November 14, 2023

ISP Finance Services Limited (ISP) for the nine months ended September 30, 2023 reported a 5% increase in Net Interest Income totaling $321.91 million compared to $305.51 million in the corresponding period last year. Net Interest Income for the third quarter had a 20% increase to close at $122.24 million compared to $102.05 million for the comparable quarter of 2022.

• Total interest income increased by 13% to $367.95 million compared to $326.55 million for the nine months ended September 30, 2022. The company booked total interest income of $137.60 million for the third quarter versus $108.77 million reported for the similar quarter of 2022.
• Interest Expense amounted to $46.04 million (2022: 21.05 million), this represents an increase of 119% year over year, driven primarily by the global and domestic increases in interest rates.

Commission Expense on loans increased by 58% from $11.33 million in 2022 to $17.90 million in the period under review.

Gross Profit to date increased by 3% to close at $304.01 million (2022: $294.18 million).

Allowance for Credit Loss for the nine months ended September 30, 2023, amounted to $83.74 million relative to $69.75 million reported in 2022, while Staff Costs fell 9% to $81.54 million (2022: $90.25 million). Also, other operating expenses totalled $97.02 million (2022: $82.96 million).

Total operating expenses for the nine months ended September 30, 2023 amounted to $266.75 million, a 7% increase relative to $248.36 million reported in 2022.

Profit Before Taxation for the nine months ended September 30, 2023, amounted to $39.47 million, a 28% decline relative to $54.49 million reported in 2022. Profit Before Taxation for the third quarter amounted to $27.05 million (2022: $26.52 million).

Taxation for the nine months ended September 30, 2023 amounted to $6.06 million (2022: $6.81 million).

Net profit for the nine months amounted to $33.41 million, a 30% fall from the $47.68 million reported in 2022. For the third quarter, net profit was $22.54 million (2022: $23.21 million).

ISP noted, “The company is excited to announce that in July 2023, it received a Micro Finance License from the Bank of Jamaica and as such is now an Accredited Mirco Finance Company”.

Consequently, Earnings Per Share for the nine months amounted to $0.32 (2022: EPS: $0.45), while Earnings Per Share for the quarter totaled $0.21 (2022: EPS: $0.22). The twelve-month trailing EPS was $0.41 and the number of shares used in these calculations was 105,000,000.

Notably, ISP’s stock price closed the trading period on November 13, 2023 at a price of $30.82 with a corresponding P/E ratio of 74.63x.

Balance Sheet Highlights

 The company’s assets totalled $1.11 billion (2022: $838.13 million). ‘Loans, net of provisions for credit losses’ grew 41% from $679.11 million in 2022 to $959.85 million in the period under review to boost the company’s total assets.

Shareholder’s equity was $554.18 million (2022: $510.82 million), representing a book value per share of $5.28 (2022: $4.86).

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