Ifast Corporation Ltd · SGX:AIY
Ifast — 3Q2023 & 9M2023 Earnings Presentation
64 slides from Ifast's earnings presentation, Oct 25, 2023
Slide 1: 3Q2023 & 9M2023 Results Presentation
iFASTCORPORATION iFAST CORPORATION LTD. LTD. 3Q2023 & 9M2023 Results Presentation 25 Oct 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 ▪ 3Q2023 (Jul-Sep 2023) & 9M2023 (Jan-Sep 2023) Results Pg. 8 SECTION I Financial Results ▪ Interim Dividends ▪ Updates on iFAST’s 3-Year Plan Pg. 15 ▪ Wealth Management Business, iFAST Global Bank, iFAST ePension SECTION II Business Update Division Updates ▪ iFAST Finte
Slide 4: Key Summary
Key Summary • The Group’s assets under administration (“AUA”) grew 1.7% QoQ and 12.6% YoY to an end-of-quarter record high of S$19.12 billion as at 30 September 2023. • Despite volatile market conditions, net inflows remained positive and increased 34.4% QoQ to S$751 million in 3Q2023, and stood at
Slide 5: Key Summary
Key Summary • Going forward, the Group expects overall revenue and profitability to show marked improvements. The Group expects profitability in 2023 to be substantially better than in 2022, while the revenues and profitability in 2024 are expected to show robust growth compared to 2023. • The expec
Slide 6: Group AUA increased 1.7% QoQ and 12.6% YoY to S$19.12 billion
Group AUA increased 1.7% QoQ and 12.6% YoY to S$19.12 billion as at 30 September 2023 S$ million AUA (as at 30 Sep 2023 ): S$19.12 billion1 $20,000 $18,000 $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $- Jun-04 Jun-11 Jun-18 Feb-02 Sep-02 Aug-05 Feb-09 Sep-09 Aug-12 Feb-16 Sep-16 Aug-
Slide 7: Net Inflows & Gross Unit Trusts (UT) subscription
Net Inflows & Gross Unit Trusts (UT) subscription S$ million Net Inflows S$ million 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 $2,104 $4,238 $2,000 $1,861 $4,000 $1,624 $3,375 $2,870 $1,500 $3,000 $976 $1,000 $2,000 $500 $1,000 $
Slide 8: Financial Results
SECTION I Financial Results 8
Slide 9: Financial Indicators for Non-banking Operations (3Q2023 vs 3Q2022)
Financial Indicators for Non-banking Operations (3Q2023 vs 3Q2022) S$ (Million) 3Q2022 3Q2023 YoY change (%) Total revenue 49.43 60.43 +22.3 Total net revenue 27.85 38.40 +37.9 Operating expenses 22.80 24.95 +9.4 Profit before tax 5.48 13.27 +141.8 Profit after tax 4.19 10.55 +151.8 Net profit attri
Slide 10: Financial Indicators for Non-banking Operations (9M2023 vs 9M2022)
Financial Indicators for Non-banking Operations (9M2023 vs 9M2022) S$ (Million) 9M20221 9M2023 YoY change (%) Total revenue 150.39 160.30 +6.6 Total net revenue 82.34 95.45 +15.9 Operating expenses 66.25 69.71 +5.2 Profit before tax 17.32 26.68 +54.0 Profit after tax 13.26 20.93 +57.8 Net profit att
Slide 11: Financial Results for Group (3Q2023 vs 3Q2022)
Financial Results for Group (3Q2023 vs 3Q2022) S$ (Million) 3Q2022 3Q2023 YoY change (%) Total revenue 53.50 66.22 +23.8 Total net revenue 30.07 41.72 +38.7 Other income 0.58 0.06 -89.6 Operating expenses 27.57 30.61 +11.0 Interest expenses on lease liabilities -0.07 -0.22 +214.1 Share of results of
Slide 12: Financial Results for Group (9M2023 vs 9M2022)
Financial Results for Group (9M2023 vs 9M2022) S$ (Million) 9M2022 9M2023 YoY change (%) Total Revenue 160.34 174.35 +8.7 Total net revenue 88.48 104.53 +18.1 Other income 1.24 1.30 +5.3 Operating expenses 76.05 85.52 +12.5 Interest expenses on lease liabilities -0.35 -0.57 +65.9 Share of results of
Slide 13: Results Overview for Group
Results Overview for Group S$ (Million) FY2019 FY2020 FY2021 FY20221 9M20231 Total revenue2 126.61 170.76 216.90 208.87 174.35 Total net revenue2 65.91 86.64 113.91 118.24 104.53 Other income 2.04 5.21 0.49 1.72 1.30 Operating expenses 56.06 65.29 77.68 103.84 85.52 Interest expenses on lease liabil
Slide 14: Third Interim Dividend for FY2023
Third Interim Dividend for FY2023 Third Interim Dividend for FY2023 - Schedule Dividend per share 1.30 cents per ordinary share Ex-dividend date 3 Nov 2023 Record date and time 6 Nov 2023 (5.00 pm) Payment date 17 Nov 2023 • For the third interim dividend for 3Q2023, the Directors declared a dividen
