When a company hikes its interim dividend by 56.3%, it’s worth paying attention.
That’s exactly what iFAST Corporation (SGX: AIY) did for the first quarter of 2026 (1Q’26), raising its first interim payout to S$0.025 per share, up from S$0.016 a year ago.
Better still, management reaffirmed its guidance for a full-year dividend of at least S$0.105 per share — representing a minimum 25% increase over the S$0.084 paid in 2025.
iFAST is a wealth management fintech operating a global digital platform that serves investors across Singapore, Hong Kong, Malaysia, China, and the United Kingdom.
The fintech’s business comprises non-banking operations — including its Business-to-Consumer and Business-to-Business wealth management divisions and the Hong Kong ePension business — as well as its UK-based digital bank, iFAST Global Bank (iGB).
Here’s the thing: dividend hikes don’t happen in a vacuum.
So, let’s dig into what’s powering iFAST’s strong dividend outlook.
A record-breaking quarter
The numbers speak for themselves.
Net revenue for 1Q’26 surged 54.9% year on year to S$104.9 million, while net profit climbed 47.3% to S$28.0 million.
Underpinning all of this is a growing asset base.
The group’s assets under administration (AUA) reached a fresh quarterly record of S$32.64 billion, a 27.1% year-on-year increase.
Net inflows were a healthy S$1.25 billion for the quarter, up 33.2% from a year ago.
Here’s what’s encouraging: all four geographic markets — Singapore, Hong Kong, Malaysia, and China — posted new quarterly AUA records, with China more than doubling year on year.
Bear in mind that the group has set a long-term target of S$100 billion in AUA by 2030, implying a compound annual growth rate of around 25.6% from here.
Hong Kong leads the charge
Hong Kong remained the standout performer, with net revenue doubling year on year to S$58.1 million.
The star of the show?
The ePension division, which continued to benefit from higher recurring fee income tied to AUA growth and increased brokerage fees from insurance policy arrangements.
Hong Kong AUA rose 23.3% year on year to a new record high.
Management is targeting double-digit growth in both revenues and profitability for the Hong Kong business in 2026.
A key development to watch is the ORSO (Occupational Retirement Schemes Ordinance) pension administration business, which is expected to start contributing in the second half of 2026.
The bank keeps delivering
The third engine — iFAST Global Bank (iGB) — also continued to fire.
The UK-based digital bank recorded profit before tax of S$0.7 million in 1Q’26, extending its profitability streak to six consecutive quarters.
Customer deposits grew a robust 40% year on year to S$1.61 billion (around £946 million), providing a steadily growing funding base for the bank’s expanding lending and investment activities.
Net interest revenue rose 34.6% year on year, driven by stronger deposit-taking activity, though this was partly offset by a 30.4% decline in non-interest fee income as revenue-per-transaction at its EzRemit remittance service moderated.
Three catalysts to watch
Looking ahead, several developments could extend iFAST’s growth trajectory.
First, the ePension franchise is broadening beyond Hong Kong’s MPF contract.
The ORSO pension business is expected to contribute from the second half of 2026, while the Macau ePension business is poised for substantial growth.
Both represent additional growth levers beyond the core eMPF contract.
Second, iFAST is pursuing what management calls a “truly global business model”, leveraging its presence across Singapore, Hong Kong, and London — three of the world’s top financial centres — to attract customers globally.
Third, the group is embracing AI to improve productivity.
Overall headcount is expected to peak by mid-2026 and decline by end-2028, paving the way for improving profit margins from 2027 onwards.
Get Smart: The power of recurring, fee-based income
iFAST’s ability to raise its dividend with conviction comes down to one thing: a growing base of recurring, fee-based income.
As AUA expands, so do the management and administration fees that flow from it — and this underpins its dividend stream.
For us as fellow investors, the lesson is clear.
Companies that can grow their recurring income streams are often the ones best positioned to deliver sustainable dividend growth over time.
And that’s more than any dividend investor can hope for.
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Disclaimer: Chin Hui Leong owns shares of iFAST.
