ISP reports 5% increase in six months net profit

Date: August 15, 2018

ISP Finance Services Limited’s (ISP), Results for the six months ended June 30, 2018, Total Interest Income amounted to $144.13 million compared to $135.79 million in 2017, an increase of 6%. For the quarter, Total Interest income amounted to $73.67 million (2017: $70.26 million). Year to date Total Interest Income is broken down as follows:

• Interest Income from Loans grew by 7% to total $143.96 million relative to $134.19 million reported in the same period of 2017.
• Interest Income Receivables drastically went down by 89%, amounting to $174,296 million (2017: $1.60 million).

Interest Expense totaled $11.22 million relative to $12.31 million in 2017; this represents a 9% decrease. As a result, Net Interest Income grew by 8% to total $132.91 million (2017: $123.48 million). For the second quarter interest expense fell by 6% to close the period at $5.59 million (2017:$5.98 million).

Commission Expense dipped by 18% to $1.42 million (2017: $1.74 million). Foreign Exchange Gain totaled $70,206 (2017: $1.64 million). Service fees amounted $1.75 million relative to nil for the prior year. As a result gross profit increased to $133.31 million (2017: $123.32 million), while for the gross profit for the quarter went up by 9% or $5.52 million to $69.30 million (2017: $63.75 million).

The company’s Total Operating Expense amounted to $113.78 million down from $104.65 million in 2017. The expenses are broken down as follows:

•Staff Costs amounted to $56.43 million (2017: $53.76 million)
• Allowance for Credit Loss totalled $14.94 (2017: $7.63 million)
• Depreciation was $2.93 million (2017: $2.81 million)
• Other Operating Expenses amounted to $39.48 million (2017: $40.45 million)

Consequently, Net Profit for the period amounted to $19.53 million relative to a profit of $18.64 million in 2017, a 5% increase year over year. However, net profit for the quarter had a marginal decline of 0.2% amounting to $10.37 million (2017: $10.39 million).

As a result, EPS for the period closed at $0.19 (2017: $0.18). The EPS for the quarter was $0.0988 (2017: $0.0990). The 12-month trailing EPS is $0.48 and the number of shares used in our calculations is 105,000,000 units. ISP’s stock last traded on August 15, 2017 at $16.00.

Balance Sheet Highlights:

As at June 30, 2018 ISP reported total assets of $527.79 million, a 11% uptick when compared to $475.07 million in the prior year. This was attributed to the increase of the company’s Loans, net of provisions for credit losses which closed at $475.28 million, up $119.16 million. However, this was offset by a reduction in Cash & Cash Equivalents that ended the period at $4.51 million (2017: $82.72 million).

Shareholders’ Equity as at June 30, 2018 was $305.80 million compared to a $252.66 million in 2017. This resulted in a book value per share of $2.91 compared to $2.41 the prior year.

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