Slide 15: Business Update
Section II Business Update 15
Slide 16: Recap of iFAST's Three-Year Plan
Recap of 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$100 billion by 2028. Improve operating margi
Slide 17: Updates on iFAST Three-Year Plan: Wealth Management Business
Updates on iFAST Three-Year Plan Updates on Wealth Management Business • Despite concerns over macroeconomic issues and weakened investor sentiments, various business units continued to achieve record high AUA during 3Q2023, including the Singapore B2B division, the Malaysia B2B and B2C divisions, a
Slide 18: Fixed Income Turnover Increased Substantially in 3Q2023
Fixed Income Turnover Increased Substantially in 3Q2023 S$ million Fixed Income Turnover 800 700 600 500 400 300 200 100 0 18
Slide 19: Updates on iFAST Global Bank
Updates on iFAST Three-Year Plan Updates on iFAST Global Bank • Following the launch of Digital Transaction Banking (DTB) and Digital Personal Banking (DPB) platforms on iFAST Global Bank (iGB) in January 2023 and April 2023 respectively, iGB has continued to receive encouraging interest and respons
Slide 20: Updates on iFAST ePension Division
Updates on iFAST Three-Year Plan Updates on iFAST ePension Division • The Hong Kong operations has started to see contribution from the ePension division in 3Q2023. The Group has previously announced that improvements can be expected for its overall revenue and profitability to start in 2H2023 as th
Slide 21: 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 achie
Slide 22: iFAST Fintech Ecosystem
iFAST Fintech Ecosystem Connecting All to Help Investors Invest Globally and Profitably (as at 30 September 2023 ) Online Account Multi-Currency Opening Deposits Digital Bank EzRemit Payment / Banking as a Remittance Service (BaaS) Over 825,000 B2C Fundsupermart.com / FSMOne.com / customer accounts
Slide 23: iFAST Fintech Ecosystem
iFAST Fintech Ecosystem • Products and services: ─ Unit trusts (over 13,000 funds from over 320 fund houses) ─ Bonds (over 2,400 direct bonds) ─ Stocks & ETFs – in 6 markets (Singapore, Hong Kong, US, Malaysia, China A Shares & UK) ─ Discretionary portfolio management services • Over 640 financial i
Slide 24: Performance Trend
SECTION III Performance Trend \ 24
Slide 25: Financial Indicators
Financial Indicators S$ (Million) FY2019 FY2020 FY2021 FY2022 9M2023 EBITDA4 25.53 42.04 54.79 37.643 43.76 Operating Cashflows4 19.38 41.56 46.53 47.40 27.03 Net Cash Position1 40.15 53.28 59.29 84.09 53.55 Capital Expenditure2 11.90 12.63 21.62 17.87 10.22 Net Current Assets 49.86 58.35 68.03 108.
Slide 26: 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% 19.1% 17.0% 15.0% 13.5%1 10.0% 5.0% 0.0% 2019 2020 2021 2022 9M2023 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 27: Return on Equity
Return on Equity 30.0% 25.8% 25.0% 21.8% 20.0% 15.0% 10.9% 10.0% 8.8% 5.0%1 5.0% 0.0% 2 2019 2020 2021 2022 9M2023 Notes: 1. Excluding impairment loss of S$5.2 million related to India Business recognised in 2Q2022. 2. The Group conducted a S$103 million share placement exercise in January 2022. 27
Slide 28: Net Cash Position
Net Cash Position As at 31 Dec 2022 As at 30 Sep 2023 (S$ million) (S$ million) Cash and Cash Equivalents 151.13 224.57 Other Investments¹ 41.71 76.92 Less: Customers’ Deposits (96.54) (232.09) Total Cash 96.30 69.40 Less: Bank Loans (12.21) (15.85) Net Cash Position 84.09 53.55 Gross Debt-to-Equity
Slide 29: Group Operating Cashflows
Group Operating Cashflows S$ million 160.00 148.23 1 140.00 120.00 100.00 80.00 60.00 46.53 47.40 41.56 40.00 19.38 20.00 0.00 2019 2020 2021 2022 9M2023 Notes: 1. Includes UK banking operations. Operating Cashflow excluding UK banking operation is at S$27.03 million. 29
Slide 30: Capital Expenditure
Capital Expenditure S$ million 25.00 21.62 21.00 20.00 17.87 15.00 12.63 11.90 10.00 5.00 0.00 2019 2020 2021 2022 2023F 30
