iFAST (SGX:AIY) is a wealth management and digital banking firm, and we see this group as a key beneficiary of the growing Asia-Pacific (APAC) wealth management market.
Earnings growth is braced by the scaling up of iFAST Global Bank (iGB), stable recurring income from the ePension division, and its well-established wealth management platform business. Against this backdrop, we forecast a 3-year core earnings CAGR of 19%.
Beneficiary of APAC’s growing wealth management market.
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Considering iFAST’s asset-light model, we believe group’s PBT margins will further expand as business scales up, which we estimate at ~39-42% over the forecast horizon – this is as assets under administration (AUA) is set to grow at a 3-year CAGR of 22%.
Room for growth for the digital banking arm.
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We believe iFAST’s digital banking arm will continue to see deposit growth over the forecast horizon, which we estimate a 3-year CAGR of 23%, supported by new customers and increased contributions from existing depositors.
We also estimate iGB’s net revenue to grow 28%, 25%, and 16% in FY26-28, while PBT expands at a 3-year CAGR of 56%.
ePension division continues to make strides.
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Above is an excerpt from a report by RHB Securities Research. Clients of RHB may be the first to access the full PDF report @ https://www.rhbtradesmart.com/.
