Its directors are proposing a dividend of S$0.03 per share, up from S$0.02 per share in the year-ago period
[SINGAPORE] Digital bank and wealth management platform iFast reported a 35 per cent increase in net profit for the second quarter ended June to S$29.8 million, from S$22.1 million in the year-ago period.
Earnings per share stood at S$0.0980 for Q2, up from S$0.0731 in the previous corresponding period.
In a bourse filing on Friday (Jul 24), the company reported that revenue for the same period rose 37.8 per cent to S$142.4 million, from S$103.3 million previously.
The directors of iFast have proposed an interim dividend of S$0.03 per share, up from S$0.02 per share in the previous corresponding period. The dividend will be paid out on Aug 20, after the record date on Aug 7.
They expect to propose a total dividend of S$0.12 per share for the 2026 financial year, at least 43 per cent higher than in FY2025.
Over the longer term, iFast’s directors noted that “there may be scope” to gradually increase the dividend payout ratio to 40 per cent, as the group’s shareholders’ equity moves closer to S$1 billion.
Improved performance
Earnings for the first half of 2025 rose 40.7 per cent to S$57.9 million, from S$41.1 million in H1 2025. This translates to earnings per share of S$0.1901 in H1 2025, up from S$0.1358 previously. Revenue for the half-year period was up 43.3 per cent on the year at S$279.2 million.
Interest revenue for H1 grew 15.6 per cent on the year to S$37.3 million. Total revenue was 39.3 per cent higher at S$316.5 million.
The improvement in the group’s bottom line came amid growth in its Hong Kong ePension business, iFast Global Bank, and continuing growth in its core wealth management platform business. The ePension division refers to its pension administration services.
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iFast’s Hong Kong business saw a 41.9 per cent year-on-year growth in net revenue to S$56.7 million in Q2. This came amid higher contributions from its ePension business.
The group’s ePension division made a more significant contribution in Q2 2026 and H1 2026 compared to the year-ago periods. A detractor was the modest decrease in interest commission income arising from clients’ assets under administration (AUA).
Meanwhile, the group’s UK banking operations’ profit before tax surged 174.5 per cent year on year to S$1.9 million in Q2. This was driven by healthy growth in net interest revenue as customer deposits continued to grow, noted iFast.
The group’s AUA grew 32.8 per cent on the year to a record of S$36.1 billion as at end June, as net inflows increasing 15.2 per cent to $2.6 billion in H1 2026.
It is working towards an AUA of S$100 billion by 2030, which would imply a compound annual growth rate of 25.6 per cent or higher over the next five years.
iFast said it is “embracing AI to achieve (its) various objectives while having a lower group headcount”.
The company noted that it expects its overall group headcount to peak in the middle of 2026 and be at a lower level at the end of 2028. “This will pave the way towards improving profit margins from 2027 onwards,” it said.
The group’s return on equity in H1 was 27.2 per cent. It expects group revenue and profitability to show healthy growth in the second half of 2026.
Shares of iFast closed 3.1 per cent or S$0.30 lower at S$9.28 on Friday, before the results were released.
