TIDMASAI
RNS Number : 5090W
ASA International Group PLC
18 April 2023
ASA International Group plc March 2023 quarterly business
update
Amsterdam, The Netherlands, 18 April 2023 - ASA International,
('ASA International', the 'Company' or the 'Group'), one of the
world's largest international microfinance institutions, today
provides the following update on its business operations as of 31
March 2023 compared to 31 December 2022.
-- All operating subsidiaries achieved collection efficiency of
more than 90% with 10 countries achieving more than 95% with the
exception of India and Nigeria.
-- The decrease of collection efficiency in Nigeria was largely
due to cash shortages following the Central Bank voiding old
banknotes as legal tender, which resulted in some clients being
unable to pay their instalments on time as well as the operating
environment during the elections.
-- India collections slightly decreased from 87% in December
2022 to 86% in March 2023. Collection efficiency, including regular
and overdue collections as well as advance payments, as a
percentage of the regular, realisable collections, including
advance payments, decreased from 118% in December 2022 to 109% in
March 2023.
-- PAR>30 for the Group, including off-book loans and
excluding loans overdue more than 365 days, improved to 4.5% in
March 2023 from 5.9% in December 2022, primarily due to write-offs
of long overdue loans in India, Myanmar and Nigeria.
-- The PAR>30 for the Group's operating subsidiaries,
excluding India and Myanmar increased to 2.6% in March 2023 from
1.9% in December 2022, largely due to the cash shortages in Nigeria
affecting the repayment ability of our clients.
-- Excluding all loans which have been overdue for more than 180
days and, as a result, have been fully provided for, PAR>30
improved from 4.1% in December to 2.6% in March.
-- Disbursements as a percentage of collections exceeded 100% in
9 countries. The lower percentage in Nigeria is impacted by the
cash shortages which subsequently reduced the ability of our staff
to perform daily collections and disbursements.
-- The Group's Gross OLP decreased to USD 335 million (9% lower
than in December 2022 and 19% lower than in March 2022), primarily
due to substantial currency devaluation in Ghana and Pakistan.
-- There were no moratoriums granted to clients from January 2023 to March 2023.
Collection efficiency until 31 March 2023 (1)
Countries Oct/22 Nov/22 Dec/22 Jan/23 Feb/23 Mar/23
---------- ---------- ---------- --------- ---------
Pakistan 99% 99% 99% 99% 99% 99%
India 83% 85% 87% 83% 84% 86%
Sri Lanka 91% 92% 93% 93% 94% 95%
The Philippines 99% 99% 99% 99% 99% 99%
Myanmar 92%(2) 94% 97% 97% 98% 100%
Ghana 100% 100% 100% 100% 100% 100%
Nigeria 96% 96% 94% 94% 84% 78%
Sierra Leone 93% 92% 93% 93% 94% 95%
Tanzania 100% 100% 100% 100% 100% 100%
Kenya 100% 100% 100% 100% 100% 100%
Uganda 100% 99% 99% 99% 99% 100%
Rwanda 97% 97% 97% 97% 96% 96%
Zambia 98% 97% 97% 97% 97% 98%
------------------------ ---------- ---------- ---------- --------- --------- ---------
(1) Collection efficiency refers to actual collections from clients
divided by realisable collections for the period. It is calculated
as follows: the sum of actual regular collections, actual overdue collections
and actual advance payments divided by the sum of realisable regular
collections, actual overdue collections
and actual advance payments. Under this definition collection efficiency
cannot exceed 100%.
(2) Collections were impacted by the ongoing lockdowns and civil unrest
in some areas of our operations.
-- Collection efficiency increased or remained broadly stable in
most of our operating countries.
-- Adjusted collection efficiency in India, including regular
and overdue collections as well as advance payments, as a
percentage of the regular, realisable collections, including
advance payments decreased to 109%. The substantial difference of
this adjusted collection efficiency metric is related to the
Group's policy that any loan instalment paid is first credited
against the oldest outstanding amount overdue. This has an adverse
impact on India's monthly collection efficiency, which is further
aggravated by the relatively long duration of the loans disbursed
in India. This adjusted collection efficiency metric illustrates
that most clients in India continue to make payments on their loans
due.
-- Although market conditions in both Myanmar and Sri Lanka
remained challenging, collection efficiency improved in both
markets.
-- The decrease of collection efficiency in Nigeria was due to
cash shortages following the Central Bank as old banknotes were no
longer accepted as legal tender as of 10 February 2023.. Nigeria's
Supreme Court on 3 March 2023, ordered the Central Bank of Nigeria
to extend the use of these old banknotes until 31 December
2023.
