August 20, 2025
ISP Finance Services Limited(ISP)
Unaudited financials for the six months ended June 30, 2025:
ISP Finance Services Limited (ISP) for the six months ended June 30, 2025, reported a 32% decrease in Total Interest Income totaling $191.30 million compared to $281.60 million in the corresponding period last year. Total Interest Income for the second quarter had a 35% decrease to close at $92.10 million compared to $141.45 million for the comparable quarter of 2024.
Interest Expense amounted to $25.07 million (2024: $ 30.74 million), representing an 18% year-over-year decrease. Consequently, net interest income decreased by 34% to $166.24 million compared to $250.87 million for the six months ended June 30, 2024. The company booked net interest income of $79.56 million for the second quarter, versus $126.09 million reported for the similar quarter of 2024.
Gross Profit decreased by 34% to close at $159.82 million (2024: $241.74 million), while Commission Expense on loans decreased by 30% from $9.13 million in 2024 to $6.42 million in the period under review. This strategic cost control, along with other measures, resulted in total operating expenses for the six months ended June 30, 2025, amounting to $159.22 million, a 16% decrease relative to $189.80 million reported in 2024.
Allowance for Credit Loss for the six months ended June 30, 2025, amounted to $57.20 million, a 32% decrease relative to $84.06 million reported in 2024. Allowance for Credit Loss for the second quarter amounted to $30.49 million (2024: $43.53 million). Other operating expenses totalled $53.22 million, a 6% decrease from the corresponding period last year. (2024: $56.63 million).
Profit Before Taxation for the six months ended June 30, 2025, amounted to $23.17 million, a 55% decrease relative to $51.60 million reported in 2024. Profit Before Taxation for the second quarter amounted to $5.89 million (2024: $25.51 million).
Taxation for the six months ended June 30, 2025, had a 55% decrease to reach $3.86 million (2024: $8.60 million). Net Profit for the six months amounted to $19.31 million, a 55% decrease from the $43.00 million reported in 2024. For the second quarter, Net Profit was $4.91 million (2024: $21.26 million).
“ISP Finance’s net profit decline was primarily caused by a sharp contraction in interest income from loans, reducing core revenues. However, the company’s resilience was evident as management-controlled costs (credit loss provisions, staff, and other operating expenses) and benefited from other income inflows. These savings and boosts, while not enough to offset the deterioration in lending activity, demonstrate the company’s ability to weather challenging financial conditions. The business model’s dependence on loan interest income exposed it to significant earnings pressure, resulting in a fall in bottom-line profitability.”
Consequently, Earnings Per Share for the six months amounted to $0.18 (2024: EPS: $0.41), while Earnings Per Share for the quarter totalled $0.05 (2024: EPS: $0.20). The twelve-month trailing EPS was $0.31, and the number of shares used in these calculations was 105,000,000.
Notably, ISP’s stock price closed the trading period on August 20, 2025, at a price of $18.00 with a corresponding P/E ratio of 59.01x.
Balance Sheet Highlights
The company’s assets totalled $1.25 billion (2024: $1.18 billion). The total increase in the company’s asset base is driven by a 24% YoY increase in “Property, Plant and Equipment” ending the quarter at $23.24 million (2024: $18.68 million) and a 9% YoY increase in “Loans- Net of Provisions for Credit Losses” ending the quarter at $1.09 billion (2024: $997.60 million).
Shareholders’ equity was $659.88 million (2024: $627.85 million), representing a book value per share of $6.28 (2024: $5.98).
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