20.00 17.87 15.00 12.63 11.90 10.00 5.00 0.00 Note: 2019 2020 2021 2022 2023F 1. Capital Expenditure for 1Q2023 stood at S$2.37 million. 18
Slide 19: Number of issued shares
Number of issued shares As at 31 Dec 2022 As at 31 Mar 2023 Total number of issued shares (excluding treasury shares and subsidiary 293,045,941 293,650,741 holdings) 19
Slide 20: Our Consolidated Financial Position
Our Consolidated Financial Position As at 31 Dec 22 As at 31 Mar 23 S$’000 S$’000 ASSETS Plant and Equipment 5,962 5,180 Right-of-use Assets 10,391 8,280 Intangible Assets and Goodwill 73,993 73,934 Associates 3,479 3,701 Other Investments 23,034 28,449 Deferred Tax Assets 2,380 2,253 Contract Costs
Slide 21: Our Consolidated Financial Position
Our Consolidated Financial Position As at 31 Dec 22 As at 31 Mar 23 S$’000 S$’000 EQUITY Share Capital 171,059 171,075 Reserves 51,429 57,294 EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY 222,488 228,369 Non-Controlling Interests 8,229 7,982 TOTAL EQUITY 230,717 236,351 LIABILITIES Deferred Tax Liabi
Slide 22: Held under Trust
Held under Trust As at 31 Dec 22 As at 31 Mar 23 S$’000 S$’000 HELD UNDER TRUST Client Bank Accounts 933,368 938,072 Client Ledger Balances (933,368) (938,072) - - • Certain non-banking subsidiaries in the Group receive and hold monies deposited by clients and other institutions in the course of the
Slide 23: First Interim Dividend for FY2023
First Interim Dividend for FY2023 First Interim Dividend for FY2023 - Schedule Dividend per share 1.00 cents per ordinary share Ex-dividend date 23 May 2023 Record date and time 24 May 2023 (5.00 pm) Payment date 7 June 2023 • For the first interim dividend for 1Q2023, the Directors declared a divid
Slide 24: Business Update
Section II Business Update 24
Slide 25: Launch of iFAST Global Bank's Digital Personal Banking Platform
Launch of iFAST Global Bank’s Digital Personal Banking Platform • iFAST Global Bank (iGB) has launched the Digital Personal Banking (DPB) platform on 24 April 2023. • In line with the Group’s beliefs that it is important for wealth management platforms to be seamlessly linked to good digital banking
Slide 26: Launch of iFAST Global Bank's Digital Personal Banking Platform
Launch of iFAST Global Bank’s Digital Personal Banking Platform • iGB is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. iGB is a member of the Financial Services Compensation Scheme (FSCS), the statutory dep
Slide 27: iFAST Global Bank: Strategic Growth Target
iFAST Global Bank: Strategic Growth Target STRATEGIC GROWTH TARGET SUSTAINABLE MODEL Distinct geographic presence, market Short Term Long Term sectors leading to financial resilience • NPA, RTGS, Indirect Digital Transaction Enhanced IT & Participation, Other Banking Bank Of England Clearing Facilit
Slide 28: iFAST's Three-Year Plan
iFAST’s Three-Year Plan 1. Core Platform Business: Get Bigger, Better and More Profitable. Continue to work on increasing the scale and quality of its Fintech wealth management platform in various markets, in line with the Group’s target AUA of S$100 billion by 2028. Improve operating margins and re
Slide 29: Guidance on Hong Kong Targets (Updated in Apr 2022)
Guidance on Hong Kong Targets (Updated in Apr 2022) • On 23 April 2022, the Group updated the targeted revenue and Profit Before Tax (PBT) for its overall Hong Kong business in 2023, 2024 and 2025: o Gross Revenue Targets ▪ Target to achieve Gross Revenue of >HKD400 million in 2023* ▪ Target to achi
Slide 30: iFAST Fintech Ecosystem
iFAST Fintech Ecosystem Connecting All to Help Investors Invest Globally and Profitably (as at 31 Mar 2023) Online Account Multi-Currency Opening Deposits Digital Bank EzRemit Payment / Banking as a Remittance Service (BaaS) Over 800,000 B2C Fundsupermart.com / FSMOne.com / customer accounts Bondsup
Slide 31: Performance Trend
SECTION III Performance Trend \ 31
Slide 32: AUA Breakdown: Markets & Products
AUA Breakdown: Markets & Products (as at 31 Mar 2023) AUA Breakdown By Markets AUA Breakdown By Products 2.5% 5.4% 11.3% 20.6% 13.4% 7.2% 66.8% 72.8% Singapore Hong Kong Unit Trusts Bonds Malaysia Others (China & UK) Stocks & ETFs Cash Account & Deposits 32
Slide 33: Fixed Income: Continues to be Strong in 1Q2023
Fixed Income: Continues to be Strong in 1Q2023 S$ million Fixed Income Turnover 500 450 400 350 300 250 200 150 100 50 0 33
Slide 34: Total Net Revenue Breakdown
Total Net Revenue1 Breakdown between Recurring and Non-recurring Sources Average contribution from recurring net revenue as opposed to non-recurring net revenue S$ million in the period from 2022 to 1Q2023 was 73.0% 140 120 100 34.4 34.5 80 25.5 60 12.3 11.3 8.5 83.9 40 6.9 6.0 78.7 7.2 60.4 6.0 52.
