TIDMASAI
RNS Number : 9863M
ASA International Group PLC
20 September 2023
Press Release
ASA International Group plc August 2023 business update
Amsterdam, The Netherlands, 20 September 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 August 2023.
-- The Group's Gross OLP increased to USD 352 million (1% higher
than in May 2023 and 5% lower than in August 2022), primarily due
to increased disbursements in India, Ghana and Kenya.
-- All operating subsidiaries except India, achieved collection
efficiency of more than 90% with 11 countries achieving more than
95%.
-- Collection efficiency in Nigeria improved from May 2023 to August 2023, following the end of demonetization and the national election cycle.
-- India collections remained stable at 85% in August 2023
compared to May 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 97% in May 2023 to 92% in August 2023.
-- PAR>30 for the Group, including off-book loans and
excluding loans overdue more than 365 days, decreased to 3.6% in
August 2023 from 4.2% in May 2023, primarily due to improving
portfolio quality in Nigeria and Myanmar.
-- The PAR>30 for the Group's operating subsidiaries,
excluding India and Nigeria, decreased to 1.1% in August 2023 from
1.3% in May 2023.
-- Excluding all loans which have been overdue for more than 180
days and, as a result, have been fully provided for, PAR>30
improved to 1.3% in August 2023 from 2.5% in May 2023.
-- Disbursements as a percentage of collections exceeded 100% in
11 countries. The improved percentage in India was due to
additional growth of the BC portfolio following new BC partnership
agreements.
Collection efficiency until 31 August 2023 (1)
Countries Mar/23 Apr/23 May/23 Jun/23 Jul/23 Aug/23
---------- ---------- ---------- --------- ---------
Pakistan 99% 99% 100% 100% 100% 100%
India (total) 86% 88% 86% 85% 87% 85%
Sri Lanka 95% 95% 96% 96% 96% 96%
The Philippines 99% 99% 99% 99% 99% 99%
Myanmar 100% 99% 100% 100% 100% 100%
Ghana 100% 100% 100% 100% 100% 100%
Nigeria 78% 77% 84% 87% 92% 95%
Sierra Leone 95% 96% 96% 96% 97% 98%
Tanzania 100% 99% 99% 99% 99% 99%
Kenya 100% 100% 100% 100% 100% 100%
Uganda 100% 100% 99% 99% 99% 100%
Rwanda 96% 96% 96% 96% 97% 97%
Zambia 98% 98% 98% 99% 99% 99%
----------------------- ---------- ---------- ---------- --------- --------- ---------
(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%.
-- Collection efficiency remained broadly stable in most of our
operating countries compared to May 2023.
-- 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 from 97% in May 2023 to 92% in August
2023. 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 remained stable in both
markets.
-- Collection efficiency in Nigeria improved from May 2023 to August 2023, following the end of demonetization and the national election cycle.
Loan portfolio quality up to and including August 2023 (2, 3,
4)
Gross OLP (in USDm) Non-overdue loans PAR>30 less PAR>180
-------------------------
Jun-23 Jul-23 Aug-23 Jun-23 Jul-23 Aug-23 Jun-23 Jul-23 Aug-23
Pakistan 66 67 65 99.5% 99.5% 99.6% 0.3% 0.3% 0.2%
India (total) 50 50 50 68.7% 65.7% 74.8% 3.0% 3.0% 2.8%
Sri Lanka 4 4 4 88.5% 89.2% 86.9% 3.3% 3.2% 2.8%
Philippines 52 52 51 97.0% 96.3% 95.7% 1.2% 1.3% 1.3%
Myanmar 18 18 19 90.7% 91.3% 91.7% 0.0% 0.0% 0.0%
Ghana 41 43 45 99.4% 99.4% 99.7% 0.1% 0.1% 0.1%
Nigeria 17 18 18 77.0% 79.2% 79.4% 14.2% 11.6% 9.1%
Sierra
Leone 5 5 5 84.0% 84.8% 86.9% 3.7% 2.7% 2.0%
Tanzania 57 56 57 99.1% 98.9% 98.9% 0.5% 0.5% 0.5%
Kenya 18 19 20 99.1% 99.1% 99.3% 0.2% 0.2% 0.2%
Uganda 12 12 12 98.7% 98.8% 98.9% 0.6% 0.7% 0.5%
Rwanda 4 4 4 91.5% 91.7% 91.5% 4.2% 4.2% 3.9%
Zambia 4 3 3 94.4% 94.1% 94.1% 1.9% 1.8% 1.5%
-------
Group 347 351 352 92.5% 92.2% 92.3% 1.7% 1.5% 1.3%
PAR>30 PAR>90 PAR>180
--------------------------- ------------------------- -------------------------
Jun-23 Jul-23 Aug-23 Jun-23 Jul-23 Aug-23 Jun-23 Jul-23 Aug-23
Pakistan 0.3% 0.3% 0.3% 0.2% 0.2% 0.2% 0.0% 0.1% 0.1%
India (total) 13.8% 15.3% 13.5% 12.9% 14.2% 12.6% 10.7% 12.3% 10.7%
Sri Lanka 6.4% 6.2% 5.6% 4.7% 4.3% 4.0% 3.1% 3.0% 2.8%
Philippines 1.9% 2.0% 2.3% 1.4% 1.5% 1.6% 0.7% 0.8% 1.0%
Myanmar 1.2% 0.7% 0.3% 1.2% 0.6% 0.3% 1.2% 0.6% 0.3%
Ghana 0.2% 0.2% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1%
Nigeria 15.5% 13.6% 15.0% 8.9% 10.1% 12.8% 1.3% 2.0% 5.8%
Sierra
Leone 11.3% 10.2% 7.9% 10.0% 9.1% 7.0% 7.6% 7.5% 5.9%
Tanzania 0.7% 0.7% 0.8% 0.4% 0.5% 0.5% 0.2% 0.2% 0.2%
Kenya 0.5% 0.5% 0.4% 0.5% 0.4% 0.3% 0.3% 0.3% 0.2%
Uganda 0.9% 1.0% 0.9% 0.5% 0.6% 0.7% 0.3% 0.3% 0.3%
Rwanda 6.8% 7.1% 7.7% 4.8% 5.1% 6.0% 2.6% 2.9% 3.8%
Zambia 4.2% 4.3% 4.1% 3.5% 3.7% 3.5% 2.3% 2.5% 2.6%
Group 3.7% 3.8% 3.6% 3.0% 3.2% 3.1% 2.0% 2.3% 2.2%
(2) Gross OLP includes the off-book BC and DA model, and loans valued
at fair value through the P&L ("FVTPL").
