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“We maintain our positive view on iFAST on the back of the strong growth momentum ahead, driven by the acceleration of FinTech services adoption pace. The record-high AUA and FY2020 results attest to this trend,” Ling adds.
See: iFAST reports record quarterly earnings of $6.83 mil, AUA of $14.45 bil at all-time-high
A final dividend per share (DPS) of 1 cent was declared, bringing full-year DPS to 3.3 cents, compared to 3.15 cents in FY2019, implying a payout ratio of 42%, vs. 89% in FY2019. Going forward, the group expects to declare a gradual increase in DPS, notes Ling. That said, while iFAST enjoys strong growth in its key market of Singapore, its China operations are still loss-making, and may remain so for at least a year, notes Ling. “Key market Singapore registered strong growth in net earnings of 114% y-o-y for FY2020. Continued losses seen in the China operation, with net loss of $4.9 million, similar to FY2019. We expect this trend to continue at least till FY2022F or beyond.”
See also: iFAST aiming for Malaysia digital bank licence, $100 bil AUA goal 'not a big number': Lim
iFAST is an Internet-based investment product distribution platform. As at end-December 2020, the group offered over 7,800 funds from over 270 fund houses, over 1,400 direct bonds, stocks and ETFs (Singapore, Hong Kong and US stockbroking capabilities), as well as discretionary portfolio management services. More than 460 financial institutions and other corporations, and over 9,900 wealth advisers are using iFAST’s B2B platforms. More than 550,000 customer accounts have been opened across the five markets the group is operating in: Singapore, Malaysia, China, Hong Kong and India.