ASA International Group (ASAI) H1 2024 earnings summary

Executive summary

• Net profit for H1 2024 surged 267% year-over-year to $13.5 million, driven by strong loan demand, improved portfolio quality, and digital transformation, especially in East Africa, Pakistan, the Philippines, Ghana, Tanzania, and Kenya.

• Outstanding loan portfolio (OLP) grew 15% year-over-year to $384.6 million, with client numbers up 7% to 2.4 million and assets surpassing $500 million.

• Maintained high portfolio quality with PAR >30 days at 2.3%, improved from 3.8% in H1 2023.

• Focused on financial inclusion, digitalization, and leadership development, with new local CEOs appointed in Uganda, Rwanda, and Nigeria.

• Total equity rose to $81.1 million, despite currency devaluation and hyperinflation impacts in Ghana and Sierra Leone.

Financial highlights

• Net profit reached $13.5 million in H1 2024, up from $3.7 million in H1 2023; profit before tax was $28.3 million, up from $13.8 million.

• Cost-to-income ratio improved to 62% from 77% year-over-year.

• Net interest income increased 24.4% to $75.1 million; total operating income rose 24% year-over-year.

• Gross yield increased to 42.1%; NIM rose to 33.3%.

• Return on average assets (TTM) at 5.5%; return on average equity (TTM) at 35.9%.

Outlook and guidance

• Net profit for FY 2024 is expected to exceed the $16 million market consensus, with high loan demand and continued operational growth.

• Positive outlook for H2 2024, with stable cost outlook and board reviewing potential resumption of dividend policy after full-year results.

• Hyperinflation accounting and inflationary pressures expected to continue impacting financials.