August 2, 2023

Access Financial Services Limited (AFS) for year ended March 31, 2023, reported $1.89 billion in total interest income, a 9% increase relative to the $1.73 billion recorded in 2022. Of this, Interest Income from Loans amounted to $1.88 billion (2022: $1.72 billion), while Interest Income from Securities totaled $10.32 million (2022: $4.33 million). Total Interest Income for the quarter amounted to $546.11 million, 8% higher than the $506.94 million recorded during the same period in 2022.

Interest Expense for the period totaled $282.78 million, a 29% increase compared to the $219.62 million booked in 2022. This resulted in AFS recording a Net Interest Income of $1.61 billion for the period, 6% greater than the $1.51 billion booked in 2022. Interest expense for fourth quarter amounted to $75.34 million (2022: $49.45 million).

Net Fees and Commission Income for the period under review decreased by 17% to $309.04 million from the $372.75 million booked in 2022.

Net Trading Income increased marginally by 2% to $1.91 billion (2022: $1.88 billion), with $461.97 million booked in the fourth quarter of 2022 (2022: $526.25 million).

AFS reported income from Money Services fees of $1.34 million (2022: $1.20 million) and other income of $169.33 million (2022: $141.63 million). Foreign Exchange loss of $438,000 was reported this period relative to a loss of $4.65 million booked same time last year. As such, Other Operating Income for the period grew 23% totaling $170.23 million compared to $138.18 million recorded in 2022.

AFS reported Operating Expenses for the period of $1.67 billion (2022: $1.46 billion). Of this:

Staff Costs totaled $710.92 million (2022: $690.36 million)

Allowance for Credit Losses amounted to $396.11 million (2022: $283.21 million).

Depreciation & Amortization amounted to $104.40 million (2022: $117.39 million)

Other Operating Expenses booked for the period totaled $456.01 million (2022: $367.40 million).

Consequently, AFS Profit before Taxation decreased 26% to $416.98 million for the period relative to $560.83 million recorded in 2022. For the fourth quarter of 2022, profit before taxation amounted to $88.76 million, 55% less than 2022’s $196.89 million.

AFS paid taxes amounting to $115.93 million (2022: $131.84 million), AFS booked a Net Profit for the period of $301.05 million, a 30% decline relative to the $429.00 million recorded for the comparable period in 2022. Net profit for the fourth quarter was $75.04 million (2022: $164.25 million). Total comprehensive income decreased 42% to $283.63 million from $488.83 million booked the same time last year. AFS reported total comprehensive income for the fourth quarter of $72.06 million (2022: $349.23 million).

Earnings per share for the period amounted to $1.10 (2022: $1.56). EPS, for the fourth quarter, was calculated to be $0.27 (2022: $0.60). Total number of shares used in the calculations amounted to 274,509,840 units. Additionally, AFS’s stock price closed at $24.06 as at the end of trading on July 31, 2023, with a corresponding P/E of 21.94 times.

Balance Sheet Highlights:

As at March 31, 2023, the company’s assets totaled $6.29 billion, up 13% from $5.56 billion in 2022. This increase was largely attributable to ‘Loans & Advances’ and ‘Cash and Cash Equivalents’ which amounted to approximately $4.75 billion, 9% more than the $4.36 billion recorded in 2022 and $666.74 million, 89% greater than the $351.88 million booked in 2022, respectively.

Shareholder’s equity as at March 31, 2023 stood at $2.66 billion (2022: $2.54 billion) resulting in book value per share of approximately $9.68 (2022: $9.25).

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