Slide 35: Total Net Revenue, Operating Expenses and Operating Profit
Total Net Revenue1, Operating Expenses and Operating Profit as a Ratio of Average AUA 0.800% 0.731% 0.757% 0.700% 0.692% 0.665% 0.667% 0.138% 0.225% 0.600% 0.629% 0.611% 0.203% 0.194% 0.173% 0.586% 0.500% 0.576% 0.400% 0.456% 0.300% 0.594% 0.533% 0.519% 0.462% 0.473% 0.200% 0.181% 0.209% 0.100% 0.08
Slide 36: Profit/Loss - Geographical Segment
Profit/Loss - Geographical Segment Profit/Loss (S$ Million) 1Q2022 1Q2023 YoY Change (%) Singapore 5.37 4.53 -15.6 Hong Kong 2.19 2.29 +4.5 Malaysia 1.76 0.84 -52.0 China (1.65) (1.75) +6.0 UK - (1.71) N.M. Other1 (0.27) 0.23 N.M. Profit before tax2 / 3 7.40 4.43 -40.1 Tax expense (1.66) (1.45) -12.
Slide 37: Profit/Loss - Geographical Segment
Profit/Loss - Geographical Segment Profit/Loss (S$ Million) FY2019 FY2020 FY2021 FY2022 1Q2023 Singapore 9.96 21.32 28.43 16.57 4.53 Hong Kong 4.42 5.79 8.39 8.07 2.29 Malaysia 1.76 3.75 5.39 4.25 0.84 China (4.82) (4.88) (5.82) (7.12) (1.75) UK - - - (5.04) (1.71) Other1 (0.05) (0.41) (0.35) 0.30 0
Slide 38: Total Net Revenue - Geographical Segment
Total Net Revenue - Geographical Segment S$ (Million) FY2019 FY2020 FY2021 FY2022 1Q2023 Singapore 42.35 56.79 73.50 70.49 18.26 Hong Kong 16.81 19.26 24.43 24.15 6.13 Malaysia 6.15 8.77 13.43 13.64 3.24 China 0.60 1.82 2.55 1.77 0.44 UK - - - 8.19 2.94 Group 65.91 86.64 113.91 118.24 31.01 YoY Chan
Slide 39: Recurring and Non-recurring Total Net Revenue (Include Banking Operation)
Recurring and Non-recurring Total Net Revenue (Include Banking Operation) S$ (Million) FY2019 FY2020 FY2021 FY20221 1Q20231 Recurring net revenue2 53.65 61.17 79.38 83.86 23.26 Non-recurring net revenue 12.26 25.47 34.53 34.38 7.75 Total net revenue2 65.91 86.64 113.91 118.24 31.01 YoY Change (%) FY
Slide 40: Recurring and Non-recurring Total Net Revenue (Exclude Banking Operation)
Recurring and Non-recurring Total Net Revenue (Exclude Banking Operation) S$ (Million) FY2019 FY2020 FY2021 FY20221 1Q20231 Recurring net revenue2 53.65 61.17 79.38 83.61 22.61 Non-recurring net revenue 12.26 25.47 34.53 26.44 5.46 Total net revenue2 65.91 86.64 113.91 110.05 28.07 YoY Change (%) FY
Slide 41: Net Revenue - B2B Business Segment
Net Revenue1 - B2B Business Segment B2B Net Revenue FY2019 FY2020 FY2021 FY2022 1Q2023 (S$ Million) Recurring net revenue 37.12 42.34 55.73 58.05 15.49 Non-recurring net revenue 7.19 10.88 16.42 16.66 3.43 Total B2B net revenue 44.31 53.22 72.15 74.72 18.92 YoY Change (%) FY2019 FY2020 FY2021 FY2022
Slide 42: Net Revenue - B2C Business Segment
Net Revenue1 - B2C Business Segment B2C Net Revenue FY2019 FY2020 FY2021 FY2022 1Q2023 (S$ Million) Recurring net revenue 15.81 18.04 22.96 22.99 6.09 Non-recurring net revenue 5.08 14.60 18.11 9.78 2.03 Total B2C net revenue 20.89 32.64 41.07 32.77 8.12 YoY Change (%) FY2019 FY2020 FY2021 FY2022 1Q
Slide 43: Progress of Individual Markets: Singapore
Progress of Individual Markets SINGAPORE • Net revenue for the Singapore operation increased 3.9% YoY and 2.5% QoQ to S$18.26 million in 1Q2023. • AUA of the Singapore operation rose 4.5% QoQ and fell marginally by -0.1% YoY to S$13.21 billion as at 31 Mar 2023. • The AUA of Singapore B2B division g
