In This Article:
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Outstanding Loan Portfolio (OLP): $385 million
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PAR30: 2.3%
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Number of Branches: 2,091
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Number of Clients: 2.4 million
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Gross OLP Growth: +14% year-on-year
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Profit Before Tax: $13.5 million (more than tripled from $3.7 million in H1 2023)
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Net Profit: $13.5 million (267% increase from H1 2023)
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Cost-to-Income Ratio: Decreased from 77% to 62%
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Total Assets: Surpassed $500 million
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Equity: Increased from $76.6 million to $81.1 million
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Return on Average Assets: 5.5%
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Gross Yield: Increased to 42.1%
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Net Interest Margin (NIM): Increased to 33.3%
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Net Interest Income: $75.1 million (24% increase from H1 2023)
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Effective Tax Rate: Decreased from 73% to 52%
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Operating Expenses: 4% increase year-on-year
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Total Funding: $443.4 million as of June 2024
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Cash at Bank and Hand: $95.3 million
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Hyperinflation Accounting Impact: $3.5 million hit on P&L
Release Date: September 27, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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ASA International Group PLC (LSE:ASAI) reported a significant increase in net profit, rising from $3.7 million in H1 2023 to $13.5 million in H1 2024, marking a 267% increase.
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The company saw a 14% year-on-year growth in its outstanding loan portfolio (OLP), reaching $385 million.
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The number of clients grew to 2.4 million, with East Africa contributing a 22% increase in client numbers.
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ASA International Group PLC (LSE:ASAI) successfully implemented a core banking system in Pakistan, migrating 600,000 clients.
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The company's asset volume surpassed $500 million, reaching pre-COVID levels.
Negative Points
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Hyperinflation accounting resulted in a $3.5 million hit to the company's financials for H1 2024.
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There were breaches in financial covenants amounting to $37.4 million, although waivers were received for $12.2 million.
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The effective tax rate remains high at 52%, partly due to deferred tax asset treatment issues in India and pending transfer pricing arrangements in key countries.
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Operating expenses increased by 4%, including a $3.5 million hyperinflation hit.
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India saw a significant increase in past-due loans, although its impact on the overall portfolio is now minimal.
Q & A Highlights
Q: The outlook for the rest of this year appears positive, as you say. I don't know if it's too early to provide a bit of color for next year, but what jobs are you most positive on, moving into 2025? A: For 2025, we would like to continue our strong growth on both operational and financial performance, driven by demand from clients for loans. Strong contributors include Pakistan, Philippines, Ghana, Kenya, and Tanzania. East Africa is particularly promising due to stable market circumstances, good smartphone penetration, and healthy client growth. (Karin Kersten, CEO)