Slide 1: 4Q2023 & FY2023 Results Presentation
iFASTCORPORATION iFAST CORPORATION LTD. LTD. 4Q2023 & FY2023 Results Presentation 21 Feb 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 ▪ 4Q2023 (Oct-Dec 2023) & FY2023 (Jan-Dec 2023) Results Pg. 8 SECTION I Financial Results ▪ Financial Indicators for Non-banking Operations ▪ Proposed Final Dividend ▪ iFAST’s 3-Year Plan and Fintech Ecosystem Pg. 15 ▪ iFAST Global Bank As An Accelerator; Increasing Cont
Slide 4: Key Summary
Key Summary • In 2023, the Group’s net profit increased by 340.0% YoY to S$28.3 million, on the back of a 22.8% increase in the Group’s total revenue to S$256.5 million. • The increase in profitability was driven by initial contributions from the ePension division of the Group, as well as improvemen
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. • We expect iFAST Global Bank to post a reduced loss in 2024 compared to 2023. iFAST Global Bank is tar
Slide 6: Group AUA at record high of S$19.83 billion
S$ million $14,000 $10,000 $12,000 $16,000 $18,000 $20,000 $- $2,000 $4,000 $6,000 $8,000 Dec-00 Jun-01 Dec-01 Jun-02 Dec-02 Jun-03 Dec-03 Jun-04 Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09 Dec-09 B2B Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 B2C Dec-12 Jun-13 Dec-13 Jun-14 Dec-14
Slide 7: Net Inflows & Gross Unit Trusts (UT) subscription
Net Inflows & Gross Unit Trusts (UT) subscription S$ 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 $4,490 $2,104 $1,957 $2,000 $4,000 $2,870 $1,500 $3,000 $976 $1,000 $2,000 $500 $1,000 $- $- 2019 2020
Slide 8: Financial Results
SECTION I Financial Results 8
Slide 9: Financial Results for Group (4Q2023 vs 4Q2022)
Financial Results for Group (4Q2023 vs 4Q2022) S$ (Million) 4Q2022 4Q2023 YoY change (%) Total revenue 48.53 82.19 +69.3 Total net revenue 29.76 57.13 +92.0 Other income 0.48 0.41 -14.9 Operating expenses 27.79 40.71 +46.5 Interest expenses on lease liabilities 0.11 0.22 +108.6 Share of results of a
Slide 10: Financial Results for Group (FY2023 vs FY2022)
Financial Results for Group (FY2023 vs FY2022) S$ (Million) FY2022 FY2023 YoY change (%) Total Revenue 208.87 256.54 +22.8 Total net revenue 118.24 161.66 +36.7 Other income 1.72 1.71 -0.4 Operating expenses 103.84 126.23 +21.6 Impairment loss related to an associate -5.20 - N.M. Interest expenses o
Slide 11: Results Overview for Group
Results Overview for Group S$ (Million) FY2019 FY2020 FY2021 FY20221 FY20231 Total revenue2 126.61 170.76 216.90 208.87 256.54 Total net revenue2 65.91 86.64 113.91 118.24 161.66 Other income 2.04 5.21 0.49 1.72 1.71 Operating expenses 56.06 65.29 77.68 103.84 126.23 Interest expenses on lease liabi
Slide 12: Financial Indicators for Non-banking Operations (4Q2023 vs 4Q2022)
Financial Indicators for Non-banking Operations (4Q2023 vs 4Q2022) S$ (Million) 4Q2022 4Q2023 YoY change (%) Total revenue 48.14 75.66 +57.2 Total net revenue 27.71 53.86 +94.3 Operating expenses 23.55 34.59 +46.9 Profit before tax 4.48 19.49 +335.0 Profit after tax 3.14 15.68 +399.2 Net profit attr
Slide 13: Financial Indicators for Non-banking Operations (FY2023 vs FY2022)
Financial Indicators for Non-banking Operations (FY2023 vs FY2022) S$ (Million) FY20221 FY2023 YoY change (%) Total revenue 198.54 235.96 +18.8 Total net revenue 110.05 149.31 +35.7 Operating expenses 89.80 104.30 +16.1 Profit before tax 21.81 46.17 +111.7 Profit after tax 16.40 36.60 +123.2 Net pro
Slide 14: Proposed Final Dividend for FY2023
