August 15, 2024
ISP Finance Services Limited (ISP) for the six months ended June 30, 2024, reported a 22% increase in Total Interest Income totaling $281.60 million compared to $230.36 million in the corresponding period last year. Total Interest Income for the second quarter had a 18% increase to close at $141.45 million compared to $119.45 million for the comparable quarter of 2023.
Interest Expense amounted to $30.74 million (2023: $30.68 million), this represents an increase of 0% year over year. Consequently, net interest income increased by 26% to $250.87 million compared to $199.68 million for the six months ended June 30, 2023. The company booked net interest income of $126.09 million for the second quarter versus $102.54 million reported for the similar quarter of 2023.
Commission Expense on loans decrease by 20% from $11.43 million in 2023 to $9.13 million in the period under review.
Gross Profit increased by 28% to close at $241.74 million (2023: $188.24 million).
Allowance for Credit Losses for the six months ended June 30, 2024, amounted to $84.06 million, a 52% increase relative to $55.35 million reported in 2023, while Other operating expenses totalled $56.63 million a 14% decrease from the corresponding period last year. (2023: $66.06 million). As a result, Total operating expenses for the six months ended June 30, 2024, amounted to $189.80 million, a 7% increase relative to $178.03 million reported in 2023.
Profit Before Taxation for the six months ended June 30, 2024, amounted to $51.60 million, a 315% increase relative to $12.42 million reported in 2023. Profit Before Taxation for the second quarter amounted to $25.51 million (2023: $5.53 million).
Taxation for the six months ended June 30, 2024, had a 454% increase to reach $8.60 million (2023: $1.55 million). As such, Net Profit for the six months amounted to $43.00 million, a 296% increase from the $10.87 million reported in 2023. For the second quarter, Net Profit was $21.26 million (2023: $4.84 million).
Consequently, Earnings Per Share for the six months amounted to $0.41 (2023: EPS: $0.10), while Earnings Per Share for the quarter totaled $0.20 (2023: EPS: $0.05). The twelve-month trailing EPS was $0.94 and the number of shares used in these calculations was 105,000,000.
Notably, ISP’s stock price closed the trading period on August 14, 2024, at a price of $22.99 with a corresponding P/E ratio of 24.44x.
Balance Sheet Highlights
The company’s assets totalled $1.18 billion (2023: $1.08 billion). The growth in total assets was primarily driven by $54.39 million uptick in ‘Cash & cash equivalents’ and a $38.16 million increase in the company’s loans portfolio.
Shareholder’s equity was $627.85 million (2023: $531.64 million), representing a book value per share of $5.98 (2023: $5.06).
Disclaimer:
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.