iFast to raise dividend ratio to 40%, sees minimal impact from China’s cross-border clampdown

[SINGAPORE] Wealth platform iFast will gradually increase its dividend payout ratio to 40 per cent from 25 per cent currently, amid growth in profitability and shareholders’ equity.

“If you look at the first half of the year, based on what we are recommending, it works out to about 30 per cent in terms of dividend payout ratio,” said chairman and group CEO Lim Chung Chun at iFast’s second-quarter earnings briefing on Monday (Jul 27).

The company expects to issue a total dividend of S$0.12 per share for the 2026 financial year, having declared dividends per share of S$0.025 and S$0.03 for Q1 and Q2, respectively. The Q1 dividend followed the 25 per cent payout ratio.

Taking into account the growth of its overall earnings and shareholders’ equity, iFast’s projections for profitability, cash flow and balance sheet have allowed the board to be “comfortable” with raising the dividend payout ratio.

“It’s a number we are comfortable with for this year, and that’s the reason we decided to declare a higher dividend,” said Lim.

Meanwhile, Chinese authorities have been clamping down on offshore brokerages, affecting players such as Tiger Brokers and Webull parent Futu.

The impact on iFast Global Bank has been minimal, as Chinese residents make up only a small percentage of its depositors, Lim noted without disclosing the number.

He stressed that running a business was about adhering to regulations, and iFast Global Bank caters to customers who want to manage their money overseas in accordance with official rules.

Chinese currency controls allow up to US$50,000 per individual to be transferred out of China annually.

“We don’t go beyond any official limits, so that being the case, we don’t foresee any problem for us,” Lim added.

Closer to home, iFast is preparing to launch a payment product in Malaysia in Q4 this year. It acquired a payment licence from the Malaysian authorities in August 2025.

The company has also applied for a payment services licence in Singapore.

Last May, iFast’s US subsidiary obtained approval for direct access to American exchanges – something the company had been working towards for a few years, said Lim.

While some transactions are already being routed through its US subsidiaries internally, iFast is choosing to make sure that its new capability is first tested before sending through the bulk of the transactions.

“I want to remind shareholders that we are not actually trying to target US customers. This is more of a link that allows us to directly access the US exchanges without having to go through another broker,” said Lim.

He noted that this additional capability will position the company to be more competitive, and open up new business models.

In mid-2026, iFast’s headcount peaked. It expects to have fewer staff by the end of 2028, which Lim said would involve not a sharp reduction in numbers, but a gradual process of natural attrition and letting contracts lapse.

He believes that iFast should manage its headcount properly, as part of ensuring that corporate culture and growth continue.

He said: “We generally have a no-retrenchment policy... I know that in today’s world, businesses generally look at retrenchment as part and parcel of business or even a good thing, as shareholders tend to reward management when they announce that they are retrenching.”

Shares of iFast closed S$0.25 or 2.7 per cent lower at S$9.03 on Monday.