AFS reports 24% decrease in three months net profit

Date: August 15, 2019

Access Financial Services Limited (AFS) for the three months ended June 30, 2019 reported $407.94 million in total interest income, a 2% increase relative to the $401.66 million recorded in 2018. Of this, Interest Income from Loans amounted to $407.75 million (2018: $400.15 million), while Interest Income from Securities totalled $189,000 (2018: $1.51 million).

Interest Expense charged for the period totalled $45.22 million, a 88% increase compared with the $24.06 million booked in 2018. This resulted in AFS booking a Net Interest Income of $362.72 million for the period, 4% less than the $377.60 million in 2018.

Net Fees and Commission Income for the period under review amounted to $152.74 million, a 330% increases from the $35.51 million in 2018. AFS booked a total of $515.45 million for Net Trading Income, a 25% increases from the comparable period of $413.11 million in 2018.

AFS reported income from Money Services and Other Income of $499,000 (2018: $378,000) and $6.04 million (2018: $11.42 million) respectively. Foreign Exchange posted a gain of $2.29 million (2018: $8.16 million). As such, other operating income for the period totalled $23.24 million compared with $19.95 million in 2018.

AFS reported Operating Expenses for the period of $377.70 million (2018: $198.56 million). Of this:

    1. Staff Costs totalled $166.25 million (2018: $100.88 million)
    2. Allowance for Credit Losses amounted to $71.80 million (2018: $15.26 million)
    3. Depreciation & Amortization amounted to $8.06 million (2018: $8.88 million)
    4. Marketing Expenses totalled $17.53 million (2018: $7.74 million)
    5. Other Operating Expenses booked for the period totalled $114.06 million (2018: $65.79 million)

AFS reported Profit before Taxation of $160.99 million for the period relative to $234.51 million recorded in 2018. Following a taxation amount of $4 million (2018: $17.79 million), AFS booked a Profit for the period of $164.98 million, a 24% decrease relative to the $216.72 million recorded for the comparable period in 2018.

Consequently earnings per share for the period amounted to $0.60 (2018: 0.79). The trailing twelve months earnings per share amounted to $1.55.  The total number of shares used in the calculations amounted to 274,509,840 units. Additionally, AFS’s stock price closed at $43.20 as at the end of trading on August 14, 2019.m

Balance Sheet Highlights:

As at June 30, 2019, the company’s assets totalled $5.53 billion, up 43% from $3.86 billion in 2018. This increase was largely attributable to ‘Loans and Advances’ which amounted to approximately $4.28 billion 35%  more than $3.16 billion in 2018.

Shareholder’s equity as at June 30, 2019 stood at $2.40 billion (2018: $2.54 billion) resulting in book value per share of approximately $8.74 (2018: $9.24).

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