iFAST: 2022 Q3 Earnings – Key Points to Know!
- Rupam Deb
- Nov 3, 2022
- 2 min read
Updated: Nov 27, 2024
iFAST released its 2022 Q3. Here are the key points that you don't want to miss for iFAST from this earnings!
In 2022 Q3, iFAST’s business continued to face difficult market conditions, with its assets under administration (AUA) falling by 8% y/y or 4% q/q, and net revenue falling by 1% y/y.
Let’s look at some key financials for iFAST during the quarter, followed by the developments of the main drivers of the business in the long term.
In 2022 Q3:
AUA fell 8% y/y, or 4% q/q, to S$17 billion, due to sharp declines in most equity and bond markets (with MSCI AC Asia ex Japan index falling 28% y/y or 13% q/q), and also iFAST’s decision to exit the onshore platform service business in India.
Gross revenue fell 4% y/y (to S$53 million), while net revenue fell 1% (or S$0.4 million) y/y (to S$30 million). Excluding the net revenue contribution from the new iFAST Global Bank in the UK of S$2.2 million, net revenue actually fell more, by 9% (or S$3 million) y/y, mainly driven by the fall in Hong Kong market revenue (of S$2 million).
As we know, iFAST’s revenue is affected by the financial market conditions, and the revenue decline in this quarter was affected by the tough financial market conditions and the decline in AUA. In particular, the non-recurring net revenue (for the non-banking operations) fell significantly by 39% (or S$4 million) y/y, reflecting reduced transactional activities in the midst of very poor global financial market conditions. However, the recurring net revenue (for the non-banking operations) grew by 6% y/y or S$1.2 million (to S$22 million), largely due to higher net interest income on the cash portion of AUA in this rising interest rate environment (which grew by S$0.6 million y/y to S$0.8 million).
Total operating expenses grew by 34% (or S$7 million) y/y (to S$28 million). Excluding the new banking operations, operating expenses grew by 10% (or S$2 million) y/y (to S$23 million), driven mainly by increases in staff costs including share-based compensation expenses (of 17% y/y, or S$2 million) as iFAST scaled up its business and prepared for the Hong Kong e-pension business.
Due to lower revenues and higher expenses, profit before tax fell significantly (by 63% y/y), from S$9.1 million to S$3.4 million. The profit before tax was dragged down by losses from China (S$1.8 million) and the U.K. banking operations (S$2.2 million). Excluding these losses, the profit before tax was ~S$7.3 million (down 30% y/y).
For the remaining points of this article, check them out at our Multibagger Research Series (linked below). https://learn.moneywisesmart.com/courses/multibagger-research-series/lectures/43803391
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For iFAST 2022 Q3 Earnings Report of the company, check out the video below.
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