Slide 44: Progress of Individual Markets: Singapore
Progress of Individual Markets SINGAPORE • With an escalation of financial stress in the banking sector, advisers were focused on addressing client concerns while also highlighting sector-specific opportunities brought about by market turmoil. With prevalent risk-off sentiment, the division saw more
Slide 45: Progress of Individual Markets: Hong Kong
Progress of Individual Markets HONG KONG • Net revenue for the Hong Kong operation fell 4.3% YoY, but rose 0.3% QoQ to S$6.13 million in 1Q2023. • AUA of the Hong Kong operation rose 3.2% QoQ and fell -7.8% YoY to S$2.43 billion as at 31 Mar 2023. • For the B2B division, Unit Trust quarterly sales (
Slide 46: Progress of Individual Markets: Hong Kong
Progress of Individual Markets HONG KONG • The Hong Kong iGM division has achieved a new record high AUA in 1Q2023, growing 35.0% YoY and 16.1% QoQ. The increase in AUA was attributed mainly to new transfer-in cases and customers putting in more cash assets, supported by the income-focused product s
Slide 47: Progress of Individual Markets: Malaysia
Progress of Individual Markets MALAYSIA • Net revenue for the Malaysia operation declined 19.7% YoY and 6.2% QoQ to S$3.24 million in 1Q2023. • The Malaysia operation AUA rose 5.4% QoQ and 3.7% YoY to S$2.04 billion as at 31 Mar 2023, while also achieving a record high AUA within 1Q2023. This surge
Slide 48: Progress of Individual Markets: Malaysia
Progress of Individual Markets MALAYSIA • The Malaysia iGM division has seen strong inflows into most types of products, helping iGM’s AUA to achieve strong growth of 14.7% QoQ and 32.5% YoY, achieving another record high AUA in 1Q2023. • In 1Q2023, iGM Malaysia launched new features including DIY a
Slide 49: Progress of Individual Markets: China
Progress of Individual Markets CHINA • Net revenue for China operation fell 17.4% YoY, though on a QoQ basis, net revenue rose 31.2% to S$0.44 million in 1Q2023. • The AUA of China operations fell -3.1% QoQ and -14.0% YoY to 1.92 billion RMB (approximately S$370 million) as of 31 Mar 2023. • 1Q2023
Slide 50: Progress of Individual Markets: UK
Progress of Individual Markets UK • iFAST Global Bank (iGB) incurred a 1Q2023 loss of S$1.71 million, while net revenue for UK operation increased 15.0% QoQ to S$2.94 million in 1Q2023. • The key drivers of increased interest income are from Central Bank deposits and income from bonds. • The Bank ha
Slide 51: Appendices
SECTION IV Appendices 51
Slide 52: Business Overview
Business Overview • iFAST Corporation Ltd. is a digital banking and wealth management fintech platform with assets under administration (AUA) of S$18.14 billion as at 31 Mar 2023 (stock code: AIY). • Main business divisions: o Business-to-Consumer (B2C): FSMOne.com (formerly “Fundsupermart”) a multi
Slide 53: Milestones
Milestones ▪ Launch of iFAST Platform ▪ Incorporation of iFAST ▪ Acquired a stake in the holding Services (B2B) in HK Platform Services company of iFAST India ▪ Launch of (Shenzhen) Qianhai in Business Launch of iFAST Fundsupermart.com (B2C) China (CN) ▪ Launch of HKEX stockbroking on Platform Servi
Slide 54: Milestones
