iFAST Corporation Delivers Strong 4Q24 Results, Driven by Hong Kong Growth and Record AUA

iFAST Corporation Delivers Strong 4Q24 Results, Driven by Hong Kong Growth and Record AUA

Strong Performance Exceeds Expectations

iFAST Corporation (iFAST) reported robust 4Q24 results, surpassing market expectations. The company’s 2024 profit after tax and minority interests (PATMI) reached S$67 million, exceeding both internal and consensus estimates by 6% and 7%, respectively. This strong performance was largely attributed to better-than-expected contributions from its Hong Kong (HK) segment, alongside continued momentum in its core wealth management business.

Financial Highlights

Dividend Increase

Management proposed a 14% increase in final dividend per share (DPS) to 1.6 Singapore cents, bringing total 2024 DPS to 5.9 cents—a 26% payout ratio, lower than the 50% payout in 2023, reflecting a focus on sustainable returns.

Record-breaking Assets Under Administration (AUA)

iFAST’s AUA reached a record S$25.1 billion by the end of 2024, reflecting 26% YoY growth and 6% QoQ growth. Net inflows for 4Q24 stood at S$1 billion, marking a 306% YoY and 25% QoQ increase. The firm remains committed to its long-term goal of reaching S$100 billion in AUA by 2028-2030, implying a compound annual growth rate (CAGR) of 26-32%.

Hong Kong Segment Outperforms Expectations

Hong Kong’s performance played a crucial role in iFAST’s success, with:

• Net revenue at S$28.1 million, remaining stable QoQ.
• Pre-tax profit at S$13.1 million, flat compared to 3Q24.
• AUA surpassing S$3 billion, marking a 9% QoQ and 28% YoY increase.

The ePension division continues to gain traction, with expectations for stronger 2025 contributions. As of December 13, 2024, five of 24 schemes had been onboarded, with 12 additional schemes planned for 1Q/2Q25, two for 2Q/3Q25, and five more in 3Q/4Q25.

iFAST Global Bank (iGB) Achieves Profitability

In a notable milestone, UK-based iFAST Global Bank (iGB) turned profitable in 4Q24, recording a S$0.3 million profit, a stark contrast to its S$0.8 million loss in 3Q24. The turnaround was fueled by:

• A 26% QoQ and 183% YoY increase in customer deposits, reaching S$1 billion.
• The launch of a debit card for local customers.
• Effective cost management.

Management expects iGB to remain profitable in 2025, supported by a growing deposit base and higher net interest income.

Expansion Plans and Market Opportunities

• ePension expansion: Hong Kong’s Occupational Retirement Schemes Ordinance (ORSO) platform launch has been delayed from 1Q25 to 2Q25 due to additional testing. The ORSO platform is expected to handle HK$259 billion (S$45 billion) in assets.
• Macau expansion: Discussions are ongoing for a potential pension business partnership in Macau.
• China-focused offerings: iFAST launched a China desk in Singapore in December 2024 to provide offshore wealth allocation solutions to Chinese investors.
• European expansion: The company is also exploring the possibility of applying for a banking license in the EU.

Earnings Revision & Valuation

iFAST’s 2025 and 2026 earnings estimates have been revised upward by 2% and 16%, respectively, reflecting higher AUA growth and iGB’s profitability. The company now projects AUA to grow by approximately 25% YoY in 2025 and 2026, reaching S$31 billion and S$38 billion, respectively.

Valuation Metrics:

• Maintains a HOLD rating, with an increased target price of S$8.30 (previously S$8.17), reflecting a 25x 2025 EPS valuation.
• Current share price: S$7.87, implying a 5.5% upside.
• Trading at 35x 2024 forward price-to-earnings (PE), compared to industry peers’ average of 26x.

Key Catalysts to Watch

• Faster-than-expected onboarding of trustees onto the eMPF platform.
• Higher-than-anticipated AUA growth.

iFAST continues to solidify its position as a leader in the wealth management fintech space, leveraging growth opportunities in Hong Kong, Singapore, and beyond​.

Thank you