Slide 31: Number of Issued Shares
Number of Issued Shares As at 31 Dec 2022 As at 30 Sep 2023 Total number of issued shares (excluding treasury shares and subsidiary 293,045,941 295,518,451 holdings) 31
Slide 32: Our Consolidated Financial Position
Our Consolidated Financial Position As at 31 Dec 22 As at 30 Sep 23 S$’000 S$’000 ASSETS Plant and Equipment 5,962 7,993 Right-of-use Assets 10,391 24,508 Intangible Assets and Goodwill 73,993 73,266 Associates 3,479 400 Other Investments 23,034 40,786 Deferred Tax Assets 2,380 2,151 Contract Costs
Slide 33: Our Consolidated Financial Position
Our Consolidated Financial Position As at 31 Dec 22 As at 30 Sep 23 S$’000 S$’000 EQUITY Share Capital 171,059 171,118 Reserves 51,429 66,247 EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY 222,488 237,365 Non-Controlling Interests 8,229 7,476 TOTAL EQUITY 230,717 244,841 LIABILITIES Deferred Tax Liabi
Slide 34: Held under Trust
Held under Trust As at 31 Dec 22 As at 30 Sep 23 S$’000 S$’000 HELD UNDER TRUST Client monies maintained in bank deposit accounts 933,368 940,064 Client monies maintained in government debt securities treasury - 2,129 accounts Client ledger balances (933,368) (942,193) - - • Certain non-banking subs
Slide 35: Regulatory Ratios – iFAST Global Bank
Regulatory Ratios – iFAST Global Bank Minimum Average Ratio of Regulatory Ratios As at 30 Sep 2023 Regulatory 3 Singapore local Requirement banks Liquidity Coverage Ratio (“LCR”) 454% 100% 159% Net Stable Funding Ratio (“NSFR”) 289% 100% 119% Total Capital Ratio 33% 12.91% 17% The Group has started
Slide 36: AUA Breakdown: Markets & Products
AUA Breakdown: Markets & Products (as at 30 Sep 2023 ) AUA Breakdown By Markets AUA Breakdown By Products 3.0% 5.2% 11.9% 21.4% 12.3% 63.5% 9.9% 72.8% Singapore Hong Kong Unit Trusts Bonds Malaysia Others (China & UK) Stocks & ETFs Cash Account & Deposits 36
Slide 37: 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 non-recurring net revenue S$ million in the period from 2022 to 9M2023 was 74.8% 140 120 100 34.5 34.4 22.3 80 25.5 60 12.3 11.3 8.5 40 78.7 83.9 82.2 6.9 6.0 7.2 6.
Slide 38: Profit/Loss - Geographical Segment
Profit/Loss - Geographical Segment Profit/Loss YoY Change YoY Change (S$ Million) 3Q2022 3Q2023 (%) 9M2022 9M2023 (%) Singapore 4.37 7.21 +65.0 13.30 17.97 +35.1 Hong Kong 2.12 6.77 +218.7 6.01 10.82 +80.1 Malaysia 0.92 1.12 +22.0 3.17 3.22 +1.5 China (1.78) (1.74) -2.2 (5.28) (5.33) +0.9 Other1 (0.
Slide 39: Profit/Loss - Geographical Segment
Profit/Loss - Geographical Segment Profit/Loss (S$ Million) FY2019 FY2020 FY2021 FY2022 9M2023 Singapore 9.96 21.32 28.43 16.57 17.97 Hong Kong 4.42 5.79 8.39 8.07 10.82 Malaysia 1.76 3.75 5.39 4.25 3.22 China (4.82) (4.88) (5.82) (7.12) (5.33) Other1 (0.05) (0.41) (0.35) 0.30 0.20 Non-banking opera
Slide 40: Total Net Revenue - Geographical Segment
Total Net Revenue - Geographical Segment S$ (Million) FY2019 FY2020 FY2021 FY2022 9M2023 Singapore 42.35 56.79 73.50 70.49 59.18 Hong Kong 16.81 19.26 24.43 24.15 24.55 Malaysia 6.15 8.77 13.43 13.64 10.51 China 0.60 1.82 2.55 1.77 1.21 UK - - - 8.19 9.08 Group 65.91 86.64 113.91 118.24 104.53 YoY C
Slide 41: 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 9M20231 Recurring net revenue2 53.65 61.17 79.38 83.86 82.25 Non-recurring net revenue 12.26 25.47 34.53 34.38 22.28 Total net revenue2 65.91 86.64 113.91 118.24 104.53 YoY Change (%)
Slide 42: 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 9M20231 Recurring net revenue2 53.65 61.17 79.38 83.61 79.99 Non-recurring net revenue 12.26 25.47 34.53 26.44 15.46 Total net revenue2 65.91 86.64 113.91 110.05 95.45 YoY Change (%) F
Slide 43: Net Revenue - B2B Business Segment
Net Revenue1 - B2B Business Segment B2B Net Revenue FY2019 FY2020 FY2021 FY2022 9M2023 (S$ Million) Recurring net revenue 37.12 42.34 55.73 58.05 57.22 Non-recurring net revenue 7.19 10.88 16.42 16.66 9.90 Total B2B net revenue 44.31 53.22 72.15 74.72 67.12 YoY Change (%) FY2019 FY2020 FY2021 FY2022
