iFAST

[money]

By Q4 2024 or Q1 2025, iGB should breakeven. We will know soon...

Given today's (9 sep 2024) valuation of about 2b, i will be more interested to know how much profits the entire firm is making in 5 years time.

Even if iGb breaks even and makes small profits, my guess is management will just say pass on most benefits to consumers because it is for the overall ecosystem

Interesting point from Sakura Research in referencing the AR of iGB and EPHL. 

https://sakuraresearch.com/?p=155
"iFast management aims to have a profitable quarter in Q4, 2024 at its UK bank operations. Nevertheless, according to the iGB and Eagle Peak Holdings Limited (EPHL) 2023 annual reports, they do not expect meaningful profitability of iGB bank in the foreseeable future"

Interesting read on the sakura research.

https://sakuraresearch.com/?p=26

i was also reading another article.
i agree with the intense fees competition in every market that IFAST operates. India down. China struggling. HK - little chance of competing successfully. SG and Malaysia - not too sure.

Just wondering...

Could the recent jun 2024 100m raised be used to pump in more capital into the UK bank?

IMO, if the UK bank is a bad buy, perhaps it is better to write it off than to pump in good money after bad?

If the business model is asset light, why the need to raise 100m?

[Curiousparty]

all queries are already answered before in FAQs and Annual Reports... Beyond a certain point, it is quite pointless to engage...haha ....just let be it...haha...waste time for company to engage investors. They should just focus on their own ops....

[Curiousparty]

By Q4 2024 or Q1 2025, iGB should breakeven. We will know soon...

Given today's (9 sep 2024) valuation of about 2b, i will be more interested to know how much profits the entire firm is making in 5 years time.

Even if iGb breaks even and makes small profits, my guess is management will just say pass on most benefits to consumers because it is for the overall ecosystem

Interesting point from Sakura Research in referencing the AR of iGB and EPHL. 

https://sakuraresearch.com/?p=155
"iFast management aims to have a profitable quarter in Q4, 2024 at its UK bank operations. Nevertheless, according to the iGB and Eagle Peak Holdings Limited (EPHL) 2023 annual reports, they do not expect meaningful profitability of iGB bank in the foreseeable future"

Interesting read on the sakura research.

https://sakuraresearch.com/?p=26

i was also reading another article.
i agree with the intense fees competition in every market that IFAST operates. India down. China struggling. HK - little chance of competing successfully. SG and Malaysia - not too sure.

Just wondering...

Could the recent jun 2024 100m raised be used to pump in more capital into the UK bank?

IMO, if the UK bank is a bad buy, perhaps it is better to write it off than to pump in good money after bad?

If the business model is asset light, why the need to raise 100m?

Fully agreed with you that IGB is a bad buy...haha....it is a Goner stock....better dump asap...haha

[Curiousparty]

======= Extract from Annual Report ===========

‌
We are currently near the beginning of our second wave
of substantial improvements in business differentiation.
These improvements include having a digital bank within
our Group's Fintech ecosystem, having a clear strategy
towards achieving a truly global business model, and
adding additional services that are complementary to our
digital banking and wealth management platform such as
payment related services and a bond market place.
We believe that as we make progress in this second wave
of substantial improvements in business differentiations, our
business model will become more scalable and we will be
able to enjoy robust growth rates over the next five to ten
years.

We believe that several years down the line, shareholders
will be able to see that our decision to buy a full-licensed
UK bank in early 2022 has been a transformative move
which substantially raises the Group’s long-term growth
potential. In our view, banking is the least competitive part
of the financial sector, as there tends to be very few new
players in the banking industry in most countries. There are
far more players in fund management, stockbroking and
wealth management distribution and advisory, and many
new players are emerging every year.

We also believe that compared to most banks and big
financial institutions, we have a clear advantage in our
technological capability in terms of speed and costs of
rolling out new technologies. In today’s digital world, this
substantially improves our ability to become a leader in our
business segments.

‌

========================

[Curiousparty]

It seems like there's still quite a bit of misunderstanding about iFAST’s real moat—it’s not trying to compete in the traditional broker space, which is a crowded and highly competitive segment. That’s old news. 

What makes iFAST truly special is its integrated digital banking and wealth management ecosystem—something that few players can replicate.

Here’s the big picture:

iFAST’s Moat Lies in Banking and Platform Synergies:

iFAST Global Bank (iGB) isn’t just about collecting deposits. It’s a strategic play in digital banking, connecting customers across borders with easy access to investment platforms. This ecosystem integration, where personal banking services feed directly into wealth management offerings, is a key differentiator.

Traditional brokers or platforms can’t match the barriers to entry created by iFAST’s global banking license, payments capabilities, and strong deposit base.

Scalable Revenue Streams Beyond Brokerage:

Brokerage revenue is just one part of the puzzle. iFAST is building a multi-layered business with recurring fee income (e.g., trailer fees, platform fees) and net interest income (NIM) from banking deposits.

With the growing ePension business in Hong Kong and iGB scaling globally, iFAST’s value creation will come from these diversified income streams, not just brokerage.
Digital Banking Moat and Cross-Border Appeal:

The real moat is in serving mass affluent clients and retail investors globally—something that traditional banks are not equipped or willing to do. While competitors struggle with limited offerings and fragmented services, iFAST offers a seamless platform combining banking, payments, and investment in one place.

As the AGM discussions highlighted, regulatory complexity limits competition in banking. This makes iGB’s international focus—allowing customers to open accounts abroad and transfer funds seamlessly—a strong edge.

Path to S$10-20 Share Price Uplift

With 1 million customers depositing $10 billion, iFAST’s NIM alone could add $10-20 per share in value over time. This isn’t about fighting for lower brokerage fees—it’s about capturing global flows of money while earning steady spreads and fees.

To sum up: iFAST isn’t just another brokerage. It’s becoming a global digital-first bank and wealth management powerhouse—something many still misunderstand. It only makes iFAST's real value clearer to those of us who see it!