ISP reports 24% increase in net profits

Date: April 3, 2018

Kindly see audited results for ISP Finance Services Limited below:

ISP Finance Services Limited (ISP), for the year ended December 31, 2017 reported Total Interest Income of $288.74 million compared to $231.80 million in 2016, an increase of 25%. For the fourth quarter, Total Interest income amounted to $78.04 million (2016: $63.01 million). Total interest income is broken down as follows:

Interest Income from Loans grew by 25% to total $287.27 million relative to $230.59 million reported in the same period of 2016.

Interest Income Receivables was up by 21%, amounting to $1.47 million (2016: $1.21 million).

Interest Expense totaled $24.45 million relative to $24.27 million in 2016; this represents a 1% increase year over year. As a result, Net Interest Income grew by 27% to total $264.29 million (2016: $207.54 million).

Commission Expense grew by 26% to $3.26 million (2016: $2.59 million). Foreign Exchange Gain totaled $935,000 (2016: $6.77 million), a decline of 86%.

The company’s Total Operating Expense amounted to $211.97 million up 24% or $41.09 million in 2017. The expenses are broken down as follows:

Staff Costs amounted to $104.97 million (2016: $91.28 million)
Allowance for Credit Loss totalled $23.30 million (2016: $10.35 million)
Depreciation was $5.33 million (2016: $4.45 million)
Other Operating Expenses amounted to $78.37million (2016: $64.81 million)

Consequently, profit before taxation amounted to $49.98 million, 15% above last year’s $43.39 million. Following tax credit of $12,018 (2016: $3.15 million), net profit for the period amounted to $49.99 million relative to a profit of $40.24 million in 2016, a 24% increase. Net profit booked for the fourth quarter amounted to $19.39 million relative to $17.78 million in 2016.

Total comprehensive income for the year rose to $52.25 million compared to $50.05 million posted for 2016.

As a result, EPS for the period closed at $0.48 (2016: EPS $0.38). The EPS for the quarter was $0.18 (2016: $0.17). The number of shares used in our calculations is 105,000,000 units. The company’s stock price closed the trading period on March 29, 2018 at a price of $15.00.

Balance Sheet Highlights:

A at December 31, 2017, ISP reported total assets of $507.69 million, a 10% increase when compared to $461.11 million in the prior year. Loans, net of provisions for credit losses and Other Receivables contributed to the overall growth in ISP’s asset base. This as Loans, net of provisions for credit losses increased $124.24 million to $437.51 million (2016: $313.27 million), while Other Receivables rose 39% to $10.96 million (2016: $7.91 million).

Shareholders’ Equity as at December 31, 2017 was $286.27 million compared to a $234.02 million in 2016. This resulted in a book value per share of $2.73 compared to $2.23 the prior.

 

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.

2018-04-03T17:54:23-05:00