August 15, 2023
ISP Finance Services Limited (ISP) for the six months ended June 30, 2023 reported a 2% decrease in Net Interest Income totaling $199.68 million compared to $203.46 million in the corresponding period last year. Net Interest Income for the Second quarter had a 3% decrease to close at $102.54 million compared to $106.03 million for the comparable quarter of 2022.
Interest Expense amounted to $30.68 million (2022: $14.32 million), this represents a increase of 114% year over year. Consequently, total interest income increased by 6% to $230.36 million compared to $217.78 million for the six months ended June 30, 2022. The company booked total interest income of $119.45 million for the second quarter versus $113.23 million reported for the similar quarter of 2022.
Gross Profit decreased by 4% to close at $188.24 million (2022: $195.48 million), while Commission Expense on loans increased by 43% from $7.97 million in 2022 to $11.43 million in the period under review. As a result, total operating expenses for the six months ended June 30, 2023 amounted to $178.03 million, a 6% increase relative to $167.53 million reported in 2022.
Allowance for Credit Loss for the six months ended June 30, 2023, amounted to $55.35 million, a 19% increase relative to $46.50 million reported in 2022. Allowance for Credit Loss for the second quarter amounted to $27.25 million (2022: $22.50 million). Other operating expenses totalled $66.06 million, an 18% increase from the corresponding period last year (2022: $55.95 million).
Profit Before Taxation for the six months ended June 30, 2023, amounted to $12.42 million, a 56% decrease relative to $27.97 million reported in 2022. Profit Before Taxation for the second quarter amounted to $5.53 million (2022: $17.74 million).
Taxation for the six months ended June 30, 2023 had a 56% decrease to reach $1.55 million (2022: $3.50 million) . Net Profit for the six months amounted to $10.87 million, a 56% decrease from the $24.47 million reported in 2022. For the second quarter, Net Profit was $4.84 million (2022: $15.52 million).
Consequently, Earnings Per Share for the six months amounted to $0.10 (2022: EPS: $0.23), while Earnings Per Share for the quarter totaled $0.05 (2022: EPS: $0.15). The twelve month trailing EPS was $0.42 and the number of shares used in these calculations was 105,000,000.
Notably, ISP’s stock price closed the trading period on August 14, 2023 at a price of $21.23 with a corresponding P/E ratio of 50.63x.
Balance Sheet Highlights
The company’s assets totalled $1.08 billion (2022: $810.24 million). The increase was as a result of ‘Loans net of provisions for credit losses’ which closed at $959.44 million (2022: $681.30 million).
Shareholder’s equity was $531.64 million (2022: $487.61 million), representing a book value per share of $5.06 (2022: $4.64).
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