Ifast Corporation Ltd · SGX:AIY
Ifast — H1 2024 Earnings Presentation
62 slides from Ifast's earnings presentation, Jul 25, 2024
Slide 1: 2Q2024 & 1H2024 Results Presentation
iFAST CORPORATION LTD. 2Q2024 & 1H2024 Results Presentation 25 Jul 2024
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 ▪ 2Q2024 (Apr-Jun 2024) & 1H2024 (Jan-Jun 2024) Results Pg. 7 Section I Financial Results ▪ Interim Dividends Pg. 14 ▪ iFAST’s 3-Year Plan and Fintech Ecosystem Section II Business Update ▪ iFAST Global Bank: Conservative Balance Sheet Strategy ▪ Financial Indicators Pg.
Slide 4: Key Summary
Key Summary • In 2Q2024, the Group’s net profit increased by 346.1% YoY to S$16.03 million, on the back of a 72.9% increase YoY in Group’s gross revenue to S$93.75 million, and a 93.0% increase YoY in net revenue to S$61.38 million. • The increase in profitability was driven by contributions from th
Slide 5: Group AUA increased 18.9% YoY to Another Record High of S$22.37 billion
Group AUA increased 18.9% YoY to Another Record High of S$22.37 billion as at 30 June 2024 S$ million AUA (as at 30 Jun 2024): S$22.37 billion $22,000 $20,000 $18,000 $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $- Dec-01 Dec-04 Dec-07 Dec-10 Dec-13 Dec-16 Dec-19 Dec-22 Jun-06 Sep-20
Slide 6: Net Inflows & Gross Unit Trusts (UT) Subscription
Net Inflows & Gross Unit Trusts (UT) Subscription S$ 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 $4,490 $2,104 $1,957 $2,000 $4,000 $3,383 $1,478 $1,500 $3,000 $2,143 $1,000 $872 $2,000 $500 $1,000 $
Slide 7: Financial Results
Section I Financial Results 7
Slide 8: Financial Results for Group (2Q2024 vs 2Q2023)
Financial Results for Group (2Q2024 vs 2Q2023) S$ (Million) 2Q2023 2Q2024 YoY change (%) Total revenue 54.21 93.75 +72.9 Total net revenue 31.81 61.38 +93.0 Other income 0.84 0.14 -83.1 Operating expenses 27.54 41.37 +50.2 Interest expenses on lease liabilities 0.26 0.34 +32.0 Share of results of as
Slide 9: Financial Results for Group (1H2024 vs 1H2023)
Financial Results for Group (1H2024 vs 1H2023) S$ (Million) 1H2023 1H2024 YoY change (%) Total revenue 108.14 179.71 +66.2 Total net revenue 62.81 119.49 +90.2 Other income 1.24 0.66 -47.0 Operating expenses 54.92 81.54 +48.5 Interest expenses on lease liabilities 0.35 0.64 +83.2 Share of results of
Slide 10: Results Overview for Group
Results Overview for Group S$ (Million) FY2020 FY2021 FY20221 FY20231 1H20241 Total revenue2 170.76 216.90 208.87 256.54 179.71 Total net revenue2 86.64 113.91 118.24 161.66 119.49 Other income 5.21 0.49 1.72 1.71 0.66 Operating expenses 65.29 77.68 103.84 126.23 81.54 Interest expenses on lease lia
Slide 11: Financial Indicators for Non-banking Operations
Financial Indicators for Non-banking Operations (2Q2024 vs 2Q2023) S$ (Million) 2Q2023 2Q2024 YoY change (%) Total revenue 49.97 82.37 +64.8 Total net revenue 28.98 56.79 +95.9 Operating expenses 22.23 35.07 +57.8 Profit before tax 7.34 21.51 +193.2 Profit after tax 5.75 17.53 +204.8 Net profit attr
Slide 12: Financial Indicators for Non-banking Operations
Financial Indicators for Non-banking Operations (1H2024 vs 1H2023) S$ (Million) 1H2023 1H2024 YoY change (%) Total revenue 99.87 158.79 +59.0 Total net revenue 57.06 110.67 +94.0 Operating expenses 44.76 68.48 +53.0 Profit before tax 13.41 42.17 +214.5 Profit after tax 10.37 34.26 +230.3 Net profit
Slide 13: Second Interim Dividend for FY2024
