June 27, 2022

Access Financial Services Limited (AFS) for year ended March 31, 2022, reported $1.64 billion in total interest income, an 8% increase relative to the $1.53 billion recorded in 2021. Of this, Interest Income from Loans amounted to $1.64 billion (2021: $1.52 billion), while Interest Income from Securities totaled $4.33 million (2021: $6.01 million). Total Interest Income for the quarter amounted to $422.17 million, 8% higher than the $390.67 million recorded during the same period in 2021.

Interest Expense for the period totaled $219.62 million, a 14% decrease compared to the $256.83 million booked in 2021. This resulted in AFS recording a Net Interest Income of $1.42 billion for the period, 12% greater than the $1.27 billion booked in 2021. Interest expense for fourth quarter was $49.45 million (2021: $60.96 million).

Net Fees and Commission Income for the period under review amounted to $416.84 million; a marginal 1% increase from the $412.55 million in 2021.  For the quarter, Net Fee & Commission Income amounted to $112.85 million, 23% greater than in 2021 ($91.70 million ).

Net Trading Income increased by 9% to $1.84 billion (2021: $1.68 billion) with $485.57 million booked in the fourth quarter of 2022 (2021: $421.42 million).

AFS reported income from Money Services fees of $1.20 million (2021: $935,000) and other income of $141.63 million (2021: $149.32 million). Foreign Exchange loss of $4.65 million was reported this period relative to a loss of $12.85 million booked same time last year. As such, Other Operating Income for the period totaled $138.18 million compared to $137.41 million recorded in 2021.

AFS reported Operating Expenses for the period of $1.41 billion (2021: $1.48 billion). Of this:

• Staff Costs totaled $690.36 million (2021: $670.51 million)
• Allowance for Credit Losses amounted to $144.69 million (2021: $294.99 million).
• Depreciation & Amortization amounted to $117.39 million (2021: $118.35 million)
• Other Operating Expenses booked for the period totaled $453.36 million (2021: $393.90 million).

AFS reported Profit before Taxation of $572.70 million for the period relative to $341.31 million recorded in 2021. For the fourth quarter of 2022, profit before taxation amounted to $208.76 million, 26% more than 2021’s $165.25 million.

AFS paid taxes amounting to $134.81 million (2021: $75.62 million), AFS booked a Net Profit for the period of $437.89 million, a 65% increase relative to the $265.69 million recorded for the comparable period in 2021. Net profit for the fourth quarter was $173.15 million (2021: $137.84 million). Total comprehensive income increased 45% to $497.73 million from $343.49 million booked the same time last year. AFS reported total comprehensive income for the fourth quarter of $272.20 million (2021: $138.84 million).

Earnings per share for the period amounted to $1.60 (2021: $0.97). EPS, for the fourth quarter, was calculated to be $0.63 (2021: $0.50). Total number of shares used in the calculations amounted to 274,509,840 units. Additionally, AFS’s stock price closed at $21.46 as at the end of trading on June 24, 2022 with a corresponding P/E of 13.45 times.

Balance Sheet Highlights:

As at March 31, 2022, the company’s assets totaled $5.68 billion, up 3% from $5.49 billion in 2021. This increase was largely attributable to ‘Loans & Advances’ which amounted to approximately $4.51 billion, 10% more than the $4.09 billion recorded in 2021.

Shareholder’s equity as at March 31, 2022 stood at $2.80 billion (2021: $2.45 billion) resulting in book value per share of approximately $10.19 (2021: $8.93).

Disclaimer:

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.