iFAST posts 3Q21 net profit rose 23 percent despite more subdued trading activity

World currencies

IFAST reported Saturday its third quarter net profit increased 23.3 percent on-year to S$7.60 million, despite generally more subdued trading activities compared with earlier in the year, as non-recurring net revenue was robust on contributions from some project implementation fees.

During the period, the company posted a project service fee from a counterparty in Hong Kong to facilitate developing an e-Pension platform there.

Revenue for the three months ended 30 September increased 23.4 percent on-year to S$55.53 million, the wealth management platform said in a filing to SGX.

“Asia ex Japan equities recorded a sharply negative return in the third quarter of 2021 (3Q21), largely driven by a significant sell off in China. The investor sentiment towards China was weakened by local regulatory crackdown affecting the education and technology sectors and
concerns over the ability of the property giant China Evergrande Group to service its debts,” iFAST said in the statement.

But despite the negative market sentiment, assets under administration (AUA) rose 46.1 percent on-year to S$18.38 billion as of end-September, on net inflows of client assets and incremental AUA of S$485 million to Singapore platforms due to an agreement with DWS Investments Singapore to transfer its fund management business for its Singapore mutual funds platform, completed in July, the company said.

Due to the rise in AUA, recurring net revenue increased 29.7 percent on-year in the third quarter, iFAST said.

IFAST declared a dividend of 1.30 Singapore cents a share, compared with a year-earlier dividend of 0.80 Singapore cent a share; the payment date is set for 16 November, the filing said.

Outlook

IFAST was positive on the outlook.

“We believe that the robust growth seen by the group in recent times has resulted from our past investments in building up a strong integrated digital wealth management platform. The group will continue to work hard on various initiatives in all existing markets that the group operates in to ensure that our medium to long term growth prospects will remain strong,” iFAST said.

“The group is on track to see its business performance achieve healthy growth for the full year 2021 as compared to 2020. In addition, as indicated in previous quarters, the group’s dividend per share in 2021 has increased as compared to 2020,” the company said.

For the January-to-September period, iFAST reported net profit increased 63.6 percent on-year to S$23.43 million, while revenue increased 32.5 percent on-year to S$161.65 million.

Read iFAST’s third-quarter financial statement.