2022 Group financial performance
|
(UNAUDITED) |
FY 2022 |
FY 2021 |
FY 2020 |
YoY % |
YoY % Change |
| Profit before tax | 46,281 | 25,705 | 2,578 | 80% | 117% |
| Net profit | 17,887 | 6,358 | -1,395 | 181% | 269% |
| Cost/income ratio | 68% | 77% | 98% | ||
| Return on average assets (TTM)(1) | 3.4% | 1.1% | -0.2% | ||
| Return on average equity (TTM)(1) | 18.5% | 6.0% | -1.3% | ||
| Earnings growth (TTM)(1) | 181% | 556% | -104% | ||
| OLP | 351,151 | 403,738 | 415,304 | -13% | 5% |
| Gross OLP | 367,535 | 430,698 | 445,257 | -15% | 3% |
| Total assets | 489,752 | 562,554 | 579,260 | -13% | |
| Client deposits(2) | 84,111 | 87,812 | 80,174 | -4% | |
| Interest-bearing debt(2) | 257,466 | 314,413 | 337,632 | -18% | |
| Share capital and reserves | 89,661 | 103,443 | 107,073 | -13% | |
| Number of clients | 2,299,558 | 2,380,690 | 2,380,685 | -3% | |
| Number of branches | 2,028 | 2,044 | 1,965 | -1% | |
| Average Gross OLP per client (USD) | 160 | 181 | 187 | -12% | 6% |
| PAR>30 days | 5.9% | 5.2% | 13.1% | ||
| Client deposits as % of loan portfolio |
24% | 22% | 19% |
(1) TTM refers to trailing twelve months.
(2) Excludes interest payable.
"We are pleased that all but three of our operating subsidiaries reached or exceeded pre-covid operating and financial performance on a constant currency basis in 2022. The performance of most of our major operating subsidiaries, particularly Pakistan, the Philippines, Ghana and Tanzania, was excellent in terms of portfolio quality, growth and profitability. Though as expected, and against the backdrop of global market volatility, FX movements have significantly impacted the Group OLP and financial performance in USD terms, most of our clients and their businesses in these countries have again proved their resilience despite operating in an environment with high inflation."
Dirk Brouwer - CEO, ASA International Group plc
- The Company’s operational and financial results continued to improve compared to 2021 with profit before tax increasing to USD 46.3 million in FY 2022 from USD 25.7 million in FY 2021.
- Net profit stood at USD 17.9 million for FY 2022, compared to USD 6.4 million in FY 2021.
- The improvement was led by the strong operational and financial performance of Pakistan, the Philippines, Ghana and Tanzania microfinance institutions (‘MFI’s), which delivered significant OLP growth and increased profitability in constant currency terms.
- Nigeria, Kenya, and Uganda also made significant positive contributions to the Group’s net profitability.
- As portfolio quality improved or stabilised across most markets, the Company significantly reduced expected credit losses (‘ECL’) charged to the Income Statement to USD 0.6 million (FY 2021: USD 37.5 million). Reserves for expected credit losses on OLP in the Balance Sheet, including the off-book BC portfolio in India and interest receivables, reduced from USD 27.5 million in FY 2021 to USD 16.9 million in FY 2022.
- PAR>30 for the Group’s operating subsidiaries increased to 5.9% in 2022 from 5.2% in 2021, partially due to the decrease in portfolio quality in India, combined with a shrinking OLP in USD terms in some of our other major better performing countries due to substantial currency devaluation. PAR>30 for the Group excluding India is 3%.
- ASA India’s collection efficiency continued to improve, reaching 87% in December 2022. As of 31 December 2022, ASA India had collected USD 3.7 million from a total of USD 22.9 million in written-off loans since 2020.
- The Group derecognised deferred tax assets amounting to USD 8 million related to deductible temporary differences and past losses for mainly India and Myanmar, in adherence to IFRS guidelines. This resulted in a substantial increase in tax expenses and a high effective tax rate for FY 2022.
- The Group’s cash and cash equivalents reduced from approximately USD 91 million as of 31 December 2021 to approximately USD 55 million as of 31 December 2022, following large debt settlements primarily in India. The Company maintains a healthy cash position and has a significant funding pipeline.
Whilst inflation and the related foreign exchange ('FX’) movements will continue to impact the Group’s operating subsidiaries’ financial performance in USD terms, based on the positive developments throughout 2022, the Company expects the operating environment for its clients to continue to improve in most of its operating markets.
As most of the Group’s operating subsidiaries have returned to growth and increased profitability, and subject to improved performance in India and reduced currency devaluation in most of our operating countries, the Company is confident of continued progress during 2023.
After careful consideration, the Board has decided not to declare a dividend in 2023 on the 2022 results. However, the Company looks to return to its pre-Covid dividend policy in 2024 on the 2023 results, assuming the operating and financial performance continues to improve and flows of dividends from major operating subsidiaries return to normal.
DIRK BROUWER, CHIEF EXECUTIVE OFFICER OF ASA INTERNATIONAL, COMMENTED:
"We are pleased that all but three of our operating subsidiaries reached or exceeded pre-covid operating and financial performance on a constant currency basis in 2022. The performance of most of our major operating subsidiaries, particularly Pakistan, the Philippines, Ghana and Tanzania, was excellent in terms of portfolio quality, growth and profitability. Though as expected, and against the backdrop of global market volatility, FX movements have significantly impacted the Group OLP and financial performance in USD terms, most of our clients and their businesses in these countries have again proved their resilience despite operating in an environment with high inflation.
As a result of the improved operating performance in 2022, profit before tax and net profit of the Group for 2022 is substantially better than what was achieved in 2021. The Group’s profit before tax increased to USD 46.3 million in FY 2022 from USD 25.7 million in FY 2021, and the Group’s net profit increased to USD 17.9 million in FY 2022 from USD 6.4 million in FY 2021.
Based on the positive developments throughout 2022 and despite the challenging operating environment in some of our operating subsidiaries, overall, we expect higher demand for our loans in 2023. This should lead to continued progress as we continue to invest in the future with our digital strategy."