iFAST Raises Its FY2026 Dividend Aim to at Least 12 Cents: What Supports It?

iFAST Corporation (SGX: AIY) raised its second interim dividend to 3.00 cents per share, from 2.00 cents a year earlier. With its unaudited half-year results announced on 24 July 2026, the board also raised the total dividend it expects to propose for FY2026 to 12.00 cents per share or higher. The earlier indication was 10.50 cents or higher. That full-year figure remains an expectation, rather than a declared entitlement. [S2, p. 14] [S2, p. 24] [S4, p. 2]

For shareholders, the question is whether the stronger earnings behind the increase are translating into cash that can sustain it.

What has changed in the payout?

The first two FY2026 interim dividends totalled 5.50 cents per share, versus 3.60 cents for the first half of FY2025. If iFAST ultimately proposes exactly 12.00 cents for the year, another 6.50 cents would be needed in the second half. That is an arithmetic illustration, not an announced schedule for future dividends. FY2025's total was 8.40 cents, so the new FY2026 floor would represent an increase of about 43%. [S3, p. 16] [S3, p. 21]

The second interim dividend's record date was 6 August 2026 and its scheduled payment date was 20 August 2026. Those dates have passed; investors assessing the shares now should focus on the still-proposed full-year total, not treat this interim entitlement as upcoming. [S2, p. 25]

Earnings give the board more room

Profit attributable to iFAST shareholders reached S$57.89 million in the six months to 30 June 2026, up from S$41.15 million a year earlier. Revenue rose to S$316.50 million from S$227.16 million. These are group results, while the dividend is paid by the listed company to its ordinary shareholders. [S3, p. 21]

The growth was spread across the wealth platform, Hong Kong's ePension business and the UK bank. Non-banking operations reported S$66.55 million of first-half profit before tax, up from S$48.73 million; the bank reported S$2.61 million. iFAST said its first-half dividend payout ratio, calculated using dividend per share and basic earnings per share, increased to 28.9% from 26.3%. The higher dividend is therefore taking a somewhat larger share of earnings, even as earnings rise. [S2, p. 22] [S3, p. 16]

Cash needs a closer look

Group net cash from operating activities fell to S$162.87 million in the first half, from S$451.03 million a year earlier. iFAST attributed the drop mainly to a smaller increase in customer deposits and a larger increase in product financing receivables. Bank deposits can make group operating cash flow move sharply, so that headline cash figure is a poor stand-alone measure of cash available for dividends. The presentation separately reports S$43.43 million of operating cash flow from non-banking operations for the half-year. [S2, p. 23] [S3, p. 30]

The balance sheet also warrants attention. iFAST issued a S$120 million note in March 2026, due in March 2031. Its presentation puts cash plus liquid assets after customer deposits and borrowings at S$108.23 million at 30 June 2026, down from S$137.56 million at the end of 2025. This is the company's liquidity measure, not unrestricted cash available for distribution. [S2, p. 6] [S3, p. 31]

What to watch next

The raised dividend aim has a clear earnings basis, but it is still conditional on the rest of FY2026. The useful checks in the next results are profit attributable to shareholders, operating cash flow from non-banking operations, product financing receivables and the balance of liquid assets after deposits and borrowings. Together, they will show whether the larger proposed payout is being supported by the business as well as by reported profit. [S2, p. 23] [S3, p. 30] [S3, p. 31]