(3) 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 3.5% of the Gross OLP.
(4) 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 increased to USD 50 million (10% higher
than in May 2023 and 26% lower than in August 2022).
-- PAR>30 for the Group improved from 4.2% in May 2023 to
3.6% in August 2023, primarily due to improving portfolio quality
in Nigeria and Myanmar .
-- Credit exposure of the India off-book IDFC portfolio of USD
12.1 million 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 August 2023
(5)
Countries Mar/23 Apr/23 May/23 Jun/23 Jul/23 Aug/23
--------- --------- --------- --------- ---------
Pakistan 107% 108% 115% 109% 107% 118%
India (total) 87% 77% 61% 141% 125% 130%
Sri Lanka 120% 46% 88% 84% 101% 94%
The Philippines 104% 107% 98% 101% 98% 104%
Myanmar 91% 80% 115% 103% 124% 120%
Ghana 104% 117% 110% 126% 115% 119%
Nigeria 58% 110% 126% 143% 109% 105%
Sierra Leone 118% 119% 110% 95% 134% 144%
Tanzania 106% 118% 110% 116% 104% 112%
Kenya 109% 107% 106% 107% 120% 118%
Uganda 101% 100% 103% 95% 98% 104%
Rwanda 93% 100% 115% 106% 98% 93%
Zambia 115% 132% 115% 103% 82% 101%
---------------------- --------- --------- --------- --------- --------- ---------
(5) 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
11 countries. The improved percentage in India was due to
additional growth of the BC portfolio following new BC partnership
agreements.
Development of Clients and Outstanding Loan Portfolio until 31
August 2023
Gross OLP (in
Clients (in thousands) Delta USDm) Delta
Jul/23-
Aug/22-Aug/23 Aug/22-Aug/23 Aug/23
Countries Aug/22 Jul/23 Aug/23 Aug/22-Aug/23 Jul/23-Aug/23 Aug/22 Jul/23 Aug/23 USD CC (6) USD
Pakistan 590 610 616 4% 1% 77 67 65 -17% 16% -3%
India
(total) 383 206 229 -40% 11% 67 50 50 -26% -23% 0%
Sri Lanka 45 46 45 0% -1% 4 4 4 23% 10% 3%
The
Philippines 321 330 331 3% 0.3% 47 52 51 9% 10% -2%
Myanmar 104 103 103 -1% 0% 17 18 19 13% 13% 3%
Ghana 169 187 197 16% 5% 34 43 45 33% 51% 5%
Nigeria 242 171 182 -25% 6% 41 18 18 -56% -20% 1%
Sierra
Leone 37 37 40 8% 7% 5 5 5 -7% 44% 7%
Tanzania 204 228 232 14% 1% 44 56 57 29% 39% 1%
Kenya 134 183 188 41% 3% 19 19 20 8% 31% 4%
Uganda 105 107 109 3% 2% 10 12 12 13% 11% -1.1%
Rwanda 20 20 20 -1% -1% 4 4 4 -9% 4% -2%
Zambia 20 23 23 16% 0% 3 3 3 0% 26% -6%
Total 2,374 2,252 2,314 -3% 3% 371 351 352 -5% 10.9% 0.3%
(6) 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 slightly increased to USD 352 million
(1% higher than in May 2023 and 5% lower than in August 2022),
primarily due to increased disbursements in India, Ghana and
Kenya.
Key events August and September 2023
The Pakistan government, through the Finance Act 2023, has
re-introduced a 10% super tax rate for taxpayers in all sectors
with income in excess of Rs 35 crores (for both 2022 and 2023). In
line with the previous Finance Act 2022, this rate is stipulated to
apply retrospectively on income earned in FY 2022. The
retrospective application of this super tax rate is currently being
contested by different petitioners in Courts in Pakistan. The
matter is also expected to be referred to the Supreme Court for
adjudication.
---
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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