August 15, 2023
ISP Finance Services Limited (ISP) for the six months ended June 30, 2023 reported a 2% decrease in Net Interest Income totaling $199.68 million compared to $203.46 million in the corresponding period last year. Net Interest Income for the Second quarter had a 3% decrease to close at $102.54 million compared to $106.03 million for the comparable quarter of 2022.
Interest Expense amounted to $30.68 million (2022: $14.32 million), this represents a increase of 114% year over year. Consequently, total interest income increased by 6% to $230.36 million compared to $217.78 million for the six months ended June 30, 2022. The company booked total interest income of $119.45 million for the second quarter versus $113.23 million reported for the similar quarter of 2022.
Gross Profit decreased by 4% to close at $188.24 million (2022: $195.48 million), while Commission Expense on loans increased by 43% from $7.97 million in 2022 to $11.43 million in the period under review. As a result, total operating expenses for the six months ended June 30, 2023 amounted to $178.03 million, a 6% increase relative to $167.53 million reported in 2022.
Allowance for Credit Loss for the six months ended June 30, 2023, amounted to $55.35 million, a 19% increase relative to $46.50 million reported in 2022. Allowance for Credit Loss for the second quarter amounted to $27.25 million (2022: $22.50 million). Other operating expenses totalled $66.06 million, an 18% increase from the corresponding period last year (2022: $55.95 million).
Profit Before Taxation for the six months ended June 30, 2023, amounted to $12.42 million, a 56% decrease relative to $27.97 million reported in 2022. Profit Before Taxation for the second quarter amounted to $5.53 million (2022: $17.74 million).
Taxation for the six months ended June 30, 2023 had a 56% decrease to reach $1.55 million (2022: $3.50 million) . Net Profit for the six months amounted to $10.87 million, a 56% decrease from the $24.47 million reported in 2022. For the second quarter, Net Profit was $4.84 million (2022: $15.52 million).
Consequently, Earnings Per Share for the six months amounted to $0.10 (2022: EPS: $0.23), while Earnings Per Share for the quarter totaled $0.05 (2022: EPS: $0.15). The twelve month trailing EPS was $0.42 and the number of shares used in these calculations was 105,000,000.
Notably, ISP’s stock price closed the trading period on August 14, 2023 at a price of $21.23 with a corresponding P/E ratio of 50.63x.
Balance Sheet Highlights
The company’s assets totalled $1.08 billion (2022: $810.24 million). The increase was as a result of ‘Loans net of provisions for credit losses’ which closed at $959.44 million (2022: $681.30 million).
Shareholder’s equity was $531.64 million (2022: $487.61 million), representing a book value per share of $5.06 (2022: $4.64).
Disclaimer:
Analyst Certification – The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.
Company Disclosure – The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.