Second Interim Dividend for FY2024 Second Interim Dividend for FY2024 - Schedule Dividend per share 1.50 cents per ordinary share Ex-dividend date 6 Aug 2024 Record date and time 7 Aug 2024 (5.00 pm) Payment date 21 Aug 2024 • For the second interim dividend for 2Q2024, the Directors declared a divi
Slide 14: Business Update
Section II Business Update 14
Slide 15: iFAST's Three-Year Plan
iFAST’s Three-Year Plan 1. Make Solid Progress as a Global Digital Banking and Wealth Management Fintech Platform with a Truly Global Business Model. With a global digital bank as part of the Group’s ecosystem, continue to work on increasing the scale and quality of our wealth management platforms,
Slide 16: iFAST Fintech Ecosystem
iFAST Fintech Ecosystem Connecting All to Help Investors Invest Globally and Profitably (as at 30 June 2024) 885,000 5 720 13,000 5 16
Slide 17: iFAST Global Bank Updates
iFAST Global Bank Updates Conservative Balance Sheet Strategy • The customer deposit amounts for iFAST Global Bank (iGB) grew 25.5% QoQ and 80.3% year-to-date to S$646.62 million as at 30 June 2024. • The increase in deposits continues to be driven by the deposit offering business units, and most si
Slide 18: iFAST Global Bank Updates
iFAST Global Bank Updates Regulatory Ratios Minimum Average Ratio of As at Regulatory Ratios Regulatory 3 Singapore local 30 June 2024 Requirement banks1 Liquidity Coverage Ratio (“LCR”) 792% 100% 150% Net Stable Funding Ratio (“NSFR”) 315% 100% 117% Total Capital Ratio 31% 11.45% 17.1% The Group ha
Slide 19: Performance Trends
SECTION III Section III \ Performance Trends 19
Slide 20: Financial Indicators
Financial Indicators S$ (Million) FY2020 FY2021 FY2022 FY2023 1H2024 EBITDA3 42.04 54.79 37.642 70.50 56.69 Operating Cashflows 41.56 46.53 47.40 273.45 287.90 Capital Expenditure1 12.63 21.62 17.87 21.63 7.33 Net Current Assets 58.35 68.03 108.45 110.66 181.92 Shareholders’ Equity 104.11 128.65 222
Slide 21: Cash Plus Liquid Assets Net of Borrowings Position
Cash Plus Liquid Assets Net of Borrowings Position As at 31 Mar 2024 As at 30 Jun 2024 (S$ million) (S$ million) Cash and Cash Equivalents 452.46 560.55 Sovereign Bonds & Investment-grade Corporate Bonds 150.63 237.89 Others 31.85 44.05 Less: Customers’ Deposits (515.43) (646.63) Total Cash plus Liq
Slide 22: PBT Margin for Group
PBT Margin for Group (Based on Total Net Revenue) 35.0% 31.6% 31.7% 29.6% 30.0% 25.0% 22.6% 20.0% 15.0% 13.5%1 10.0% 5.0% 0.0% 2020 2021 2022 2023 1H2024 Notes: 1. Includes the new banking operation for FY2022 and excludes impairment loss of S$5.2 million related to India Business recognised in 2Q20
Slide 23: Return on Equity
Return on Equity 30.0% 25.8% 25.0% 22.7% 21.8% 20.0% 15.0% 12.2% 10.0% 5.0%1 5.0% 0.0% 2020 2021 20222 2023 1H2024 Notes: 1. Excluding impairment loss of S$5.2 million related to India Business recognised in 2Q2022. 2. The Group conducted a S$103 million share placement exercise in January 2022. 23
Slide 24: Group Operating Cashflows
Group Operating Cashflows S$ million 350.00 300.00 287.90 273.45 250.00 200.00 150.00 100.00 41.56 46.53 47.40 50.00 0.00 2020 2021 2022 2023 1H2024 24
Slide 25: Capital Expenditure
Capital Expenditure S$ million 25.00 21.62 21.63 20.5 20.00 17.87 15.00 12.63 10.00 5.00 0.00 2020 2021 2022 2023 2024F Note: 1. Capital Expenditure for 1H2024 stood at S$7.33 million. 25
Slide 26: Number of Issued Shares
Number of Issued Shares As at 31 Dec 2023 As at 30 Jun 2024 Total number of issued shares (excluding treasury shares and subsidiary 295,702,851 297,633,129 holdings) 26
Slide 27: Our Consolidated Financial Position
