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iFAST reports doubling of 4Q earnings to $2.5 mil on higher revenue

Michelle Zhu
Michelle Zhu • 3 min read
iFAST reports doubling of 4Q earnings to $2.5 mil on higher revenue
SINGAPORE (Feb 14): iFAST Corporation posted earnings of $2.5 million for 4Q ended Dec 2017, more than doubling from its earnings of $1.1 million a year ago on higher revenue.
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SINGAPORE (Feb 14): iFAST Corporation posted earnings of $2.5 million for 4Q ended Dec 2017, more than doubling from its earnings of $1.1 million a year ago on higher revenue.

This brings the group’s earnings for the full financial year to $9 million, up 65.9% from $5.4 million in FY16.

Revenue for the quarter grew 30.8% on-year to $28.2 million from $21.5 million previously, due mainly to the growth of the group’s business and Asset Under Administration (AUA) in both Business-to-Customer (B2C) and Business-to-Business (B2B) business divisions in the period, contributed by the group’s continuing efforts at strengthening its investment platforms in the various countries in the recent years.

According to iFAST, AUA grew 24.3% on-year to reach a new record of $7.58 billion as at end-2017.

In terms of geographical segmentation, Singapore operation remained a major contributor of the group’s revenue, with AUA growing 19.3% y-o-y.

While Malaysia and Hong Kong operations continue to register positive growth, the group notes that its business in China remains in its early stages of building the iFAST brand among potential clients and investment practitioners in China’s wealth management industry.

Overall, the group’s total operating expenses increased 17.3% to $11.95 million in 4Q17 from $10.18 million in 4Q16, mainly due to increased efforts in enhancing platform capabilities, including improving the range of investment products and services being provided to customers in the existing markets in the period.

Other operating expenses increased by 14.3% to $4.64 million, due mainly to an increase in rental of China operation in the period arising from an opening of the new Shanghai office in 3Q16; an increase in rental of Singapore operation arising from lease of additional office space in Singapore from July 2017; and increases in advertising, IT service and maintenance, bank charges and brokerage costs to support the growth of the group’s business in the period.

iFAST says it believes its efforts over the last two to three years to broaden the range of products and services available on its platforms are showing some initial results.

This is evident through a more comprehensive wealth management platform that will help bring the group’s AUA and overall business volume to the next level in the years ahead, adds the group.

In the medium to long term, iFAST has noted there is “still a lot of room for growth” in its AUA, as the amount remains small relative to the size of the wealth management industry in Singapore and Asia.

Going forward, increasing focus will be channelled towards gaining scale as a platform, while still ensuring continuing improvements in the service offerings.

A final dividend of 0.9 cent has been proposed, which will bring the total dividend for FY17 to 3.01 cents.

Shares in iFAST closed at 88 cents on Tuesday.

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