iFAST 2Q 2026: 3 Takeaways Behind the Record S$36.13B AUA

I really like the new summary slide from iFAST (SGX: AIY) showing individual market updates at a glance.

The Group is delivering solid momentum across all regions.

Asset Under Administration (AUA) grew across every single market by at least 25% YOY, driving Group AUA up 32.8% YOY to an all-time high of S$36.13 billion as of 2Q 2026.

If iFAST repeats its 1H net inflows in the second half, AUA will easily cross S$40 billion by year-end.

From there, compounding AUA at around 25% annually over the next four years gets them to their S$100 billion Vision 2030 target. That remains a high bar, but it looks far less elusive than before.

While I like what I’m seeing, remember not to over-focus on a single target. The S$100 billion headline number should be treated as a guiding post rather than a hit-or-fail mission.

Assuming AUA compounds at “only” 20% for the next four years, it still reaches S$83 billion by FY 2030.

Target missed. But would you call the business a failure?

Not me.

At S$83 billion AUA, you will see a significant increase in revenues and earnings, which will lead to higher share price and dividends payout.

Furthermore, at 20% rate, AUA will hit S$100 billion just one year later in FY 2031 – hardly a disaster.

With the AUA math settled, the underlying business developments are where things get even more interesting. Here are three takeaways that stood out to me.

🎧  Prefer to listen to this analysis while you multitask? Stream the companion audio here, or scroll down to read.

Singapore’s Exceptional Performance

I am particularly impressed by the sheer momentum in iFAST’s home market: Singapore.

At nearly S$25 billion, Singapore accounts for roughly 69% of total Group AUA and dwarfs the other regions. Delivering a 30% YOY growth rate on a base of that size adds massive absolute volume to the business.

That momentum resulted in an astounding 1H 2026 net profit of S$27.77 million. To put that into perspective, this single half-year result surpassed what the segment generated for the entire FY 2023 (S$25.20 million).

Achieving this amid fierce competition from local banks and low-cost trading platforms like Moomoo, Tiger Brokers, and Interactive Brokers speaks volumes about iFAST’s platform (FSM Global) stickiness.

I was also pleasantly surprised by the resilience of its core Unit Trust (UT) assets.

Despite ETFs becoming increasingly popular in recent years, a 31% YOY growth in Unit Trust AUA shows that its demand remains high.

I know that to DIY investors like us, it doesn’t make sense to buy UTs when lower-expense ETFs exist. However, active DIY investors likely still represent a relatively small percentage of the overall wealth pie.

This doesn’t mean that Unit Trust investors aren’t financially savvy; rather, the vast majority simply do not enjoy managing investments themselves and prefer to delegate the process.

This trend is further confirmed by the strong wealth management figures reported by local giants like DBS (SGX: D05) and OCBC (SGX: O39).

Traditional wealth advisory remains very much alive and well — which bodes exceptionally well for the growth prospects of iFAST’s core business.

iFAST Global Bank (iGB): Deposit Momentum is Back?

In my review of iFAST’s 1Q 2026 earnings, one concern I highlighted was the stalling momentum of new deposits over the preceding two quarters, where QOQ net additions slowed to just S$20 million in 4Q 2025 and S$40 million in 1Q 2026.

I’m glad to see that trend broken! Net deposit growth reaccelerated back into three-digit million territory with a strong S$200 million QOQ increase in 2Q 2026.

This reacceleration helped drive 2Q 2026 Profit Before Tax up by 174.5% YOY to a record S$1.92 million. If this trajectory continues into 2H 2026, iGB is well on track to double its full-year profit compared to last year.

While the absolute contribution remains modest alongside the core Wealth Management and Hong Kong ePension segments, it serves as a promising indicator of the bank’s long-term potential.

Sustaining this trajectory will ultimately hinge on management’s ongoing execution in driving deposit acquisition across both Digital Personal Banking and Business Banking.

Given how they have restructured the banking division and recently introduced features like Worldwide Scan & Pay (powered by Alipay+) and SEPA (Single Euro Payments Area) functionality, I remain optimistic about its scaling prospects.

That said, translating these digital banking features into sustained deposit inflows and fee income is an aspect I will continue to monitor closely.

Operating Leverage: Peaked Headcount

This isn’t brand new information. Management guided in the previous quarter that Group headcount would peak by mid-2026 before gradually reducing toward 2028 as AI adoption scales.

However, now that we have passed the mid-year mark and move into the second half of the year, it is reassuring to see management reiterate this exact guidance.

While official guidance projects broader profit margin expansion starting from 2027 onwards, simple operational math suggests we should begin seeing incremental improvements in operating leverage as early as 2H 2026.

As shown below, with headcount peaked, the increase in staff cost should moderate in the second half. That will result in a larger portion of top-line revenue growth to drop directly to underlying operating profits.

A Stellar Performance: Not Guaranteed Quarterly

iFAST continues to deliver impressive execution, but anyone who has held the stock through multiple cycles knows its short-term performance remains tied to market sentiment and broad equity market flows.

The plunge in net inflows and dip in AUA during 2022 and 2023 are good reminders to stay cautious about short-term quarterly fluctuations, while remaining optimistic about iFAST’s long-term growth.

With the recent rally pushing iFAST back to the top position in my portfolio, I don’t feel compelled to add more. However, I am also not trimming — yet.

I still believe that the market has not fully recognised iFAST’s long-term growth potential, and with a 9% position size, there’s still room for it to compound within my portfolio.