February 17, 2025

ISP Finance Services Limited(ISP)

Unaudited financials for the twelve months ended December 31, 2024:

ISP Finance Services Limited (ISP), for the twelve months ended December 31, 2024, reported a 1% decrease in Total Interest Income totaling $513.92 million compared to $519.25 million in the corresponding period last year. Total Interest Income for the fourth quarter had an 18% decrease to close at $113.87 million compared to $139.22 million for the comparable quarter of 2023.

Interest Expense amounted to $61.03 million (2023: $60.48 million); this represents an increase of 1% year over year. Consequently, net interest income decreased by 1% to $452.88 million compared to $458.76 million for the twelve months ending December 31, 2023. The company booked a net interest income of $99.43 million for the fourth quarter versus $125.22 million reported for the similar quarter of 2023.

Gross Profit increase remained stable over the period, closing at $435.75 million (2023: $435.74 million), while Commission Expense on loans decreased by 26% from $23.03 million in 2023 to $17.13 million in the period under review. As a result, total operating expenses for the twelve months ended December 31, 2024, amounted to $372.73 million, a 1% increase relative to $368.72 million reported in 2023.

Allowance for Credit Loss for the twelve months ended December 31, 2024, amounted to $171.26 million, a 33% increase relative to $128.80 million reported in 2023. Allowance for Credit Loss for the fourth quarter amounted to $51.13 million (2023: $37.42 million). Other operating expenses totaled $105.66 million, a 17% decrease from last year’s corresponding period. (2023: $126.91 million).

Profit Before Taxation for the twelve months ended December 31, 2024, amounted to $67.79 million, an 11% decrease relative to $75.85 million reported in 2023. Profit Before Taxation for the fourth quarter amounted to $1.54 million (2023: $31.74 million).

Taxation for the twelve months ending December 31, 2024, had a 22% increase to $11.30 million (2023: $9.23 million). Net Profit for the twelve months amounted to $56.49 million, a 15% decrease from the $66.62 million reported in 2023. For the fourth quarter, Net Profit was $1.28 million (2023: $26.45 million).

Consequently, Earnings Per Share for the twelve months amounted to $0.54 (2023: EPS: $0.63), while Earnings Per Share for the quarter totaled $0.01 (2023: EPS: $0.25). The number of shares used in these calculations was 105,000,000.

Notably, ISP’s stock closed the trading period on February 17, 2025, at $20.00, with a corresponding P/E ratio of 37.17x.

Balance Sheet Highlights

The company’s assets totaled $1.27 billion (2023: $1.13 billion). This growth is primarily driven by a 477% year-over-year (YoY) increase in Other Receivables, which ended the year at $37.81 million (compared to $6.56 million in 2023), a 37% YoY rise in Property, Plant, and Equipment, totaling $22.96 million (up from $16.82 million in 2023), a 7% YoY increase in Loans, net of provisions for credit losses, ending the year at $1.09 billion (up from $1.02 billion in 2023), and a 97% increase in Cash and Cash Equivalents, which amounted to $84.23 million (up from $42.84 million in 2023).

Shareholder’s equity was $641.34 million (2023: $584.85 million), representing a book value per share of $6.11 (2023: $5.57).

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