iFAST Corp Continues Towards Achieving Long-Term Vision of Integrated Investment Products Distribution Platform

29th July 2016, iFAST Corporation

•  The Group communicated that it continued to make progress towards achieving its long-term vision of being an integrated investment products distribution platform, which is key to robust growth rates in the medium to long term in Asia’s wealth management industry
• In the short term, however, adverse equity market conditions affected the Group’s financial performance. With Asia ex-Japan markets hitting 5-year lows in the first half of this year, the Group’s net revenue (excluding China) declined 10.6% YoY in 1H2016
• Expenses for the Group (excluding China) increased 7.0% YoY in 1H2016, reflecting the Group’s continued push towards broadening the range and depth of our products and services
• The combined impact of a decline in net revenue and an increase in expenses resulted in a 40.5% decline in the Group’s net profit (excluding China)
• As the recently-launched China Business is at the initial investment phase, an operating loss of S$1.56 million was registered in 1H2016
• In June 2016, iFAST China completed the sale of a 5% stake for US$1.75 million, leading to a gain of S$2.15 million for the Group. This gain was however recognised directly in equity, instead of income statement
• The Directors have proposed a second interim dividend of 0.68 cents per ordinary share for 2Q2016 (2Q2015: 0.68 cents per ordinary share)
• The Group is also updating its 2016 Dividend Guidance to:  “For FY2016, our Directors intend to recommend and distribute dividends of 60% or more of our Group’s net profit (excluding our China operation, and exceptional items)”

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