Our Consolidated Financial Position As at 31 Dec 23 As at 30 Jun 24 S$’000 S$’000 ASSETS Plant and Equipment 8,534 11,714 Right-of-use Assets 23,881 28,374 Intangible Assets and Goodwill 80,136 77,373 Associates 413 378 Other Investments 32,965 88,973 Deferred Tax Assets 2,759 2,267 Contract Costs 1
Slide 28: Our Consolidated Financial Position
Our Consolidated Financial Position As at 31 Dec 23 As at 30 Jun 24 S$’000 S$’000 EQUITY Share Capital 171,165 171,435 Reserves 79,031 107,352 EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY 250,196 278,787 Non-Controlling Interests 7,180 6,886 TOTAL EQUITY 257,376 285,673 LIABILITIES Debt Issued - 98,
Slide 29: Held under Trust
Held under Trust As at 31 Dec 23 As at 30 Jun 24 S$’000 S$’000 HELD UNDER TRUST Client monies maintained in bank deposit accounts 905,844 871,138 Client monies maintained in government debt securities 1,828 10,405 treasury accounts Client ledger balances (907,672) (881,543) - - • Certain non-banking
Slide 30: AUA Breakdown: Markets & Products
AUA Breakdown: Markets & Products (as at 30 June 2024) AUA Breakdown By Markets AUA Breakdown By Products 4.6% 6.4% 11.6% 20.5% 12.0% 60.8% 12.3% 71.8% Singapore Hong Kong Unit Trusts Bonds Malaysia Others (China & UK) Stocks & ETFs Cash Account & Deposits 30
Slide 31: Total Net Revenue Breakdown between Recurring and Non-recurring Sources
Total Net Revenue1 Breakdown between Recurring and Non-recurring Sources Average contribution from recurring net revenue as opposed to S$ million non-recurring net revenue in the period from 2023 to 1H2024 was 83.9% 180 160 29.7 140 120 16.5 100 34.5 34.4 80 25.5 131.9 60 12.3 11.3 103.0 8.5 83.9 40
Slide 32: Bonds Turnover Continued to be Strong in 2Q2024
Bonds Turnover Continued to be Strong in 2Q2024 S$ million Fixed Income Turnover 1000 900 800 700 600 500 400 300 200 100 0 32
Slide 33: Profit/Loss - Geographical Segment
Profit/Loss - Geographical Segment Profit/Loss YoY Change YoY Change (S$ Million) 2Q2023 2Q2024 (%) 1H2023 1H2024 (%) Singapore 6.22 8.87 +42.5 10.76 17.14 +59.3 Hong Kong 1.76 13.34 +656.8 4.05 26.57 +556.0 Malaysia 1.25 1.05 -16.1 2.10 2.01 -4.0 China (1.83) (1.67) -8.5 (3.59) (3.38) -5.6 Other1 (
Slide 34: Profit/Loss - Geographical Segment
Profit/Loss - Geographical Segment Profit/Loss (S$ Million) FY2020 FY2021 FY2022 FY2023 1H2024 Singapore 21.32 28.43 16.57 25.20 17.14 Hong Kong 5.79 8.39 8.07 23.82 26.57 Malaysia 3.75 5.39 4.25 4.39 2.01 China (4.88) (5.82) (7.12) (7.19) (3.38) Other1 (0.41) (0.35) 0.30 0.22 (0.04) Non-banking ope
Slide 35: Total Net Revenue - Geographical Segment
Total Net Revenue - Geographical Segment S$ (Million) FY2020 FY2021 FY2022 FY2023 1H2024 Singapore 56.79 73.50 70.49 81.24 46.45 Hong Kong 19.26 24.43 24.15 52.58 56.23 Malaysia 8.77 13.43 13.64 13.98 7.41 China 1.82 2.55 1.77 1.51 0.58 UK - - 8.19 12.35 8.82 Group 86.64 113.91 118.24 161.66 119.49
Slide 36: Recurring and Non-recurring Total Net Revenue
Recurring and Non-recurring Total Net Revenue (Include Banking Operation) S$ (Million) FY2020 FY2021 FY20221 FY20231 1H20241 Recurring net revenue2 61.17 79.38 83.86 131.94 103.00 Non-recurring net revenue 25.47 34.53 34.38 29.72 16.49 Total net revenue2 86.64 113.91 118.24 161.66 119.49 YoY Change
Slide 37: Recurring and Non-recurring Total Net Revenue
Recurring and Non-recurring Total Net Revenue (Exclude Banking Operation) S$ (Million) FY2020 FY2021 FY20221 FY20231 1H20241 Recurring net revenue2 61.17 79.38 83.61 129.19 100.02 Non-recurring net revenue 25.47 34.53 26.44 20.12 10.64 Total net revenue2 86.64 113.91 110.05 149.31 110.67 YoY Change
