Date: February 14, 2019

ISP Finance Services Limited’s (ISP) total interest income amounted to $306.59 million compared to $288.74 million in 2017, an increase of 6%. For the quarter, total interest income amounted to $92.83 million (2017: $78.04 million). Total income is broken down as follows:

Interest income from loans grew 7% to total $306.21 million relative to $287.27 million in the same period of 2017.

Interest income receivables went down 74%, amounting to $380,678 (2017: $1.47 million).

Interest expense totaled $24.84 million relative to $24.45 million in 2017; this represents a 2% rise. As a result, net interest income grew by 7% to total $281.75 million (2017: $264.29 million). Net interest income for the quarter amounted to $84.91 million (2017: $72.23 million).

Commission expense went up 4% to $3.40 million (2017: $3.26 million), while service fees of $2.10 million were reported (2017: nil). In addition, foreign exchange gain totaled $213,183 in 2018, compared to $934,543 in the prior year.

As such, gross profit amounted to $280.72 million in 2018, 7% rise relative to that of $261.95 million. However for the quarter, gross profit climbed 22% to $84.03 million (2017: $71.05 million).

The company’s total operating expense amounted to $229.07 million, up 8% from $211.97 million in 2017, while for the quarter operating expense closed at $58.82 million (2017: $51.74 million). ISP highlighted that, “the Company strengthened its organizational and staff resources to satisfy the anticipated customer service demands. The newly established customer sales contact center is the focus as this will result in the development of new products and markets across several delivery channels.” The expenses for the period are broken down as follows:

Staff costs amounted to $114.11 million (2017: $104.97 million).

Allowance for credit loss totaled $29.95 million (2017: $23.30 million).

Depreciation was $5.41 million (2017: $5.33 million).

Other operating expenses amounted to $79.61 million (2017: $78.37 million).

Profit before taxes totaled $51.65 million (2017: $49.98 million) following taxes of $60,831 (2017: $12,018).

Consequently, net profit for the period amounted to $51.59 million relative $49.99 million in 2017, a 3% increase. Net profit for the quarter amounted to $25.21 million (2017: $19.36 million).

ISP mentioned that, “during the reporting period ISP raised $75 million through the issuance of a three (3) year Secured Note in the local private debt market in support of new business opportunities.”

As a result, EPS for the period closed at $0.49 (2017: EPS $0.48). The EPS for the quarter was $0.24 (2017: $0.18). The number of shares used in our calculations is 105,000,000 units. Notably, ISP closed the trading period on February 14, 2019 at a price of $12.03.

Balance Sheet Highlights:

As at December 31, 2018, ISP reported total assets of $629.79 million, a 24% increase when compared to $507.69 million in the prior year. ‘Property, Plant and Equipment’ and ‘Loans net of provisions for credit losses’ contributed to this increase closing the period at $25.51 million (2017: $18.07 million) and $567 million (2017: $437.51 million), respectively.

Shareholders’ Equity as at December 31, 2018 was $338.53 million compared to a $286.27 million in 2017. This resulted in a book value per share of $3.22 compared to $2.73 the prior year.

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