AFS reports 26% decrease in six months net profit

November 2, 2022


Access Financial Services Limited (AFS) for the six months ended September 30, 2022, reported $880.51 million in total interest income, a 9% increase relative to the $808.18 million recorded in 2021. Of this, Interest Income from Loans amounted to $876.28 million (2021: $807.50 million), while Interest Income from Securities totalled $4.22 million (2021: $681,000). Total interest income for the quarter closed at $446.31 million, up 7% compared to the $418.94 million reported for the second quarter of 2021.

Interest expense for the period totalled $128.61 million, a 14% increase compared to the $112.93 million booked in 2021. This resulted in AFS booking a net interest income of $751.90 million for the period, 8% greater than the $695.25 million booked in 2021.

Net fees and commission income for the period under review amounted to $212.82 million, an 8% increase from the $197.19 million in 2021. As a result, AFS booked a total of $964.72 million for net trading income, an 8% increase from the $892.44 million booked for the comparable period in 2021. Net trading income for the quarter improved 3% to close at $481.76 million (2021: $468.63 million).

AFS reported income from Money services fees and commission of $701,000 (2021: $520,000), and other income of $72.73 million (2021: $76.09 million). Foreign Exchange gains of $2.93 million was reported, a 58% increase relative to a gain of $1.86 million booked same time last year. As such, other operating income for the period totalled $76.36 million compared with $78.47 million recorded in 2021.

Net operating income closed at $1.04 billion (2021: $970.90 million), while for the quarter, net operating income closed at $518.19 million (2021: $507.15 million). Management noted that, “The growth in operating income is attributable to a 9% increase in interest income in line with the growth of the portfolio, increases in fees and commission income.”

AFS reported a 14% increase in operating expenses for the period of $830.67 million (2021: $730.20 million). AFS highlighted that this increase is, “due mainly to increases in staff costs, non-recurring debt refinancing expenses, and loans written off.” Of this:

  • Staff costs totalled $372.09 million (2021: $344.44 million)
  • Allowance for credit losses amounted to $120.85 million (2021: $121.28 million).
  • Depreciation & amortization amounted to $55.81 million (2021: $60.96 million)
  • Marketing expenses totalled $13.68 million (2021: $16.61 million)
  • Other operating expenses increased 44% to $268.24 million (2021: $186.91 million).

AFS reported profit before taxation of $210.42 million for the period relative to $240.70 million recorded in 2021. Following a taxation amount of $77.40 million (2021: $61.10 million), AFS booked a profit for the period of $133.02 million, a 26% decrease relative to the $179.61 million recorded for the comparable period in 2021. For the quarter, net profit amounted to $55.46 million (2021: $90.25 million).

However, total comprehensive income declined to $124.88 million from $188.75 million booked same time last year.

Consequently, earnings per share (EPS) for the period amounted to $0.48 (2021: $0.65), while for the quarter the EPS was $0.20 (2021: 0.33). The trailing twelve months earnings per share amounted to $1.43. The total number of shares used in the calculations amounted to 274,509,840 units. Additionally, AFS’s stock price closed at $27.00 as at the end of trading on November 1, 2022, with a corresponding P/E of 18.94 times.

Balance Sheet Highlights:

As at September 30, 2022, the company’s assets totalled $6.31 billion, up 11% from $5.68 billion in 2021. The improvement in the asset based was due to a 9% increase in ‘Loans and Advances’, which amounted to $4.76 billion relative to $4.38 billion recorded in 2021. The overall movement was further attributed to an increase in ‘Cash and Cash Equivalents’ which increased by 83% to $728.20 million compared to $397.28 million in 2021.

Shareholder’s equity as at September 30, 2022 stood at $2.81 billion (2021: $2.56 billion) resulting in book value per share of approximately $10.25 (2021: $9.32).



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