Date: April 1, 2019
ISP Finance Services Limited (ISP), audited results for the year ended December 31, 2018 reported total interest income amounted to $306.57 million compared to $288.74 million in 2017, an increase of 6%. For the quarter, total interest income amounted to $92.70 million (2017: $78.49 million). Total income is broken down as follows:
• Interest income from loans grew 7% to total $306.19 million relative to $287.27 million in the same period of 2017.
• Interest income receivables went down 74%, amounting to $380,677 (2017: $1.47 million).
Interest expense totaled $24.58 million relative to $24.45 million in 2017; this represents a 1% rise. As a result, net interest income grew by 7% to total $281.99 million (2017: $264.29 million). Net interest income for the quarter amounted to $85.15 million (2017: $72.23 million).
Commission expense went up 4% to $3.40 million (2017: $3.26 million), while service fees of $1.85 million were reported (2017: nil). In addition, foreign exchange gain totaled $523,116 in 2018, compared to $934,543 in the prior year.
As such, gross profit amounted to $281.10 million in 2018, 7% rise relative to that of $261.95 million. However for the quarter, gross profit climbed 22% to $84.40 million (2017: $71.05 million).
The company’s total operating expense amounted to $234.94 million, up 11% from $211.97 million in 2017, while for the quarter operating expense closed at $64.70 million (2017: $51.74 million). The expenses for the period are broken down as follows:
• Staff costs amounted to $114.11 million (2017: $104.97 million).
• Allowance for credit loss totaled $35.76 million (2017: $23.30 million).
• Depreciation was $5.41 million (2017: $5.33 million).
• Other operating expenses amounted to $79.67 million (2017: $78.37 million).
Profit before taxes totaled $46.15 million (2017: $49.98 million), following taxes of $2.53 million versus tax credit of $12,018 in 2017.
Consequently, net profit for the period amounted to $43.63 million relative $49.99 million in 2017, a 13% decrease. Net profit for the quarter amounted to $17.24 million (2017: $19.36 million).
As a result, EPS for the period closed at $0.42 (2017: $0.48). The EPS for the quarter was $0.16 (2017: $0.18). The number of shares used in our calculations is 105,000,000 units. Notably, ISP closed the trading period on March 29, 2019 at a price of $ 15.50.
Balance Sheet Highlights:
As at December 31, 2018, ISP reported total assets of $612.54 million, a 21% increase when compared to $507.69 million in the prior year. ‘Property, Plant and Equipment’ and ‘Loans net of provisions for credit losses’ contributed to this increase closing the period at $25.51 million (2017: $18.07 million) and $551.10 million (2017: $437.51 million), respectively.
Shareholders’ Equity as at December 31, 2018 was $320.39 million compared to a $286.27 million in 2017. This resulted in a book value per share of $3.05 compared to $2.73 the prior year.
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.