February 15, 2024
ISP Finance Services Limited (ISP) for the twelve months ended December 31, 2023, reported a 13% increase in Net Interest Income totalling $447.13 million compared to $394.68 million in the corresponding period last year. Net Interest Income for the fourth quarter had a 40% increase to close at $125.22 million compared to $89.17 million for the comparable quarter of 2022.
Interest Expense amounted to $60.05 million (2022: $36.41 million), this represents an increase of 65% year over year. Consequently, total interest income increased by 18% to $507.18 million compared to $431.09 million for the twelve months ended December 31, 2022. The company booked total interest income of $139.22 million for the fourth quarter versus $104.53 million reported for the similar quarter of 2022.
Commission Expense on loans increased by 43% from $16.22 million in 2022 to $23.15 million in the period under review. As such, Gross Profit increased by 12% to close at $423.99 million (2022: $378.46 million).
Allowance for Credit Loss for the twelve months ended December 31, 2023, amounted to $121.15 million, a 30% increase relative to $93.00 million reported in 2022. Other operating expenses totalled $130.16 million a 13% increase from the corresponding period last year. (2022: $115.35 million). As a result, Total operating expenses for the twelve months ended December 31, 2023, amounted to $360.66 million, a 10% increase relative to $326.56 million reported in 2022.
Profit Before Taxation for the twelve months ended December 31, 2023, amounted to $71.20 million, a 7% increase relative to $66.29 million reported in 2022. Profit Before Taxation for the fourth quarter amounted to $31.74 million (2022: $11.80 million).
Taxation for the twelve months ended December 31, 2023, had a 37% increase to reach $11.35 million (2022: $8.29 million).
Net Profit for the twelve months amounted to $59.86 million, a 3% increase from the $58.00 million reported in 2022. For the fourth quarter, Net Profit was $26.45 million (2022: $10.32 million).
Consequently, Earnings Per Share for the twelve months amounted to $0.57 (2022: EPS: $0.55), while Earnings Per Share for the quarter totalled $0.25 (2022: EPS: $0.10). The number of shares used in these calculations was 105,000,000.
Notably, ISP’s stock price closed the trading period on February 13, 2024, at a price of $26.96 with a corresponding P/E ratio of 47.29x.
Balance Sheet Highlights
The company’s assets totalled $1.13 billion (2022: $1.07 billion). The movement in total assets was attributable to “loans, net of provisions for credit losses” increasing 33% to $984.88 million (2022: $742.88 million), while “Cash & cash equivalents” declined 75% to $64.37 million (2022: $255.41 million).
Shareholder’s equity was $580.63 million (2022: $521.14 million), representing a book value per share of $5.53 (2022: $4.96).
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