Loan portfolio quality up to and including March 2023 (3, 4,
5)
Gross OLP (in USDm) Non-overdue loans PAR>30 less PAR>180
-------------------- ------------------ --------------------
Jan/23 Feb/23 Mar/23 Jan/23 Feb/23 Mar/23 Jan/23 Feb/23 Mar/23
Pakistan 66 69 64 99.0% 99.1% 99.2% 0.6% 0.5% 0.5%
India
(total) 45 45 44 56.4% 58.9% 68.5% 16.0% 10.4% 6.4%
Sri Lanka 4 4 5 88.1% 89.0% 89.6% 5.0% 4.5% 3.7%
Philippines 51 51 52 97.7% 97.6% 97.4% 0.8% 1.0% 1.2%
Myanmar 18 18 18 80.5% 81.7% 88.4% 2.4% 1.8% 1.3%
Ghana 33 32 35 99.8% 99.8% 99.8% 0.1% 0.1% 0.1%
Nigeria 34 29 24 84.8% 63.5% 59.5% 5.3% 7.6% 15.7%
Sierra
Leone 4 4 4 85.1% 85.1% 85.5% 8.3% 7.8% 6.5%
Tanzania 52 52 53 99.4% 99.3% 99.1% 0.3% 0.3% 0.4%
Kenya 17 18 18 99.0% 99.1% 99.1% 0.4% 0.3% 0.2%
Uganda 11 11 11 98.9% 99.1% 99.2% 0.7% 0.5% 0.4%
Rwanda 4 4 4 92.7% 92.0% 92.0% 3.1% 3.7% 4.7%
Zambia 3 3 3 93.0% 92.8% 93.0% 2.7% 2.7% 2.6%
Group 341 340 335 90.5% 89.2% 91.0% 3.3% 2.7% 2.6%
PAR>30 PAR>90 PAR>180
------------------------------------------ ------------------------- -----------------------------
Jan/23 Feb/23 Mar/23 Jan/23 Feb/23 Mar/23 Jan/23 Feb/23 Mar/23
Pakistan 0.7% 0.7% 0.6% 0.4% 0.4% 0.4% 0.0% 0.1% 0.1%
India
(total) 26.6% 25.2% 15.9% 22.9% 22.7% 14.6% 10.6% 14.8% 9.5%
Sri Lanka 8.3% 7.8% 6.8% 5.9% 5.6% 5.0% 3.4% 3.3% 3.1%
Philippines 1.7% 1.7% 1.7% 1.2% 1.2% 1.1% 0.9% 0.7% 0.6%
Myanmar 17.8% 12.8% 6.5% 17.6% 12.7% 6.3% 15.4% 11.0% 5.2%
Ghana 0.1% 0.2% 0.1% 0.1% 0.1% 0.1% 0.0% 0.1% 0.0%
Nigeria 8.9% 11.6% 16.5% 6.1% 6.9% 4.9% 3.6% 4.0% 0.8%
Sierra
Leone 12.0% 12.4% 11.7% 8.7% 8.9% 9.6% 3.7% 4.6% 5.2%
Tanzania 0.4% 0.5% 0.6% 0.3% 0.3% 0.3% 0.2% 0.2% 0.2%
Kenya 0.8% 0.7% 0.6% 0.7% 0.5% 0.5% 0.5% 0.4% 0.3%
Uganda 0.8% 0.7% 0.6% 0.3% 0.4% 0.4% 0.2% 0.2% 0.2%
Rwanda 5.0% 5.9% 7.1% 3.4% 3.7% 5.0% 2.0% 2.1% 2.5%
Zambia 5.2% 5.2% 5.1% 4.0% 4.1% 4.0% 2.6% 2.5% 2.5%
Group 6.2% 5.9% 4.5% 5.1% 4.9% 3.2% 2.9% 3.2% 1.9%
(3) Gross OLP includes the off-book BC and DA model.
(4) PAR>x is the percentage of outstanding customer loans with at
least one instalment payment overdue x days, excluding loans more
than 365 days overdue, to Gross OLP including off-book loans. Loans
overdue more than 365 days now comprise 2.5% of the Gross OLP.
(5) The table "PAR>30 less PAR>180" shows the percentage of outstanding
client loans with a PAR greater than 30 days, less those loans which
have been fully provided for.
-- Gross OLP in India slightly reduced to USD 44 million (2 %
lower than in December 2022 and 57% lower than in March 2022) as
the disbursement as percentage of collections increased.
