Slide 1: 3Q2024 & 9M2024 Results Presentation
iFAST CORPORATION LTD. 3Q2024 & 9M2024 Results Presentation 25 Oct 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 ▪ AUA Updates ▪ 3Q2024 (Jul-Sep 2024) & 9M2024 (Jan-Sep 2024) Financial Results Pg. 8 Section I Financial Results ▪ Performance by Geographical and Business Segments ▪ Interim Dividends ▪ Net Inflows and Gross Unit Trust Subscription Recovery Section II Business Update P
Slide 4: Key Summary
Key Summary • In 3Q2024, the Group’s net profit increased by 97.3% YoY to S$16.81 million, on the back of a 49.7% increase YoY in the Group’s gross revenue to S$99.14 million, and a 53.4% increase YoY in net revenue to S$63.99 million. • The increase in profitability was driven by contributions from
Slide 5: Key Summary
Key Summary • The ePension division in Hong Kong will be an important growth driver in 2024 and 2025, while the overall wealth management platform is expected to continue to show healthy progress. The Group expects iFAST Global Bank to become an important growth driver in 2025 and beyond. • On an ov
Slide 6: Group AUA increased 23.6% YoY to Another Record High
Group AUA increased 23.6% YoY to Another Record High of S$23.62 billion as at 30 September 2024 S$ million AUA (as at 30 Sep 2024): S$23.62 billion $24,000 $22,000 $20,000 $18,000 $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $- Jan-02 Sep-02 Jan-04 Sep-04 Jan-06 Sep-06 Jan-08 Sep-08 J
Slide 7: AUA Breakdown: Markets & Products
AUA Breakdown: Markets & Products (as at 30 September 2024) AUA Breakdown By Markets AUA Breakdown By Products 5.0% 7.1% 12.1% 21.0% 11.7% 59.6% 12.3% 71.2% Singapore Hong Kong Unit Trusts Bonds Malaysia Others (China & UK) Stocks & ETFs Cash Account & Deposits 7
Slide 8: Section I Financial Results
Section I Financial Results 8
Slide 9: Financial Results for Group (3Q2024 vs 3Q2023)
Financial Results for Group (3Q2024 vs 3Q2023) S$ (Million) 3Q2023 3Q2024 YoY change (%) Total revenue 66.22 99.14 +49.7 Total net revenue 41.72 63.99 +53.4 Other income 0.06 0.70 N.M. Operating expenses 30.61 43.20 +41.2 Interest expenses on lease liabilities 0.22 0.39 +74.0 Share of results of ass
Slide 10: Financial Results for Group (9M2024 vs 9M2023)
Financial Results for Group (9M2024 vs 9M2023) S$ (Million) 9M2023 9M2024 YoY change (%) Total revenue 174.35 278.85 +59.9 Total net revenue 104.53 183.48 +75.5 Other income 1.30 1.35 +4.3 Operating expenses 85.52 124.74 +45.9 Interest expenses on lease liabilities 0.57 1.03 +79.6 Share of results o
Slide 11: Results Overview for Group
Results Overview for Group S$ (Million) FY2020 FY2021 FY20221 FY20231 9M20241 Total revenue2 170.76 216.90 208.87 256.54 278.85 Total net revenue2 86.64 113.91 118.24 161.66 183.48 Other income 5.21 0.49 1.72 1.71 1.35 Operating expenses 65.29 77.68 103.84 126.23 124.74 Interest expenses on lease li
Slide 12: Financial Indicators for Non-banking Operations
Financial Indicators for Non-banking Operations (3Q2024 vs 3Q2023) S$ (Million) 3Q2023 3Q2024 YoY change (%) Total revenue 60.43 85.27 +41.1 Total net revenue 38.40 57.95 +50.9 Operating expenses 24.95 36.30 +45.5 Profit before tax 13.27 21.96 +65.5 Profit after tax 10.55 17.58 +66.5 Net profit attr
Slide 13: Financial Indicators for Non-banking Operations
Financial Indicators for Non-banking Operations (9M2024 vs 9M2023) S$ (Million) 9M2023 9M2024 YoY change (%) Total revenue 160.30 244.06 +52.3 Total net revenue 95.45 168.62 +76.7 Operating expenses 69.71 104.79 +50.3 Profit before tax 26.68 64.13 +140.4 Profit after tax 20.93 51.83 +147.7 Net profi