Slide 44: Net Revenue - B2C Business Segment
Net Revenue1 - B2C Business Segment B2C Net Revenue FY2019 FY2020 FY2021 FY2022 9M2023 (S$ Million) Recurring net revenue 15.81 18.04 22.96 22.99 19.48 Non-recurring net revenue 5.08 14.60 18.11 9.78 5.56 Total B2C net revenue 20.89 32.64 41.07 32.77 25.04 YoY Change (%) FY2019 FY2020 FY2021 FY2022
Slide 45: Total Net Revenue, Operating Expenses and Operating Profit as a Ratio of Average AUA
Total Net Revenue, Operating Expenses and Operating Profit as a Ratio of Average AUA 0.800% 0.757% 0.731% 0.693% 0.700% 0.665% 0.667% 0.138% 0.225% 0.161% 0.194% 0.605% 0.600% 0.629% 0.203% 0.586% 0.500% 0.576% 0.400% 0.456% 0.300% 0.594% 0.533% 0.532% 0.462% 0.473% 0.200% 0.181% 0.209% 0.100% 0.088
Slide 46: Progress of Individual Markets: Singapore
Progress of Individual Markets SINGAPORE • Net revenue for the Singapore operation increased by 18.8% YoY to S$21.62 million in 3Q2023, while in 9M2023, net revenue increased 12.3% to S$59.18 million. • AUA of the Singapore operation rose 0.9% QoQ and 12.9% YoY to an end-of-quarter record high of S$
Slide 47: Progress of Individual Markets: Singapore
Progress of Individual Markets SINGAPORE • With robo-advisor MoneyOwl’s impending cessation of business activities, the iGM Singapore division has been working on various IT enhancements and client onboarding processes to facilitate the smooth migration of client accounts. The transition process is
Slide 48: Progress of Individual Markets: Hong Kong
Progress of Individual Markets HONG KONG • Net revenue for the Hong Kong operation rose 113.2% YoY to S$12.73 in 3Q2023, while in 9M2023, net revenue rose 36.1% YoY to S$24.55 million, following an initial one-month contribution from the ePension division during the quarter. • The AUA for Hong Kong
Slide 49: Progress of Individual Markets: Malaysia
Progress of Individual Markets MALAYSIA • Net revenue for the Malaysia operation increased 13.6% YoY in 3Q2023 to S$3.67 million, and in 9M2023, net revenue rose 3.2% YoY to S$10.51 million. • The Malaysia operation AUA increased 9.4% QoQ and 20.9% YoY to S$2.27 billion as at 30 September 2023. • Th
Slide 50: Progress of Individual Markets: China
Progress of Individual Markets CHINA • Net revenue for China operation fell 17.2% YoY to S$0.37 million in 2Q2023, and in 9M2023, net revenue fell 15.9% to S$1.21 million. • The AUA of China operations fell -4.8% QoQ and -11.5% YoY to 1.88 billion RMB (approximately S$349 million) as of 30 September
Slide 51: Progress of Individual Markets: UK
Progress of Individual Markets UK • Total revenue for iFAST Global Bank (iGB) increased 42.1% YoY in 3Q2023 to S$5.78 million, and in 9M2023, total revenue increased 41.3% YoY to S$14.05 million. The UK operations incurred a 3Q2023 loss of S$2.11 million. • The increase in total revenue is mainly du
Slide 52: Appendices
SECTION IV Appendices 52
Slide 53: Business Overview
Business Overview • iFAST Corporation Ltd. is a digital banking and wealth management fintech platform with assets under administration (AUA) of S$19.12 billion as at 30 September 2023 (stock code: AIY). • Main business divisions: o Business-to-Consumer (B2C): FSMOne.com (formerly “Fundsupermart”) a
Slide 54: 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 55: 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 56: 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 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 30 September 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
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: 3Q2023: Activities & Achievements
3Q2023: Activities & Achievements iFAST Corp Chairman & CEO Lim Chung Chun awarded Outstanding Chief Executive of the Year at the 38th Singapore Business Awards (SBA) organised by The Business Times and DHL. Investor events held in 3Q2023: (Top L-R) Half Year Outlook Seminar (Hong Kong FSMOne), What
Slide 64: THANK YOU!
THANK YOU! For more information, please visit: www.ifastcorp.com