-- PAR>30 for the Group decreased from 5.9% in December 2022
to 4.5% in March 2023, primarily due to write-offs of long overdue
loans in India, Myanmar and Nigeria .
-- Credit exposure of the India off-book BC portfolio of USD
24.9m is capped at 5%. The included off-book DA portfolio of USD
1.1 million has no credit exposure.
Disbursements vs collections of loans until 31 March 2023
(6)
Countries Oct/22 Nov/22 Dec/22 Jan/23 Feb/23 Mar/23
--------- --------- --------- --------- ---------
Pakistan 125% 120% 86% 101% 101% 107%
India 10% 22% 26% 52% 72% 87%
Sri Lanka 147% 135% 89% 81% 104% 120%
The Philippines 103% 104% 106% 100% 104% 104%
Myanmar 102% 115% 87% 124% 126% 91%
Ghana 122% 120% 131% 89% 99% 104%
Nigeria 107% 109% 82% 50% 34% 58%
Sierra Leone 128% 125% 94% 67% 105% 118%
Tanzania 114% 117% 125% 104% 103% 106%
Kenya 115% 99% 41% 121% 112% 109%
Uganda 112% 112% 93% 89% 107% 101%
Rwanda 113% 107% 104% 78% 85% 93%
Zambia 109% 109% 95% 102% 118% 115%
---------------------- --------- --------- --------- --------- --------- ---------
(6) Disbursements vs collections refers to actual loan disbursements made
to clients divided by total amounts collected from clients in the period.
-- Disbursements as a percentage of collections exceeded 100% in
9 countries. The lower percentage in Nigeria is impacted by the
cash shortages which subsequently reduced the ability of our staff
to perform daily collections and disbursements.
Development of Clients and Outstanding Loan Portfolio until 31
March 2023
Gross OLP (in
Clients (in thousands) Delta USDm) Delta
Mar/22-Mar/23 Mar/22-Mar/23 Feb/23-Mar/23
Countries Mar/22 Feb/23 Mar/23 Mar/22-Mar/23 Feb/23-Mar/23 Mar/22 Feb/23 Mar/23 USD CC (7) USD
Pakistan 541 601 601 11% 0% 83 69 64 -23% 19% -8%
India 480 260 248 -48% -4% 103 45 44 -57% -53% -3%
Sri Lanka 52 45 45 -14% 2% 6 4 5 -23% -14% 14%
The
Philippines 299 323 326 9% 1% 47 51 52 11% 17% 3%
Myanmar 112 102 98 -13% -4% 21 18 18 -15% 0% -3%
Ghana 161 181 181 13% 0% 41 32 35 -15% 32% 11%
Nigeria 241 191 174 -28% -9% 37 29 24 -33% -26% -15%
Sierra
Leone 42 36 36 -14% -2% 7 4 4 -37% 5% 4%
Tanzania 190 221 221 17% 0% 37 52 53 42% 43% 2%
Kenya 123 152 159 29% 4% 18 18 18 -1% 14% -1%
Uganda 95 110 109 15% -1% 11 11 11 8% 14% -1%
Rwanda 18 20 20 10% -3% 3 4 4 14% 24% -4%
Zambia 16 21 21 31% 1% 2 3 3 27% 50% -3%
Total 2,370 2,264 2,240 -5% -1% 416 340 335 -19% -1% -2%
(7) Constant currency ('CC') implies conversion of local
currency results to USD with the exchange rate from the beginning
of the period.
-- The Group's Gross OLP decreased to USD 335 million (9% lower
than in December 2022 and 19% lower than in March 2022), primarily
due to substantial currency devaluation in Ghana and Pakistan.
Key events in March and April 2023
The Central Bank of Nigeria announced on 13 March 2023 that it
was extending the deadline to swap out old bank notes (of NGN 200,
NGN 500 and NGN 1,000) for redesigned notes until 31 December 2023,
following the cash shortage crisis that occurred after their
initial deadline of 10 February 2023 passed. Both old notes and the
redesigned notes will be available as legal tender for use in
payment transactions until the end of 2023.
---
Enquiries:
ASA International Group plc
Investor Relations
Mischa Assink ir @asa-international.com
About ASA International Group plc
ASA International Group plc (ASAI: LN) is one of the world's
largest international microfinance institutions, with a strong
commitment to financial inclusion and socioeconomic progress. The
company provides small, socially responsible loans to low-income,
financially underserved entrepreneurs, predominantly women, across
South Asia, South East Asia, West and East Africa.
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