February 15, 2022

ISP Finance Services Limited’s (ISP) total interest income grew by 16 % to $433.78 million compared to $372.67 million in 2020. For the quarter, total interest income amounted to $115.42 million (2020: $106.49 million). Of this:

• Interest income from loans increased by 18% to total $433.78 million relative to $369.11 million reported in the same period of 2020.
• Interest income receivables fell to $594,000 (2020: $3.57 million).

Interest expense amounted to $29.89 million (2020: $29.58 million). Net interest income however rose by 18% to $403.89 million (2020: $343.09 million). Net interest income for the quarter amounted to $108.65 million (2020: $99.13 million).

Commission expense on loans rose to $10.09 million (2020: $6.29 million). In addition, Foreign Exchange Loss totaled $561,606 in 2021 compared to $71,347 in the prior year. ISP had Other Income on the books worth $53,278 (2020: $984,000). Total Service Fees for the year was $138,000 (2020: nil).

Operating income for the year amounted to $393.15 million, a 16% increase versus $337.71 million achieved the year before. For the fourth quarter operating income increased by 3% to $103.49 million (2020: $100.63 million).

The company incurred Total Operating Expenses worth $333.41 million, up 23% from $271.60 million in 2020. Similarly for the quarter, operating expenses rose by 29% to amount to $102.83 million (2020: $79.95 million)

• Staff Costs amounted to $97.83 million (2020: $99.32 million).
• Allowance for Credit Loss totaled $115.91 million (2020: $66.22 million).
• Depreciation was $7.75 million (2020: $5.31 million).
• Other Operating Expenses amounted to $111.90 million (2020: $100.73 million).

Profit before taxes totaled $59.74 million (2020: $66.11 million) following a tax incurred for the period under review of $5.87 million (2020: 720,871), as such net profit for the period amounted to $53.87 million relative to a profit of $65.39 million in 2020, an 18% decrease. Net profit for the quarter stood at $584,479 (2020: $20.68 million).

As a result, EPS for the period closed at $0.51 (2020: EPS $0.62). The EPS for the quarter was $0.01 (2020: $0.20). The twelve months trailing EPS is $0.51, and the number of shares used in our calculations is 105,000,000 units. Notably, ISP closed the trading period on February 14, 2022 at a price of $36.30 with a corresponding P/E of 70.75 times.

Balance Sheet Highlights:

As at December 31, 2021, ISP reported total assets of $772.42 million, a 3% increase when compared to $748.43 million in the prior year. The increase was attributed to an 137% increase in ‘Other Receivables’ which grew to $27.10 million (2020: $11.43 million) and a $15.83 million increase in ‘Loans, net of provisions for credit loss’ which grew to $690.96 million (2020: $675.12 million).

Shareholders’ Equity as at December 31, 2021 was $462.60 million compared to a $408.72 million in 2020. This resulted in a book value per share of $4.01 compared to $3.37 the prior year.

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