ASA International Group (ASAI) H1 2026 earnings summary

Executive summary

• Net profit rose 70% year-over-year to $45.6m, with underlying net profit up 42% to $34.3m, and total equity increasing 41% to $192.6m.

• Gross Outstanding Loan Portfolio (OLP) increased 12% YoY to $603.9m, with client base up 17% since 2024 and industry-leading portfolio quality.

• Strategic exit from India completed, with NBFC-MFI license surrendered and operations wound down.

• Admitted to the FTSE All-Share Index in June 2026.

• Digital transformation advanced, with core banking system rollouts and microinsurance expansion.

Financial highlights

• Net profit rose 70% YoY to $45.6m; underlying net profit up 42% to $34.3m; operating income increased 32% YoY to $155.9m.

• Net interest income grew 25% YoY to $139.2m; one-off $11.4m gain from India NCD sale.

• Cost-income ratio improved to 55.6% in H1 2026, despite a 30% rise in total operating expenses.

• Interim dividend per share increased 43% YoY to $0.069, maintaining a 20% payout ratio.

• Return on average equity increased to 55.5% from 49.3% YoY.

Outlook and guidance

• Full-year 2026 underlying net profit expected to be in line or slightly ahead of consensus ($70.2m).

• Loan demand expected to remain resilient, with focus on disciplined execution, productivity, and efficiency.

• NIM expected to remain stable between 35%-40% in H2 2026.

• Dividend payout policy targets 25%-30% of net profit for 2026.

• Continued digital transformation and rollout of core banking system in Kenya planned for early 2027.