- iFAST (SGX:AIY)'s 1QFY25 results slightly below expectations, weighed down by higher investments in ePension business.
- 1QFY25 net profit rose 31.2% y-o-y to S$19.04mil, on the back of the 24.4% y-o-y and 2.7% q-o-q gain in revenue to S$106.92mil. This was driven by healthy growth in its core wealth management business and a sharp turnaround of iFAST Global Bank (iGB).
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Strong growth in iGB.
- The digital bank delivered 1QFY25 net profit of S$1.0mil, after reporting its first quarterly profit of S$0.4mil in 4QFY24, buoyed by a 104.9% y-o-y jump in gross revenue to S$19.5mil and robust customer deposit growth (+123.6% y-o-y). New initiatives such as debit cards for multi-currency accounts and seamless remittance integration also contributed to banking momentum.
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ePension ramp-up dampens near-term Hong Kong earnings; expect a stronger 2H25.
- Meanwhile, growth in Hong Kong was weighed down by higher investments in the ePension division, with pre-tax profit (PBT) declining 6.8% y-o-y despite a 12.8% increase in revenue.
- The dip in profitability is due to increased investments in the ePension division ahead of onboarding activity. However, both revenue and profitability of the ePension division are expected to be higher in the second half of 2025 as eMPF platform onboarding substantially increases.
Cut in PBT guidance for Hong Kong business in 2025; expect double-digit growth in 2026.
- Read more at SGinvestors.io.