Slide 14: PBT Margin for Group
PBT Margin for Group (Based on Total Net Revenue) 35.0% 31.6% 32.2% 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 9M2024 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 15: Return on Equity
Return on Equity 30.0% 25.8% 25.0% 22.9% 21.8% 20.0% 15.0% 12.2% 10.0% 5.0%1 5.0% 0.0% 2020 2021 20222 2023 9M2024 Notes: 1. Excluding impairment loss of S$5.2 million related to India Business recognised in 2Q2022. 2. The Group conducted a S$103 million share placement exercise in January 2022. 15
Slide 16: Profit/Loss - Geographical Segment
Profit/Loss - Geographical Segment Profit/Loss YoY Change YoY Change (S$ Million) 3Q2023 3Q2024 (%) 9M2023 9M2024 (%) Singapore 7.21 8.88 +23.2 17.97 26.02 +44.8 Hong Kong 6.77 13.25 +95.7 10.82 39.81 +268.0 Malaysia 1.12 1.26 +12.9 3.22 3.28 +1.9 China (1.74) (1.38) -21.0 (5.33) (4.76) -10.7 Other1
Slide 17: Profit/Loss - Geographical Segment
Profit/Loss - Geographical Segment Profit/Loss (S$ Million) FY2020 FY2021 FY2022 FY2023 9M2024 Singapore 21.32 28.43 16.57 25.20 26.02 Hong Kong 5.79 8.39 8.07 23.82 39.81 Malaysia 3.75 5.39 4.25 4.39 3.28 China (4.88) (5.82) (7.12) (7.19) (4.76) Other1 (0.41) (0.35) 0.30 0.22 (0.04) Non-banking ope
Slide 18: Total Net Revenue - Geographical Segment
Total Net Revenue - Geographical Segment S$ (Million) FY2020 FY2021 FY2022 FY2023 9M2024 Singapore 56.79 73.50 70.49 81.24 71.44 Hong Kong 19.26 24.43 24.15 52.58 84.86 Malaysia 8.77 13.43 13.64 13.98 11.40 China 1.82 2.55 1.77 1.51 0.92 UK - - 8.19 12.35 14.86 Group 86.64 113.91 118.24 161.66 183.4
Slide 19: Third Interim Dividend for FY2024
Third Interim Dividend for FY2024 Third Interim Dividend for FY2024 - Schedule Dividend per share 1.50 cents per ordinary share Ex-dividend date 5 November 2024 Record date and time 6 November 2024 (5.00 pm) Payment date 19 November 2024 • For the third interim dividend for 3Q2024, the Directors dec
Slide 20: Section II Business Update
Section II Business Update 20
Slide 21: Net Inflows Showing Healthy Recovery
Net Inflows Showing Healthy Recovery S$ million 4,000 $3,745 3,500 $3,160 3,000 2,500 $2,291 $2,104 $1,957 2,000 $1,624 1,500 $942 $976 1,000 $786 $458 $501 500 $396 $193 $235 $55 0 Notes: 1. Net inflows stood at S$0.69 billion, S$0.79 billion and S$0.81 billion in 1Q2024, 2Q2024 and 3Q2024 respecti
Slide 22: Gross Unit Trust Subscription on Recovery Trend
Gross Unit Trust (UT) Subscription on Recovery Trend S$ million 8,000 $7,052 7,000 6,000 $5,647 $5,223 $5,312 5,000 $4,490 4,000 $3,375 $2,908 $3,053 $2,870 3,000 2,000 $1,547 $1,670 $1,574 $1,365 $947 $940 1,000 0 Notes: 1. Gross UT Subscriptions stood at S$1.59 billion, S$1.79 billion and S$1.93 b
Slide 23: Bond Turnover Continued to be Strong in 3Q2024
Bond Turnover Continued to be Strong in 3Q2024 S$ million 1,100 1,000 900 800 700 600 500 400 300 200 100 0 23
Slide 24: iFAST Global Bank Updates: Gross Revenue
iFAST Global Bank Updates Showing Encouraging Progress - Gross Revenue Trending Higher S$ million 16 13.87 14 12 11.38 10 9.54 8 6.53 5.78 6 4.04 4.24 4 2 - 1Q2023 2Q2023 3Q2023 4Q2023 1Q2024 2Q2024 3Q2024 24
Slide 25: iFAST Global Bank Updates: Losses Narrowing
iFAST Global Bank Updates Showing Encouraging Progress - Losses Narrowing after 4Q2023 S$ million 1Q2023 2Q2023 3Q2023 4Q2023 1Q2024 2Q2024 3Q2024 0.00 -0.50 -1.00 -0.82 -1.50 -1.56 -1.71 -2.00 -2.11 -2.23 -2.28 -2.50 -2.57 -3.00 25
