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).

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2019-05-31T16:19:26+00:00