To Gupta, its wealth management books improved as its customers were beginning to put their money into investment products. The growth was also partly from the low base in the 1QFY2023 from the Credit Suisse impact.
Net new money, which stood at around $6 billion for the quarter, also remained on track to see the same amount of close to $24 billion in FY2022 and FY2023.
“A lot of the money, when they first come in, is through fixed deposits. When the market improves and people’s animal spirits come up, they’re putting their money to work,” Gupta explains.
========
In comparison, iFast net inflow ('net new money") was about ~10% that of DBS at $688mil!
DBS's MC was ~$100bil
iFast MC was ~$2.3bil
while the same point applies to iFast taking in deposits, what other acquisitions do you think iFast might need to make, in order to become a full service bank like DBS?
What's the "MC" referring to in your post?
Where is the DBS net inflow that you are comparing iFast's against? Are you referring to the rise in deposits at DBS of about 7 billion?
"iFast net inflow ('net new money") was about ~10% that of DBS at $688mil!"
MC - market cap.
A lot of people didn't know that iFast only has ~300mil shares...it just takes a bit of buying or accumulation by big whales for share price to move a few $ easily...
The news on DBS used the term "NET NEW MONEY" , while iFast used the term "Net inflow" in their report. I believe they meant the same thing, essential the net inflow into the ecosystem or platform.
the UK IGB (iFast Global Bank) is a FULL bank...
Hi Curiousparty,
While both are talking about same net inflow of money but there is a difference in the nature of each entity (DBS and IFAST) handling it.
DBS's inflows are majority customer deposits in which DBS has the right to determine how to use them, ie. lending to who and who. Hence their control of the money usage is similar to asset managers and so we could term these inflows as AUM (Asset Under Management).
IFAST's inflows (excluding iGB) are classified as AUA (Asset Under Administration). They earn fees as the middleman (ie. distributing the funds) and also charge for services they provide (trustee, IT/platform, brokerage etc). So the really comparable asset flow should be only the money that generates NIM like DBS does, ie. customer deposits.
Therefore from 1Q24 results, IFAST's customer deposits increased from 358mil to 515mil for the quarter, a 157mil increase. According to your type of comparison, it is 2.6% of DBS's inflows.
To Gupta, its wealth management books improved as its customers were beginning to put their money into investment products. The growth was also partly from the low base in the 1QFY2023 from the Credit Suisse impact.
Net new money, which stood at around $6 billion for the quarter, also remained on track to see the same amount of close to $24 billion in FY2022 and FY2023.
“A lot of the money, when they first come in, is through fixed deposits. When the market improves and people’s animal spirits come up, they’re putting their money to work,” Gupta explains.
========
In comparison, iFast net inflow ('net new money") was about ~10% that of DBS at $688mil!
DBS's MC was ~$100bil
iFast MC was ~$2.3bil
while the same point applies to iFast taking in deposits, what other acquisitions do you think iFast might need to make, in order to become a full service bank like DBS?
What's the "MC" referring to in your post?
Where is the DBS net inflow that you are comparing iFast's against? Are you referring to the rise in deposits at DBS of about 7 billion?
"iFast net inflow ('net new money") was about ~10% that of DBS at $688mil!"
MC - market cap.
A lot of people didn't know that iFast only has ~300mil shares...it just takes a bit of buying or accumulation by big whales for share price to move a few $ easily...
The news on DBS used the term "NET NEW MONEY" , while iFast used the term "Net inflow" in their report. I believe they meant the same thing, essential the net inflow into the ecosystem or platform.
the UK IGB (iFast Global Bank) is a FULL bank...
Hi Curiousparty,
While both are talking about same net inflow of money but there is a difference in the nature of each entity (DBS and IFAST) handling it.
DBS's inflows are majority customer deposits in which DBS has the right to determine how to use them, ie. lending to who and who. Hence their control of the money usage is similar to asset managers and so we could term these inflows as AUM (Asset Under Management).
IFAST's inflows (excluding iGB) are classified as AUA (Asset Under Administration). They earn fees as the middleman (ie. distributing the funds) and also charge for services they provide (trustee, IT/platform, brokerage etc). So the really comparable asset flow should be only the money that generates NIM like DBS does, ie. customer deposits.
Therefore from 1Q24 results, IFAST's customer deposits increased from 358mil to 515mil for the quarter, a 157mil increase. According to your type of comparison, it is 2.6% of DBS's inflows.
if i could recall, iFast classified customer deposits as AUA....
[I am not here to promote any stocks. Please always do your own research before embarking on any investment decision. I will not be liable for any of your own decisions. Your use of any information or materials is entirely at your own risk. It is your responsibility to ensure that any products, services or information meet your specific requirements. I do not produce material which meets the objectives of any specific financial and risk profile of investors.]
[I am not here to promote any stocks. Please always do your own research before embarking on any investment decision. I will not be liable for any of your own decisions. Your use of any information or materials is entirely at your own risk. It is your responsibility to ensure that any products, services or information meet your specific requirements. I do not produce material which meets the objectives of any specific financial and risk profile of investors.]
• In 2Q2024, the Group’s net profit increased by 346.1% YoY to S$16.03 million, on the back of a 72.9% increase YoY in Group’s gross revenue to S$93.75 million, and a 93.0% increase YoY in net revenue to S$61.38 million.
