July 30, 2021
Access Financial Services Limited (AFS) for the three months ended June 30, 2021, reported $389.24 million in total interest income, a 3% increase relative to the $376.70 million recorded in 2020. Of this, Interest Income from Loans amounted to $388.94 million (2020: $374.37 million), while Interest Income from Securities totalled $304,000 (2020: $2.34 million).
Interest Expense for the period totalled $55.88 million, a 20% decrease compared to the $70.20 million booked in 2020. This resulted in AFS booking a Net Interest Income of $333.36 million for the period, 9% greater than the $306.51 million booked in 2020.
Net Fees and Commission Income for the period under review amounted to $90.05 million, 13% drop from the $104.03 million in 2020. As a result, AFS booked a total of $423.41 million for Net Trading Income, a 3% increase from the $410.53 million booked for the comparable period in 2020.
AFS reported income from Money services fees and commission of $247,000 (2020: $110,000) and from other income of $37.13 million (2020: $27.10 million). Foreign Exchange income of $2.97 million was reported relative to a loss of $7.44 million booked same time last year. As such, other operating income for the period totalled $40.34 million compared with $19.76 million recorded in 2020.
AFS reported Operating Expenses for the period of $351.84 million (2020: $381.18 million). Of this:
- Staff Costs totalled $175.77 million (2020: $168.41 million)
- Allowance for Credit Losses amounted to $60.42 million (2020: $66.99 million).
- Depreciation & Amortization amounted to $30.46 million (2020: $26.25 million)
- Marketing Expenses totalled $7.63 million (2020: $10.26 million)
- Other Operating Expenses booked for the period totalled $77.57 million (2020: $109.27 million).
AFS reported Profit before Taxation of $111.91 million for the period relative to $49.12 million recorded in 2020. Following a taxation amount of $22.55 million (2020: $16.11 million), AFS booked a Profit for the period of $89.36 million, a 171% increase relative to the $33.01 million recorded for the comparable period in 2020.
However, total comprehensive income increased 53% to 107.10 million from $69.82 million booked same time last year.
Consequently, earnings per share for the period amounted to $0.33 (2020: 0.12). The trailing twelve months earnings per share amounted to $1.17. The total number of shares used in the calculations amounted to 274,509,840 units. Additionally, AFS’s stock price closed at $20.64 as at the end of trading on July 29, 2021, with a corresponding P/E of 17.59 times.
AFS stated, “these results reflect an improvement in the operating environment as economic activity continue to increase following the relaxation of the COVID-19 containment measures.”
Balance Sheet Highlights:
As at June 30, 2021, the company’s assets totalled $5.37 billion, down 7% from $5.79 billion in 2020. This decrease was largely attributable to ‘Cash and Cash Equivalents’ which amounted to approximately $354.41 million 59% less than $857.52 million in 2020.
Shareholder’s equity as at June 30, 2021 stood at $2.56 billion (2020: $2.24 billion) resulting in book value per share of approximately $9.32 (2020: $8.16).
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 affect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.