May 1, 2024
ISP Finance Services Limited (ISP)
Audited financials for the twelve months ended December 31, 2023:
ISP Finance Services Limited (ISP) for the twelve months ended December 31, 2023, reported a 20% increase in Total Interest Income totalling $519.25 million compared to $432.46 million in the corresponding period last year. Total Interest Income for the fourth quarter had a 43% increase to close at $151.29 million compared to $105.91 million for the comparable quarter of 2022.
Interest Expense amounted to $60.48 million (2022: $37.05 million), this represents an increase of 63% year over year. Consequently, net interest income increased by 16% to $458.76 million compared to $395.41 million for the twelve months ended December 31, 2022. The company booked net interest income of $136.85 million for the fourth quarter versus $89.91 million reported for the similar quarter of 2022.
Commission Expenses on loans increased by 42% from $16.22 million in 2022 to $23.03 million in the period under review.
Gross Profit increased by 15% to close at $435.74 million (2022: $379.20 million). For the quarter, Gross profit totalled $131.73 million (2022: $85.02 million).
Allowance for Credit Loss for the twelve months ended December 31, 2023, amounted to $128.80 million, a 38% increase relative to $93.00 million reported in 2022, while Other operating expenses totalled $126.91 million a 13% increase from the corresponding period last year. (2022: $111.85 million). As a result, Total operating expenses for the twelve months ended December 31, 2023, amounted to $368.72 million, a 12% increase relative to $328.26 million reported in 2022.
Profit Before Taxation for the twelve months ended December 31, 2023, amounted to $75.85 million, a 17% increase relative to $65.02 million reported in 2022. Profit Before Taxation for the fourth quarter amounted to $36.38 million (2022: $10.52 million).
Taxation for the twelve months ended December 31, 2023, had a 19% increase to reach $9.23 million (2022: $7.78 million). As such, Net Profit for the twelve months amounted to $66.62 million, a 16% increase from the $57.24 million reported in 2022. For the fourth quarter, Net Profit was $33.21 million (2022: $9.55 million).
Consequently, Earnings Per Share for the twelve months amounted to $0.63 (2022: EPS: $0.55), while Earnings Per Share for the quarter totalled $0.32 (2022: EPS: $0.09). The number of shares used in these calculations was 105,000,000.
Notably, ISP’s stock price closed the trading period on April 30, 2024, at a price of $30.50 with a corresponding P/E ratio of 48.07x.
Balance Sheet Highlights
The company’s assets totalled $1.12 billion (2022: $1.06 billion). The movement in total assets was influenced by 35% uptick in ‘Loans, net of provisions for credit losses’ to $1.02 billion (2022: $760.62 million), while ‘Investments’ declined by 89% to offset the movement, closing at $25.00 million relative to $225.00 million last year.
Shareholder’s equity was $584.85 million (2022: $518.23 million), representing a book value per share of $5.57 (2022: $4.94).
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