iFAST 3Q22 preview: What to watch

Ifast will be reporting 3Q22 results on 26 October 2022.

The usual AUA, user growth and net inflow numbers will be messy because iFAST India segment will be removed from the numbers.

Here’s what I’ll be focusing on :

MPF revenue guidance

MPF-related revenue and earnings will be the biggest share price driver during the next 2 years. Pretax profit in 2025 from the Hong Kong segment alone is targeted to be SGD77 million which is 2x larger than 2021 pretax profit for the ENTIRE company. Acceleration of revenue recognition in 2023 should be helpful for the share price.

Net inflows

At least $300m Net inflow excluding India. Net inflows above $600m will be great. Overall AUA numbers will be hurt because of falling share prices and iFAST exiting the India segment.

iFAST Global Bank

When will the UK digital bank start accepting online deposits? Net interest income has a wonderful counter-cyclical effect on iFAST. iFAST net interest income is tiny now but has the potential to be a big revenue driver someday. Take a look at Interactive Brokers and Schwab results in the third quarter of 2022.

Schwab and IBKR customer assets were down 13% and 19% respectively because of lower share prices but net revenue for Schwab and IBKR was up 20% and 70% respectively because of higher interest rates.

All the best to shareholders! What are you watching during 3Q22 results?

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