• The increase in profitability was driven by contributions from the ePension division, as well as improvements in the Group’s core wealth management platform business.
• At the end of 2Q2024, Group AUA increased to a record high of S$22.37 billion, driven by net inflows of S$0.79 billion during the quarter.
• iFAST Global Bank’s customer deposit amounts grew to S$646.62 million as at 30 June 2024, an increase of 80.3% year-to-date. This contributed to a 265.3% YoY growth in net interest income to S$1.85 million in 2Q2024. iFAST Global Bank adopts a conservative stance in terms of its balance sheet strategy, with the vast majority of the client deposits being held as cash with the Bank of England and with other banks, as well as short duration sovereign bonds and investment grade bonds.
• iFAST Group is steadily increasing its capability and presence as a global digital banking and wealth management group, with iFAST Global Bank as part of its global Fintech ecosystem. The Group expects iFAST Global Bank to become an important growth driver in 2025 and beyond.
• The ePension division in Hong Kong will be an important growth driver in 2024 and 2025, while the overall wealth management platform is expected to continue to show healthy progress.
• On an overall basis and barring unforeseen circumstances, the Group expects 2024 to see robust growth rates in revenues and profitability compared to 2023.
• For the second interim dividend for FY2024, the Directors proposed a dividend of 1.50 cents per ordinary share (second interim dividend for FY2023: 1.10 cents per ordinary share). K
(25-07-2024, 07:40 PM)EnSabahNur Wrote: • The ePension division in Hong Kong will be an important growth driver in 2024 and 2025, while the overall wealth management platform is expected to continue to show healthy progress.
Wow, great set of results coming from HK which is driven by the implementation of the E-Pension scheme.
"ePension Service fees" has been classified as "recurring revenue" by Mgt. Now that we are in 2H24, I wonder if Mgt would be able to give guidance on the ePension division in HK for FY26?
Hong Kong ePension contribution
The Hong Kong ePension division has officially commenced operations during 2Q 2024 and is onboarding more trustees onto the platform.
As a result, net revenue for the Hong Kong division shot up by over fivefold from S$5.7 million a year ago to S$28.5 million in its latest quarter.
Management has not updated its Hong Kong division guidance since February this year.
Hence, the group still expects Hong Kong’s net revenue for 2024 to be higher than HK$650 million while its profit before tax to be higher than HK$250 million.
The ePension division will continue to be an important growth catalyst for the fintech for the remainder of 2024 and into 2025.
In 2025, the Hong Kong division should see even higher contributions next year with net revenue projected to exceed HK$1 billion and profit before tax coming in at more than HK$500 million.
28-07-2024, 08:49 PM (This post was last modified: 28-07-2024, 08:53 PM by Curiousparty.)
The most delectable phase of long-term growth is on the horizon with the expected breakeven of iGB by Q4-2024. This banking segment promises to be a transformative force for iFast, offering substantial potential to enhance both revenue and profitability over the long term...
Every $1 billion in customer deposits translates to approximately $10 million in revenue (or profit, assuming the marginal cost is zero after achieving a critical mass of deposits).
Assuming 50% of the $100 billion AUA target consists of customer deposits, $50 billion will translate into $500 million in net profit, or a $50 valuation. This projection is based on the banking segment alone.
Which is why CEO has repeatedly mentioned that from 2025, iGB is expected to be an important growth driver.
'iFAST Group is steadily increasing its capability and presence as a global digital banking and wealth management group, with iFAST Global Bank as part of its global Fintech ecosystem. The Group expects iFAST Global Bank to become an important growth driver in 2025 and beyond.'
[I am not here to promote any stocks. Please always do your own research before embarking on any investment decision. I will not be liable for any of your own decisions. Your use of any information or materials is entirely at your own risk. It is your responsibility to ensure that any products, services or information meet your specific requirements. I do not produce material which meets the objectives of any specific financial and risk profile of investors.]
i am not very optimistic about digital banks getting so profitable just by getting in more deposits. i think trust bank as a result of the partnership with NTUC has gotten a lot of deposits in a short time, but yet to see how profitable it is.
(29-07-2024, 02:06 PM)money Wrote: i am not very optimistic about digital banks getting so profitable just by getting in more deposits. i think trust bank as a result of the partnership with NTUC has gotten a lot of deposits in a short time, but yet to see how profitable it is.
Nubank seems highly profitable for past few quarters. I think it takes time to scale and become profitable. Nu took 5 yrs to become profitable and it has a large addressable market in Brazil unlike Spore.
30-07-2024, 08:22 PM (This post was last modified: 30-07-2024, 08:23 PM by dreamybear.)
(04-05-2024, 04:05 PM)Curiousparty Wrote: So from our perspective, we are talking about a bank is actually an institution that allows us to let various customers open an account from different parts of the world and then they put in their cash. And then we collect the deposit and then we make a spread. It doesn't have to be very high, 1%, 1.25%, 1.5%. We take low risk, we keep our balance sheet strategy conservative and then we grow. And how big is that potential?
Referring to iFAST GB AR2023, the "net fee and commission income" is > "net interest income(expense)" for both 2023 & 2022.
So, other than earning the spread from accumulating deposits, I suppose the fee & commission income is also a cash cow.
Homepage
PR Newswire