Slide 26: iFAST Global Bank: Conservative Balance Sheet Strategy
iFAST Global Bank Updates Conservative Balance Sheet Strategy • The customer deposit amounts for iFAST Global Bank (iGB) grew 24.6% QoQ and 124.6% year-to-date to S$805.63 million as at 30 September 2024. • The increase in deposits continues to be driven by the deposit offering business units, and m
Slide 27: iFAST Global Bank: Regulatory Ratios
iFAST Global Bank Updates Regulatory Ratios Minimum Average Ratio of As at Regulatory Ratios Regulatory 3 Singapore local 30 Sep 2024 Requirement banks1 Liquidity Coverage Ratio (“LCR”) 1,048% 100% 145% Net Stable Funding Ratio (“NSFR”) 272% 100% 116% Total Capital Ratio 34% 11.45% 16.7% The Group h
Slide 28: Section III Performance Trends
SECTION III Section III \ Performance Trends 28
Slide 29: Financial Indicators
Financial Indicators S$ (Million) FY2020 FY2021 FY2022 FY2023 9M2024 EBITDA3 42.04 54.79 37.642 70.50 87.03 Operating Cashflows 41.56 46.53 47.40 273.45 471.94 Capital Expenditure1 12.63 21.62 17.87 21.63 11.58 Net Current Assets 58.35 68.03 108.45 110.66 136.85 Shareholders’ Equity 104.11 128.65 22
Slide 30: Cash Plus Liquid Assets Net of Borrowings Position
Cash Plus Liquid Assets Net of Borrowings Position As at 30 Jun 2024 As at 30 Sep 2024 (S$ million) (S$ million) Cash and Cash Equivalents 560.55 565.28 Sovereign Bonds & Investment-grade Corporate Bonds 237.89 372.51 Others 44.05 81.64 Less: Customers’ Deposits (646.63) (805.63) Total Cash plus Liq
Slide 31: Group Operating Cashflows
Group Operating Cashflows S$ million 500 471.94 450 400 350 300 273.45 250 200 150 100 41.56 46.53 47.40 50 0 2020 2021 2022 2023 9M2024 31
Slide 32: Capital Expenditure
Capital Expenditure S$ million 25 21.62 21.63 20.5 20 17.87 15 12.63 10 5 0 2020 2021 2022 2023 2024F Note: 1. Capital Expenditure for 9M2024 stood at S$11.58 million. 32
Slide 33: Number of Issued Shares
Number of Issued Shares As at 31 Dec 2023 As at 30 Sep 2024 Total number of issued shares (excluding treasury shares and subsidiary 295,702,851 297,959,099 holdings) 33
Slide 34: Our Consolidated Financial Position
Our Consolidated Financial Position As at 31 Dec 23 As at 30 Sep 24 S$’000 S$’000 ASSETS Plant and Equipment 8,534 12,767 Right-of-use Assets 23,881 27,182 Intangible Assets and Goodwill 80,136 76,455 Associates 413 399 Other Investments 32,965 141,683 Deferred Tax Assets 2,759 2,803 Contract Costs
Slide 35: Our Consolidated Financial Position
Our Consolidated Financial Position As at 31 Dec 23 As at 30 Sep 24 S$’000 S$’000 EQUITY Share Capital 171,165 171,435 Reserves 79,031 123,783 EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY 250,196 295,218 Non-Controlling Interests 7,180 (1,769) TOTAL EQUITY 257,376 293,449 LIABILITIES Debt Issued - 9
Slide 36: Held under Trust
Held under Trust As at 31 Dec 23 As at 30 Sep 24 S$’000 S$’000 HELD UNDER TRUST Client monies maintained in bank deposit accounts 905,844 1,033,574 Client monies maintained in government debt securities 1,828 11,197 treasury accounts Client ledger balances (907,672) (1,044,771) - - • Certain non-ban
Slide 37: Total Net Revenue Breakdown between Recurring and Non-recurring
Total Net Revenue1 Breakdown between Recurring and Non-recurring Sources Average contribution from recurring net revenue as opposed to S$ million non-recurring net revenue in the period from 2023 to 9M2024 was 83.5% 200 180 26.6 160 29.7 140 120 100 34.5 34.4 80 156.8 25.5 131.9 60 12.3 11.3 8.5 83.
