iFast Corporation has reported 917% y-o-y higher net profit for the 4QFY2023 ended Dec 31, 2023, at $13.18 million; and a 340% y-o-y increase in its full-year net profit at $28.27 million.
This is a reversal from the same period a year ago, when iFast reported an 82% y-o-y drop in net profit to $1.3 million for the 4QFY2022.
The group saw a 22.8% y-o-y increase in its total revenue for FY2023, at $256.54 million.
iFast says that this increase in profitability was driven by initial contributions from the ePension division of the group in Hong Kong, and improvements in its wealth management platform business.
The group reported a 913.6% y-o-y growth in its earnings per share for the 4QFY2023 to 4.46 cents, from 0.44 cents previously.
For the full year, the group’s earnings per share grew 335.9% y-o-y to 9.59 cents, from 3.97 cents previously. This excludes the impairment loss of $5.2 million related to its India business, which was recognised in 2Q2022.
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For the final dividend for FY2023, the directors have proposed a dividend of 1.40 cents per ordinary share, subject to approval by shareholders at the company’s annual general meeting on Apr 26. This brings full-year dividends to 4.8 cents, unchanged y-o-y.
iFast Global Bank’s customer deposit amounts grew 53.4% q-o-q and 257.9% y-o-y to GBP213.5 million ($358.6 million) as at Dec 31, 2023.
The group says that it has continued to disclose the regulatory ratios for iFast Global Bank, including the Liquidity Coverage Ratio (LCR), Net Stable Funding Ratio (NSFR) and Total Capital Ratio, which are at 728%, 345% and 36% respectively as at Dec 31, 2023, at levels exceeding the minimum regulatory requirements.
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The group says that as part of its three-year plan moving forward, it intends to make “solid progress” as a global digital banking and wealth management fintech platform, accelerate its growth in Hong Kong’s ePension services, and develop fintech services complimentary to its existing services.
iFast is present in four other jurisdictions outside of Singapore: Hong Kong, Malaysia, China and the UK.
“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,” says the group.
iFast Global Bank is targeting breakeven by 4QFY2024, driven to a large extent by growth in net interest income as the deposit base continues to grow.
Meanwhile, its guidance on its Hong Kong business has been updated, as it achieved its 2023 revenue targets while exceeding the profit before tax target.
Shares in iFast closed 12 cents lower, or 1.49% down, at $7.93 on Feb 21.
