1H 2026 Half-Year Results Presentation

Hi everyone, welcome to IFAS Corporation's second quarter of the year, and first half of the year, the results presentation. Today from the IFAS team, we have Chongqiu, our Group CEO, Terrence, our Group CFO, as well as members from our Finance and Corporate Commigations team. So I am JP, I'm from the Corporate Commigations team at IFAS. So what I'll do today is I'll run through the key summary and the business updates and Terrence, our group CFO, will give more colors and details on the group's financial results before we all proceed to our Q&A. So in our key summary, I think we've seen a strong growth across the board for IFAS in second quarter of 2026. So if you look at some of the key numbers we've shared here. So total revenue was at $162.04 million. That's 34.8% higher year on year. Net profit was up 35% year on year to $29.85 million.

EBITDA was up 32.7% year on year to $48.89 million. So all these numbers are for second quarter of this year. Group AUA reached a record new high of $36.13 billion. That's 32.8% higher compared to last year. In terms of the net inflows trend, we've continued to see good momentum. So net inflows for second quarter was at $1.31 billion. That's 2.2% year on payroll. And regarding dividend, so our second interim dividend for FY2026 is at 3 cents per ordinary share. that's 50% higher compared to last year. So we've seen increased profitability driven by growth across various divisions. So firstly, robust growth in AUA across the wealth management platforms in the group. Secondly, we've also seen record profit before tax at our bank division, IFAUS Global Bank in the UK. And we've also seen growth from our Hong Kong E-Pension Division. So for the Hong Kong E-Pension Division, an important milestone has been crossed in April of this year. So all 12 trustees and a total of 24 schemes have been successfully onboarded to the Hong Kong pension platform. So as mentioned just now, I thought the bank saw higher and record pre-tax profit of $1.9 million in second quarter of this year. That's a year on year growth of 174.5%. And the bank has continued to build on its first full year of profitability that we saw last year. In terms of the customer accounts, they have increased by over 50% year on year to more than 1.5 million accounts as of end of June, 2026. So as I mentioned, for second interim dividend for FY2026, the directors declared a dividend of three cents per share, and so that's 50% higher compared to last year. And for full year of FY2026, directors expect to propose a total dividend of 12 cents per share or higher, which represents a 43% increase compared to FY 2025. So this is actually an increase compared to the previous guidance given, which was at 10.5 cents per share or higher. And we communicated that previously in April. So as the group's overall profitability increases and the group's shareholder equity continues to grow, the directors are comfortable with increasing the dividend payout ratios gradually. We'll talk a bit more about that in the business update later. Barring unforeseen circumstances, the group expects 2026 to see healthy growth rates in revenues and profitability. The group is embracing AI to achieve the various objectives while having a lower group headcount. So overall group headcount has peaked in the middle of 2026 and is expected to be at a lower level at the end of 2028 as we work on achieving the various objectives that we have communicated in IFAR's 3-year plan. So this will pave the way towards improving profit margins from next year onwards. So looking at our group AUA trend, so we saw record AUA level of $36.13 billion. So So that's 32.8% higher year on year, and also represents a robust 10.7% Q on Q growth. So both the B2B and the B2C divisions have seen a strong year on year growth in their respective EUA. So B2B still continues to contribute about 65% of total group EUA, with the remaining 35% coming from our B2C division. The other interesting thing to note is that record high AUAs was observed across all the various geographical segments. In terms of the AUAs breakdown by markets, so we can see that Singapore continues to be the core market with a contribution of about 69%, followed by Malaysia and Hong Kong at about 11 plus percent each, and others which is made up of China and UK. In terms of products, Unit Trust remain the largest product contributor at 55% roughly, followed by stocks and ETFs and bonds as well as cash account and deposits.

In terms of the various products, they also saw a strong year-on-year growth, whether it's across Unit Trust, stocks and ETFs as well as cash account and deposits.