Deposits have surged 92.7% y-o-y in 3QFY2025, and Toh expects the base to be more than double to $2 billion by the end of FY2025, which will boost interest revenue and AUA growth, driven by its focus on UK migrants underserved by incumbents and the seamless integration with its wealth platform.
Toh believes that the growth of the deposit base will increase iFAST’s FY2025 interest revenue to $92 million.
On the ongoing rollout of Hong Kong e-Pensions, Toh mentioned that the rollout remains on track, supported by strong scale-driven growth visibility. While iFAST’s management trimmed near term profit before tax (PBT) guidance due to higher staff costs, iFast believes that this is necessary to meet the eMPF 1QFY2026 onboarding deadline.
Based on Toh’s estimation, he expects the increase in staff costs to decelerate to an increase of 14% y-o-y by FY2027, versus an increase of 52% y-o-y in FY2025, which paves the way for a 3.19 percentage points increase in EBITDA margin by FY2026.
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With iFAST’s seven year contract (plus three year option) yet to reach peak revenue, Toh expects Hong Kong’s net revenue contribution to rise to 57.4% by FY2026, from 45.5% in FY2024.
Meanwhile, macro and regulatory tailwinds are set to reinforce iFAST’s positioning. Toh observes that geopolitical volatility and tariff risks are driving safe-haven flows into Hong Kong and Singapore, with both exchanges already posting record volumes.
At the same time, MAS’s EDQP reforms are expected to expand market participation. As a result of rising market activity, Toh is pencilling in segmental revenue to grow at a three-yearCAGR of 20% for Hong Kong and 19% for Singapore.
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With over 80% of AUA concentrated in these two countries, Toh believes that iFAST is well positioned to benefit from volatility-led inflows and structural reforms.
As at 10.20am, shares in iFast are trading 6 cents lower or 0.62% down at $9.66.