Proposed Final Dividend for FY2023 Final Dividend for FY2023 - Schedule Dividend per share 1.40 cents per ordinary share Ex-dividend date 8 May 2024 Record date and time 9 May 2024 (5.00 pm) Payment date 21 May 2024 • For the final dividend for FY2023, the Directors proposed a dividend of 1.40 cents
Slide 15: Business Update
Section II Business Update 15
Slide 16: 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 17: iFAST Fintech Ecosystem
iFAST Fintech Ecosystem Connecting All to Help Investors Invest Globally and Profitably (as at 31 December 2023) Online Account Multi-Currency Opening Deposits Digital Bank EzRemit Payment / Banking as a Remittance Service (BaaS) Over 843,000 B2C Fundsupermart.com / FSMOne.com / customer accounts Bo
Slide 18: iFAST Global Bank As An Accelerator
iFAST Global Bank As An Accelerator • iFAST Global Bank has three main divisions – Digital Personal Banking (DPB), Digital Transaction Banking (DTB) and EzRemit. DPB, which was launched in 2Q2023, has very strong synergy with the iFAST Group’s overall wealth management platform. • With the launch of
Slide 19: iFAST Global Bank As An Accelerator
iFAST Global Bank As An Accelerator • iFAST Global Bank’s customer deposit amounts grew 53.4% QoQ and 257.9% YoY to GBP213.5 million (S$358.6 million equivalent) as at 31 December 2023, contributing to higher net interest revenue. The increase in deposits has been contributed by several deposit offe
Slide 20: Increasing Contribution From Hong Kong
Increasing Contribution From Hong Kong • Despite the very tough financial market conditions in Hong Kong in 2023, the overall Hong Kong business saw a 195% increase in profit before tax to S$23.8 million driven by the initial contributions from the ePension division. • The Group expects the overall
Slide 21: Updated Guidance on Hong Kong Targets
Updated Guidance on Hong Kong Targets o Gross Revenue Targets Targets April 2022 Updated Targets Gross Revenue >HKD400 million 2023 Actual Gross Revenue HKD406 million 2023 Gross Revenue >HKD1.1 billion 2024 Gross Revenue >HKD800 million 2024 Gross Revenue >HKD1.6 billion 2025 Gross Revenue >HKD1.2
Slide 22: Enhancing Our Fintech Ecosystem – Bondsupermart
Enhancing Our Fintech Ecosystem – Bondsupermart • In January 2024, iFAST Malaysia’s subsidiary Bondsupermart Sdn Bhd obtained approval-in-principle from Securities Commission Malaysia to be registered as a Recognised Market Operator. • The Group aims to build a global digital bond marketplace that w
Slide 23: A Bond Marketplace Starting 2H2024 To Build On Our Bonds Business
A Bond Marketplace Starting 2H2024 To Build On Our Bonds Business S$ million Fixed Income Turnover 800 700 600 500 400 300 200 100 0 23
Slide 24: Overall Group Outlook
Overall Group Outlook • On an overall basis and barring unforeseen circumstances, the Group expects 2024 to see robust growth rates in revenues and profitability compared to 2023. • The ePension division in Hong Kong will be an important growth driver in 2024 and 2025, while the overall wealth manag
Slide 25: Performance Trend
SECTION III Performance Trend \ 25
Slide 26: Financial Indicators
Financial Indicators S$ (Million) FY2019 FY2020 FY2021 FY2022 FY2023 EBITDA4 25.53 42.04 54.79 37.643 70.50 Operating Cashflows4 19.38 41.56 46.53 47.40 273.455 Net Cash Position1 40.15 53.28 59.29 84.09 49.52 Capital Expenditure2 11.90 12.63 21.62 17.87 21.63 Net Current Assets 49.86 58.35 68.03 10
Slide 27: PBT Margin for Group
PBT Margin for Group (Based on Total Net Revenue) 35.0% 31.6% 29.6% 30.0% 25.0% 22.6% 20.0% 17.0% 15.0% 13.5% 10.0% 5.0% 0.0% 2019 2020 2021 2022 2023 Notes: 1. Includes the new banking operation for FY2022 and excludes impairment loss of S$5.2 million related to India Business recognised in 2Q2022.
