DIGITAL bank and wealth management platform iFast posted a 97.3 per cent rise in net profit to S$16.8 million for its third quarter ended Sep 30, 2024, from S$8.5 million in the previous corresponding period.
Revenue for Q3 rose 49.7 per cent to S$99.1 million, from S$66.2 million a year earlier.
The increase in profitability was driven by contributions from its ePension division, as well as improvements across its core wealth management platform business, which includes its banking operations, iFast said on Friday (Oct 25).
In the quarter, investor sentiments improved further amid rate cuts in the US and the easing of inflation concerns. The rally in both equity and fixed income markets benefited its wealth management platform business, the company said.
Earnings per share stood at S$0.0564 for the quarter, up from S$0.0288 the previous year.
A third interim dividend of S$0.015 per share was declared for Q3, up from S$0.013 the year before. The dividend will be paid on Nov 19, after the record date on Nov 6.
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The company noted that revenue for its non-banking operations increased 41.1 per cent on-year S$85.3 million in the quarter, while net profit for the segment grew 66 per cent to S$17.6 million.
Meanwhile, its iFast Global Bank (iGB) division saw revenue rise 139.9 per cent on-year to S$13.9 million, while losses declined 61 per cent to S$0.8 million.
Looking ahead, the company expects robust growth rates in revenues and profitability in 2024 compared to 2023, on an overall basis and barring unforeseen circumstances.
Its ePension division in Hong Kong will likely be an important growth driver in 2024 and 2025, while the overall wealth management platform is expected to continue showing healthy progress, iFast said.
Meanwhile, iGB will likely be a major contributor to growth in 2025 and beyond, the company added.
Shares of iFast closed flat at S$7.75 on Friday, before the release of the results.
