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).

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