Slide 28: Return on Equity
Return on Equity 30.0% 25.8% 25.0% 21.8% 20.0% 15.0% 12.2% 10.9% 10.0% 5.0% 5.0% 0.0% 2019 2020 2021 2022 2 2023 Notes: 1. Excluding impairment loss of S$5.2 million related to India Business recognised in 2Q2022. 2. The Group conducted a S$103 million share placement exercise in January 2022. 28
Slide 29: Net Cash Position
Net Cash Position As at 31 Dec 2022 As at 31 Dec 2023 (S$ million) (S$ million) Cash and Cash Equivalents 151.13 359.81 Other Investments¹ 41.71 82.80 Less: Customers’ Deposits (96.54) (358.62) Total Cash 96.30 83.99 Less: Bank Loans (12.21) (34.47) Net Cash Position 84.09 49.52 Gross Debt-to-Equity
Slide 30: Group Operating Cashflows
Group Operating Cashflows S$ million 300.00 273.45 1 250.00 200.00 150.00 100.00 41.56 46.53 47.40 50.00 19.38 0.00 2019 2020 2021 2022 2023 Notes: 1. Includes UK banking operations. Operating Cashflows excluding UK banking operations is at S$35.07 million. 30
Slide 31: Capital Expenditure
Capital Expenditure S$ million 25.00 21.62 21.63 20.50 20.00 17.87 15.00 12.63 11.90 10.00 5.00 0.00 2019 2020 2021 2022 2023 2024F 31
Slide 32: Number of Issued Shares
Number of Issued Shares As at 31 Dec 2022 As at 31 Dec 2023 Total number of issued shares (excluding treasury shares and subsidiary 293,045,941 295,702,851 holdings) 32
Slide 33: Our Consolidated Financial Position
Our Consolidated Financial Position As at 31 Dec 22 As at 31 Dec 23 S$’000 S$’000 ASSETS Plant and Equipment 5,962 8,534 Right-of-use Assets 10,391 23,881 Intangible Assets and Goodwill 73,993 80,136 Associates 3,479 413 Other Investments 23,034 32,965 Deferred Tax Assets 2,380 2,759 Contract Costs
Slide 34: Our Consolidated Financial Position
Our Consolidated Financial Position As at 31 Dec 22 As at 31 Dec 23 S$’000 S$’000 EQUITY Share Capital 171,059 171,165 Reserves 51,429 79,031 EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY 222,488 250,196 Non-Controlling Interests 8,229 7,180 TOTAL EQUITY 230,717 257,376 LIABILITIES Deferred Tax Liabi
Slide 35: Held under Trust
Held under Trust As at 31 Dec 22 As at 31 Dec 23 S$’000 S$’000 HELD UNDER TRUST Client monies maintained in bank deposit accounts 933,368 905,844 Client monies maintained in government debt securities treasury - 1,828 accounts Client ledger balances (933,368) (907,672) - - • Certain non-banking subs
Slide 36: Regulatory Ratios – iFAST Global Bank
Regulatory Ratios – iFAST Global Bank Minimum Average Ratio of Regulatory Ratios As at 31 Dec 2023 Regulatory 3 Singapore local Requirement banks Liquidity Coverage Ratio (“LCR”) 728% 100% 150% Net Stable Funding Ratio (“NSFR”) 345% 100% 118% Total Capital Ratio 36% 12.91% 16.5% The Group has starte
Slide 37: AUA Breakdown: Markets & Products
AUA Breakdown: Markets & Products (as at 31 Dec 2023 ) AUA Breakdown By Markets AUA Breakdown By Products 3.6% 6.0% 11.7% 20.0% 11.8% 63.0% 11.0% 72.9% Singapore Hong Kong Unit Trusts Bonds Malaysia Others (China & UK) Stocks & ETFs Cash Account & Deposits 37
Slide 38: 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 2023 was 76.3% 160 29.7 140 120 100 34.5 34.4 80 25.5 131.9 60 12.3 11.3 8.5 83.9 40 6.9 6.0 78.7 7.2
Slide 39: Profit/Loss - Geographical Segment