Slide 38: Net Revenue - B2B Business Segment
Net Revenue1 - B2B Business Segment B2B Net Revenue FY2020 FY2021 FY2022 FY2023 1H2024 (S$ Million) Recurring net revenue 42.34 55.73 58.05 99.10 85.34 Non-recurring net revenue 10.88 16.42 16.66 12.89 5.62 Total B2B net revenue 53.22 72.15 74.72 111.99 90.96 YoY Change (%) FY2020 FY2021 FY2022 FY20
Slide 39: Net Revenue - B2C Business Segment
Net Revenue1 - B2C Business Segment B2C Net Revenue FY2020 FY2021 FY2022 FY2023 1H2024 (S$ Million) Recurring net revenue 18.04 22.96 22.99 25.64 12.64 Non-recurring net revenue 14.60 18.11 9.78 7.23 5.02 Total B2C net revenue 32.64 41.07 32.77 32.87 17.66 YoY Change (%) FY2020 FY2021 FY2022 FY2023
Slide 40: Progress of Individual Markets: Singapore
Progress of Individual Markets Singapore • Net revenue for the Singapore operation in 2Q2024 increased by 24.9% YoY to S$24.11 million. For 1H2024, net revenue grew 23.7% to S$44.45 million. • AUA of the Singapore operation rose 5.2% QoQ and 16.4% YoY as at 30 June 2024, reaching an end-of-quarter r
Slide 41: Progress of Individual Markets: Singapore
Progress of Individual Markets Singapore • In the past quarter, the Singapore iGM division continued to hold client events, including an event where clients learned more about Japanese equities investment opportunities. • The division also held iGM ETF Expo in June where investors learned more about
Slide 42: Progress of Individual Markets: Hong Kong
Progress of Individual Markets Hong Kong • Net revenue for the Hong Kong operation increased by 400.8% YoY to S$28.54 million in 2Q2024. For the first half of the year, net revenue increased 375.5% to S$56.23 million. • The Hong Kong operation AUA increased 9.3% QoQ and 9.2% YoY to S$2.69 billion as
Slide 43: Progress of Individual Markets: Malaysia
Progress of Individual Markets Malaysia • Net revenue for the Malaysia operation in 2Q2024 increased 6.7% YoY to S$3.84 million. As for 1H2024, net revenue grew 8.4% to S$7.41 million. • The Malaysia operation AUA increased 6.7% QoQ and 25.3% YoY to S$2.60 billion as at 30 June 2024, achieving anoth
Slide 44: Progress of Individual Markets: China
Progress of Individual Markets China • The AUA of China operations increased 4.7% QoQ and 5.6% YoY to RMB 2.07 billion (approximately S$386 million) as at 30 June 2024. • Total net revenue for iFAST China in 1H2024 fell 30.9% YoY to S$0.58 million in 2Q2024, and on a QoQ basis, as compared to 1Q2024
Slide 45: Progress of Individual Markets: UK (iFAST Global Bank)
Progress of Individual Markets UK (iFAST Global Bank) • Total net revenue for iFAST Global Bank (iGB) in 2Q2024 increased 62.8% YoY to S$4.6 million. As for 1H2024, net revenue grew 53.1% YoY to S$8.8 million. • The Bank’s deposit book sustained growth over 2Q2024, increasing by 25.5% QoQ and was si
Slide 46: Appendices
[SectionIV_ | Appendices iFAST
Slide 47: Business Overview
Business Overview • iFAST Corporation Ltd. is a global digital banking and wealth management fintech platform with assets under administration (AUA) of S$22.37 billion as at 30 June 2024 (stock code: AIY). • Main business divisions: o Wealth Management: ▪ Business-to-Consumer (B2C): FSMOne.com (form
Slide 48: Milestones
Milestones Launch of “FSM Mobile” 2000 Launch of Fundsupermart.com (B2C) in 2007 Launch of Fundsupermart.com (B2C) in 2011 iPhone application. The Android version of the “FSM Singapore (SG) Hong Kong (HK) Mobile” was launched in the following year ▪ Launch of iFAST Platform ▪ Incorporation of iFAST
