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).
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