Return on equity reached 17.5% in FY2024, up from 11.3% in FY2023, as iFAST Corporation delivered record net profit of S$66.6 million on the back of 26.2% AUA growth to S$25.01 billion and a pivotal turnaround at iFAST Global Bank.

Return on Equity: 17.5% in FY2024

iFAST Corporation Ltd. reported a return on equity (ROE) of 17.5% for the full financial year 2024, according to data published in the company's annual report for FY2024. This represents a significant improvement from 11.3% in FY2023 and 5.2% in FY2022, marking the highest ROE the group has recorded since at least FY2020, when ROE stood at 21.8%. The FY2024 figure is based on net profit attributable to owners of the company of S$66.63 million and shareholders’ equity of S$316.79 million as at 31 December 2024.

The 17.5% ROE was underpinned by strong operating leverage. Net revenue grew 53.6% year-on-year to S$248.38 million in FY2024, while profit before tax more than doubled to S$83.16 million from S$36.58 million in FY2023. The profit-before-tax margin on net revenue expanded to 33.5% in FY2024, up from 22.6% in FY2023 and 13.5% in FY2022.

AUA Growth and Net Inflows

Total assets under administration (AUA) reached a record S$25.01 billion as at 31 December 2024, a 26.2% year-on-year increase. The growth was driven by net inflows of S$3.30 billion for the full year, including S$1.01 billion in the fourth quarter alone. This sustained inflow momentum reflects the continued expansion of iFAST's core wealth management platform business across its key markets of Singapore, Hong Kong, Malaysia, China, and the UK.

iFAST Global Bank: From Loss to Profit

A critical factor in the ROE improvement was the turnaround at iFAST Global Bank, which the group acquired at the end of March 2022. In FY2024, the bank reduced its full-year loss by 49.3% to S$4.36 million compared to the prior year. More significantly, iFAST Global Bank achieved a net profit of S$0.30 million in the fourth quarter of 2024, turning around from a loss of S$2.57 million in 4Q2023. Management described this milestone as a "major achievement," noting that profitability was reached in less than three years post-acquisition.

The turnaround was fuelled by rapid deposit growth. Customer deposits crossed S$1.01 billion at end-2024, up 182.6% during the year. iFAST Global Bank's gross revenue in 4Q2024 increased 163.7% year-on-year to S$17.22 million, while net revenue rose 136.4% to S$7.72 million.

Record Net Profit and Revenue

For FY2024 as a whole, iFAST Corp reported record performance across multiple metrics. Gross revenue rose to S$104.14 million in 4Q2024 alone, up 26.7% year-on-year. Full-year net profit attributable to owners of the company more than doubled to S$66.63 million, compared to S$28.27 million in FY2023. Earnings per share increased to 22.39 cents from 9.59 cents.

The group's balance sheet also strengthened. Shareholders' equity grew to S$316.79 million as at 31 December 2024, up from S$250.20 million a year earlier. Net assets increased to S$314.98 million. Net cash from operating activities for FY2024 reached S$671.28 million, more than doubling from S$273.45 million in FY2023, driven by higher profitability and working capital changes.

Return on Equity (%)Source: Orionmano Industries

Segment Diversification and Recurring Revenue

Recurring net revenue, a key indicator of business quality, rose to S$210.98 million in FY2024, up from S$131.94 million in FY2023, representing 84.9% of total net revenue. Non-recurring net revenue was S$37.40 million, compared to S$29.72 million in the prior year. The high and growing share of recurring revenue provides greater earnings visibility and supports the sustainability of the group's ROE.

The group has also been building its ORSO (occupational retirement scheme) business, which management expects to begin contributing to results meaningfully in 2025. Barring unforeseen circumstances, iFAST Corp guided for "robust growth rates in revenues and profitability" in 2025 compared to FY2024, according to the press release issued on 12 February 2025.

Outlook and Strategic Context

iFAST's ROE trajectory reflects the successful integration of iFAST Global Bank and the scaling of its wealth management platform. The 17.5% ROE in FY2024, while below the 25.8% peak achieved in FY2021, signals a recovery from the trough of 5.0% in FY2022, a year that included impairment charges and the initial consolidation of the banking acquisition. The improvement to 17.5% places iFAST's return on equity above many traditional Asian financial institutions, though it remains below high-tech peers in the fintech space.

Key drivers for sustaining or improving ROE in FY2025 include continued AUA growth, further profitability improvements at iFAST Global Bank as deposit balances scale, and the eventual contribution of the ORSO business. The group's ability to maintain net inflows and expand non-recurring revenue streams will be critical, given that FY2024's net cash from operating activities of S$671.28 million included substantial working capital movements that may not repeat at the same magnitude.