iFast 1Q19 net profit dropped 42 percent amid weak financial market

Singapore two-dollar bills

Wealth-management fintech platform iFast reported Saturday its first quarter net profit dropped 41.8 percent on-year to S$1.60 million amid weak financial markets.

Revenue for the quarter ended 31 March fell 12.2 percent on-year to S$30.96 million, iFast said in a filing to SGX.

“Following an extended period of poor financial market conditions between the second quarter of 2018 to end 2018, the group started the year with a weak January and February in terms of revenue and profitability,” iFast said in the statement.

Expenses increased 13.4 percent on-year in the quarter to S$11.88 million on efforts to strengthen the product range, iFast said.

A 0.75 Singapore cent dividend was declared, unchanged on-year.

The assets under administration increased to a record of S$8.75 billion by end-March, an 8.7 percent quarter-on-quarter increase, iFast said.

“The group expects its revenue and profitability to show improvements in second quarter of 2019 as compared to the first quarter,” iFast said. “The group continues to position itself to benefit from the huge long-term potential of the Asia’s wealth management industry, by constantly striving to improve its services as a wealth management Fintech platform.”

But it added that adverse financial market conditions can impact profitability in the short-term.

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