ASA International Group (ASAI) H1 2025 earnings summary

Executive summary

• Net profit nearly doubled year-over-year to $26.8 million, with underlying net profit up 73% to $24.2 million, supported by strong loan growth and improved asset quality.

• Outstanding loan portfolio (OLP) rose 18% to $540.9 million, with client base expanding to over 2.6 million, led by growth in Ghana, Pakistan, Tanzania, Uganda, and Myanmar.

• Total comprehensive income increased to $43.5 million from $4.1 million year-over-year, driven by reduced FX devaluation and currency appreciation, notably in Ghana.

• Interim dividend of $0.048 per share declared, a 60% increase year-over-year, maintaining a 20% payout ratio.

• Equity base strengthened to $136.2 million, aided by profit growth and $15.5 million FX translation gain.

Financial highlights

• Total assets increased 18% to $672.2 million, with total equity up 41% to $136.2 million.

• Net interest income rose 48% to $111.3 million, with net interest margin expanding to 39.6%.

• Total operating income grew 39% to $118.0 million, and cost-to-income ratio improved to 56.4% from 61.7% year-over-year.

• Return on average equity reached 46.1% in H1 2025.

• Client deposits up 33% to $119.6 million; total funding at $597.3 million.

Outlook and guidance

• OLP growth of around 20% expected for the full year, with cost-to-income ratio projected at approximately 60%.

• Net profit for FY 2025 expected to significantly exceed consensus of $37.5 million.

• Ghana and Sierra Leone no longer classified as hyperinflationary for H2 2025; Nigeria and Myanmar remain on the watchlist.

• Continued strong client demand and efficiency gains anticipated to support robust financial performance.

• Currency movements and inflation remain key variables impacting results.