SINGAPORE - Fintech platform iFast Corporation reported a 308.4 per cent rise in net profit to $8.5 million for the three months ended Sept 30, 2023, from $2.1 million a year ago.
The increase in profitability was driven by contributions from the group’s non-banking operations, which comprise iFast’s core wealth management platform business and its ePension division.
Earnings per share for Q3 stood at 2.88 Singapore cents, compared with 0.71 Singapore cent in the year-ago period, the company said on Wednesday.
Revenue from non-banking operations grew 22.3 per cent to $60.4 million, from $49.4 million.
“The Hong Kong ePension division made an initial one-month contribution during the quarter, and helped to drive the contributions from our overall Hong Kong business,” iFast said.
Net revenue – which excludes commission and fee expenses – from its non-banking operations in Hong Kong increased 113.2 per cent to $12.7 million in Q3.
Including revenue from banking operations, which grew 42.1 per cent to $5.8 million, total revenue stood at $66.2 million, up 23.8 per cent from the previous year.
Its banking operations in the United Kingdom posted a net loss of $2.1 million, slightly better than a net loss of $2.2 million a year ago.
Looking ahead, iFast expects profit contributions from its banking operations, which are still in the “initial build-up stage”, to “still be negative in the next three quarters”.
“However, the group expects iFast Global Bank to play a major role in the growth of the group in the medium to long term, particularly beyond 2025,” it said.
As at end-September, iFast’s assets under administration grew 1.7 per cent quarter on quarter and 12.6 per cent year on year to $19.1 billion.
The board has declared an interim dividend of 1.30 Singapore cents per share, unchanged from the year before. The dividend will be paid on Nov 17.
Shares of iFast closed 0.6 per cent or $0.03 higher at $5.52 on Wednesday, prior to the announcement. THE BUSINESS TIMES