Profit/Loss - Geographical Segment Profit/Loss YoY Change YoY Change (S$ Million) 4Q2022 4Q2023 (%) FY2022 FY2023 (%) Singapore 3.26 7.23 +121.1 16.57 25.20 +52.1 Hong Kong 2.07 13.00 +527.8 8.07 23.82 +194.9 Malaysia 1.08 1.17 +8.8 4.25 4.39 +3.4 China (1.83) (1.86) +1.5 (7.12) (7.19) +1.1 Other1 (
Slide 40: Profit/Loss - Geographical Segment
Profit/Loss - Geographical Segment Profit/Loss (S$ Million) FY2019 FY2020 FY2021 FY2022 FY2023 Singapore 9.96 21.32 28.43 16.57 25.20 Hong Kong 4.42 5.79 8.39 8.07 23.82 Malaysia 1.76 3.75 5.39 4.25 4.39 China (4.82) (4.88) (5.82) (7.12) (7.19) Other1 (0.05) (0.41) (0.35) 0.30 0.22 Non-banking opera
Slide 41: Total Net Revenue - Geographical Segment
Total Net Revenue - Geographical Segment S$ (Million) FY2019 FY2020 FY2021 FY2022 FY2023 Singapore 42.35 56.79 73.50 70.49 81.24 Hong Kong 16.81 19.26 24.43 24.15 52.58 Malaysia 6.15 8.77 13.43 13.64 13.98 China 0.60 1.82 2.55 1.77 1.51 UK - - - 8.19 12.35 Group 65.91 86.64 113.91 118.24 161.66 YoY
Slide 42: 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 FY20231 Recurring net revenue2 53.65 61.17 79.38 83.86 131.94 Non-recurring net revenue 12.26 25.47 34.53 34.38 29.72 Total net revenue2 65.91 86.64 113.91 118.24 161.66 YoY Change (%)
Slide 43: 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 FY20231 Recurring net revenue2 53.65 61.17 79.38 83.61 129.19 Non-recurring net revenue 12.26 25.47 34.53 26.44 20.12 Total net revenue2 65.91 86.64 113.91 110.05 149.31 YoY Change (%)
Slide 44: Net Revenue - B2B Business Segment
Net Revenue1 - B2B Business Segment B2B Net Revenue FY2019 FY2020 FY2021 FY2022 FY2023 (S$ Million) Recurring net revenue 37.12 42.34 55.73 58.05 99.10 Non-recurring net revenue 7.19 10.88 16.42 16.66 12.89 Total B2B net revenue 44.31 53.22 72.15 74.72 111.99 YoY Change (%) FY2019 FY2020 FY2021 FY20
Slide 45: Net Revenue - B2C Business Segment
Net Revenue1 - B2C Business Segment B2C Net Revenue FY2019 FY2020 FY2021 FY2022 FY2023 (S$ Million) Recurring net revenue 15.81 18.04 22.96 22.99 25.64 Non-recurring net revenue 5.08 14.60 18.11 9.78 7.23 Total B2C net revenue 20.89 32.64 41.07 32.77 32.87 YoY Change (%) FY2019 FY2020 FY2021 FY2022
Slide 46: 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% 0.700% 0.665% 0.667% 0.681% 0.138% 0.225% 0.634% 0.600% 0.629% 0.203% 0.159% 0.194% 0.586% 0.500% 0.576% 0.400% 0.456% 0.300% 0.594% 0.533% 0.522% 0.462% 0.473% 0.200% 0.181% 0.209% 0.100% 0.103
Slide 47: Progress of Individual Markets: Singapore
Progress of Individual Markets SINGAPORE • Net revenue for the Singapore operation in 4Q2023 increased by 23.8% YoY to S$22.05 million, while in FY2023, net revenue increased 15.2% to S$81.24 million. • AUA of the Singapore operation rose 3.8% QoQ and 14.3% YoY to reach an end-of-quarter record high
Slide 48: Progress of Individual Markets: Singapore
Progress of Individual Markets SINGAPORE • In 4Q2023, iGM Singapore platform launched debit card services to allow clients to spend conveniently using their SGD cash account, and the iGM website was also revamped to enhance clients’ experience for stocks trading. • In 2024, iGM will continue to reac
Slide 49: Progress of Individual Markets: Hong Kong
Progress of Individual Markets HONG KONG • Net revenue for the Hong Kong operation in 4Q2023 increased 358.8% YoY to S$28.03 million. For FY2023, net revenue saw a 117.7% YoY increase to S$52.58 million. The ePension division contributed significantly to the net revenue in Hong Kong operation. • The
