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 and improved portfolio quality, especially in Pakistan, the Philippines, Ghana, Tanzania, and Kenya.

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

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

• Digital transformation advanced, including core banking system rollouts and digital product launches, with over 600,000 clients in Pakistan migrated.

• 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 105% year-over-year.

• Gross outstanding loan portfolio increased by 15% year-over-year to $384.6 million.

• Total assets surpassed $500 million, returning to pre-COVID levels.

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

• Cost-to-income ratio improved to 62% from 77% in H1 2023.

Outlook and guidance

• Net profit for FY 2024 is expected to exceed the current consensus of $16 million, despite ongoing inflation and FX headwinds.

• Positive outlook for H2 2024, with continued high demand for loans and operational growth.

• Board to review potential resumption of dividend payments after full-year results.

• Hyperinflation accounting will continue for Ghana and Sierra Leone; Pakistan and Nigeria remain on the watchlist.

• Stable cost outlook for H2 2024.