Access Financial Services Limited (AFS) for the three months ended June 30, 2017 reported $343.04 million in total interest income for the first quarter relative to last year’s $302.50 million. Of this Interest Income from Loans amounted to $339.32 million while Interest Income from Securities totaled $3.72 million (2016: $1.88 million).

Interest Expense charged for the quarter totaled $28 million (2016: $21.45 million), resulting in AFS booking a Net Interest Income of $315.04 million (2016; $281.05 million) for the quarter ended June 30, 2017.

Net Fees and Commission Income for the period under review amounted to $97.60 million compared to $28.89 million booked for the corresponding period in 2016. Consequently, AFS reported $412.64 million for Net Trading Income versus $309.94 million for the comparable period in 2016.

AFS reported income from Money Services and Other Income of $427,000 and $6.61 million respectively. Foreign Exchange also posted a gain of $13.70 million (2016: $7.90 million), as such Other Operating Income for the period totaled $20.74 million (2016: $15.48 million).

AFS reported Operating Expenses of $224.88 million relative to $162.22 million documented for the first quarter of 2016. AFS noted the increase was due to, “an increase in staff and operating expenses related to the new acquisitions.”Of this:

• Staff Costs totaled $88.30 million (2016: $64.09 million).
• Allowance for Credit Losses increased to $51.75 million compared to $43.31 million.
• Depreciation & Amortization and Other Operating Expenses booked for the period totaled $5.99 million (2016; $5.27 million) and $71.68 million (2016: $45.45 million) respectively.
• Marketing Expenses for the first three months ended June 30, 2017 closed at $7.16 million, 75% higher than the $4.10 million reported for the first quarter of 2016.

AFS reported a Profit Before Taxation of $208.50 million (2016: $163.20 million). AFS booked a Profit of $188.46 million (2016: $145.63 million) after tax charges of $20.04 million (2016: $17.57 million).

Consequently earnings per share for the period amounted to $0.69 relative to $0.53 reported for the first quarter of 2016. The trailing twelve months earnings per share amounted to $2.63. The number of shares used in this calculations was 274,509,840 units.

Balance Sheet Highlights:

As at June 300, 2017, the company’s assets totaled $3.20 billion. Loans and Advances contributed the most to total assets. Loans and Advances amounted to approximately $2.57 billion. Cash and Cash Equivalents also contributed to the upward movement in total assets with a 67% growth year over year to $496.34 million (2016; $297.24 million). AFS noted, “the asset base of the company grew by $500 million which represents a 19% increase over the comparative period. During the period under review we acquired the Net assets of Micro Credit Limited (MCL). This acquisition is in keeping with Access’ overall strategic expansion plan to grow its share of the local micro lending market. Micro Credit Limited will continue to operate as a separate entity (Micro Credit Loans) and will continue to serve its existing clients from their six (6) locations island-wide.”

Shareholder’s equity as at June 30, 2017 stood at $1.82 billion resulting in book value per share of approximately $6.62 (2016: $4.80).

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.