Slide 49: Milestones
Milestones ▪ Acquired a stake in the holding ▪ Launch of US stockbroking company of iFAST India Business in HK 2016 ▪ Launch of HKEX stockbroking on HK B2B platform 2018 ▪ Launch of FSMOne in MY ▪ Launch of Insurance on FSM MY ▪ Launch of FSMOne in SG ▪ Launch of HKEX stockbroking on FSM HK ▪ iFAST
Slide 50: Milestones
Milestones • Launch of iFAST Global Bank’s Digital Personal ▪ Launch of Bursa stockbroking in MY and SG Banking Platform in UK ▪ iFAST HK approved as China Connect • Launch of ORSO ePension Services in HK Exchange and Clearing Participant by HKEX; • Launch of USD Auto-Sweep Account in SG launch of C
Slide 51: 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 52: iFAST Global Bank: Strategy
iFAST Global Bank: Strategy STRATEGIC GROWTH SUSTAINABLE MODEL TARGET Distinct geographic presence, market sectors leading to financial resilience Short Term Long Term Digital Transaction New IT Platform & • Broader client base DIVERSIFIED Banking Bank Of England • Enhanced product offerings INCOME
Slide 53: Updated Guidance on Hong Kong Targets
Updated Guidance on Hong Kong Targets (Updated on Feb 2024) o Gross Revenue Targets Targets April 2022 Updated Targets Gross Revenue >HKD400 million 2023 Actual Gross Revenue HKD406 million 2023 Gross Revenue >HKD1.1 billion 2024 Gross Revenue >HKD800 million 2024 Gross Revenue >HKD1.6 billion 2025
Slide 54: 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 55: FY2023 Breakdown of Net Revenue
FY2023 Breakdown of Net Revenue (For Wealth Management Platform Services) FX Margin, 4.0% Fintech Solutions IT fees, 2.8% Others, 0.9% Transaction Fees/Commission Income (Other Products), 8.2% Transaction Fees/Commission Income (UT and Portfolio Management Services), 1.4% Trailer Fee, 41.1% Net Inte
Slide 56: 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 SERVICE FEES FACILITIES 56
Slide 57: Licences Held and Products and Services Available
Licences Held and Products and Services Available (as at 30 June 2024) 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 Lice
Slide 58: Our Value Proposition
Our Value Proposition PRODUCT B2B CUSTOMERS B2C DIY INVESTORS GLOBAL BANK ePENSION PROVIDERS CUSTOMERS CUSTOMERS • One platform, • One platform, multiple • One platform, multiple • Online account opening • Empower partners multiple B2C and B2B investment products investment products without geograph
Slide 59: iFAST Corp's Risk Journey
iFAST Corp’s Risk Journey 2000-2024 and Beyond iFAST Corp has built upon the following three key elements while braving through multiple economic events over the last 23 years, tiding through the 2001 Dotcom bubble burst, the 2008 Global Financial Crisis and the recent Covid pandemic. This has paved
Slide 60: iFAST Corp's Risk Journey
iFAST Corp’s Risk Journey 2000-2024 and Beyond • Using the analogy of Kart Racing, braking (risk At iFAST, we aim to go far and wide: management) is essential to help the kart accelerate • Thus, we see good risk management as an essential (business strategies) safely through a turn at top partner as
Slide 61: 2Q2024: Activities & Achievements
2Q2024: Activities & Achievements Corporate Social Responsibilities (CSR): iFAST iWALK (iFAST Wealth Advisers Lead Kindness) teams took part in Oxfam Trailwalker 2024 to raise fund for charity Client Events: (Top) Singapore New launches: iFAST Global View – linking up FSMOne.com – ETFestival 2024; i
Slide 62: THANK YOU!
THANK YOU! For more information, please visit: www.ifastcorp.com