Milestones ▪ Acquisition of iFAST Global Bank ▪ Launch of revamped Limited, a fully licensed UK-based ▪ Launch of US FSMOne mobile apps in bank (formerly known as BFC Bank stockbroking in HK SG, HK and MY Limited) ▪ Launch of FSMOne ▪ Registered as Private ▪ Launch of FSMOne Debit Card and in MY Fun
Slide 55: iFAST Fintech Ecosystem
iFAST Fintech Ecosystem Connecting All to Help Investors Invest Globally and Profitably Over 780,000 customer accounts in 5 markets Over 600 companies and over 12,200 wealth advisers use iFAST B2B platforms across 5 markets 55
Slide 56: The iFAST Fintech Ecosystem
The iFAST Fintech Ecosystem • Products and services: ─ Unit trusts (over 11,800 funds from over 300 fund houses) ─ Bonds (over 2,000 direct bonds) ─ Stocks & ETFs – in 5 markets (Singapore, Hong Kong, US, Malaysia & China A Shares) ─ Discretionary portfolio management services • Over 600 financial i
Slide 57: Truly Global Business Model
Truly Global Business Model • The Future Of Wealth Management. The Group believes that the future of wealth management is one where many investors from various emerging markets will be looking for the best wealth management platforms across the world that can provide them seamless access and connect
Slide 58: The Revenue Drivers
The Revenue Drivers • The iFAST business model predominantly involves growing the size of our assets under administration (AUA). Higher AUA will generally lead to higher revenues. • Recurring income accounts for more than two thirds of our net revenue • Sources of Recurring Net Revenue o Trailer fee
Slide 59: Breakdown of Net Revenue
Breakdown of Net Revenue (FY2022) ePension division income, 3.9% Others, 1.2% Fintech Solutions IT fees, 3.2% FX Margin, 4.5% Transaction Fees/Commission Income (Banking Operation), 6.7% Transaction Fees/Commission Trailer Fee, 39.7% Income (Other Products), 8.8% Transaction Fees/Commission Income (
Slide 60: Licences Held and Products and Services Available
Licences Held and Products and Services Available (as at 31 March 2023) SINGAPORE HONG KONG MALAYSIA LICENCES & REGISTRATION HELD: LICENCES & REGISTRATION HELD: LICENCES & REGISTRATION HELD : • Capital Markets Services Licence [MAS] • Type 1: Dealing in Securities [SFC] • Capital Market Services Lic
Slide 61: Our Value Proposition
Our Value Proposition B2B B2C PRODUCT PROVIDERS CUSTOMERS DIY INVESTORS • One platform, multiple • One platform, multiple investment products • One platform, multiple B2C and B2B customers • Adoption of recurring revenue business model investment products • No need to enter into based on Assets Unde
Slide 62: Fees Illustration
Fees Illustration FUND HOUSES TRAILER FEE PLATFORM FEE PLATFORM FEE B2B CUSTOMERS UPFRONT FEE B2C CUSTOMERS UPFRONT FEE WRAP FEE FX CONVERSION FEES B2B FINANCIAL OTHER ADVISORY COMPANIES FINTECH SOLUTIONS FACILITIES SERVICE FEES 62
Slide 63: 1Q2023: Activities & Achievements
1Q2023: Activities & Achievements Annual Flagship Event “FSM Invest Expo 2023” and “What and Where to Invest 2023” held for customers in Singapore, Malaysia (Kuala Lumpur and Penang) and Hong Kong. 63
Slide 64: THANK YOU!
THANK YOU! For more information, please visit: www.ifastcorp.com