Date: February 17, 2020
ISP Finance Services Limited’s (ISP) total interest income amounted to $367.06 million compared to $306.57 million in 2018, an increase of 20%. For the quarter, total interest income amounted to $91.22 million (2018: $92.81 million). Total income is broken down as follows:
Interest income from loans grew 20% to total $367.06 million relative to $306.19 million in the same period of 2018.
Interest income receivables went down 100%, amounting to $270 (2018: $381,000).
Interest expense totaled $37.73 million relative to $24.58 million in 2018; this represents a 53% increase. As a result, net interest income grew by 17% to total $329.34 million (2018: $281.99 million). Net interest income for the quarter amounted to $75.86 million (2018: $85.15 million).
Commission expense went down 20% to $2.72 million (2018: $3.40 million), while no service fees were reported (2018: $1.85 million). In addition, foreign exchange loss totaled $34,000 in 2019, compared to foreign exchange gain of $523,000 reported in the prior year.
As such, gross profit amounted to $326.61 million in 2019, 16% rise relative to that of $281.10 million. However for the quarter, gross profit declined 11% to $74.78 million (2018: $84.40 million).
The company’s total operating expenses amounted to $268.98 million, up 14% from $234.94 million in 2018, while for the quarter operating expense closed at $57.71 million (2018: $64.70 million). The expenses for the period are broken down as follows:
Staff costs amounted to $122.06 million (2018: $114.11 million).
Allowance for credit loss totaled $46.36 million (20178 $35.76 million).
Depreciation was $5.22 million (2018: $5.41 million).
Other operating expenses amounted to $95.35 million (2018: $79.67 million).
Profit before taxes totaled $57.62 million (2018: $46.15 million). No taxes were reported for the year (2018: $2.53 million). Consequently, net profit for the period amounted to $57.62 million relative to $43.63 million in 2018, a 32% increase. Net profit for the quarter amounted to $17.08 million (2018: $17.24 million).
Total comprehensive income for the period under review closed at $57.62 million (2018: $44.29 million). While for the quarter, total comprehensive income amounted to $17.08 million (2018: $17.91 million).
As a result, EPS for the period closed at $0.55 (2018: EPS $0.42). The EPS for the quarter was $0.16 (2018: $0.16). The number of shares used in our calculations is 105,000,000 units. Notably, ISP closed the trading period on February 14, 2020 at a price of $22.10.
ISP noted that, “the Company raised further financing from VM Wealth Management to pay out Sygnus Capital in October 2019.”
Balance Sheet Highlights:
As at December 31, 2019, ISP reported total assets of $703.66 million, a 15% increase when compared to $612.54 million in the prior year. ‘Deposits & Prepaid Expenses’ and ‘Loans net of provisions for credit losses’ contributed to this increase closing the period at $496,600 (2018: $395,000) and $643.62 million (2018: $551.10 million), respectively.
Shareholders’ Equity as at December 31, 2019 was $378.01 million compared to $320.39 million in 2018. This resulted in a book value per share of $3.60 compared to $3.05 the prior year.
Analyst Certification -This research report is for information purposes only and should not be construed as a recommendation. 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 affect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.