1H 2025 Half-Year Results Presentation

Hi everyone, welcome to IFAS Corporation's second quarter 2025 and first half 2025 results presentation. My name is JP from the corporate communications team at IFAS and together with me we have Chong Chun, our CEO and Terrence, our CFO for the session together with our colleagues from the finance team as well as the corporate comps team. I'll be going through the key summary and section one on the financial results before Chongqing's introduction to present on section two, which is on the business updates. Starting off with a key summary, in second quarter 2025, our net profit increased by 37.9% year-on-year to $22.11 million. That's on the back of a 28% year-on-year increase in our gross revenue to $120.24 million. The increase in second quarter 2025 profitability was driven by growth in the Hong E-Pension business, a turnaround in IFAS Global Bank, and continuing growth in our core wealth management platform business. For our wealth management platform business, our groups assets under administration or AUA increased 21.6% year on year to a new record high of $27.2 billion. Our groups net inflows were also at a record high of $1.29 billion in second quarter of this year. So, following the initial quarter of profitability in the fourth quarter of last year, IFAW's Global Bank continues its profitable growth path. It achieved a net profit of $0.7 million in second quarter 2025, which compares favorably to a loss of $1.56 million in the previous year. So that marks the third consecutive quarterly profit for IFAW's Global Bank. The bank's profitability in second quarter 2025 was achieved on the back of the 85% year-on-year increase in gross revenue, which stood at $21.1 million. The bank's customer deposits grew 124% year-on-year to $1.45 billion at the end of second quarter of this year. The group's Hong Kong business saw a 33.4% year-on-year growth in gross revenue to $45.6 million in second quarter of this year. The increase in revenue reflected the growth of the e-pension business as well as the wealth management business in Hong Kong. The default tax for the overall Hong Kong operation saw a 17.8% year-on-year increase to $15.7 million in Q2 2025. Looking forward and barring unforeseen circumstances, we expect the group's revenues and profitability in second half of this year to show a healthy improvement compared to first half of this year. The e-pension division is expected to improve as the onboarding of the EMPF business continues to progress. The Core Wealth Management Business and IFAS Global Bank are expected to continue to grow.

During unforeseen circumstances, the group expects 2025 as a whole to see robust growth rates in revenues and profitability compared to 2024.

The group has a strong balance sheet with cash and cash equivalents amounting to $821.84 million as of end 2nd quarter 2025. This reflects the conservative balance sheet strategy adopted by IFAS Global Bank and the strong cash generative business model of the group's well-management business over the years. The group's return on equity in the first half of 2025 was at a healthy 24.6% level. A healthy ROE allows the group to be able to pursue robust long-term growth strategies while being able to raise our dividend payouts. Regarding the dividend payouts for the second interim dividend for FY 2025, the directors proposed a dividend of 2 cents per ordinary share, which is 33.3% higher compared to the second interim dividend of 2024, which was at 1.5 cents per ordinary share. For FY 2025, the directors expect to propose a total dividend of 8 cents per ordinary share or higher, which is at least 35.6% higher than last year's FY 2024 dividend, which stood at 5.9 cents per ordinary share. Moving on to our group's AUAs slide, as mentioned, so AUAs increased 21.6% year-on-year to $27.2 billion, as at 30th of June 2025, Q1Q, AUAs grew by by about 5.9%. The usual split between B2B and B2C is shown here with B2B contributing the majority of the AUA at about two thirds of the groups total. And the remaining one third coming from our B2C business division. Regarding the AUA breakdown by markets and products. So Singapore remains the largest market and Malaysia and Hong Kong at about the same level of about 11% each. And under others, we have China and UK, which has been growing relatively faster, especially if we look at the same numbers one year ago. And very similarly, because of the bank's progress, as we mentioned, in terms of customer deposits, that amount for AUA breakdown by products in cash account and deposits has also been growing at a relatively faster pace, which now takes up about 9.5% of total AUA. But of course, the majority is still accounted for by unit trust firstly at 56%, followed by stocks and ETFs at 21.9% and bonds to free.

I won't go through the details on this slide, which talks about the results overview for the group over the last few years and first half of this year. I'll move on to PBT margin, the profit before tax margin, which is based on total net revenue. So that's grown to about 34% for first half of this year. Return on equity, it's at 24.6% as mentioned just now, or first half of this year. So that contrasts favorably to the lower ROE levels in the period of 2022 and 2023, which was largely due to the share placement related to the acquisition of the bank in the UK, as well as on the related start-up expenses during that period. But ROE has since improved to the current levels that we see. In terms of the profit and loss at the geographical segment level. So I think if we look at the second quarter of this year, so we see improvement across the various operations. So Singapore's numbers up 11.9% year on year to $9.92 million in second quarter of this year. And for Hong Kong as well up 17.8% year on year to $15.72 million in second quarter. China's losses have narrowed by almost a half $0.86 million in second quarter of this year. And for the UK operation as mentioned just now, it delivered a profit of $0.7 million in second quarter, which contrasts favorably to the loss in second quarter of last year. I won't go through the details for the first half numbers for this slide, as well as the next slide which shows the various details for the P&L, for the various operations at the growth level for the last few years.