May 16, 2024
ISP Finance Services Limited (ISP) for the first quarter ended March 31, 2024, reported a 26% increase in total interest income totalling $140.15 million compared to $110.91 million in the corresponding three months last year.
Interest Expense amounted to $15.37 million (2023: $13.77 million), this represents an increase of 12% year over year. Consequently, net interest income increased by 28% to $124.78 million compared to $97.14 million for the first quarter ended March 31, 2023.
Commission Expenses on loans decreased by 14% from $5.14 million in 2023 to $4.42 million for the three months period under review. As such, Gross Profit increased by 31% to close at $120.36 million (2023: $92.00 million).
Allowance for Credit Loss for the three months amounted to $40.53 million, a 44% increase relative to $28.11 million reported in 2023, while Other operating expenses totalled $29.31 million, a 15% decrease from the corresponding period last year. (2023: $34.41 million). As a result, Total Operating Expenses for the first quarter amounted to $94.27 million, a 11% increase relative to $85.19 million reported in 2023.
Profit Before Taxation for the first quarter ended March 31, 2024, amounted to $26.09 million, a 279% increase relative to $6.89 million reported in 2023.
Taxation for the three months had a 405% increase to reach $4.35 million (2023: $861,147). As such, Net Profit for the three months amounted to $21.75 million, a 261% increase from the $6.03 million reported in 2023.
Consequently, Earnings Per Share for the three months amounted to $0.21 (2023: EPS: $0.06). The twelve month trailing EPS was $0.78, and the number of shares used in these calculations was 105,000,000.
Notably, ISP’s stock price closed the trading period on May 15, 2024, at a price of $28.00 with a corresponding P/E ratio of 35.71x.
Balance Sheet Highlights
The company’s assets totalled $1.17 billion (2023: $1.07 billion). The movement in total assets was strongly influenced by a $210.88 million or 27% uptick in ‘Loans, net of provisions for credit losses’ to close at $1.00 billion, while ‘Cash and cash equivalents’ declined by $90.49 million or 44% to $116.20 million, partially offsetting the growth in the company’s asset base.
Shareholder’s equity was $606.59 million (2023: $526.80 million), representing a book value per share of $5.78 (2023: $5.02).
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