Slide 38: Recurring and Non-recurring Total Net Revenue
Recurring and Non-recurring Total Net Revenue (Include Banking Operation) S$ (Million) FY2020 FY2021 FY20221 FY20231 9M20241 Recurring net revenue2 61.17 79.38 83.86 131.94 156.84 Non-recurring net revenue 25.47 34.53 34.38 29.72 26.64 Total net revenue2 86.64 113.91 118.24 161.66 183.48 YoY Change
Slide 39: Recurring and Non-recurring Total Net Revenue
Recurring and Non-recurring Total Net Revenue (Exclude Banking Operation) S$ (Million) FY2020 FY2021 FY20221 FY20231 9M20241 Recurring net revenue2 61.17 79.38 83.61 129.19 151.30 Non-recurring net revenue 25.47 34.53 26.44 20.12 17.32 Total net revenue2 86.64 113.91 110.05 149.31 168.62 YoY Change
Slide 40: Net Revenue - B2B Business Segment
Net Revenue1 - B2B Business Segment B2B Net Revenue FY2020 FY2021 FY2022 FY2023 9M2024 (S$ Million) Recurring net revenue 42.34 55.73 58.05 99.10 128.90 Non-recurring net revenue 10.88 16.42 16.66 12.89 9.31 Total B2B net revenue 53.22 72.15 74.72 111.99 138.21 YoY Change (%) FY2020 FY2021 FY2022 FY
Slide 41: Net Revenue - B2C Business Segment
Net Revenue1 - B2C Business Segment B2C Net Revenue FY2020 FY2021 FY2022 FY2023 9M2024 (S$ Million) Recurring net revenue 18.04 22.96 22.99 25.64 19.09 Non-recurring net revenue 14.60 18.11 9.78 7.23 8.00 Total B2C net revenue 32.64 41.07 32.77 32.87 27.09 YoY Change (%) FY2020 FY2021 FY2022 FY2023
Slide 42: Progress of Individual Markets: Singapore
Progress of Individual Markets Singapore • Net revenue for the Singapore operation in 3Q2024 increased by 15.6% YoY to S$24.99 million. For 9M2024, net revenue grew 20.7% to S$71.44 million. • AUA of the Singapore operation rose 4.8% QoQ and 20.9% YoY to S$16.82 billion as at 30 September 2024, reac
Slide 43: Progress of Individual Markets: Singapore
Progress of Individual Markets Singapore • iGM advisers participated in the iFAST Mid-Year Review jointly organised with FSMOne Singapore, sharing with investors about changes in CPF that will be taking place in 2025, and how to use SRS to optimise their income tax planning. • Other notable events i
Slide 44: Progress of Individual Markets: Hong Kong
Progress of Individual Markets Hong Kong • In 3Q2024, the Hong Kong operation’s net revenue rose 124.9% YoY to S$28.63 million, and in 9M2024, net revenue rose 245.6% YoY to $84.86 million. • The Hong Kong operation AUA rose 2.8% QoQ and 17.1% YoY to S$2.76 billion as at 30 September 2024. • As at e
Slide 45: Progress of Individual Markets: Malaysia
Progress of Individual Markets Malaysia • Net revenue for the Malaysia operation in 3Q2024 increased 8.5% YoY to S$3.99 million. In 9M2024, net revenue grew 8.5% to S$11.40 million. • The Malaysia operation AUA increased 9.8% QoQ and 25.7% YoY to S$2.85 billion as at 30 September 2024, achieving ano
Slide 46: Progress of Individual Markets: China
Progress of Individual Markets China • Net revenue for China operation decreased 7.5% YoY to S$0.34 million in 3Q2024 and fell 23.7% YoY to S$0.92 million in 9M2024. • Following the implementation of cost control initiatives over the year, losses for the China operation narrowed 21.0% YoY in 3Q2024
Slide 47: Progress of Individual Markets: UK (iFAST Global Bank)
Progress of Individual Markets UK (iFAST Global Bank) • Total revenue for iFAST Global Bank (iGB) continues to grow, increasing 82.0% YoY to S$6.04 million in 3Q2024. In 9M2024, net revenue grew 63.7% YoY to S$14.86 million. The losses for iGB in 3Q2024 decreased by 61.0% YoY to S$0.82 million. • Th
Slide 48: Appendices
[SectionIV_ | Appendices iFAST
Slide 49: Business Overview
Business Overview • iFAST Corporation Ltd. is a global digital banking and wealth management fintech platform with assets under administration (AUA) of S$23.62 billion as at 30 September 2024 (stock code: AIY). • Main business divisions: o Wealth Management: ▪ Business-to-Consumer (B2C): FSMOne.com
Slide 50: iFAST Fintech Ecosystem
iFAST Fintech Ecosystem Connecting All to Help Investors Invest Globally and Profitably (as at 30 Sep 2024) 910,000 5 740 13,300 5 50
Slide 51: 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 52: 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 53: 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 54: 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 55: 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 56: 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 57: 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 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: 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 60: Fees Illustration
Fees Illustration (For Wealth Management Platform Services) 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 60
Slide 61: Licences Held and Products and Services Available
Licences Held and Products and Services Available (as at 30 September 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
Slide 62: 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 63: 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 64: 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 65: 3Q2024: Activities & Achievements
3Q2024: Activities & Achievements B2B Client Events (L-R): iFAST Singapore: Adviser Xchange 2024; iFAST Hong Kong B2B Division What & Where to Invest: 2nd Half (with speakers from Hong Kong Mandatory Provident Fund Schemes Authority (MPFA) & iFAST ePension Division) New Product/Service Launches iFAS
Slide 66: THANK YOU!
THANK YOU! For more information, please visit: www.ifastcorp.com