May 25, 2023
ISP Finance Services Limited (ISP) for the year ended December 31, 2022:
Net interest income declined 2% to $395.41 million (2021: $404.21 million). For the quarter, net interest income declined 17% to $89.91 million (2021: $108.97 million).
Commission expenses on loans increased 61% to $16.22 million (2021: $10.09 million). For the quarter, commission expenses on loans increased 4% to $4.89 million (2021: $4.69 million).
Gross profit declined 4% to $379.20 million (2021: $394.13 million). For the quarter, gross profit declined 18% to $85.02 million (2021: $104.28 million).
Other operating income soared to $14.08 million (2021: loss of $571,112) following a significant jump in the quarter results to $5.40 million (2021: loss of $387,017)
Total operating expenses declined 2% to $327.85 million (2021: $333.61 million) despite the 15% increase in staff costs to $112.80 million (2021: $97.84 million) as allowance for credit loss declined 20% to $93 million (2021: $115.92 million). For the quarter, total operating expenses declined 23% to $79.50 million (2021: $103.03 million).
Net profit increased 6% to $57.64 million (2021: $54.41 million) following taxation charge of $7.78 million (2021: $5.53 million). For the quarter, net profit soared to $9.95 million (2021: $1.12 million).
Earnings per share (EPS) amounted to $0.55 (2021: $0.52). For the quarter, EPS amounted to $0.09 (2021: $0.01). The number of shares used in our calculations is 105,000,000 units. Notably, ISP closed the trading period on May 24, 2023 at a price of $19.65 with a corresponding P/E ratio of 35.80x.
Balance Sheet Highlights:
Total assets as at December 31, 2022 increased 36% to $1.05 billion (2021: $772.27 million). The largest contributor to this upward movement was ‘Investments’ which soared to $225 million (2021: $10 million).
Shareholders’ equity as at December 31, 2022 was $520.77 million (2021: $463.14 million), an increase of 12% year over year. This resulted in a book value per share of $4.96 (2021: $4.41).
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