AFS reports 33% decline in year end net profits

Date: May 31, 2019

Access Financial Services Limited (AFS) for the year ended March 31, 2019 reported $1.41 billion in total interest income, a 4% decline relative to the $1.47 billion recorded in 2018. Of this, Interest Income from Loans amounted to $1.40 billion (2018: $1.46 billion) while Interest Income from Securities totalled $6.99 million (2018: $10.62 million).

Interest Expense charged for the period totalled $138.61 million, a 31% increase compared with the $105.57 million booked in 2018. This resulted in AFS booking a Net Interest Income of $1.27 billion for the period, 7% less than the $1.36 billion in 2018. For the quarter, net interest income totalled $114.66 million, a 72% decrease relative to the $409.70 million recorded in 2018.

Net Fees and Commission Income for the period under review amounted to $311.38 million, a 1% decline from the $314.09 million in 2018.

AFS booked a total of $1.58 billion for Net Trading Income, a 6% decline compared with the $1.68 billion in 2018. For the quarter, net trading income of $287.76 million was recorded (2018: $452.96 million).

AFS reported income from Money Services and Other Income of $29.66 million (2018: $1.44 million) and $44.74 million (2018: $26.31 million) respectively. Foreign Exchange posted a loss of $4.58 million relative to a loss of $1.31 million booked in 2018. As such Other Operating Income for the period totalled $69.82 compared with $29.07 million in 2018.
AFS reported Operating Expenses for the period of $1.07 billion (2018: $902.40 million). Of this:

  • Staff Costs totalled $491.17 million (2018: $382.08 million)
  • Allowance for Credit Losses amounted to $146.83 million (2018: $226.66 million)
  • Depreciation & Amortization amounted to $30.33 million (2018: 19.04 million).
  • Other Operating Expenses booked for the period totalled $402.84 million (2018:$ 274.63 million)

AFS reported a Profit before Taxation of $577.16 million for the period relative to $801.95 million recorded in 2018. Following a taxation amount of $100.31 million, AFS booked a Profit for the period of $476.85 million, a 33% decrease relative to the $716.03 million recorded for the comparable period in 2018. For the quarter, net loss amounted to $106.84 million, relative to a profit of $211.67 million recorded in 2018.

Total Comprehensive Income for the period amounted to $454.05 million (2018: $716.04 million)

Consequently, earnings per share for the period amounted to $1.74 (2018: 2.61), while loss per share for the quarter amounted to $0.39 relative to an earnings per share of $0.77 for 2018. The number of shares used in this calculation was 274,509,840 units. AFS’s stock price close the trading period on May 30, 2019 at $45.

Balance Sheet Highlights:

As at March 31, 2019, the company’s assets totalled $4.83 billion, up 37% from $3.52 billion in 2018. This increase was largely attributable to ‘Loans and Advances’ which amounted to approximately $3.74 billion, $803.24 million more than $2.93 billion in 2018.

Shareholder’s equity as at March 31, 2019 stood at $2.22 billion (2018: 2.30 billion) resulting in book value per share of approximately $8.09 (2017: $8.39).

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.