Slide 50: Progress of Individual Markets: Malaysia
Progress of Individual Markets MALAYSIA • Net revenue for the Malaysia operation in 4Q2023 saw a slight 0.3% YoY increase to S$3.47 million, though for FY2023, net revenue rose 2.5% YoY to S$13.98 million. • The Malaysia operation AUA increased 2.3% QoQ and 19.8% YoY to a record-high level of S$2.32
Slide 51: Progress of Individual Markets: China
Progress of Individual Markets CHINA • Net revenue for China operation in 4Q2023 fell 8.0% YoY to S$0.31 million, while in FY2023, net revenue fell 14.4% to S$1.51 million. • The AUA of China operations fell marginally -0.1% QoQ and -8.9% YoY to 1.87 billion RMB (approximately S$348 million) as of 3
Slide 52: Progress of Individual Markets: UK – iFAST Global Bank
Progress of Individual Markets UK – iFAST Global Bank (iGB) • Total revenue for iFAST Global Bank (iGB) in 4Q2023 grew 59.9% YoY to S$3.27 million. For FY2023, total revenue grew 50.8% YoY to S$12.35 million. • The Bank’s deposit book grew continued to grow quickly over 4Q2023, contributed by all de
Slide 53: Appendices
SECTION IV Appendices 53
Slide 54: Business Overview
Business Overview • iFAST Corporation Ltd. is a digital banking and wealth management fintech platform with assets under administration (AUA) of S$19.83 billion as at 31 December 2023 (stock code: AIY). • Main business divisions: o Business-to-Consumer (B2C): FSMOne.com (formerly “Fundsupermart”) a
Slide 55: iFAST Fintech Ecosystem
iFAST Fintech Ecosystem • Products and services: ─ Unit trusts (over 13,000 funds from over 320 fund houses) ─ Bonds (over 2,500 direct bonds) ─ Stocks & ETFs – in 6 markets (Singapore, Hong Kong, US, Malaysia, China A Shares & UK) ─ Discretionary portfolio management services • Over 680 financial i
Slide 56: 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 57: 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 58: iFAST Global Bank: Strategy
iFAST Global Bank: Strategy STRATEGIC GROWTH TARGET SUSTAINABLE MODEL Distinct geographic presence, market sectors leading to financial resilience Short Term Long Term Digital Transaction New IT Platform & • Broader client base Banking Bank Of England • Enhanced product offerings DIVERSIFIED Existin
Slide 59: 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 60: 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 61: 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 62: Licences Held and Products and Services Available
Licences Held and Products and Services Available (as at 31 December 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 63: 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 64: 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 64
Slide 65: 4Q2023: Activities & Achievements
4Q2023: Activities & Achievements Awards received in 4Q2023: SIAS Investors’ Choice Awards 2023 (Singapore) - iFAST Corp Chairman & CEO Lim Chung Chun received the “Outstanding CEO Award”. The Edge Singapore Billion Dollar Club 2023 (Singapore) – iFAST Corp received the Launch of iFAST Global Hub.ai
Slide 66: THANK YOU!
THANK YOU! For more information, please visit: www.ifastcorp.com