May 14, 2021
ISP Finance Services Limited (ISP) for the three months ended March 31, 2021, reported total interest income of $90.10 million compared to $85.65 million booked in 2020, an increase of 5%. Interest expense totalled $7.76 million for the quarter, relative to $6.91 million in 2020; this represents a 12% growth year over year. As a result, net interest income grew 5% to total $82.34 million (2020: $78.74 million) for the three months ended March 2021.
Commission expenses on loans fell 45% to $1.38 million compared to the $2.50 million reported for the first three months ended March 31, 2020. Gross profit for the quarter amounted to $80.96 million, 6% greater than the $76.25 million in 2020.
Other income declined to $2,700 when compared to $214,520 booked the same period last year and foreign exchange gain for the period under review stood at $78,00, relative to a gain of $97,000.
The Company booked a loss on sale of fixed asset of $138,000 (2020: nil).
ISP’s total operating expense amounted to $68.13 million, up 4% from $65.83 million in 2020. Management noted, “the Company has maintained its cost of operations while meeting greater customer demands.” The expenses for the period are broken down as follows:
Staff costs amounted to $27.72 million (2020: $32.58 million).
Allowance for credit losses totalled $14.10 million (2020: $8.90 million).
Depreciation was $1.92 million (2020: $1.30 million).
Other operating expenses amounted to $24.39 million (2020: $23.05 million).
Profit before taxes totalled $12.77 million (2020: $10.54 million). No taxes were booked for the period, resulting in a net profit of $12.77 million relative to $10.54 million for the first quarter of 2020, a 21% climb year over year. Moreover, comprehensive income totalled $12.77 million (2020: $10.54 million).
As a result, EPS for the quarter closed at $0.12 (2020: EPS $0.10). The trailing twelve months EPS amounted to $0.64. The number of shares used in our calculations is 105,000,000 units. Notably, ISP closed the trading period on May 13, 2021 at a price of $23.99 with a corresponding P/E of 37.25 times.
ISP highlighted, “the newly established customer sales contact center is our focus as this will result in the development of new products and markets across several delivery channels.”
Balance Sheet Highlights:
As at March 31, 2021, ISP reported total assets of $775.09 million, a 13% increase when compared to $684.21 million in the prior year. ‘Loans net of provisions for credit losses’ was the main contributor to this increase closing the period at $675.94 million (2020: $616.81 million), reflecting a $59.13 million increase. ‘Other Receivables’ also contributing to the increase by closing at $43.50 million, up from $17.64 million.
Shareholders’ Equity as at March 31, 2021 was $421.50 million compared to a $354.22 million in 2020. This resulted in a book value per share of $4.01 compared to $3.37 the prior year.
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